Every startup business is going to be faced with challenges. The most common one is obtaining enough money to graduate from the planning phase to the implementation phase and beyond. Other challenges include knowing your demographic well enough to aptly implement marketing and sales campaigns. In addition, It’s vital to surround yourself with the right team, including partners and employees. Time management is another challenge, in addition to knowing when to scale up or stay put by taking leaps outside your comfort zone. It is important to have the ability to weigh risks and rewards. On top of all this, a niche like the cannabis industry is even more challenging because it brings with it an ever-changing regulatory environment, difficulty retaining financing, and overcoming a long-held stigma fueled by propaganda.

One major mistake is rushing to go into business without establishing a market base. This is especially true in the cannabis industry. Without first seeing a need to fill, a business is doomed to fail from the get-go. The industry has different sectors, such as distributors and growers, but those are hard to manage because dealings are usually in cash instead of financial institutions, and licensing is expensive. Some alternatives might be looking to stand out from your competition in other ways, such as with a unique edibles line. 

Another mistake is diving in without having a solid plan for your business. This includes both short- and long-term plans for where you see your company going in the future, but it also means immediate ideas for staffing, supplies, budgeting, marketing, and sales. 

In addition to knowing what you want to do, it is equally as important as choosing where you plan to do it. Location is everything, no matter which industry. Ideally, you want to pick a high-trafficked area that is very visible, with easy entrance and exit traffic flow. In addition, it’s important to research any potential competition in the area. No matter how great your product is, having too close proximity to the competition will hurt business. The location rules and regulations also differ by state, o make sure to be fully informed before spending time and money. 

Keep your product specifications within a specific scope, as well. It’s dangerous to expand outside a successful product base because you might end up spreading yourself too thin. The breakeven point is where you must always aim to stay above.