Whether we may be in favor of it or against it, there is no doubt that the Marijuana business is well and truly rocking. It takes only one look at the amazing sales figures of recreational and medicinal marijuana; expected to touch around $3 billion dollars this year and the pace at which it is growing is also worth noting, but if we take consider the ancillary and down streams businesses and industry contribution, then the figures could reach a staggering $11 billion on an annual basis. The statistic heavily testifies to the fantastic growth when compared to the 2013 figure of around $5.7 billion. It would not be a bad idea to start your own Marijuana business if you are planning to do something new. However, this is easier said than done. There are quite a few hurdles to keep in mind before you get started.
It is still in its nascent stage
The future looks bright for the marijuana industry because the above figures perhaps comprise the tip of the iceberg. Even today, only four states in the US have legalized Marijuana apart from Washington D.C. and only 50% of the country permits the use of medical marijuana. Therefore, when we look at the scope and opportunities available, there is hardly any doubt that it holds a lot of promise, to say the least. It is unlikely that the trends will change anytime soon, though. But if they continue the way they are, it will not only be a big money-spinner for many business houses but also for individuals in the next few years. More importantly, this industry can generate an engaging amount of new employment and it can touch around a quarter of a million over the next ten to fifteen years. Hence, the prospect look ripe and rosy but the way forward can get tricky, and it is important to be aware of the following aspects.
It needs to be built brick by brick
Like any other business it is important to build the business brick by brick and it is almost the same as building any other business. You should have a good HR team to support you, apart from having the best of cultivation, processing like knowing when to water your marijuana and other facilities. You must know how to sell the product to the masses and this again calls for having a well-thought out, well-focused marketing and advertisement plan. While these are all good aspects as far as starting a marijuana business is concerned, a good insight about how retailers can avoid losing money and what challenges may arise should also be addressed.
Look for the employee’s perspective
If you wish to enter a multi-billion industry, which is on a growth path, you must have the right kind of HR to support you. However, this is a new industry and perhaps even controversial; employees may be a bit hesitant to take up jobs in this business. They believe there is little security in this business because of obvious reasons. The onus lies on the business owners to remove this perception, especially for medicinal marijuana which has a huge prospect, to say the least.
It still continues to be an all-cash business. If you are planning to start, you should have enough cash reserves and must know how to manage cash flow efficiently- even employees in most cases get paid by cash. This may not go well with many employees because they might feel less secured cash payouts than bank refills. Therefore, it becomes an owners’ responsibility to ensure trust assure stability even with the cash payouts. Like all businesses, it is imperative that all employees, the entrepreneur included, are on the same page, and understanding the uniqueness of the Marijuana business, as a cumulative unit, is the most important. So, look from the employee’s perspective and learn to decode their insecurities. Constant communication and HR interaction that calls out for inclusiveness can easily compensate for such employee behavior.
The secret lies inefficient networking
In spite of the best of sales promotional activities, there is no doubt Marijuana products sell through networking and word of mouth. You must be able to build this strength over a period of time. Whether it is setting up manufacturing facilities or cultivating marijuana networking, this is the best way forward to tap into this highly potential business, no doubt. You could also look up some weed-friendly business houses that could buy your products and help your business to move to the next level.
New industries are a thing of beauty to watch them bloom. Incorporating a system of command can be anyone’s top priority, but it is quite necessary to be flexible and to adjust to circumstances. There are countless learning and unlearning opportunities in this industry, and one has to be open to a lot of options and branding paradigms to excel. All it takes is a good HR to keep the workflow constant and secured, and a good head about the business – you should be set to explore.