Ultimate Guide To Building a Scalable Cannabis Business — Part 1: Cannabis Industry Organization
This guide was originally written for Viridian Sciences, developers of cannabis seed-to-sale and ERP software. The original article can be found here: Ultimate Guide To Building a Scalable Cannabis Business — Part 1: Cannabis Industry Organization
Over the next few weeks, we’re going to run a 5-part, in-depth series with valuable information for those who wish to start or grow a cannabis business.
In Part I, we will present an overview of this rapidly growing industry including offering some growth statistics and breaking down the various segments of the industry.
In Part II, we will go into detail on regulatory considerations.
In Part III, we will discuss the various ways to finance a cannabis business.
In Part IV, we will go over a wide range of considerations involved in planning a successful cannabis business.
And in Part V, we will discuss the latest, cutting-edge technology in enterprise resource planning, point-of-purchase sales, and seed-to-sale systems designed especially for the cannabis industry. We’ll talk about what to look for in a seed-to-sale software system and how it relates to cannabis industry regulatory requirements, accounting, production, sales and marketing, and more.
Let’s get started.
PART I — Introduction To the Cannabis Business
The cannabis industry is currently one of the fastest-growing industries on the continent according to industry analyst firm ArcView Group. The projected US market of $24 billion by 2020 will provide ample opportunities for growing cannabis-related businesses regardless of whether they are large or small.
The cannabis industry cannot be contained in a single business category. The so-called “plant-touching” operations include farming, manufacturing, laboratory testing, product distribution, and retail sales. Each of these categories has its own particular needs, not just for production, but also legally and financially. There are also a good number of ancillary businesses that do not touch the plant.
In this document, we’ll take a look at the considerations that owners of plant-touching businesses in each category must address in order to build a highly scalable business model and to grow without tripping over itself. Cannabis companies focusing on either medical or recreational cannabis will benefit from this document. Some of these considerations are shared by all categories, while others are unique to each category.
All cannabis-related businesses have to consider aspects such as facility management, human resources, sales, marketing, analytics, information technology, etc. But each category also has very particular needs when it comes to scaling up their businesses.
For example, growers are tasked with increasing yields, which involves expanding facilities or maximizing yield in other ways, while manufacturers of cannabis products have very different considerations for increasing production capacity such as supply chain factors and tooling.
In this guide, we’ll discuss both the common considerations and the unique aspects of each category in order to provide a well-rounded overview of the industry as a whole.
The goal of this document is to present new cannabis entrepreneurs with a well-rounded view of what it will take to plan, fund, launch, and grow a cannabis-touching business.