When I set out to open a medical cannabis dispensary in the Chicago area, I recognized that a move into the new cannabis industry would be riddled with challenges. I decided then and there that I would draw upon the years of skills I had amassed in the healthcare field. With that said, my experience in the cannabis industry has taught me several invaluable business lessons that have shifted my business practices and outlook.
Cannabis Industry Lessons Learned
Core Value Discipline Creates Differentiation in a Commoditized Market
Considering the commoditized nature of the cannabis industry and that most licensees are non-vertically integrated (having very little control over how the medication is produced), creative means for differentiation must be employed to retain patient loyalty.
By nurturing a company-wide value discipline that focuses on “patient intimacy,” you develop a deep understanding of your patients that fosters a close and long-term relationship. This requires looking insightfully at the customer journey to better understand the patient’s experience, ongoing interactions with the plant, and motivations for commitment to a cannabis regiment.
For example, upon intake, each of our patients is now presented with (and encouraged to maintain) a customized cannabis treatment plan that maximizes relief while meeting their lifestyle needs. Many of our company’s staff members are medical cannabis patients themselves, so product recommendations are often made based on personal feedback.
In today’s hurried business world, quality time taken with each customer to ensure an extraordinary level of service, expertise and guidance – goes a long way.
Persistent Challenges Breed Resilience
The expansive and ever-growing number of cannabis industry obstacles includes:
- lack of access to banking;
- an inventory procurement process that is time consuming, non-standardized, and requires careful attention to detail;
- management of a cash intensive business;
- and inconsistencies between state and federal laws which manifest themselves on multiple levels.
As a result, a decision to invest in the new cannabis industry means that you’re forced to dig deep and develop strong resilience. Although these difficulties at times seem insurmountable, a team that works hard to seek creative solutions is key to success.
For example, we leverage our collective experience in healthcare, retail operations, finance, strategic thinking and pharmacy management to initiate the best course of action. By preserving an optimistic outlook, embracing one another and supporting other industry businesses, it is through this resilience that our company has been successfully able to adapt to disruptions while scaling the business.
Industry Alliances are Necessary for Navigating Regulatory Framework
Operating in a nascent industry within a highly regulated framework requires allies. When cannabis business licensees share feedback that illuminates state guidelines and simplifies the everyday practice of running a cannabis business, exchanges ideas for cost-savings, develops ongoing vendor relationships, and integrates new technologies and product innovations – these alliances become critical to success. I have come to regard many of these co-business owners as friends.
By working together cooperatively to drive the industry forward, impart legislative change and pivot public perception around medical cannabis – we are all supporting this new cannabis industry together.
Business Practices Must be Flexible in an Evolving Market
New products are constantly coming to market. Program changes can go in to effect at any time. To survive in business, one must be flexible enough to adapt.
To flourish, you must anticipate changes and formulate your strategy. By keeping your finger on the pulse of the industry – watching trends, listening to legislators, participating in medical research, engaging in studies, interacting with customers and monitoring social media – you are better able to anticipate changes and restructure your strategy accordingly.
A flat organizational structure that empowers your team members to make their own decisions works best. Open communication and collaboration should be the cornerstones of your corporate culture. Everyone at our dispensary has an equal voice in submitting new ideas. By continuously looking to improve upon your business practices, your are able to progressively raise your standards of excellence.
I recently came across this quote by self-help writer and speaker Robin Sharma, “Doing the difficult things that you’ve never done awakens the talents you never knew you had.” As a cannabis industry advocate and healthcare entrepreneur, I welcome these difficulties as new opportunities for professional and personal growth – and you should do the same in your business, too.
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This article, “4 Lessons Learned Working in the New Cannabis Industry” was first published on Small Business Trends