Now that you have a clearer idea of what cannabis business consultants do, you can start learning about some of the most important reasons you need them to succeed.
1. Vet Applicants to Hire the Best Executives and Managers
Owning a company doesn’t always mean you have the experience and skills to hire the best executives and managers. A cannabis business consultant can review applicants objectively to determine which ones can do the jobs best.
Eventually, your consultant will leave. The executives and managers will stay behind. Make sure you have professionals who can do their jobs well.
2. Use the Consultant’s Existing Connections in the Cannabis Industry
If you’re starting a new cannabis company – or expanding your existing company into new areas of the industry – you might need a cannabis business consultant’s connections to grow.
Imagine that you have developed a new strain that your test group loves. It tastes amazing and creates an energetic high without any anxiety. Right now, it’s sitting in your warehouse. You need to get it into dispensaries that can sell to consumers willing to pay for high-quality products.
The question is: Do you know which storefronts in your state are willing to sell your new strain?
An experienced business consultant can point you in the right direction. A truly hands-on consultant might even do a lot of the work to get your product on shelves.
It’s much more likely that a company will want to distribute your products when its owner has a personal connection to you. A business consultant can act as that connection.
3. Abide by All Regulations to Avoid Penalties
A business consultant’s services often include reviewing company guidelines to make sure they align with industry regulations. That matters more in the cannabis industry than most.
Even states with relatively permissive recreational cannabis laws enforce strict rules on businesses. For example, you might not have the option to advertise in certain places, or you might need to ensure the presence of security during your hours of operation.
To make matters even more complicated, regulations vary from state to state. They can even vary from community to community. Business consultants in Florida might not know how to answer questions about regulations in Oregon. Similarly, professionals in Oregon might not have the information needed to help Florida cannabis businesses grow without breaking laws unintentionally.
Avoid penalties by following recommendations from experienced consultants who understand your area’s laws.
4. Overcome Growing Pains That Hold Back Many Businesses
Most businesses experience growing pains when owners try to expand. Opening a new storefront, for example, requires more than paying for more real estate and staff members. The growing business also needs to make sure that it has enough merchandise to keep shelves stocked. If you expand too rapidly, you could find that you do not have enough suppliers to satisfy patients and customers. Suddenly, you find that you’ve spent a lot of money opening a store that can only operate for a few hours a day before it runs out of merchandise.
Other common growing pains experienced by expanding businesses include:
- Changes in tax requirements.
- Determining whether you need to give employees more benefits to match state and federal regulations.
- The increased costs of distributing products to multiple locations.
- Streamlining supply chains to keep costs low without experiencing interruptions.
Unless you’re prepared to tackle these issues on your own, you need a business consultant who has helped other companies overcome these issues.
5. Determine the Best Ways to Spend Money on Your Business
Your business has a set amount of money that you can spend on growth. What’s the most effective way to use your cash and credit? Should you spend money on marketing the products you have or open a new location to reach more customers? Does it make more sense for you to start manufacturing your own edibles and concentrates, or should you dedicate that money to securing merchandise from other companies?
You have a lot of questions to answer. A cannabis business consultant can review your financial situation, research growth opportunities, and synthesize the information to help you make a smart choice.
6. Identify Emerging Opportunities in the Cannabis Industry
The cannabis industry evolves quickly. More states seem to loosen their laws every year. As areas start to allow more medical and recreational cannabis, you could expand your business and attract more patients or customers.
Emerging opportunities can also include spending money on new products. Do you have a customer base willing to spend 10 percent more on high-quality strains promoted by celebrities? Perhaps that’s an area you should pay attention to. Your business consultant can help you figure out the right path to growth.
7. Avoid Common Mistakes That Ruin Businesses
A good business consultant will help you avoid some of the common mistakes that ruin many businesses. Some of those mistakes might include:
- Taking on more debt than you can repay.
- Growing too fast for you to maintain quality.
- Hiring employees who won’t commit to doing excellent work.
- Putting people in leadership positions without teaching them how to lead.
- Setting up an employment package that does not attract the best candidates.
- Choosing outdated technology because it’s cheaper – even though it will eventually hurt your business by slowing operations.
- Following a flawed business plan.
- Refusing to adjust to the industry as it evolves.
A cannabis consultant’s services probably can’t solve all of your problems, but they can make growth much easier by helping you avoid common pitfalls.
Choosing a Cannabis Business Consultant
Now that you know the seven reasons why cannabis business consultants are essential for growth, you need to know how to identify the right professional for your company. The following tips should lead you to a reliable person.
Tip 1: Find a Cannabis Business Consultant With Experience Working in Your Area
As mentioned above, the cannabis business has diverse laws that can vary from community to community. Unfortunately, it doesn’t look like that will change soon. Unless Congress acts to legalize cannabis products, states will continue dealing with this hodgepodge of regulations. At the moment, Congress doesn’t even recognize cannabis as a medical treatment despite ample evidence showing that it can curb symptoms of depression, anxiety, ADHD, Alzheimer’s disease, and many other conditions.
Because of this unfortunate situation, you should choose a cannabis business consultant with experience working in your geographic area. If you operate in Florida, find a cannabis business consultant in Florida. If you have a store or farm in Michigan, find a consultant based in Florida.
Don’t take any chances by hiring someone who might not understand the nuances of your local laws.
Tip 2: Know What Areas of Help You Need for Your Business
Since many business consultants focus on specific issues in business development, you should start your search by identifying what areas of help your company needs. If you aren’t sure what areas apply to your plans, talk to a general business consultant to get a clearer idea of what you can expect.
Tip 3: Always Ask Cannabis Business Consultants About Their Qualifications
Does a cannabis business consultant really have the experience you need to grow your company? Before you hire someone, ask consultants about their educational degrees, real-world experience, and other companies they have helped.
Tip 4: Get References Before You Hire a Consultant
Ask business consultants to give you references so you can contact other companies that have worked with them. Reach out to those businesses in the cannabis industry to talk about their experiences. If they were happy with the consultant, there is a good chance that you will also have a positive experience. If they have a lot of complaints, it’s probably safest to choose someone else.
Tip 5: Choose a Cannabis Business Consultant Willing to Focus on Your Company’s Needs
Business consultants should never put their needs first. The client’s business matters more than anything else. If you get the impression that a cannabis business consultant near you cares more about enriching themselves, keep interviewing people until you find someone you trust.
Tip 6: Follow Your Instincts but Use Your Brain
Hiring an excellent business consultant isn’t always a straightforward decision. Someone can look perfect on paper. Despite that, you get a bad feeling about them. The opposite can also happen: Someone you click with might not have the experience you prefer.
Remember that this decision will have a direct impact on the growth of your business. Making the wrong decision could hurt your profits substantially. You want to hire a cannabis business consultant that appeals to your instinctual gut and your analytical brain.
Tip 7: Always Get a Contract Before You Use a Business Consultant’s Services
You’ve found someone you think can help your cannabis business grow. Congratulations! Now, take the time to have a lawyer write a contract that defines everyone’s expectations in the relationship. The contract could include:
- Bonuses for reaching milestones.
- The number of hours the consultant will work for you each week.
- A timeline for meeting goals.
- How much money the consultant gets paid.
- How you can protect your business from consultants that don’t commit to your needs.
Talk to a Cannabis Business Consultant
Find a cannabis consultant today by searching the the listings on 420property. The website does not provide business consultant services, but it can help you find a reliable consultant for your cannabis business.