The Next Big Trend in Cannabis? Consolidation
The cannabis industry is a promising one, and many are looking to expand. As we gaze toward the future, more money will be flowing into cannabis than ever before. The industry has come a long way in a few short years, and the economic approach is shifting rapidly. Any economist can tell you what happens when a new market arrives on the scene— small mom and pop operations build the foundations, then larger entities form and start throwing their weight around.
In the midst of the fray, there are undeniable casualties. Without proper resources, smaller operations can’t stand up against larger ones. As a result, the smaller ones are forced to consolidate.
It’s a common economic trend, and one that’s already happening to cannabis. Some organizations, armed with experience and capital, are operating in four or five states. That’s tough competition to square up against, especially for new market entries taking their first crack at running a dispensary.
The big ones are getting bigger too. In Canada, Aurora Cannabis recently acquired MedReleaf in the largest marijuana merger to date. That was followed up quickly by news that four cannabis firms were working together to form a multinational company that’s projecting $200 million in combined revenue next year. Corporations are getting larger, making it easier for them to dominate. There’s a long history of this sort of progression throughout American history.
Consolidation is a broad term. Being bought out isn’t your only option. After all, some small businesses are able to manage just fine in other markets. Observing other trades offers insight into how David fends off Goliath. Local hardware stores, for example, keep prices as low as Home Depot and Lowes by forming purchase blocks to buy in bulk, enabling them to buy at the same wholesale prices as their larger competitors.
The lesson here applies to all facets of business— finding valuable partners can be the key to survival.
Small operators have a choice. Go it alone against competition that’s growing in quantity and quality, or work smarter. But there’s more than one way to consolidate, and there are other avenues that keep the owner at the helm of the business they worked hard to create. That’s the type of blueprint ONE Cannabis works with and one that can work for you.
Franchising: The Future Of The Cannabis Industry?
Franchising isn’t a word that gets thrown around a lot when people talk about cannabis, but it will be in the future. When someone wants to open up a restaurant, they can start from scratch or they can buy a McDonald’s. There are advantages to both, especially the latter.
The same can be said for buying a cannabis franchise. It’s a comfortable middle ground that provides a dispensary owner with backing, while allowing them to maintain freedom. It’s not ownership, it’s a partnership. ONE Cannabis lightens the load by handing the proprietor knowledge that has come from decades of combined experience in the industry. Our team is comprised of experts in cannabis law as well as development and cultivation.
Partnering up early can be the difference between success and failure. In many states like Ohio, they’re still breaking ground on future grow ops and waiting to hear back about obtaining licenses. With the proper backing and know-how, investors could dive head first into development and gain immediate traction in a market that has yet to yield its full potential. The green rush is just starting to flow across most of the country, and the best resource available to entrepreneurs is the prowess of successful industry operators.
The question then becomes— what does franchising look like? We like to say that we offer a game plan, not a rulebook. Joining a franchise means that you have the experience and expertise of a proven system behind you as you pursue your entrepreneurial goals. We ensure that the franchise owner has what’s necessary to make his/her management of day to day operations fruitful.
After signing the initial franchising agreement, the ONE Cannabis team starts at the ground floor. Our package includes detailed plans for a model layout of your dispensary as well as its operations. The facility and products meet a certain standard of quality that’s beneficial for all parties involved. We also ensure all licenses and fees are in order and that the operation is under compliance.
By joining the ONE Cannabis team, franchisees gain access to exclusive strains, like Ghost Train Haze, that have repeatedly won the most prestigious awards in the cannabis industry. Premium products can be a huge advantage over larger companies that offer less desirable products. The minds behind these successful products are on hand as well. Christian Hageseth, a prominent member of the Colorado cannabis industry, is the founder of ONE Cannabis and an invaluable asset to any operation. With 10 years of experience under his belt, he’s successfully managed his business through the early days when cannabis was a fast and loose affair and into the present, where regulation has molded sales into a cohesive outfit.