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9 Easy Ways to Save Money In Your Cannabis Business

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Struggling to keep your business afloat? Here are some tried-and-true strategies to cut costs and add revenue.

The best place to find an opportunity is often the last place you want to look—in the thick of a problem. That was the case for the founders of cannabis startup Plain Jane, who had the brilliant idea to create low-odor hemp cigarettes but no startup cash.

Most aspiring entrepreneurs in that position would find themselves a day job before they ran headfirst into the unknown. But this gutsy trio put an ad on Craigslist for a hemp farmer who would let them live on his land rent-free, buy some of his hemp on net terms, and sell the rest using the farmer’s license. It worked.

“We were living in an RV. There was no space. We did everything ourselves. We made the cigarette rolls by hand in the barn,” says Plain Jane cofounder Lindsey Holthaus. But they didn’t pay for either a place to live or a production facility, which saved $15,000 their first year. And just nine months after they placed the ad, sales topped $200,000 a month. Now Plain Jane is a go-to source.

You don’t have to move onto a farm to save money. But you do need to come up with some creative strategies. Here are some tried-and-true ways you can ease the burden on your bank account.

1. Barter your services

Don’t have the extra cash to afford marketing or advertising? Exchange your services instead. Ganja Eats’ founder Chef Matt wanted to set up a food booth at a CBD event, but he couldn’t pay the $10k fee. His solution? He bartered a much lower rate in exchange for promoting the event to his database of 4,000 emails. Bartering has helped me get into events I normally wouldn’t be able to afford. And it often makes a connection stronger because after you barter and deliver, they are more susceptible to paying you the second time around.”

2. Become a thought leader

In a crowded marketplace, it can be hard to get good brand exposure, and we all know that paid marketing can add up. But you can leverage your expertise to get yourself some unpaid advertising by becoming a speaker at industry events. Executives at the CBD company Waveland do this effectively. They develop interesting speaker pitches and get themselves on a bunch of panels at industry expos, seminars, and trade shows. Says Waveland cofounder Jen Slothower, “While you’re not typically allowed to advertise your brand [at these events], consumers and industry insiders will remember you and your company when you speak.” Waveland has used this strategy to cut its marketing budget up to 20 percent.

3. Delegate the big stuff

Entrepreneurs often want to do everything themselves, especially when the money gets tight. But sometimes it makes more sense to let other companies handle the heavy lift. For example, siblings Roberta Wilson and Jeff Koz, the founders of Dr. Norms, a craft cannabis company, wanted to add tinctures, topicals, gummies, and jelly beans to their repertoire, but they couldn’t justify the initial outlay. After endless product testing, Dr. Norm’s launched a line of brand extensions, products made by other companies bearing Dr. Norm’s logo at a fraction of the cost, saving more than $50,000.

To Read The Rest Of This Article By Staff on Green Entrepreneur

Published: May 04, 2020

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