When you decide to join the cannabis industry, like other industries, it is full of risks and challenges that you must avoid to be successful. Here, the goal is to be smart by learning what has prevented other businesses from growth and avoid them. Here are some of the common risks, mistakes, and how to avoid them when running a business in the cannabis niche.
Hiring the Wrong People
A business is as good as the staff working in it. This is because the people you employ are responsible for implementing the enterprise’s operational policies. If the employees you hire are not passionate, they will always be looking forward to moving to other companies.
Failing to Do Comprehensive Market Survey
One of the mistakes that could easily cost your business is failing to study the latest market trends and use them in making your own decisions. The danger of this mistake is that you could end up targeting the wrong niche and incurring very low sales or none at all.
For example, you should study the demand for CBD products in the market and target the right areas that are likely to drive higher sales and revenue.
Working with the Wrong Suppliers
In any hemp products business, the supplier occupies a very important part of the supply chain. But after the passing of the Farm Bill amendments of 2018 that opened the doors for more dealers, some of the suppliers and manufacturers cannot be trusted. They have resorted to using false information on their cannabis products to trick their clients into buying them.
To identify a good supplier, it is important to take some moment to check the nature of his products and commitment to customer value. You might also want to look at what the supplier’s past clients have to say after stocking his products in their stores. If they were not satisfied, you need to be extra cautious not to get similar disappointments.
Not Subjecting your CBD to Third Party Lab Testing
Perhaps the biggest mistake that you can make when running a cannabis enterprise is failing to subject the products to further testing in a third party laboratory. The hemp industry has become so wild that you can no longer trust what manufacturers advertise on their hemp products.
Studies have established that some CBD sold in the market have cannabinoid profile different from what is advertised. To ensure that you stock the best cannabis product, you should subject it to further testing.
Third-party laboratory testing is done by approved and independent laboratories, which do not have an affiliation to any party in the cannabis supply chain. So, they test the samples you take to them and give the right results. In addition to testing the cannabinoid profile of a sample, they can also check whether the product has other contaminants such as heavy metals and pesticides.
When you join the cannabis industry, you need to develop a good operating model that includes identifying the right suppliers and only stocking the best products. Make sure to subject hemp product samples of the orders you place for confirmation that the products are the best for your clients.