There are currently 10’s of thousands of Cannabis companies in the United States alone. Which ones will survive? The companies that have a goal, roll up their sleeves, and progress towards a market that appreciates their work. Oddly enough, many companies grow sub-par plants and still survive because they have a good location. Once cannabis becomes Federally legal and they have to compete with the online market however, location won’t be enough. Other companies function more like liquor stores and make no products of their own; they are strictly retailers of other companies’ products. Depending on the influence of the online market, these companies may struggle as well.
Creating a sustainable cannabis business hinges on having an audience and an online presence as well. Although restrictive social media platforms can make it difficult for Cannabis companies, many still succeed in walking the tightrope and can ultimately build a following. Companies attract these crowds in various ways: using social influencers, writing educational pieces, developing interesting packaging and high quality products, providing amazing customer service, and even becoming activists and public figures. These are great tools to keep companies moving forward, but are still only pieces of an entire puzzle.
Obviously creating new and interesting products will turn heads, but a huge consideration for any company is determining its mission statement. There are two primary styles of mission statements in the cannabis world:
- Race to the bottom
- Race to the top
Companies that “race to the bottom” try to offer products for the lowest price possible. This means a lot of corners are cut and the company must figure out what the consumer can live without. These businesses are frequently created with the intent of selling to a willing buyer with enough money to expand the established business.
Companies that “race to the top” constantly develop new strategies and innovations that ensure their relevance and. They live and breathe theoretical cannabis science and constantly experiment with new ideas to stay a cut above and a step ahead of the competition. Just as we watched micro-brew industry and culture blow up over the past two decades, we’re now watching a rapidly expanding cannabis industry and culture follow a similar model based on ingenuity and an entrepreneurial spirit.
It’s difficult to predict the future with any certainty, but those who “race to the top” will likely reap the benefits of their dedication, and have more fun while doing so!