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4 Things to Think About When Starting Your Own Cannabis Business

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StrategyDriven Starting Your Business Article |Cannabis|4 Things to Think About When Starting Your Own Cannabis Business

The market for licensed cannabis products is growing at an encouraging rate if that is the line of business that you are thinking of launching into and as is the case with any new venture, you will need to have all the angles covered in order to set off on the right footing.

A good starting point would be to create a checklist of things that you need to organize so that your cannabis business is good to go. This will likely include things such as insurance, and you can find help at charlesriverinsurance.com to guide you on the most affordable options, plus you need to understand all about regulatory and taxation issues.

An industry that lacks clear federal guidance at present

A key point to consider is the fact that the cannabis industry is defined by what can be described as a fragmented regulatory landscape.

The fundamental problem is that federal policy relating to the distribution of cannabis products varies across different state lines. Some states have fully embraced the cannabis industry while others are not so welcoming and regulations reflect that.

It is important that you take the time to familiarize yourself with the regulations and understand clearly what you can and can’t do within your state and when dealing with customers across state lines.

Get your head around the tax rules

The tax rules surrounding the sale and distribution of cannabis products can be quite punitive and restrictive in terms of what you are able to claim in allowable business expenses.

The bottom line is that you should expect to pay a high proportion of taxes in comparison to what you would pay if you were selling a product that was fully legal according to the current tax rules.

It would be a smart move to get professional guidance on the tax rules.

Business insurance

Every business needs to have adequate protection against potential claims and losses and it is especially relevant when you are running a cannabis business.

Insurance for running a cannabis business can be expensive if you don’t get help from a reputable insurer who has knowledge of the industry and how to provide the cover you need in the most cost-effective way.

Licenses and permits

A major expense that you will have to contend with if you intend to launch a cannabis business is the cost of obtaining the relevant licenses and permits that are required.

It depends on what part of the cannabis industry you are going to be trading in when it comes to what licenses you might need to obtain and the cost of obtaining all the necessary permissions will likely represent a significant percentage of your startup costs.

If you intend to cultivate or dispense cannabis products the cost of obtaining the right licenses may even appear prohibitive at first glance, but you might take the view that the opportunities that await you make that investment more justifiable.

If you cover all of these major bases when evaluating your cannabis business plan it should clear the path to open the doors of your business and allow you to focus on building a successful and profitable venture.

4 tips for starting a business in a poor economy

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At one point in our life, we’ve probably all been there. The economy is like a rollercoaster, and from time to time you do reach new lows.

Quite often, these lows give some people a new lease of life. Companies are forced to offload employees, and this means that an increased number of people are without work and ultimately asking, “what’s next?”.

Well, for many of these, a new business is one solution. The economy doesn’t make it easy, but it shouldn’t be a direct obstacle that tells you to turn around and do something else.

If you are considering starting a business in this sort of climate, it’s time to read on and find out our four most recommended tips for doing so.

The location is crucial

Without trying to be patronizing, we really can’t emphasize the importance of location, location, location. It’s something that can make or break your business in these tough times, and this infographic perhaps describes it in the best detail:

StrategyDriven Starting Your Business Article | Entrepreneurship | 4 tips for starting a business in a poor economy

No, you shouldn’t be targeting those locations which are faring the best during these tough times, but you need to be shrewd about how your potential market is going to react. If you are selling high-end products, you need to assess whether the area you are about to venture into is ready for these, and vice versa.

Use the economy to your advantage

There are a lot of ways that the economy is going to hurt you during these times, so you should be trying to take advantage wherever possible.

Lowering costs is one of these and whilst negotiating with suppliers, understand that you probably hold the upper hand. They will be feeling the pinch as well, so use the economy as an excuse to get even better deals. Whether it’s rents, products or equipment, this is something that you must use to your advantage to drive those margins up.

Start as small as can be

Of course, if you have major backing behind you, this next point might be invalid.

For everyone else, starting small is crucial advice. If you don’t necessarily need office space, don’t hire it. The same rules apply to employees, as both of these elements are fixed costs that are going to heap pressure onto your business.

Start as small as you can, and scale up when the market signals that it is time to do so.

Watch the competition closely

The competition is going to be an excellent signal on just how you are going to perform in this market. It will indicate just how flat the market is, and provide you any ideas on how you can treat it differently.

Sometimes, it might suggest that the market has become extremely price sensitive – and this might not fit within your business plan. Or, it might suggest the otherwise, and a creative marketing plan is all you need. Analyze the competition and then plan your strategy accordingly.

Three No-Brainer Outsourcing Opportunites for Growing Businesses

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StrategyDriven Managing Your Business Article |Business Expansion|Three No-Brainer Outsourcing Opportunites for Growing BusinessesIs your growing business falling behind your competitors because you’re stretched too thin? Entrepreneurs know better than anybody that there are only so many hours in a day. If you’re spending too many of them attempting to manage your whole operation and too few of them doing the creative thinking and growth-oriented work required to take your business further, you need to think about outsourcing.

If you’d like to outsource the most draining aspects of your operation in the hope of a hassle free business expansion, this list of the most widely utilized outsourcing options will help you make up your mind.

Let Nerds Handle Your IT

The word ‘nerd’ is hardly an insult these days, as coders and IT professionals have all but taken over the world! Managed IT is making its mark on the small-to-medium sized business environment, and for good reason. Research has shown that over half of small to medium-sized businesses are outsourcing at least some of their IT requirements, while a further third would like to in the near future. The benefits are huge. Aside from the peace of mind that you get from handing over responsibility for your systems and sensitive data to experts, you also stand to save as much as 40% compared to hiring your own full-time IT team. IT services are also a great option for growing companies who need to be able to scale their operations at short notice in response to increased demand.

Hit the Snooze Button on Payroll

Let’s be honest: doing payroll is not fun. There is a lot of technical detail and compliance to get your head around, and if you make a mistake, it’s your team who suffers, and that’s the last thing you want. Many small businesses find HR and tax compliance a complete headache until the happy day that they opt to outsource their payroll needs. Handing over this highly complex work to skilled professionals—or at least investing in specialized software—is well known to drastically improve your compliance stats and reduce your operating costs. It’s worth pointing out that the savings are not small change, either: businesses that outsource their payroll needs typically save 20% more than companies that handle payroll in-house. No brainer, right? Add to the savings the increased trust you stand to build within your team, as payroll mistakes and accounting errors are ruled out for good, and you’d be crazy not to take advantage of this outsourcing option as soon as you have the means.

Content Marketing

Otherwise known as blogging, content marketing is taking the SME word by storm. If your business does not have a blog yet, you are missing out. Why? Because not only will your blog supercharge your Search Engine Optimization (SEO) efforts, but it can help you to build a solid relationship with your customer. It can also position your business as a credible source of key info on the issues your audience cares about, thus fostering brand trust and enhancing the reputation of your company in the wider arena. A blog is also extremely handy for HR and recruitment purposes, as it provides an excellent way for potential new employees to get a flavour of what working for you will be like.

When business is getting busier by the day, handling everything yourself is not likely to be the answer. Depending on your needs, outsourcing could be the ideal solution. These ideas will help you find the right service for your business.

Things To Consider Before Marketing Your Brand New Business

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StrategyDriven Online Marketing and Website Development Article |Brand Marketing|Things To Consider Before Marketing Your Brand New BusinessMarketing your brand new business is one of the only ways you can let people know you’re out there and available to help them. However, the way you start this is so important. You will begin to build an image of your business is the heads of other people, so it needs to be the right kind of image if you’re going to experience long term success.

Below, you’ll find a few things to consider before you start marketing your brand new business:

What Are Your Brand Values?

Knowing your brand values and what you stand for is so important. When you know what’s important to your brand, you can market it this way and ensure it is being run appropriately, sending out the right message to your audience. Some good brand values to have may include:

  • Commitment to a high quality service
  • Honest
  • Trust
  • Fun
  • Passion

The list goes on!

The list will vary depending on what you do, but you must make sure that these are outlined and that everybody is on the same page.

What Is Your Brand Personality?

A brand personality helps you to identify with your audience. It also makes your brand far more interesting, and can help you to be more memorable. It gives a set way that you intend on interacting with your audience too, so whoever is doing the talking can’t get it wrong. A place like KW2 Madison could potentially help you to come up with a suitable brand personality. However, make sure you consider who your brand would be if it were a person. This way, you should be able to come up with your own ideas.

Who Are You Trying To Attract?

Knowing who your audience is is one of the most powerful things you can do. How old are they? Where do they live? Do they have kids? Knowing as much about them as possible will allow you to market your service to them effectively, and use the sort of voice that they are going to relate to. You can’t be everything to everyone, so knowing who you’re trying to attract is essential.

What Platforms Will You Use?

Marketing requires a business to use multiple platforms to get the best results. This means social media, a website, a blog, maybe even a youtube channel. However, you won’t be able to handle all of this yourself, which is why having a marketing company to help you is essential. If you try to do this yourself, you’ll end up lagging somewhere.

Who Will You Work Alongside?

Finally, it’s time to select the company who will help you with your marketing. It’s a good idea to:

  • Ask for recommendations
  • Look at portfolios
  • Read third party review sites
  • Have a consultation/trial

You need to be able to communicate well with the company you choose, as you will be working with them for the foreseeable. Make sure you feel comfortable doing so.

Are you ready to market your brand new business?