It's relatively easy to grow a cannabis flower from a seed: get the right nutrient balance, the right water flow, the right light, and give it time. It's far harder for a cannabis company to grow from a startup to a larger business, however—and even just opening a cannabis business can be difficult. Nevertheless, cannabis dispensaries, grow-ops, and associated businesses have several advantages that allow them to scale for better growth as they move from small to medium and medium to large.
Inefficiencies exist in every cannabis business, from a mom-and-pop store to a major chain retailer, and each inefficiency can grow as a company grows. You may know of some inefficiencies and be ignorant of others: a thorough consultation with employees, partners, and vendors will help to determine areas where time and money are going down the drain. If you don't already, monitor the data of your business to analyze statistics like average time spent by customers in your shop to see weaknesses in your operations.
In a perfect world, your customers would be so overjoyed with your products that word-of-mouth leads to exponential growth. None of us live in a perfect world, however, and a plan for growth should be as careful and thorough as the initial business plan to get your company up and running. This is especially true if you need additional capital to scale your cannabis business: the funding to build a bigger operation is too important to be left out of a thorough plan for growth.
Every business manager in the world knows that the hardest part of their daily work is not getting customers or products but the right employees. Hiring is a challenging, imperfect process, and you may be left at the mercy of the labor market to staff your operations. When you want your business to grow, invest the time, money, and attention needed to make sure you have the quality and quantity of people needed to support the business, from the cashiers on the retail frontline to the attorneys and accountants who help navigate complex cannabis policies. Remember that hiring a person isn't the end of your investment in them as a resource: continue to provide training, support, and bonuses so that your staff are productive, positive, and proficient.
A business owner is by nature a control freak who wants to make sure that no aspect of their company escapes their attention. At the smallest levels, a single person can handle most of the tasks required of a cannabis business on their own, but as this business grows, it is crucial to move tasks and responsibilities off your plate. A robust middle management makes it possible for ownership to focus on the largest and most important tasks rather than invest so much time in day-to-day processes. Delegating tasks frees up opportunity as well as time, allowing you to make connections with the community or broader industry that you could never have pursued on the shop floor.
There's no two ways about it: building a bigger business is expensive. More space, more products, more workers, and more marketing all boost the expense sheet well past its humble origins. Plan how you can manage money to deal with operational costs until cash flow is as healthy as expenses. Working capital can be the lifeblood needed to get through short-term cash crunches, or to help you get the resources you need to move your business on up to the next level and the Canna Business Financing Team is here to help.
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In an industry that is constantly evolving, Canna Business Financing provides business owners with a reliable source to gather the most up-to-date information. From resources to fund the growth of your business to insights on best practices to scale, look no further!