The cannabis consulting industry has grown rapidly over the past few years, providing more alternatives than ever before to budding cannabis business owners seeking assistance with strategic planning and day-to-day operations.
However, it is not always easy to locate a competent expert. As the cannabis market has expanded, it has attracted a less than a vetted group of consultants looking to cash in on the trend.
There are many who overpromise and underdeliver, while others charge exorbitant prices for knowledge that might be found elsewhere for free. Some are headed by people who have experienced their own legal problems or business difficulties.
Consultants come from all walks of life, including former business owners in the cannabis industry (both successful and unsuccessful), experts in related fields who work frequently with cannabis companies (real estate, law, horticulture), and those who have taken intensive, intensive courses on specific aspects of the business.
The services offered by many of these consultants are valuable and trustworthy. You don’t need a background in cannabis to be successful in the marijuana sector if you have a solid grasp of business principles.
How then should businesses go about recruiting said consultant? Here are five suggestions:
1. Contact Some Of Their Prior Clients And Ask For Feedback
Request a list of the consultant’s former clients and follow up with questions about each one before signing a contract. It’s not a bad idea to call a small sample of clients, much like how a company could contact a candidate’s references before hiring. Although it’s common sense to do your research before hiring a company, some business owners rush into hiring someone because they’re hoping to save time or money.
2. If You Have Very Specific Needs, You May Want To Look Into Niche Consultants
Some of the more seasoned consultants have specialized in a subset of the consulting sector because they recognize the value of niche expertise. A cannabis consultant who advertises himself as a one-stop shop for dispensary or cultivation needs may be lacking in key areas of expertise. A consultant in the field of law, for instance, is unlikely to be an effective source of information on regional farming methods or advertising campaigns.
3. Ensure You’ll Have Direct Eye Contact With
Existing market consultants are looking to the newly legal states for expansion opportunities. Consultants who have dealt with the regulations of states will have no trouble doing so in other states. The consultant-client relationship is crucial to the success of any firm, thus it’s usually ideal to side with a client who can meet in person.
4. Give Equity Some Serious Thought Before Selling
It’s becoming more common for consultants to want equity in the companies they advise. It’s important to exercise caution when working with consultants that want a piece of the action in exchange for their services. To begin, a consultant may face a conflict of interest if he or she has financial ties to more than one company operating in the same market. Second, there’s a chance the ownership stakes will go against the rules in your country.
5. Find Out Whether They’re Doing Any Business With The Opposition
In newly-online states, the local government may cap the number of available business licenses. If your company operates in one of these markets, you could want to inquire with your consultant about his connections within the industry and whether he knows any companies that are actively seeking licenses in your area.
