It’s a great thing when you can turn a hobby into a profitable business. Indeed, it takes a lot to grow a successful brand, but it’s worth it when it’s a labor of love—which is the case for many smoke shop owners. You have a lot to learn if you’re thinking of owning your own cigar shop or dispensary. However, with the right business plan and marketing approach, you can turn your pastime into profits. Continue reading to learn how.
Write your business plan
It takes a great plan to bring a business to life. Often, the difference between successful companies and failures is the planning put into them. During the planning phase, you decide what the best products and business models are for your company, and you also choose your tax status. Doing market research is one of the most important parts of planning your business. Market research will provide you with valuable insights into your market, competitors, and consumers. The more thorough your market research is, the better your plans for your shop will be.
A common misconception about writing a business plan is that it’s the same as a business proposal. Potential investors will want to see a business plan, but that’s not who you write it for. Your business plan is your blueprint for building your company, so it’s wise to put a lot of care into creating one.
Location is everything
Unfortunately, one of the leading reasons businesses fail is they’re in the wrong part of town—or maybe even the wrong town. The location of your marijuana packaging smoke shop is central to its success, so you must be strategic when choosing a place for your business to call home.
As you read in the previous section, doing market research and writing a business plan is integral to launching your business. You must determine if and—most importantly—where there’s a market for your shop. Since smoking and whiskey seem to blend, a shopping center where there’s a liquor or “wine and spirits” store would be ideal. Ultimately, you want to put your business in a high-traffic area where there are hangouts for adults and nightlife attractions.
Learn and adhere to local regulations
Cannabis is still illegal at the federal level, making it easy for dispensary owners to misstep. The best way to protect your business from the legal minefield of the cannabis industry is to familiarize yourself with local and federal regulations and embed them in the company culture.
You’ll probably need a lawyer with experience in the cannabis industry. Many cannabusinesses struggle to find a financial institution that will take their business. However, an attorney familiar with the industry will have connections with local banks that can help you to keep your revenue safe.
Discover Which Licenses You’ll Need
In an intensely controlled industry, it’s basic to acquire every appropriate permit and allows it before opening.
You should get a retail tobacco permit from your state government. This permits you to lawfully sell tobacco items and tobacco-related things. The application is commonly submitted with a one-time authorizing expense. Endorsed applications are substantial for a year, however are not adaptable to different organizations or areas. In the event that you have a smoke shop business with different areas, you’ll need to get tobacco licenses for each spot; however you can generally present a solitary application for all areas.
If, you sell tobacco items across state lines; you should get a tobacco distributer permit from any express that you expect to offer to.
All necessary licenses should be noticeably shown at every area. You should likewise save all receipts and solicitations for all discount cigarette and tobacco items that you’ve bought in the course of recent years. Inability to do both of these things will bring about steep fines from your city/state governments.
Open a Business Bank Account and Register for Taxes
In addition the marketing strategy, you’ll need to sort out precisely what kind of business yours will be lawful. For most smoke shops, there will be four essential alternatives:
- Sole Proprietorship: a solitary proprietor
- Organization: at least two proprietors
- Limited Liability Company (LLC): comparative assessment construction to the abovementioned yet with more insurance
- Enterprise: no genuine proprietor and assessments are paid through the organization
Most smoke shops will be LLCs. In the event that you have a group and different financial investors, this ought to be one of the principal things to sort out.
Subsequent to choosing the kind of business you’ll work, you should enlist with your state and the national government to set up your duty structure.
Create a vibe
Customer experience is critical to your company’s success and reflects the products, services, support, and environment that you provide. The customer experience is like your brand because it’s what people think of when they think of your business.
The customer experience is all about the environment in your business, customer service, and your products. How do you want customers to feel when they enter or exit your business? How do you want them to feel as they search your shelves looking for their favorite dab rigs? The answer to those questions will tell you what kind of vibe you should work to create in your business.
The key to maximizing the customer experience is creating a company culture that values customer relationships. Having top-of-the-line products and accessories is a good starting point, but building bonds with customers is what will keep them returning.
Cannabis use is on the rise in the U.S., making opening a dispensary in your area a great business idea. Your company’s success lies in your ability to attract customers and create an experience they’ll want to enjoy time and again. Your business also needs an e-commerce infrastructure to lure online sales and diversify its revenue. Running a successful business is hard work, but that’s what it means to “pay the cost to be the boss.”