Collaborating with other small marijuana businesses can be a great way to expand your reach, share resources, and benefit from the knowledge and expertise of others in the cannabis industry. While it can be a great opportunity, it also requires thought and planning.
Here we’ll provide five critical tips for collaborating with other small marijuana businesses. By following these tips, you can ensure that you and your partners get the most out of the collaboration. Let’s get started!
1. Define the Purpose and Outcome of the Collaboration
When collaborating with another small marijuana business, it is essential to define the purpose and outcome of the collaboration. Understand what each party can gain from the partnership. This should include specific goals, such as:
- Increasing visibility
- Introducing new products
- Gaining more customers
- Exchanging resources and services
2. Choose Brands Whose Product Lines Complement Yours
When collaborating with other businesses, one of the most important things to remember is to select those whose products complement yours rather than compete with them. Collaborating with companies that offer products that compete with yours can lead to a cannibalization of your market share, which will be detrimental to both parties.
3. Join Industry Organizations, Groups, and Online Communities to Network
If you’re looking to collaborate with other small marijuana businesses, one of the best ways to do it is to join industry organizations, groups, and online communities. This gives you a platform to connect with like-minded individuals and businesses who are interested in the same topics as you. You’ll have access to people with similar interests and a variety of expertise that can help you get the most out of your collaborations.
These communities give you:
- Access to valuable resources
- Information on trends, regulations, and research to help inform your decisions
- Tips on how to build relationships and network with potential partners
- Notifications about upcoming events that you can attend to expand your contacts further
4. Get Social
Partnering with other businesses doesn’t just mean working together on product lines and creating an agreement. It also means getting social. Social media is an excellent tool for connecting and engaging with others in the marijuana industry. Great ways to get social include:
- Conducting interviews
- Hosting or appearing as a guest on podcasts
- Participating in shared social promotion campaigns
5. Create an Agreement
When collaborating with other small marijuana businesses, it is important to create an agreement. This agreement should outline the specific details of the collaboration, such as:
- The duration
- What each partner will bring to the collaboration
- Any potential revenue sharing
This agreement should be in writing and signed by both partners. This ensures that everyone involved is on the same page and that there are no misunderstandings or disagreements down the line.
It’s important to remember that while collaboration is essential for the growth of any small business, it doesn’t come without risks. Be sure to thoroughly research potential partners and their products, as well as ensure that everyone involved in the collaboration is operating under a fair agreement.
Fortunately, you don’t have to do it alone — Bespoke Financial is here to help cannabis businesses grow through financing options tailored to their unique needs. By leveraging its extensive network of banking and payment processing partners, Bespoke Financial provides marijuana entrepreneurs with access to the capital they need to succeed.