According to recent projections, North American cannabis sales are projected to hit the $20.2 billion mark by 2021. That will be more than three times what the industry was worth in 2016.
Related: What can Europe Learn from Cannabis Laws in Canada?
Now, these projections might be revised upwards, considering that the cannabis industry hasn’t borne the brunt of COVID-19. If anything, cannabis products have witnessed a tremendous surge in demand over the same period the infectious virus was taking a toll on various other sectors of the global economy.
That’s mostly due to industry leaders’ and weed lobby groups’ sustained efforts to declare marijuana an essential service. So, if there was ever a time to invest in the cannabis industry, it’s got to be now.
Related: What to Consider Before You Invest in Cannabis Stocks
But, as with any business, your success in the cannabis industry depends on the diligent steps you take every day to grow your business. This post shall uncover the top tips to grow your cannabis venture and outpace the competition.
Understand your audience
You’ve probably heard it mentioned a million times that any business is as good as its clientele. When it comes to cannabis businesses, you must endeavour to understand your audience. Begin by establishing your audience’s demographics by analysing their age, gender and income bracket.
Now, there’s a general tendency for younger people to lean towards recreational cannabis products, with older people preferring medical marijuana. This information will help determine whether to skew your business in favour of medical or recreational cannabis products.
Related: How to Grow Your Instagram Following as a Cannabis Business
Age also dictates spending patterns. Younger people, especially millennials (people born between 1981 and 1996), tend to be frugal in their expenditures. The same is true for seniors. So, when targeting either group, ensure that your cannabis products aren’t overpriced.
The prices should be low enough for your clients to afford and high enough to guarantee substantial profit margins. In the same breath, remember that up to 60 percent of millennials prefer doing their shopping online. This means you should set up an e-commerce website if you don’t already have one.
Gender is another element that you should take into consideration when trying to understand your demographics. As you may already know, the male gender is more drawn to cannabis than the female gender.
However, that doesn’t mean you should skew your marketing efforts in favour of men. Remember that, nowadays, there are plenty of cannabis products that can also appeal to women, such as cannabidiol-infused skin and hair products.
Diversify into different sectors and products
Another way to grow your cannabis business is to diversify into different sectors. If you’re into the retail business like Shatter Store, you might consider expanding into cannabis production by acquiring cannabis farms.
Related: How to get a Cannabis Growing Licence in the EU
Besides cannabis production, here are some other sectors that you can diversify your cannabis business into:
Before cannabis products are available for consumption, they must pass through a manufacturing or processing firm. As you may have guessed, setting up a weed processing firm is capital-intensive.
Fortunately, there are numerous venture capitalists like Privateer Holdings, Tuatara Capital and MedMen Capital that you can go to for funding.
Opening a cannabis distribution wing can also go a long way in helping you expand your retail business. One of the best things about launching a distribution business is that there are numerous products you can supply that are not necessarily cannabis-related, such as packaging materials.
Even if you’re not keen on diversifying your retail business into different sectors, you could still outpace the competition by capitalising on the various cannabis products out there. There are numerous cannabis-based products that you can sell, including:
- Edibles like cannabis-infused gummies, candies, chocolate products, teas and wines
- Topicals like cannabis-enriched balms and ointments
- Inhalable products like cannabis-containing e-juices
- Smokable products like dried cannabis buds
- Oral tinctures like CBD oil
Focus on informing your audience
The primary reason why you set up your cannabis business was to make profits. So, every single decision you make should be in the interest of maximising your profits.
Although cannabis is a lucrative industry, many users remain sceptical about the herb and its perceived benefits. So, as you strive to promote your business, also endeavour to inform your clients. The more your audience understands about cannabis, the more likely they are to purchase your products.
Related: Why Cannabis Businesses Should Embrace Increased Regulation
If you have a blog, dedicate it to informing your clients on everything there is to know about cannabis, ranging from its potential health benefits and side effects to delivery methods, dosage information, the legality of cannabis and more. Even if you don’t run a blog, you can consider posting your articles on cannabis-friendly social media platforms like Weedable and LeafWire.
Better yet, you could hire a social media influencer who does all the hard work as you focus on the day-to-day operations of your business.
Ensure that you share fresh and original content each time. Most importantly, encourage engagement by asking your audience to post feedback. This will offer you more insight into your audience and help you plan your content marketing better.
Cannabis remains a lucrative industry. But, like any other industry, success is never guaranteed.
Related: Eight Profitable Business Ideas in the Cannabis Industry
Thankfully, implementing any of the above tips will put you ahead of the pack and help you scale your business to newer heights each day.