Despite the exponential growth that the cannabis trade is radiating today, it’s not all in white and black.
There are blue, grey, and all other kinds of segments within the industry.
For instance, cross-border regulatory differences limit the expansion for cannabusiness owners.
Perhaps, there are several other challenges that this industry is facing to mark its growth.
Keeping this in mind, here is a list of some common challenges faced by the cannabis businesses and their solutions.
Finding The Right Partners
It is quite challenging for cannabis business owners to find the right partners. Indeed, the partnerships formed at the early stage of the business can have a long-lasting impact on the success of the business.
For example, dispensary owners need to partner with cultivators, distributors, and also packaging companies. On top of it, as the experts at parsl explain, dispensary owners would also need a partner who can help manage all other partners; a management or tracking system.
Perhaps, what can be done in this context is hiring a consultant who can help make and evolve business plans as the business grows.
Regulatory Compliance
It is noteworthy that the legal cannabis trade is still in its infancy. For this reason, the compliance regulations are subject to constant change.
In the US alone, cannabis laws vary from state to state. And not to mention recreational cannabis is still illegal under federal laws.
Perhaps, working with an experienced attorney in the cannabis trade can help business owners avoid any legal troubles. A good attorney can help develop a scalable business model, compliant with state and federal laws.
Financing And Banking
Banking is particularly a significant pain point for cannabis businesses. Since cannabis is still illegal under federal laws, several banks are hesitant to finance or even open a business account.
In some cases, it often brings up money laundering charges upon the account holders as well.
However, thankfully, now cryptocurrencies are helping overcome this problem. Buyers, sellers, and any other stakeholder involved in the trade can now make or receive payments in bitcoin or other cryptocurrencies.
Advertising And Marketing
Another challenge that cannabis businesses need to overcome is how they advertise and market themselves.
For instance, Google Ads or Facebook promotions are not available to cannabis businesses. Likewise, advertising through radio, television, billboards, or any other method is also prohibited.
Cannabis businesses typically rely on word-of-mouth for their advertisements and marketing. Alongside, many cannabis businesses also rely on SEO to gain customers’ attention.
So, whether you have established a business selling tinctures, topicals, and oils; focus solely on using top strains to make high quality rosin; or offer something else, you need to be innovative with your marketing strategy — especially if you’re relying on SEO and/or word-of-mouth.
Stigmatization Of Cannabis
Despite being legal across all 50 states in some form or the other, cannabis and its dedicated products still face a stigma. These products are casually associated with the “stoner culture”.
To be successful, cannabis businesses need to overcome this hurdle. Or, otherwise, most cannabis startups may never see the daylight.
Perhaps, cannabis businesses need to work out a way to be a part of the community. Business owners need to showcase that they are contributing and helping the community positively.
Key Takeaway
The cannabis industry faces a lot of challenges, however, these challenges are not impossible to overcome. Quite possibly the first challenge these businesses need to overcome is the widespread stigma.
Once this initial roadblock is overcome other things are easier to accommodate.
