Cannabis Entrepreneurs: What to do and what not to do

July 9, 2017
Posted in Business
July 9, 2017 Chelsey Moter

Recent study reports show that cannabis is already a big business and has the potential to become even bigger in some years to come. With that being said, there’s no doubt that several entrepreneurs are just waiting to break in to the industry and contribute to the movement.  While it may seem fairly easy to jump right in, there are a few things you should do and and few things you should avoid.

DO become a well-rounded enthusiast

One of the biggest challenges with cannabis entrepreneurs is the knowledge gap between the people on the ground and the marketing guys. What most people don’t realize, especially entrepreneurs in the industry, is that communication between producers and marketers is very important.

Having a great product and the knowledge behind it is one thing but getting it into storefronts and in the hands of consumers is a whole another story. To thrive in the cannabis industry, you need to be someone who is able to balance their technical abilities, communication skills and creative marketing mind.

DO get to know the logistics

Growing and selling marijuana can be quite daunting even if you don’t touch the plant. Getting into the cannabis industry without the right logistics in mind can be catastrophic. You need to market your brand properly and you need to identify the suppliers as well as your client base. Researching and doing your homework is key. Try crafting a compelling marketing survey in order to identify what your customers needs are. This can point you in the right direction in terms of developing your business and making it a successful one.

DO build a client base and keep them

Well, this is much easier said than done right? Cannabis like any other product is a competitive business. Companies are competing day in and day out for customers in the market. In order to have your company take up the high tier above all the rest, you need to continuously increase your clients and find a way to keep them coming back. You need to know what your clients needs are and give them what they want. So, try to gain insights and identify what they’re interested in and base part of your marketing strategy on that.

DO build a Boutique Brand

With so much money in the marijuana industry, and most of it untapped, it can be pretty hard for an independent supplier to stand out. To make the big bucks in the cannabis industry comes down to marketing and loyalty. Cannabis strains may vary but not so much when it comes to flavoring. This means that there is no big difference in terms of product with big companies and an independent supplier.

The main difference comes in branding. Big Companies tend to be more trusted for their packaging than an independent supplier who may sell cannabis in a paper. Therefore, for any newbie that has the intention of making a debut in the cannabis industry must have an effective cannabis marketing strategy that can help build a brand with greater clientele that people can trust, identify with and be loyal to. In the end, if you’ve got a good product, find a way of getting it into consumers hands and make them come back for more.

DO target your cannabis marketing

To build a strong and successful marijuana-related business, a cannabis marketing agency can prove invaluable. This can be a great tool because a team majorly focuses on the needs of your client’s which in return increases traffic as well boosting conversions and therefore boosting sales.

DON’T rely on Past Experiences

A number of people have been growing cannabis for over 20 years and while they may be very knowledgeable in terms of growing the plant, chances are when it comes to financials, government regulations and everything that deals with the exchange, people have no clue how a lot of things work. To that end, entrepreneurs are advised to be up to date on the current rules and marketing standards of cannabis. Don’t rely on past experiences of other entrepreneurs, just keep yourself updated on the latest news, laws and industry trends.

DON’T market your Cannabis Business to or Near Minors

This goes without saying, it is illegal for minors to get a hold of cannabis unless it is for medical purposes which are very rare. Therefore, be smart about your branding and advertising location and keep age restrictions in mind. Messages that appeal to minors may gravely hurt your own business image. So, it’s important you build yourself the right way and to the right age group of people.

DON’T encroach on any existing Brands copyrights, regardless of the industry

Established companies may not be keen on having their brand trademark being mirrored by a cannabis company. However, there have been instances in the past where mainstream companies sue other companies for infringing on their trademark. To avoid such a situation, it is paramount you build your own trademark that people can identify only you with. Be creative and original, ideas are endless.

So, there you have it – the basic do’s and don’t’s when it comes to cannabis marketing. Of course, there are many other important facts but these are just a few we thought were important. Like any entrepreneur in the cannabis industry, it’s all about taking risks, making mistakes and learning from them the whole way. Taking these tips into consideration will help you appear more professional which in the end, will achieve greater success.

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