Most people think of cultivation centers and dispensaries when they think of new weed businesses, but one of the most lucrative businesses in the cannabis industry is running an accessories retail operation. This type of cannabis business also faces fewer regulatory restrictions than businesses directly “touching the plant” such as grow operations, dispensary, and delivery operations. Weed accessory businesses have to comply with certain regulations for sales and marketing, but they also have more flexibility compared to other businesses.
One advantage of running a weed accessory business is that it can operate at a commercial retail site, as an online business, or as a hybrid model. Whether you opt for a traditional physical retail space, online commerce, or a mix of both, you will find a weed accessories retail business a smart choice for many reasons.
Another key advantage is that you are choosing a business that is projected to grow as the legal cannabis market grows. You can plan a successful business by closely watching the legalization trends around the nation and globe. Unlike a cannabis business directly touching the cannabis plant, an accessories business is not restricted to sales within its operating (home) state. Depending on state retail policy, some accessories businesses can sell and ship nationally and sometimes internationally. There is great opportunity in the accessories retail arena, so even if you start small you can always scale up to engage new target markets.
Starting a weed accessories business can be an exciting venture as more states implement medical and recreational cannabis programs and more countries relax prohibition laws. Staying informed about policy updates is essential for any ancillary business to remain profitable and stay updated on legislative developments. Research all local, state, and federal regulations related to cannabis.
This article will cover some basic tips for starting the business planning process for weed accessories retail.
Develop a Business Plan
It may seem overwhelming to write down your business plan but look at it as a draft in progress. This outlining and writing process will help clarify your business vision, mission, strengths, weaknesses, and resources. You will most likely need a business plan to seek business license approval, investor funding, and other uses. Incorporate market research sections on target consumers and competitors into the report.
As you discover new insights, you can add more detail and refine your business plan as planning progresses. Most business plans include the following sections:
- Executive Summary
- Mission
- Founder(s) Information
- Ownership
- Management and Staff Plan
- Market analysis
- Product Line
- Marketing and Sales
- Compliance
- Security
- Marketing and Branding
- Operating Plan
- Financial Model
Eventually, you might also need a pitch deck which is a slideshow presentation of the many elements often included in a business plan. This information is presented in a more concise form and often accompanied by visual images and charts. Pitch decks are often used to present business ideas quickly and efficiently to potential investors.
A detailed business plan usually outlines your business concept, target market, product offerings, marketing strategy, funding requirements, and financial projections. This plan will serve as a roadmap for your business and can be helpful when seeking investors or loans. You might also want to include descriptions of specific accessories, devices, and consumption equipment your business will offer.
Do Market Research and Identify Your Target Audience
Market research is critical to a new weed accessories business. If you are opening a physical retail storefront, you must be aware of the proximity and potential saturation of a local market. Identify and track the performance of your competitors. Find out the gaps in the market and see how you can fulfill an in-demand consumer niche.
Identify target audiences and their purchasing patterns. You may also realize that there are under-engaged audiences. For example, weed accessories for women may attract a key customer demographic that often does not find the aesthetics of the traditional head shop appealing. Also, research their preferred consumption methods in order to make informed strategic decisions about everything from merchandising to payment options.
Here are some other recommendations for conducting effective market competition research:
- Gather information about your competitors’ products, pricing, marketing strategies, and target audience. You will learn about their pricing strategies and promotional activities.
- Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) analysis for each competitor. This process will clarify their unique selling points and potential risks and advantages.
- Publicly available data about your competitors can be collected from websites, social media, press releases, industry reports, news articles, and financial statements. Reading articles about the various competitors will help you understand their overall market position.
- Evaluate the online presence of your competitors. This process will help you with branding in ways that set you apart from competitors. You can gain insights into their marketing strategies, messaging, and customer engagement efforts by examining their websites and social media profiles.
- Find out what their customers think by reading customer reviews and feedback. Customer reviews on company websites and platforms like Google, Yelp, or Leafly. Customer feedback often reveals helpful information about competitors’ strengths and weaknesses.
- Join industry organizations and attend industry events and trade shows. As you participate in conferences and trade shows, you will meet many important stakeholders. You will also be able to learn more about your competitors’ latest products, marketing campaigns, and business strategies. Network with other businesses in the cannabis industry and build relationships with cannabis dispensaries or other retail outlets. Collaborating with them could help you expand your distribution.
- Conduct surveys and interviews with members of your target audience. They may help you understand their experiences with competitors that you can use to improve your business plan.
Think of competitor research as an ongoing process. The cannabis industry is constantly evolving, and competition is affected by many factors, including supply chain issues. Updating market research data regularly will help you make well-informed business decisions.
Get Creative with Consumer Engagement
In-store displays can feature different category areas such as rolling trays, storage containers, and handheld pipes. I am planning to have multiple secure display cases for devices in higher education. One effective marketing strategy is to place the product of the month items in a prominent place in your retail space or window front. You can create some hype around new products and bestsellers.
If you are primarily an e-commerce weed accessory business, you can display the product of the month in prominent banners on your website, and you can also post on social media about products. Visual images of products are highly engaging, so brush up on your photography or contract a photographer to take product photos. For example, have a staff member explain the features of specific products. An overview of the features and advantages of a high-tech vaporizer will educate customers and motivate them to try products with a higher price point.
Research Legal Issues and Create SOPS to Remain Compliant
Research state and local policies that could affect your operations and create SOPs to ensure staff compliance with federal, state, and local regulations. SOPs are important for ensuring that employees consistently follow regulations and guidelines. Some critical SOPs include age verification processes before purchase (most states have a minimum age of 21 for accessory purchases), sales transactions, and security. Some states that allow weed accessories shops to sell consumable products such as vapes or pre-rolls require strict inventory procedures.
Choose a Suitable Location
Select a location for your business that best meets your target market and local regulation requirements. Consider factors such as foot traffic, accessibility, and proximity to other cannabis-related businesses (if applicable). Choose a place that your clientele would most likely gravitate to because of its proximity to other retail shops and restaurants that they might frequent. Marketing regulations can limit the visibility and placement of signs. Therefore, it is important to consider any factors that might obstruct customers from easily finding, parking, and visiting the location. If you provide online ordering and in-store pickup, also consider site features that facilitate this process. This might include a designated sales station for pickups during busy times or designated parking for quick pickup.
Of course, if you are a mainly e-commerce company you do not have to worry about the physical location of your retail operation, but you will have to consider a secure space for the purposes of storing products and preparing them for shipping and delivery.
Supplier and Product Selection
The weed accessories world is vast and includes everything from small bubblers to fancy, artisanal smoke and vaping equipment. Products such as smoking pipes, vaporizers, rolling papers, grinders, and storage containers are some common accessories. Make sure everything you sell meets safety and quality standards and source your products from wholesalers with quality products.
Let’s start with a review of the less expensive and most commonly purchased items. Rolling paper, lighters, and ashtrays are frequent daily purchases. There are hundreds of different types of rolling paper. They come in different colors, sizes, and materials. For example, rice, hemp, and flavored papers have become popular. Some businesses also carry rolling devices for those who prefer a more consistent distribution of flowers in their joints compared to hand-rolled joints.
Grinders are one of the must-have items in your inventory. Grinders can be very basic, or they can have intricate features and storage compartments. They can come in various styles and colors. Such items offer the possibility to increase the average cost of a shopping cart (whether it’s a traditional in-person transaction or an online purchase).
If you are not already familiar with some of the leading brands often carried by weed accessories stores, start to learn about the wide array of products. Customers often look for high-quality and long-lasting glass devices such as those made by GRAV. Borosilicate glass is a popular choice because it allows for a more pure taste of the product. Other consumers seek luxury glass bongs that blend aesthetics with functionality.
Glass bongs and bowls are traditional modes of consumption, but devices made out of silicone and other materials are also popular for other reasons. For example, glass bongs are prone to breakage if dropped whereas silicone may withstand accidents better.
Glassware such as water pipes and bongs have been elevated to the level of art. Glassblowers and artists were creating intricate and unique pieces that seek unique, efficient glassware.
Vaporizing devices come in different forms, from countertop equipment like the Volcano to portable and disposable devices that are small enough to be carried in one’s hand or pocket. Vaporizers are becoming more popular because many people seek an option to smoke cannabis. Portable vaporizers and vape pens also provide consumers with convenience and no lingering smoky skunk scent. Advanced vaporizer designs offer optimal temperature control, and some even have app connectivity.
In addition to hardware and accessories, some businesses also sell vapes and smokable hemp pre-rolls, terpene vape pens, and other innovative products. Other products include CBD-Infused lip balms, lotions, and edibles. Each state has different laws about the sales and purchase of different cannabinoid products, so check your state’s regulations regularly. Confirm exactly what you can and cannot sell in a weed accessories business in your state. You should also confirm which products can be sold online versus in-store as per state law.
Some stores also offer clothing and special gifts. A fun and effective branding approach is to select merchandise that highlights your branding. For example, if you are catering to more health-conscious audiences, you can feature digitized vaping devices and eco-friendly rolling paper.
Smell-proof containers and bags are becoming popular as more people want to have accessories that help them carry and consume cannabis discreetly.
The demand for edibles has also led to an increase in demand for accessories that support the proper use and storage of edible products. Specialized trays, molds, and tools for making homemade cannabis-infused edibles are available.
Many consumers seek sustainable and eco-friendly products. Many companies offer packaging or products manufactured from recycled materials. Some states have specific requirements to demonstrate reducing packaging waste, so it is also important to check on specific sustainability regulations in your state.
As with all industries, cannabis accessories reflect the latest technology advances. You can purchase a smart grinder, or buy a vaporizer that you can control via a phone app. Every day researchers are discovering product design insights that facilitate better delivery and control of vape heat and cloud plumes.
There are endless possibilities for stocking inventory, with a diverse range of products to choose from. This makes it easier to define a niche that aligns with your business ethos and appeals to new customers.
Branding and Marketing
A strong brand identity and marketing strategy helps attract and retain customers. Digital marketing, content marketing, and social media use can boost your business. For example, you can engage customers by posting about specific sales, educational information on using specific products, and product drops.
Payment and Banking Solutions
Some banks and payment processors may be reluctant to collaborate with cannabis-related businesses, even if they are only selling accessories, due to the nature of the industry. Research and find suitable payment and banking solutions to avoid any unwanted financial glitches.
Your website can be designed to offer a consumer-friendly online shopping experience. Research options that allow you to integrate payment processing systems. Such systems can also make your inventory processes easier.
How to Stand Out from Other Weed Accessories Companies
As you research your target consumer base and potential competitors, think about what kind of accessories niche you could meet. You can choose to specialize in different types of glassware, such as glass bowls and bongs, or focus on high-tech equipment like dab rigs and air filters. You may find that including merchandise that resonates with your target population. You may have clientele that are looking for accessories and apparel with specific branding.
A weed accessories business can have everything from rolling paper for less than 3 dollars up to artisan-produced glass-blown bongs. The diversity of products gives many new business owners a chance to customize and adapt inventory to reflect consumer preferences. Cannabis industry experts predict that cannabis accessories will continue to play a key role in the future market.
Find Out What Your Customers Seek
As your business grows, you should gauge customer interests and needs. Today’s cannabis consumer most likely appreciates the best products on the market for optimizing a cannabis session. This means everything from specialty rolling paper to dab rings, bangers, and quartz nails. As cannabis processing becomes more refined and high-tech, accessory innovations will try to keep up with these developments. You can expect customers to have questions about the latest products they have seen advertised.
Closing Thoughts on How to Start a Weed Accessories Business
Any new business endeavor requires careful planning and research, but it is important to take extra care when planning for weed accessory cannabis during times of constantly changing regulations. Operating an accessory business is a dynamic opportunity to be a part of a thriving new industry. This form of cannabis business should experience consistent and steady growth as more people demand high-quality devices and equipment to enhance their consumption practices.
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If you would like more information on starting a weed accessories business, please contact us. Client Verge would love to help your business succeed.
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