The cannabis industry is a major source of revenue for state governments. And, it's an industry that's quickly growing. In fact, the industry is currently worth roughly $6 billion!
With so much money to be made, it's no wonder that so many businesses are expanding, scaling, and increasing their cannabis production. Growing their businesses is the key to bringing in even more cannabis revenue.
If you're ready to start scaling your cannabis business so that you can bring in more cannabis business capital than ever, keep reading. This guide walks you through what you need to know about scaling your business.
Get Your Team Right
One of the first secrets of cannabis scalability is finding an outstanding team. In the cannabis space, every business is a startup. That can make finding employees who are willing to navigate the uncertain and changing waters of this type of business crucial.
Because of how quickly the cannabis sector is currently growing, it's important for you to create a diversified workplace. You need to make sure that you have employees with knowledge of many different aspects of your business.
On top of that, you need to think about how to create a strong and healthy company culture. Values like strong ethics and appreciation for hard work are key for boosting employee morale. They're also key for developing a close-knit and engaged team.
Rely On Your Current Staff
Speaking of staff, another secret for anyone looking to successfully optimize a cannabis business is to rely on the staff that you have. No one in your company understands your product the way that your current staff does, especially if they've been with you for a while.
While many teams believe that hiring outside leadership is a great way to foster growth, it can actually be a better decision to hire internally.
This helps you develop leaders who fully understand every aspect of your business. They know how to serve customers buying cannabis on the front lines all the way to managing inventory and back-of-house tasks.
Set Realistic Goals
If you're in a big hurry to scale your cannabis grow, you might be tempted to try some of the latest and greatest ideas touted by conferences and magazines. However, you're better off focusing on improving, establishing, and maintaining standing operating procedures.
During the scaling process, you want to stick to what's working so that you can grow your product. Focusing on perfecting what you're already doing right is a great way to develop a high-quality product. That way, it can take off and help your business to grow.
In contrast, experimenting with flashy lights and new trends can lead to efforts that flop. Rather than boosting growth for scalability, you can wind up making investments that don't pay off. Or, you can waste time on products and services that don't produce large rewards for your business.
Improve Your Efficiency And Yields
Next, let's take a minute to talk about yields and efficiency. Most cannabis cultivators find that vertical growing techniques boost their yields. In fact, some reports show that they have been able to grow multiple tiers at a time!
Another way to increase your yields is to take advantage of unused spaces. Building floor-t-ceiling shelving systems are a great way to maximize space. And, they increase your ability to cultivate large amounts of cannabis crops.
Keep in mind that if you're going to use large shelving systems for your growing operations, you'll need to select shorter plants. Larger and taller plants won't fit in the units, but short and stocky cannabis strains will fit into these shelves just fine.
Still another way to improve your yields is to add a lab to your business. That lets you produce cannabis through tissue culture instead of traditional cloning methods. An efficient cannabis cultivation operation using a lab can multiply your growth rates, giving you more plants to sell.
Become More Sustainable And Lower Costs
When scaling cannabis grow it's not just about keeping up with your competitors. It's also about lowering your costs and boosting your current profits.
As you scale, you should be monitoring any potential savings that you could be making. This could be by automating processes or growing vertically.
Taking these actions can help you boost your yields without increasing your operating costs. In turn, that allows you to actually lower your overall expenses.
On top of that, it's important to think about sustainability. Cannabis growth requires a lot of water and energy in order to make large-scale cannabis production possible.
When you can figure out ways to become more sustainable, you can save on those resources and consequently save on your costs. Not only does this allow your business to lower costs, but it makes you a more socially responsible company.
Contact us for commercial cultivator pricing!
Automate Your Harvest
One major consideration that you should have when scaling a business is automation. This involves making tough decisions regarding which areas of harvesting and cultivating cannabis you should automate.
For instance, you could automate the sorting process or you could choose to automate your irrigation systems. Both these processes can be automated and both provide your business with a huge amount of value.
You'll need to look at the pros and cons of each type of automation and consider which will yield the greatest ROI for your business. When you automate business processes like these, you can create more space for scaling up your operations.
Master Your Local Space
While you might want to immediately expand your market to reach all corners of California or to make it out to new states, true success in scaling your cannabis business lies in mastering your local space.
When you master your own backyard, you prepare your business for future growth. You establish a solid market with a strong customer base before you even attempt to move into new markets. Failure to do so can cause you to overextend yourself and leave you with tons of debts but no assets.
In order to effectively master your local niche, you'll need to take a few key steps. Establish a solid business model, get to know your target customer as well as your current audience, and keep your capital structure on pace.
Focus On Profitability
Just like how we mentioned earlier that you should focus on setting realistic goals, you should also focus on profitability. After all you need to have a profitable business before you start to think about scaling your company.
Failure to do so can lead to huge issues. Your operating costs increase when you scale, and if your revenue hasn't caught up, then you'll quickly use up your cash flow and be unable to continue operations.
Part of mastering profitability means mastering your local market and achieving vertical integration into the market. You'll need to make strategic decisions about how to access your consumers and boost profits.
One easy way to do so is to build your brand. Building a strong brand helps put your company on the map and attract more new customers to purchase your cannabis products.
Seek Steady Growth
Once you've mastered your local market, it's time to think about how you can strategically expand your company. When you make it to this part of the process, your goal should be to steadily grow your business rather than to grow in big bursts.
The first step toward achieving steady growth is to start scaling into new markets through methods. A few of these methods as synergies, acquisitions, mergers, and product differentiation.
Since most traditional funding from banks is hard to achieve in the cannabis industry, you'll want to look for private-equity funds to help you do so. By achieving steady growth, you can show private lenders that your business has the type of cash flow and low risk that they need to invest.
Scaling Your Cannabis Company Made Easy
By following these tips and tricks for scaling a cannabis business, you'll be scaling your cannabis company to new heights in no time. With the right staff, attitude, and tools, you'll be prepared to create a cannabis company that's highly successful and that can continue to achieve greater and greater success.
Are you looking for tools and equipment that you can use to improve and grow your cannabis business? Get in touch with our team to find all the products you need for your business!
