The past few years have seen exponential growth in the cannabis industry. In 2021, cannabis sales reached about $25 billion. This illustrates the growing demand for the product as it serves a variety of purposes. Therefore, if you are already in the industry, you would definitely want to enjoy some profit. You can do so by restructuring your business to meet the industry’s growing demands. However, to do so successfully, you need to assess your current situation. You can formulate an effective strategy to achieve your goals by asking yourself some important questions. Below are some of the best questions to guide you.
1. What Is Your Ideal Niche?
Although a large target market may seem ideal, it may not give you your desired results. A broad target market makes it difficult to identify which group of people your business appeals to.
As part of your restructuring, you must find a niche and work towards getting to know them and find ways to attract them to your business. It would help if you found the perfect balance, as totally narrowing your audience might also affect your profits.
It’s also a good idea to choose a niche that isn’t completely saturated. However, if your niche is saturated, you are only guaranteed to attract customers if your business stands out from the competition. For example, you can create a business brand that focuses on relaxation and stress relief.
2. Should You Revise Your Business Plan?
Like every new business, you developed a business plan to guide your cannabis business at its early stages. But when was the last time you revised this document? By revising your business plan, you can ensure the documents reflect the changes you plan on making and your new objectives. For example, suppose you’re restructuring your cannabis business to focus more on medicinal uses. Then, you should consider revising your business plan to a dispensary business plan to ensure that your business is on track to achieving its new goals.
Your revised business plan should also make provisions for any future expansions. Additionally, an updated business plan will also show investors that you are committed to your business.
3. Do You Have the Right Team?
Your team is a vital aspect to consider when restructuring your business. Since your business is going in a different direction, there may be various changes you would need to make to your team. For instance, you may need to resize your workforce— making it smaller or larger. You may also identify gaps in your business and need to develop strategies to get the skills to fill them.
If this is your first time assembling a team for your business, you must remember that not all roles need to be filled with urgency. For example, you might need someone to work in sales, but you can wait a while before hiring a social media manager. You must also consider growth when hiring, especially if you want to retain your employees. Ensure that you have made provisions for growth when you hire new staff.
4. Do You Have the Finances for a Restructure?
One of the most important things you must consider before embarking on a company restructure is asking if you have the funds to support it. That’s because you must make many upgrades and developments to ensure that your business has a new look, from hiring to increasing your product range and hiring staff.
A typical business earns money from profits, equity investments, or business loans. You can also receive funding from grants and investors. As a business owner, you must know how you will fund this restructure and if you have enough funds to sustain the business.
5. What’s Your Business’s Brand Identity?
Successful cannabis businesses have a solid brand strategy. You must define who your business is and what services it provides instead of leaving potential customers guessing. You can start by answering three important questions concerning your company’s mission, brand values, and company culture.
Remember that it takes more than just finding the right target audience. Many modern customers purchase products that speak to them and their values. They also prefer buying from businesses with an identity, voice, and feel. These are all important elements to include in your brand strategy. Of course, you must consider your target audience’s demographic and psychographic factors to help you craft the perfect message and position.
It’s one thing to start a new business but another to restructure your business. It might be challenging, but with proper research and planning, it would be completely worth it.