The current economic recession and pandemic are historic. The cannabis industry needs to start planning for future crises, but it must also understand that economic recessions happen to all industries. Cannabis will need assistance again in the future. In addition, states should consider how they can help the industry survive the new normal, especially given the benefits it provides. The cannabis industry has flourished in many states, and these governments should do more to support it.
Challenges facing cannabis businesses
As the legalization of marijuana progresses, the cannabis industry faces many challenges. For starters, cannabis is still illegal under federal law, which means many consumers cannot access it. Additionally, cannabis remains a foundational form of medicine, meaning it will continue to be available for generations to come and most likely home growing of Sour Diesel Seeds and other potent strains will be granted. As such, it is crucial for cannabis businesses to create a sound business plan and create partnerships to navigate these challenges. This article will discuss some of the common challenges facing cannabis businesses in the new normal.
Regulatory regimes can be complicated, especially in the absence of comprehensive information on the impacts of cannabis. Moreover, there are conflicts between state and local regulatory regimes, preventing operators from achieving efficiencies of scale. This inconsistency can lead to unintended non-compliance and confusion among operators. Given these potential pitfalls, state policymakers should carefully consider the governance of cannabis businesses before legalizing.
Strategies for reaching a broader market
The cannabis industry is notoriously difficult to navigate, and finding ways to reach a broader market for your cannabis business is paramount. While traditional social media platforms are great for general advertising, cannabis-specific social media platforms are a better bet. While Facebook and Twitter may not allow cannabis content in their algorithms, they are still a valuable resource for reaching potential customers. Using platforms like Leafwire and Instagram to network with professionals and investors is one way to gain traction on social media. Facebook Messenger is another way to deliver customer service.
To reach a larger audience, consider registering with industry-specific directories. By registering with these directories, you can reach a wide audience while targeting your potential customers. You can generate up to 13 million views per month with the help of industry-specific directories. By becoming a leader in the cannabis industry, you can gain a broader market share. By leveraging regional networks, you can attract more potential customers, and your company can grow to become one of these industry leaders.
Legalization of cannabis
Cannabis businesses are facing a difficult time adjusting to the new regulatory landscape. States and countries have different laws regarding marijuana, making the industry complex. In addition to a lack of a unified regulatory framework, a number of established companies outside the cannabis industry are gaining a foothold in the legal cannabis market. These “addiction” industries are investing heavily in the cannabis market, acquiring smaller companies, and selling marijuana en masse as their own products.
A major obstacle for many cannabis companies is the federal government’s classification of marijuana as a Schedule I drug, making it difficult to access traditional banking services. Additionally, many banks are wary of working with the industry due to the risk of losing their FDIC status and being accused of money laundering in relation to “drug trafficking.” While there have been some improvements, it’s still crucial for cannabis businesses to adhere to the new regulatory environment.
Public relations
In a market where cannabis has become legal in many states, public relations is an increasingly important tool for the success of a marijuana-related business. While paid media has its place, cannabis advertising has become increasingly red-tape-ridden. PR can help reach your targeted audience and stay relevant, especially for ancillary companies. Here are some innovative ways to improve your public relations strategy for cannabis businesses.
First, work to reduce stigma associated with the cannabis industry. There are still many stigmas associated with cannabis, and many consumers do not fit the stereotype of stoners. The best way to combat this is to engage with local community stakeholders, elected officials, and nonprofit groups. By working with these stakeholders, you can increase your business’s chances of receiving regulatory approvals and broadening your reach to your target customers.
Marketing
With the federal government classifying cannabis as a Schedule I drug, many banks are reluctant to work with the marijuana industry because of potential risk to their FDIC status and the threat of “drug trafficking” money laundering charges. Although many states have made cannabis legal, a number of banks still resist doing business with cannabis businesses. Here are five innovative ways to help your cannabis business survive the new normal. Listed below are some of the most effective ways to grow your cannabis business.
The cannabis industry experienced a huge reset in 2018, and many operators were left scrambling for capital. In 2018, COVID-19 and other restrictions meant that the industry faced a funding crunch and investor pullback. Despite these challenges, the industry continues to grow. The key to survival is finding ways to make the most of the new landscape. Here are a few examples. – Invest in a cannabis stock that is based on a proven track record and backed by an established company.
