The cannabis industry is not only highly competitive, it’s also very tightly regulated. You see, the Federal government ​continues to classify cannabis as a Schedule I drug. As a result, the traditional methods of running a business are simply not available to cannabis entrepreneurs.       

For example, ​as more states legalize cannabis​, local and state governments put in place laws and regulations regarding marketing and advertising. Ordinances and zoning are very different than what is required of a traditional business. As a dispensary or cannabis related business owner, you need to stay abreast of the unique challenges that this industry holds.       

We’ve seen too many cannabis entrepreneurs make too many mistakes! We’ve written this article to help you avoid the most common ones.    

1. If You Build It, They Will Come

If you believe that by simply opening a dispensary or a cannabis-related business you’ll get sales, think again.

Like all entrepreneurs, cannabis business owners need to promote and market. Unlike most entrepreneurs, their hands are not tied by the tightly regulated industry. Cannabis advertising is nowhere near the same as typical businesses. For example, the majority of media properties will not allow cannabis businesses to advertise on their sites.

2. No Website

One of the most common mistakes we see amongst cannabis entrepreneurs is the belief that they can be successful without a website. Or even one that’s done on the fly.

In such a highly competitive cannabis market, effective design can give you the edge you need to weed out your competition. From branding to customer acquisition to SEO, your website affects every aspect of your business. And trust us, it doesn’t have to be expensive to work.

What to do? First of all, make sure your cannabis site is optimized for desktop and mobile. Provide accurate descriptions of your products. Ensure your contact information is clearly visible and up to date. Finally, make sure you have places where you can capture customer information.

In such a highly competitive cannabis market, effective design can give you the edge you need to weed out your competition. From branding to customer acquisition to SEO, your website affects every aspect of your business. And trust us, it doesn’t have to be expensive to work.

What to do? First of all, make sure your cannabis site is optimized for desktop and mobile. Provide accurate descriptions of your products. Ensure your contact information is clearly visible and up to date. Finally, make sure you have places where you can capture customer information.

3. Socially Ignorant

You underestimate the importance of social media at your own peril. We’ve seen this happen to too many cannabis entrepreneurs. They ignore their social media following and sales fall as a result.

Social media engagement is essential for the success of any cannabis business. It defines how you relate to your audience. Did you know that  90% of all marketers indicate that social media efforts generate more exposure for their businesses? And you don’t need to invest that much time either. Research has shown that you only need to engage in six hours of social media engagement per week to generate leads.

4. High Hopes

Don’t get us wrong, we don’t want you to be pessimistic about your prospects. However, being too optimistic can be a recipe for disaster.

You see, the nature of business is to be iterative. Too many cannabis entrepreneurs become obsessed with their v=plan for their business that they fail to see the roadblocks. While it’s important to believe in what you're doing, it’s equally so to remain flexible to the market. Especially in a highly competitive market like the cannabis industry.

How can you avoid falling into this trap? Be sure to establish your cannabis business mission early on and define your values. Then, build a business plan around these two foundations. This will see you through the obstacles and challenges of the market.

5. No Advertising

A successful business needs to advertise. The cannabis industry is no different.

Your cannabis brand or service requires a base of loyal and repeat customers. They are the ones that keep the doors open and bring others in. And don’t forget that the cost of acquiring new customers is higher than that of nurturing existing ones.  

However, the advertising regulations in the cannabis industry are strict. You need to stay on track of the ever-changing laws governing what you can, and can't, do. The advertising hurdle may feel overwhelming, but there are opportunities and strategies for you to take advantage of. For example, you can deploy content and influencer marketing, optimize your social media efforts, use local seo marketing for dispensaries to gain foot traffic, engage with public relations, and more.