Of course, people who have been dealing with this issue for a long time like to consider to what extent they can get a slice of the big pie. Even people who have only recently learned more about the potential of the industry due to discussions about legalization of the natural recreational drug may not be averse to investing in cannabis or opening up a specific business field for themselves in the future.
Regularly, there are reports about how much money companies have raised through funding rounds or which next celebrity wants to try their luck in the cannabis business. Just a few days ago it could be reported that the actor, also known for a stoner comedy Moritz Bleibtreu invested a six-figure amount in a cannabis startup. As the legalization of cannabis for recreational use is expected next year in this country, many people are currently interested in how to build a thriving business or serve a specific area of the industry profitably. In the United States, where a lot of money can already be made with cannabis, some important insights into the appropriate entry into the cannabis market have already been gained, which are now being reported even by Forbes Magazine, which specializes in business news.
The reality of the cannabis business: Three important decisions of successful start-ups
Anyone who plans to invest in intoxicating hemp products in the future must be aware that there is a big difference between romantic notions and reality. The belief that one can quickly build a successful company and fill their account by growing a few plants is a misconception. If one misses the right timing, overextends financially, or becomes embroiled in legal disputes, the attempt can quickly turn into a nightmare. However, there are companies that are waiting for the right moment to successfully enter the business and show failed competitors how it’s done. It is possible to get involved in the promising market for the long term and even make a career if one makes the right decisions. For this reason, it is important to learn from the three most important decisions of successful cannabis start-ups if one wants to enter the business field themselves.
Succeeding through realistic expectations: Knowing what matters
Ensuring success: Focus and vision as keys to long-term success.
During the development of the cannabis market in Germany, there will probably be more ideas and visions than there are people capable of implementing them. According to journalist Andrew DeAngelo, some government actors have wasted millions of dollars while other companies are already profitable in the market. The success of these companies is based on their focus on the essentials.
If founders stray too far from the core competency of their company, the mission and resources of the organization are diluted, increasing risk and potentially leading to tensions with investors. The most successful start-ups often instead focused on a single customer, which was the key to their success. If one cannot secure the “perfect” customer, how can they satisfy everyone else, DeAngelo asks. Brad Bogus’ advisors believe that one must enter the market with an ideal customer or company in mind and offer them the perfect solution for their business field. Mistakes should be worked out, and then success should be used as a template to increase one’s market share with other target customers. If one tries to be everything to everyone, they ultimately end up being nothing special to anyone.
Success factors for companies: A strong corporate culture and close ties to the community.
The example of cannabis retailer Habourside demonstrates how important it is to have a close tie to the community. Even before the opening of their stores, the company provided financial support for the renovation of a theater in Oakland and made sure their employees were always well taken care of. During the company’s opening, they gave their employees one gram of cannabis after each shift and paid them well above minimum wage to support them and provide them with additional benefits.
Therefore, the company took care of their employees just as much as they took care of their customers. This ensured that every employee gave their best every day. The connection of each individual to their workplace led to a sense of hope and healing that was reflected in the stores and offices as well. This gave the company an advantage in a highly constrained ecosystem that moves at breakneck speed and has numerous dependencies that must be managed around the clock. A strong corporate culture is the only way to keep up in the industry.
Improved business process: Learning from mistakes and successful decisions.
Given the unclear development of cannabis legalization in Germany, it can be difficult to chart the right course at this time. Therefore, the experiences of successful companies in the industry should be seen as helpful guides when planning new business models. It can be worthwhile to weigh potential risks in advance to prevent reckless or overeager actions.
Making the right decisions is crucial for success in this highly scrutinized industry. Ultimately, these decisions differentiate the winners from those who fail. A failure in this industry is a disadvantage for all involved, as negative headlines can affect the entire industry and damage the reputation of the companies. On the other hand, positive momentum can uplift each individual company and lead to success.
Therefore, it can be beneficial to take cues from the advice of successful companies to make the right decisions. Those who are already familiar with successful business models and structures in the industry have an advantage when planning new business models and can avoid potential mistakes. Ultimately, seeking guidance from experienced companies can significantly influence one’s success in the cannabis industry.