Keys to Successful Startups
Startup companies are a risky business, even more so when the enterprise itself is surrounding a product that is still transforming across markets. Operations for medical cannabis are very difficult to keep afloat, not to mention managing the growing pains that come along with it. Marketing, compliance, and legal challenges are some of the reasons that 90% of startups fail – but that does not mean there isn’t significant hope and tactics that can be used to succeed. The implementation of quality business practices as well as recognizing what is needed throughout processes are the best ways to ensure success for your venture.
Increasing Reach Through Marketing
The cannabis industry is growing rapidly, with global sales expected to reach $33.6 billion by 2025. This is an excellent sign for a hot market, which is why so many companies are trying to invest and begin their own journey in the sector. As the industry grows, startups have to be versatile and adapt to fast-changing and complex legal and even social landscapes. Teams have to be able to adjust to and take on new marketing approaches, be open to rebranding – or even refresh and start all over again.
At the beginning of their practices, medical cannabis startups in the life sciences sector need marketing more than compliance. An issue that many of these companies have encountered early on is a lack of fundraising, whether it be due to awareness surrounding the product or steep competition in certain regions. Building a trusted, alluring brand not only garners attention and clients but can also increase the chances of receiving funding.
Keeping Compliant with Evolving Regulations
Needless to say, maintaining compliance and staying up to date with evolving regulations is vital – not only to expand your empire – but to avoid hefty fines and consequences. The price of non-compliance can also cause a loss in reputational costs that leaves your business with a bad name and little to no finances available. As the regulatory landscape for medical cannabis is constantly changing, it is critical to have a solid grasp of the requirements that vary by country or region. If not, your company can face significant disruptions in every part of your operations.
Emerging in the Industry
The medical cannabis industry is continuously evolving and trends are showing it is becoming an increasingly hot-market product – which is half of the battle for startups that are evaluating what sector to participate in. Take note not to overlook key aspects of business processes, from advertising and legalities to beyond. Startup teams often make the mistake of segmenting responsibilities, not realizing that a variety of roles overlap and it is important to work as a cohesive team to function effectively. Pay close attention to business process and model as well as overall scalability. If your organization takes meticulous care of its operations, works tirelessly to boost branding, maintains compliance, and embodies a perseverant and innovative spirit – you may just emerge as one of the top 10% successful startups.