The legal marijuana market value around the world was estimated to be over $9 billion in 2020. It is expected to grow by 26% over the next 7 years. Cannabis distributors play a major role in this projected market growth.
If you are involved in the cannabis business you need to take advantage of this opportunity now before everyone else jumps on the bandwagon. Cannabis products are in high demand and should become even more valuable with time.
These 7 practical tips will help the budding cannabis entrepreneur take their business higher than ever before. Pay attention to them so your cannabis operation doesn’t go up in smoke.
- Focus on Having Quality Products
If you source chronic marijuana, it will sell itself. It doesn’t matter how good your marketing is, how low your prices are or how large your territory is. If you are selling a bunch of schwag nobody will want it.
Only sell the best marijuana to ensure that your business gets a good reputation. All it takes is one bad batch of weed to tarnish your cannabis selling name forever.
- Don’t Neglect the Legal End of Things
Marijuana may be legal across much of the United States, but that doesn’t mean you can ignore your legal obligations. Much of the legal aspects surrounding the cannabis business have to do with taxes.
Make sure to handle your taxes the right way so they comply with relevant tax codes such as the 280e. Don’t let little legal hurdles impede your progress.
- Stay Ahead of Other Cannabis Distributors
The cannabis business has always been cutthroat. Now instead of dodging black helicopters, shakedowns, and shootouts, you need to be prepared to play the game in the legitimate business world.
This means staying ahead of the competition in all fields. This means developing a marketing strategy, business plan, and staying one step ahead of other distributors competing for your territory.
- Don’t Overextend Your Territory
The farther your markets are from your growers geographically, the more you will have to spend on logistics. Try to source local growers whenever possible to avoid overextending yourself.
- Embrace New Products
Cannabis distribution doesn’t have to be about selling raw flower alone. Embrace new products as they come on the scene.
That said, don’t put your hands in too many pies. Release products one at a time and see how they do before jumping into your next endeavor.
- Teamwork Makes the Dream Work
If you are a successful distributor in a certain territory, don’t be afraid to team up with another distributor who is not your direct competition somewhere else. This is how you corner a market and run your competition out of town.
- Pass on Profits to Your Growers
If you have a huge markup on the cannabis you sell, don’t pocket all of the profits. Make sure to take care of your growers and they will take care of you. This budding industry is all about keeping the marijuana dream alive.
Without the growers, you would have no way to make money as a distributor. Form long-lasting working relationships with those who put the bread on your table.
Keep Your Profits High
Cannabis distributors put marijuana into the hands of the people who need it most. With a little bit of effort and a positive attitude, you can help the world get the weed it needs.
Put into practice the seven tips in this handbook to ensure that your cannabis distribution business is a success. A good source of knowledge is priceless. Use our site as your number one source of information to feed your head.