How Strategic Partnerships Add Value to Your Cannabis Business

Industry Expertise

If you want to succeed in what has become one of the country’s fastest-growing industries, you must have a team member with comprehensive knowledge of the ins and outs of the cannabis space. The industry is known for being highly regulated with state-specific legislation that can be confusing for newcomers to understand.

Many companies have been working with cannabis startups since the early days of the industry. This includes marketing agencies, creative consultants, and cannabis-specific accounting firms. The type of partnership you choose to pursue depends on a few things, for example, where you’re located, whether you’re in a medical or adult-use market, and what phase your business is in. Certain agencies are better suited for some tasks than others, so make sure you do your due diligence when researching your options.

Networking

Another added benefit of having the right partners is gaining connections to other industry professionals. 

Let’s say, for example; you’re an up-and-coming online CBD retailer. You’ve been working with a creative consultant who designed beautiful packaging for your products that aligns perfectly with your brand identity. While you finally have a design that you’re happy with, you might not know what the next step is to bring that packaging to life. It’s likely your consultant can put you in contact with packaging manufacturers or suppliers that you might not have found on your own. 

Additionally, partnerships also allow for more personal connections to blossom. If you are passionate about entrepreneurship and cannabis, meeting others who share the same interests can be very gratifying. These connections open up more possibilities for attending trade shows, networking events, meetups, and more.

Financial Stability 

One of the smartest partnerships, particularly for those in the early stages of business, is hiring an accounting firm specializing in the cannabis industry. As discussed in our recent blog, “The Basics of Starting a Cannabis Business: Funding & Financials,” managing the financial side of your business on your own is no easy task. Between processing your payroll for employees, managing your cash flow, and ensuring that you’re staying compliant with your state’s rules, it’s dangerously easy to get behind.

One of the most significant areas where an accounting partnership will help you out is compliance. Tax compliance can be particularly difficult in the cannabis space, where each state has a different set of laws for dispensaries and other businesses. A good accountant will work with your team to identify and implement solutions to manage risk, improve performance, and put practical accounting and financial systems in place. 

Conclusion

Strategic partnerships are a great way to scale your business, create lasting connections with other industry professionals, and ensure you don’t run across any legal issues on the financial side. Potential partners should be thoroughly vetted to ensure that both parties are on the same page about expectations and goals.

We offer tax planning, accounting, bookkeeping, risk management audits, and more as a part of our Complete Compliance Advisory Solution. If you’re looking to start on your path to compliance and sustainable success, contact Green Space Accounting for a free 30-minute consultation.