The marijuana market is expanding rapidly as more states legalize cannabis. The Global Cannabis market is expected to be worth USD 12.02 billion in 2022, with a CAGR of 17.4%, and worth USD 31.46 billion by 2028.[Source]
As we enter the fourth quarter and face an uncertain economic future, the question to ask yourself is, “What are your priorities for the rest of the year, and how are you positioning yourself for a good 2024”?
Plan Your Marketing Strategies for the Fourth Quarter
The holiday season allows small businesses to increase their promotional efforts. Planning ahead of time your marketing strategy will assist business owners in making the most of fourth-quarter sales. So, before the holiday season, have the target market and target audience dialed in.
The following are some specific days that small business owners may consider taking advantage of in the fourth quarter:
- Black Friday, November 24, 2023: One of the year’s busiest shopping days is Black Friday. Consumers reportedly spent $9 billion on one day alone last year! Prepare for an increase in business by planning ahead of time.
- Small Enterprise Saturday, November 25, 2023: This day to honor and support small businesses and their community contributions. Consider how you may get involved and urge your town (and beyond!) to support your company.
- Cyber Monday, November 27, 2023: Consumers are increasingly flocking online to shop for large and little things, and Cyber Monday has grown in popularity for online sales over the years. Consider how your small business can participate today if you have an online store.
Your holiday marketing plans should ideally include all your communication channels, such as your website, social media accounts, and public/media relations. Similarly, if you have found the holiday season could have been a better time for your business, use this period to prepare for the new year by putting your marketing initiatives, strategy, and plan in place and building a plan for 2024.
Evaluate your inventory and operations.
Small business owners should ask themselves the following questions right now to develop their 4th quarter plan and save time and money in the long run:
Do you have the necessary inventory? Factor in possible delays and plan for your inventory requirements.
Is your online store up and running? Evaluate the user experience your website offers. It must be straightforward and simple enough for the visitor to obtain relevant information.
The cannabis industry is undergoing a technological transformation, ranging from automation and artificial intelligence in production to advanced packaging solutions that improve safety and labeling. These innovations are what are propelling the creation of auxiliary industries such as cannabis delivery services, infused beverages, and edibles. These have a direct impact on a more efficient supply chain. We should expect new strains, improved cultivation techniques, and the application of data analytics to optimize production in R&D.
Cannabis chemical research, such as CBN and CBG, is likely to expand, providing fresh insights into their potential therapeutic applications. There will also be research on the neurocognitive function of those who take alcohol, cannabis, or both.
Start thinking about 2024 now. Allow your data to guide your strategic initiatives for the future year.
Examine the data from your key performance indicators and the trend over time. What does the data tell you? Identify the ‘big’ goals you want to start in January based on the data and describe the tactical action plan and activities you need to do now to move those initiatives forward.
For example, you might want to develop new items to be introduced and launched in preparation for Christmas. To that end, these could include seasonal items, gift packs, and unique cannabis varieties.
Emerging Markets and Specialisation
CBD goods, cannabis-infused beverages, and cannabis-infused craft beer provide new prospects for investors in the cannabis business. Also, keep a lookout for investment opportunities that are poised for rapid expansion.
Ensure your operation fully complies with all applicable state, county, and municipal cannabis codes, ordinances, licensing orders, and restrictions. They include ensuring that one has the required licenses/permits and adhering to relevant safety and security measures.
Work in collaboration with other local partners to create cross-promotion or discounts. It’s a good marketing strategy to attract new clients and spread one’s brand.
Community outreach: For instance, join a club and sponsor activities, donate to charity, etc. This helps develop public goodwill that can be capitalized as PR or allowable advertising.
Events and Networking
Attending cannabis conferences and expos like MJBizCon, Illinois Cannabis Convention, and CannaCon can provide useful insights and networking possibilities. Industry networking is a good venue to explore, leading to new partnerships, collaborations, and a better understanding of the ever-evolving cannabis space.
Tax Planning & Financials
Of fact, tax planning occurs all year. However, it is especially vital in the fourth quarter if you intend to invest in your small business before the end of the year. Here are some tips:
- Be prepared: Your receipts and crucial data (cash flow, income statement, etc.) must be nicely organized for tax season. You should use accounting software (such as QuickBooks) to keep track of your funds.
- Be truthful: Report all company income and expenses. Do not combine personal and corporate costs.
- Make a plan: Learn about recent tax code changes and how they will affect you and your business. Now is the moment to organize your finances and schedule a meeting with your bookkeeper, accountant, or CPA specializing in cannabis.
The worldwide cannabis industry is predicted to expand rapidly by 2024, owing to new product offers, technological breakthroughs, and ground-breaking research. The global legal cannabis market is expected to reach $444 billion by 2030, with the legal medicinal and recreational market in the United States expected to reach $38.4 billion by the end of 2024.
The cannabis industry’s future appears bright in 2024, with new product offers, technological improvements, legal milestones, market development, and changing consumer preferences propelling its expansion. In this rapidly changing sector, staying informed and adjusting to change will be critical for success. As we embrace cannabis’s future, let us remain inquiring, open-minded, and aggressive in our quest for information and opportunity.