How to open a cannabis store: Five tips for success
Considering starting a CBD business? Read on for five tips for success when opening a cannabis store.
As cannabis becomes increasingly legalized, the market for cannabis-related products has grown. This can be seen in the variety of cannabis products available at retailers like Daily High Club, from oils and tinctures to bongs and pipes which you can see here.
While there are many different types of cannabis products available, some are more effective than others.
There’s no doubt that opening a cannabis store can be a lucrative business venture. But with states legalizing marijuana for recreational and medical use at different paces, the process of opening a cannabis store can vary greatly from one place to the next. This doesn’t mean that there aren’t a few things these successful stores have in common.
Opening a cannabis store can be a daunting task. However, with the right tips and advice, you can set your business up for success. If you’re looking to open your own cannabis store, here are six tips to help ensure success:
1) Understand your audience
The very first thing that you are going to want to do before opening a cannabis business is to find an audience, understand their needs, and find out exactly who they are. The best way to do this would be to start locally. The local market will be much easier to research, and finding out what is needed or missing will also be easier.
In addition to this, understanding your audience means that you will be able to target them and brand your business effectively. For the local market, you can create and conduct surveys, and more importantly, monitor the feedback from your customers.
2) Choose a product or service
The next important thing to do would be to choose a product or service. This is obviously heavily dependent on the abovementioned tip, but there are a few other things that you can take into consideration.
For example, will you be focusing on a niche with one specific product, like dry herb vaporizers? Will you be trying to cover a broad range of products? Are your products going to travel between states, and is it legal for them to do so? Keep in mind that you don’t have to be directly in the industry, you can also offer services specifically to marijuana businesses.
3) Make sure you get the correct licenses
The next thing that you will want to focus on is getting the correct licenses for your business, and making sure that the application process is being done correctly. Because marijuana is still considered to be a controlled substance under federal law, this process is incredibly important, and you shouldn’t miss any steps.
For example, there are different levels of cultivation licenses that range from Type 1 to Type 5B. There are also licenses for retailing, distributing, laboratory testing, or operating as a microbusiness. You will also need to find out the cost for each license application, how much liquid assets you will need, as well as whether or not you will need to already be renting a space before applying.
4) Make sure you understand all the laws and requirements
One of the most important things you will need to do, aside from getting the correct licenses, is making sure that you understand all of the laws, keep up to date with all of the laws, and understand what is required from you as a business owner.
One thing you will need to do is make sure you are participating in seed-to-sale tracking, which ensures that nothing goes to the black market. This means making sure that everything is labeled correctly, and every sale is accounted for when state officials come to audit.
5) Think about branding and marketing
Another important aspect of opening a cannabis store or business is branding and marketing, which in itself is quite a challenge. The main reason for this is because of the fact that, as previously mentioned, marijuana is still a controlled substance, so the marketing of marijuana is still technically illegal.
This doesn’t mean that you can’t brand and market your business. One of the most effective ways of marketing a cannabis business these days is by using social media. Whilst using social media, you can post photos of your products and services, engage with customers, run advertising campaigns and more.
It’s important to remember though, that you can’t actually advertise your products, which means you can’t mention that they can be bought, and there can’t be any prices included in the posts. You should also consider creating a website, focusing on SEO, and running a Google AdWords campaign.