In any highly regulated industry, expansion techniques may be difficult to develop, but in the ever-changing regulatory landscape of cannabis and hemp businesses, compliance and organization become even more integral to successfully growing your business. Additionally, with mass legalization efforts taking place across the country, business owners should always look for new ways to approach emerging markets. This article will discuss how to avoid commonly made mistakes when attempting to expand your cannabis and hemp business.
1. Stay Informed
First off, the most important aspect of the expansion is understanding your target audience’s current political, economic, and social climates. If you are a current medical dispensary in New York, you should be up-to-date on the regulations surrounding the recreational market. Above all, staying informed is very valuable as a business owner in the cannabis and hemp industries. Properly preparing your company for expansion by staying informed on hemp and cannabis news could serve as a tool to predict emerging markets and stay ahead of the curve.
2. Be Realistic
It is also important to stay realistic when evaluating your expansion plan and executing it. Set yourself up for success by creating realistic expectations and markers for expansion. It helps to be conservative when approaching changes. Certain aspects of expanding your business, such as construction and cultivation, could take longer than anticipated or become more costly than allotted. It is ultimately more beneficial to your business to prepare for such setbacks and please your employees and stakeholders. Above all, plan for these inconveniences, and allow for delays to be backed into your business plan.
3. Recruit Early
To start expanding, begin building your employee bench in the early stages. Start looking at the local talent at businesses you frequent and talk to people who have given you excellent service. Even if they are adamant they are happy where they are, let them know you would like to stay in contact to build a professional relationship. You can never network too much. Similarly, in any business model, promoting from within is always more efficient than hiring new employees. For instance, when expanding your cannabis business, lean toward training your employees to handle the increases in responsibility that come with business growth. Further, it is wise to look for job candidates who have experience leading teams and adapting to new procedures quickly.
4. Invest in Experienced Talent
Additionally, it is worthwhile to spend the time to find skilled contractors with cannabis experience. When investing in a construction project to expand your cannabis facility, firms who are not used to the requirements of these facilities may be caught off-guard. It is more valuable to find contractors who have experience in cannabis and hemp than to proceed with a project that may not be fully compliant. Moreover, it is also helpful to note that different regions are subject to different taxes. Be mindful of where you are looking to expand your business and the tax implications and regulations in that area.
5. Seek Experienced Guidance
In such a highly regulated industry like cannabis, guesswork is never the right move. If the licensing process seems daunting, reach out to a consulting firm to guide you through the application. If your cultivators do not know how to manage a larger-scale facility, recruit help from an experienced cultivation consultant. Oftentimes, consultancies offer free consultations to evaluate your current situation. Take advantage of what is offered to you to maximize the chances of your expansion being a success.
6. Be Patient
In the cannabis industry, rules and regulations are constantly changing as legislation is passed. Remember, staying patient and adaptable to the changing market landscape can be the ultimate skill to thrive in this industry. Always be on the lookout for new trends and changes to the regulatory framework. Ultimately, staying proactive and patient with this changing landscape can help position your cannabis business to thrive through expansion.
How Point7 Can Help
Point7 is always looking for more cannabis and hemp businesses to assist. If you are looking to expand your cannabis business into new bolstering markets, find out how we can help. We offer consulting services in every aspect of your cannabis business from application submissions to branding and design. To find out more about our services, click here.