More is involved in running a successful cannabis store than just getting licensed. Some retailers quickly and easily become successful while some have struggled hard to get to their destination. Others have even failed and have folded.
With our experience and many pieces of research, we have been able to figure out the mistakes that retailers make while opening and running their dispensaries.
In this article, we will highlight seven costly mistakes that may crash your cannabis business. We will also share some words of advice.
1. Poor Location
Before you begin your cannabis business, you must know the area well. Make a research about the area’s demographics. Checking the population, commuter traffic, level of income, and age mix will be a good idea.
If you want to choose a location for your cannabis store, go for an inviting one that has a nice entrance and a good parking space. Check the kind of stores that are in the neighborhood. For example, if there are coffee shops, liquor stores, or restaurants, it shows that the people there like relaxation, making it a good fit for your cannabis store.
2. Not Meeting Up With Deadlines and Adapting To Changes
As the cannabis market experience rapid change, both in trends and generally, you should be able to decide quickly and change with the market ASAP.
Setting a deadline to achieve a goal can help you a lot. Rather than waiting for the timeframe to complete, double your effort to reach the goal in half the timeframe. Just assume that everything is extremely hard and double your effort.
3. Creating Brands for All
An effective way to build your brand is to focus on just one segment of the market, and not for all! Know the needs of your target customers alone and put yourself in their shoes. This will help you serve them well and they will always return.
4. Not Having an Operational Excellence
All successful retailers always mind their Profit and Loss statements, budgets, and cash flow. You should always expect to spend money at the start of your cannabis business even when you have not begun to make sales. Never underestimate what your pre-sales spending can do in the future. Excellent management will gradually fetch you large revenues.
5. Not Using Better Technology
With good technology, you will become more efficient. You can expand your visibility on the internet and keep an accurate inventory. Choose a platform that accurately monitors your finances and view your operation. This will help you remain compliant.
6. Giving Way for Black Market
Never allow illicit retailers to gain what is meant for you. If you discover any black-market activity, do not waste any time to report it. When you work hand-in-hand with regulators, they will regard you as one of their good guys.
7. Slow Adaptation
To curb the spread of the Coronavirus, government and health officials have implemented the social distancing order. This means that your store may longer be crowded with customers. So, to make sales and to keep your business moving, you should take your store online. Sell your products online and deliver them to your buyers as soon as possible.
If you have been making, the above-mentioned mistakes, use this guide to correct them and take your cannabis business to your desired level and beyond.