DETROIT – Before you launch your startup company, you should first get ideas of how the cannabis market landscape looks like. Things like, what are the main risks? What is the profit potential? And who will be your closest competitor? Given the short history of the cannabis industry, no entrepreneur can entirely know how it will unveil or how a startup will fare. However, you first need to consider the demand within the area you intend to start your business.
As more states change their laws to legalize marijuana, the industry presents a potential for entrepreneurs. Here are some of the things you need to do to ensure your marijuana business succeeds.
- Differentiate Your Brand from the Rest
Business identity is one of the most critical aspects of building successful brands in any industry. To differentiate your brand from competitors, start by conveying the uniqueness of your products. The picture that you portray to potential customers is what determines your success in the industry. Keep in mind that you cannot make exaggerated medical claims about cannabis products to differentiate your brand.
For this reason, be more creative and pitch your brand in a way that would attract you as a customer. Remember not to make false claims while at it; it could lead you to legal problems.
- Market Your Business through Influencers
To build a successful cannabis business, you have to utilize all avenues to market your brand and products. Marketing products on digital social platforms has its pros and cons. However, in the case of cannabis and related products, such platforms do not allow pay promotions.
As an entrepreneur, you can circumvent the restrictions by working with influencers on those platforms. Influencers enjoy massive following that span across different demographic areas. That makes their platforms more attractive and can boost your business market penetration.
- Comply with Laws and Regulation
In recent years some cannabis businesses have received warning letters or shut down by the US regulatory bodies. The problem has mainly been due to illegal cannabis businesses and unauthorized products. If you want to keep your startup business out of trouble, be on the right side of the law.
The medical and clinical success of cannabis has helped boost the popularity of the products. However, some businesses sell prohibited CBD products, make unfounded medical benefits, or operate illegally. Through the FDA, the government ensures those businesses cannot operate in the future.
The action of those companies taints the image of the entire cannabis industry. For instance, a company may claim that any cannabis strains can relieve nausea, which isn’t always true as only a few top cannabis strains can help relieve nausea. Such exaggerated claims will cost your business. To avoid being on the wrong side of the law, ensure you meet all legal requirements.
- Promote Your Business
Before the Farm Bill in 2018, cannabis businesses hesitated to promote marijuana and its products. In recent times many vendors and promoters have shifted from this conservative way of strategizing. As an entrepreneur, be more creative and partner with other people and local advertisers to promote your business. You can also use marketing ways, such as loyalty programs to market your brand.
You could market your brand at concerts or festivals through a brand ambassador. Such events are filled with people and present an opportunity for businesses wishing to grow. Such strategies will not only help you reach new customers but also build you a network.
- Understand Legality
For many years marijuana has been illegal here in the United States. CBD, one of marijuana’s compounds, has also faced those restrictions in the past. The FDA restricted the sale and transportation of marijuana in various parts of the country. Fortunately, the Farm Bill of 2018 gave some ground to CBD products.
That is not to say that cannabis and related products are legal everywhere in the US. Some states allow it while others do not. States that have laws that legalize cannabis include;
- District of Columbia
Keep in mind the percentage of THC in all CBD products should not be more than 0.3%. That said, be cautious and know all the laws that affect your business.
Like all industries, you will need some business acumen and in-depth knowledge to succeed in the cannabis industry. It is also crucial to educate your customers on medically approved studies and research concerning cannabis. Such small efforts will create an enormous amount of awareness and put you on a path to success.
This guest post was provided by Sami Abdel, a Professional Content Marketer. His company provides various types of Digital Marketing services i.e. Search Engine Optimization (SEO), Search Engine Marketing (SEM), Social Media Optimization (SMO), Web design & development, Link Building, Outreach guest posts, Content Marketing & blogger outreach.