20+ Expert Tips for Scaling Your Cannabis Business

August 7, 2023

You might think that starting a cannabis business is the most difficult part. Well, yes, it requires a lot of work, and you could have a few anxious or restless nights. However, once your business is operational, staying ahead of the competition will become a major concern.

Additionally, you must become a destination for those looking for the best quality CBD products rather than just trying to stay afloat in the market.

The cannabis industry is the hot new market that's got everyone talking, and for good reason. With a growing number of states and countries legalizing the herb, the potential for growth in this industry is sky-high.

But, let's face it, growing your cannabis sales is no easy feat. It's a jungle out there, with complex regulations and a lingering stigma. 

Navigating the CBD Industry: Solutions to the 7 Biggest Challenges

From legal red tape to social stigmas, it's not always easy to get your CBD products into the hands of your customers. But don't let that stop you from reaching new heights in your sales.  With the right strategies in place, you can turn your cannabis business into a thriving empire. We know, these are some of the challenges you face. 

But fear not, fellow entrepreneurs! We will help you navigate these with a little bit of wit and creativity.  So, let’s get started. 

1. Problem: Advertising restrictions

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Solution: Sure, you may not be able to advertise on TV or radio, but that doesn't mean you can't get creative with your marketing strategy. From influencer partnerships to guerilla marketing tactics, there are plenty of ways to get your message out there.

a) Influencer marketing: Partnering with influencers or social media personalities who have a large following can help to reach a large audience and create positive content about CBD.

b) Guerilla Marketing: Guerilla marketing is an unconventional marketing strategy that uses low-cost, creative tactics to promote a product or service. This type of marketing uses street art, flash mobs, sampling and conducting small events to promote CBD products. 

c) Networking: Building relationships with other CBD companies or industry groups can help to create a positive image of CBD and make it easier to advertise the products.

2. Problem: Social media restrictions

CBD Advertising on social media restrictions

Solution: Just because you can't post on Instagram doesn't mean you can't still reach your audience online.

Social media is the most effective approach to draw in and keep the huge audience that is circling all these social media platforms but leveraging this channel is not an easy task for the cannabis industry. 

a) Adhere to the guidelines: Currently, the majority of major social media platforms have strict policies against advertising CBD products. Many platforms, such as Facebook, Instagram, and Twitter, do not allow any advertising for CBD products. Other platforms, such as LinkedIn, allow some limited advertising for CBD products, but it is subject to strict guidelines and approval.

b) Find the opportunity: However, some smaller social platforms, such as TikTok and Reddit, may have less strict policies and allow CBD product ads, but it's always best to check their terms of service and advertising guidelines.  Look into niche platforms, or get creative with your content to bypass restrictive policies.

c) Stay up-to-date: Also, advertising laws and policies are constantly changing, and it's important to stay informed and up-to-date with the latest guidelines for advertising CBD products on social media platforms. 

3. Problem: Limited customer data

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Solution: Sometimes, not having all the information can be a blessing in disguise. Embrace the unknown and try new things to see what resonates with your customers.

a) Product bundling: When a retailer bundles complementary products into a group of items that may be purchased together, then that practice is known as product bundling. Bundling your products can help you understand what your target audience is preferring and come back for which specific products. It also helps you increase the average order value. Products are often bundled together as an upsell or a cross-sell. Shop2app assists you in easy upselling and cross-selling by integrating with a 3rd party platform - Rebuy. The goal of an upsell is to convince the customer to upgrade. Introducing a better, more expensive version of your product is considered upselling while promoting related goods other than goods from the same category is known as cross-selling.

b) Partnerships and collaborations: Collaborating with other companies in the cannabis industry to share customer data can help to gain a better understanding of the market and the customers.

c) Surveys and questionnaires: Conducting surveys or questionnaires with customers can help to gather information about their demographics, purchasing habits, and preferences.

4. Problem: Stigma and taboo

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Solution: Let's face it, not everyone is on board with the cannabis movement yet. But that doesn't mean you can't still win them over with a little bit of charm and education.

a) Create elaborate product pages: As a cannabis business, be open and honest about your products, including the sourcing of your CBD and any third-party lab testing. This will help build trust with your customers. Putting pictures is also a great way for attracting the audience to buy from you.

b) Stay transparent: Also, provide beneficial ingredients and process-related information to your customers so that transparency and trust remain intact in your customer relationships while selling CBD products.  

c) Educate: Social media can also be used to educate your target audience about the benefits of using controversial CBD products. 

5. Problem: Differentiation and competition

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Solution: So, you're not the only game in town? Good! Use that as motivation to constantly improve your products and services.

a) Offer multiple fulfillment options: With a pivoting business approach, a customer-centric model of e-commerce has emerged. Now, it's the customers' first approach that the companies are following. Delivering your products to their doorstep is a great way to offer them the convenience and ease of ordering from you.

This can be made easier by integrating with delivery partners. You must also make sure that customers can place direct orders from your store and website for running a successful cannabis business. This will lessen the possibility of you losing potential customers. is another amazing way that saves time and offers convenience to your clients. Using the Shop2app app builder, you can simplify pickup scheduling using the time and date picker.

b) Innovation: Being at the forefront of new product development, such as creating a unique product line or developing new delivery methods for cannabis products, can help to differentiate your products from competitors.

c) Customer service: Providing excellent customer service and building relationships with customers can help to differentiate your brand from competitors and create loyalty. Shop2App integrates with Gorgias to assist Shopify stores in offering top-notch customer service. 

6. Problem: Limited brand building

CBD Products - Google Ads Community

Solution: Building a brand takes time, especially in the cannabis industry, but you can still make an impact with a strong mission and values.

a) Build credibility on Google: Google Merchant Center is a centralized dashboard with which online retailers may manage their visibility across all Google e-commerce products and update their web listings. The Google Merchant Center's major objective is to give businesses the ability to post and update product information, including images and prices so that it will appear in relevant Google shopping searches. This must be done in the initial phase while starting a cannabis business. In order to provide effective monitoring and management over Google-based marketing and e-commerce, the Google Merchant Center also interfaces with other Google services, such as Google My Business. 

b) Become discoverable: Local SEO is the process of optimizing a website to rank in the local search results. The obvious answer to why you need to do that is because people look for businesses near them. For example, if you search for CBD products near me, Google will show you all the CBD product businesses near your location.

The whole motto of Google here is to get closer to a user’s practical, real-life search patterns. For this, it continuously observes and learns its users’ behaviors. This list includes opting for the nearest locations because that’s, well, more convincing. Know more about local SEO in this blog and know how to run a successful cannabis business. 

7. Problem: Limited audience

How to Start an online CBD Business in 10 Steps (2022) | Limited audience

Solution: Just because you can't reach everyone doesn't mean you can't still make a big impact on the customers you do reach.

a) Website is a must: Your cannabis business definitely needs a website if you want to stay relevant digitally. People looking for cannabis items can find you more easily if your website is optimized and well-designed in line with SEO standards.  Your sales will naturally increase if all of your clients can readily access your cannabis business online. You must seek professional assistance because optimizing your website to make it SEO-friendly is not a simple task to undertake.

b) Reach more people with a mobile app: Nowadays, a business website is also, not enough. People are constantly on their mobiles looking for easy and mobile solutions. The benefits of deploying a mobile app for a successful cannabis business are immense.

c) Engaging features on mobile app: You may engage more clients with loyalty programs, push notifications, and subscriptions. The core benefit of mobile apps that caused the apps to take over almost all industries is that they offer a fast and convenient shopping experience.

If you have a Shopify-powered website, then you may want to turn it into a mobile app. Check out the Shop2App’s mobile app features that will help your cannabis business stand out in the industry.

Unleash Your Cannabis Business Potential

As a cannabis business owner, it's time to stop thinking small and start reaching for the sky. With these 20+ expert tips, you now know what you need to unleash your business's full potential. Trust us, you're on your way to scaling like a pro. From savvy marketing strategies to streamlined operations, you'll be high-fiving yourself all the way to the top. So why wait? Get ready to ignite your growth and reach new heights in the cannabis industry!

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