Tips For Your New Cannabis Business
California’s cannabis industry has continued to grow since legalization, at a rate of just under 20% every year. It’s expected to be worth $5.6 billion by the end of this year alone.
This type of growth can fool new business owners into thinking it’s easy money. In some ways, that’s certainly true, in that demand is present and can be relied upon.
But that doesn’t mean there aren’t obstacles you should be aware of and ways that you can promote success for your cannabis startup…
10 Tips To Help Your Cannabis Startup
- Partner With The Right IT Company. IT isn’t something you want to have to worry about. Whether it’s your point-of-sale system, your video surveillance, your digital inventory software, or whatever else, you just need it to work. Outsource those concerns to a reliable IT company like Veo Verde.
- Know Why Your Business Should Exist. It’s not enough to just have a license. You need to have a differentiator if you want to succeed against the competition.
- Don’t Drink Your Own Kool-Aid. It doesn’t matter if your friends love your product or your pitch. What matters is what investors think, and how you can perform in a commercial proving ground. Maintain a healthy skepticism about what you offer.
- Don’t Compare Yourself To Your Competitors’ Value. Don’t let rumors and gossip overinflate your idea of your startup’s worth. It’s not constructive to let your competitor’s supposed valuation influence what you think yours should be.
- The Simpler, The Better. Don’t let creativity or a need to “disrupt” muddy up your pitch or your plan. Do something well, and be straightforward about it.
- Don’t Let Too Many Cooks In The Kitchen. Make sure to size your board and oversight appropriately to the size of your operation. To start, you probably don’t need a dozen advisors, right? They should be few and valuable, doing their part to earn shares.
- Take The Money. Don’t let an offer of money fool you into thinking you can hold out and get more. Interest is fickle, and disappears faster than you may think. If someone makes an offer, accept the dilution and proceed.
- Say No To Bad Money. At the same time, it’s not worth accepting money from investors that make a poor first impression. Whether they’re explaining your business to you in your first meeting, or are overly interested in the timing of your liquidity event, just move on to someone else.
- Don’t Put Your Trust In Regulatory Change. Future proof your business against any possible regulatory changes – the more you do so, the better. You can’t expect them to work in your favor, or to prop up your business model.
- Invest In Your Employees. Make up for what you can’t pay your employees with the stake you can give them in the startup. The more invested they are, the more enthusiastically they’ll take part in the business.