Any entrepreneur that is looking for a valuable but low cost investment to make in 2016 has probably investigated the opportunities within the blossoming cannabis industry. There are currently 4 states offering legal recreational cannabis, one of which is Colorado. Colorado has reported astronomical tax revenue which has led to Republicans and Democrats actually agreeing on cannabis legalization & decriminalization in an election year. This has led to a surge of people who were once put off by the legality that are now interested in investing and strategizing about new ventures relating to cannabis. With the reality of legal recreational distribution, the industry of cannabis as in flower and edible form opens up but it also creates a new agricultural industry for hemp and hemp made products that is far less explored. There are countless brand new ideas ripe for the picking as recreational cannabis sweeps the nation, but how that idea is polished into a business is crucial in obtaining long term success in the sometimes fickle industry.
The most important thing to do before venturing into a business plan is to validate the idea. Before putting hard work and valuable time into a new product or business it is first necessary to identify if there is even a market. Speak to investors and a good base of desired consumers to understand the market correctly. If the market is completely foreign it is advised to call in a consultant or even a partner who has experience to maintain an accurate assessment of the market value. These tactics will help to shape the business plan to fit into the scope of what a potential target demographic would be looking for. After this foundation for your cannabis business has been built it is necessary to create a budget and deal with financial logistics. This is often a great time to bring in an accountant or a financial consultant to advise on the proper moves. At the very base of financial planning sit down and make a list of all of the absolutely fundamental necessities and the most pricey amount that they could cost separated into weekly, monthly and yearly budgetary concerns. This will give insight into the smallest amount it would cost to run this business before stepping into the arena.
When creating a budget for a new cannabis business keep in mind the importance of a solid, knowledgeable marketing team. The demographic of cannabis moves from young, 20-somethings all the way up to elderly men and women. To create the most fruitful marketing plan that attracts any possible consumer, it should be a multiple platform strategy. This kind of marketing strategy is complicated and requires know how in SEO and the many facets of social media in order to be successful. The best way to formulate the proper strategy and execute it is to bring on a team of marketing professionals. Whether it be a product, a retail establishment or a B2B venture how a marketing strategy is carried out is crucial and that stress shouldn’t lie on the shoulders of someone who is starting a brand new business. A quality team of marketers will help make the entire operation run more smoothly while also bringing in a quality base of customers. This is the recipe for success when entering into the cannabis industry: find the market, make a plan and create an ad campaign that will bring the right consumer to your door.