Cannabis dispensaries share many characteristics with companies in other industries, so they can use the same basic financial and management strategies in most cases.
However, dispensaries and other enterprises related to cannabis face a few challenges and opportunities that members of other industries don’t. While there is a lot of potential profit in cannabis production and customer service, would-be dispensary owners need to think critically and carefully about the steps they take to ensure success.
1. Work with a Lawyer and Accountant
Some dispensary owners are tempted to forego professional services in various operations of their business, opting to take on the responsibilities themselves. This may save money in short-term costs, but it can cripple long-term revenue and growth. Anyone opening a cannabis-based business should work with a qualified lawyer to identify potential legal obstacles and challenges at each jurisdictional level. It’s also a good idea to get help from an accountant when structuring and managing the company’s finances.
2. Actively Build Your Customer Base
While many regions have a natural market for quality cannabis, this doesn’t mean a specific dispensary will necessarily thrive. As an emerging market, marijuana marketing largely takes place online and in digital environments. Savvy business owners look for opportunities to build awareness and a loyal customer base with engagement through mobile applications and social media.
3. Company Culture and Employee Development
Company culture is no secret to most of the world’s most successful corporations. It may seem unnecessary for startups and small businesses, but all dispensary owners should take steps to cultivate a productive culture in their staff. Creating fair and clear company policies that outline expectations for employees and the management team is a good start. Companies that train and treat their employees well will benefit from better customer service, employee loyalty, and overall morale.
4. Incorporate New Technology
As one of the newest industries to take root in the United States, cannabis companies often embrace the power of new technology to widen their profit margins. Dispensary owners and operators should look for trade publications and other sources of cutting edge information relevant to their industry.
Developments in equipment and biological technology can yield to bigger and more consistent annual yields, which helps establish financial stability and fuel future growth. As marijuana gains legalized status at the state level and increased public acceptance throughout the United States and the world, it has opened up a major opportunity for businesses to grow and thrive. However, the long-term success of a dispensary requires a combination of strategic planning, good business practices, and creative effort.
Featured image courtesy of O’Dea at Wikimedia Commons.