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How to Scale a Cannabis Delivery App Business?

By Peeyush Singh
October 8, 2019 2. min read
Last update on: July 16, 2020

Last Month, we wrote an article on how to start a Cannabis delivery app business where we looked into 8 steps that are to be followed to start a cannabis business in the USA.

This is Part II of the series. 

Every year, a technological element latches itself to the year’s nomenclature. While 2017 was the year of cybersecurity, 2018 became the year of temporary rise and fall of cryptocurrency. And now 2019 is the year of Cannabis.

Legalization of cannabis had been a hot topic since the past many years. But this year saw the support coming in from multiple sources – politicians, recreational and medicinal users, and economists alike. Cannabis has become the bipartisan issue has seen support coming in from all corners – an event which has aided the flourishing of the cannabis delivery market size.

The beneficiaries of this mass support and weeding legalizations have been the various entrepreneurs who have entered the space with some apprehensions, only to find a massive amount of revenue generation opportunities. 

What came leafed with massive revenue generation abilities was the influx of new-age entrepreneurs who entered the industry at the first sign of legalization. And today, the cannabis entrepreneurs have found themselves on such a growth spike that they have now even entered the stage of scalability. 

But they are not finding this transition, from being a startup to converting into a full-scale business, easy. 

Majority of these growth spurt experiencing entrepreneurs are not able to chart their scalability journey. There are a number of reasons behind this unclarity that entrepreneurs are facing in terms of whether it is time to expand their business or continue growing at the rate they are:

  • Unsurety in terms of where the industry is headed next
  • Limitations in gaining financial help needed for scaling
  • Availability of the ‘right team’
  • Rising competition clouding the grow vs scale decision

By getting tangled within these webs of confusion, entrepreneurs are not able to get the necessary nudge that is needed to act on their preparedness to scale cannabis delivery app business

This article is intended to give the entrepreneurs who are economically ready, the methods to scale cannabis delivery app

Let us start by looking at the elements that will play a contributory role in formulating the cannabis delivery app growth ideas.

Elements You Need to Scale a Cannabis Delivery App Business

There are three things that any business book will tell you, which directly impact the potential of whether or not you are ready to scale a cannabis delivery app business. Here are what those three factors are – 

More Money

This one is a no-brainer. Your cannabis delivery app funding model should be able to support the requirements and necessities that will come stringed along with your scalability needs. Arranging capital is the first thing that you will have to consider when you are out preparing to scale. 

More Originality

While you would have started off as an innovator bringing something new to the cannabis industry, chances are that if you look around, you will find more businesses following the trend. Now in order to scale up your business and emerge as the utmost leader, you will have to deliver something out of the box to the users. Only when you are constantly upping the cannabis delivery app growth ideas, they will stick by your brand and contribute to its utmost growth. 

More Help

Irrespective of whether or not you started the business as a one person army, you will need help to take your cannabis business to the next level. This, in turn, will require you to form a team, which would work together to convert your cannabis idea into a wide-scale business. 

Once you have hired a team to help scale your cannabis app business, you will have to delegate tasks effectively to ensure that the process is smooth-flowing. 

Another factor that will help you scale a cannabis delivery app business is being proactive – something that you will be able to achieve only when you understand the challenges that can emerge in the lifetime of your cannabis app business. 

Challenges of Growing Cannabis Delivery App

Challenges Faced by Cannabis Delivery App

The challenges which come as a part and parcel of scaling a cannabis delivery app business is more or less same as the doubts that cannabis app entrepreneurs face, which we discussed at the beginning of the article. 

However, there are some challenges which majority of the cannabis delivery app entrepreneurs would have to face when they get to the part where they are scaling their business and have already crossed the initial launch and development phase. 

Increasing Competition

With more and more countries and cities opening up to the idea of making delivery of medical and recreational cannabis mainstream, entrepreneurs from across the globe are pouncing on the idea to make themselves a part of the flourishing sector. 

This sudden rise in the demand seen from the entrepreneurs end is causing the competition count to hit the charts. 

Limited Financing Opportunities

The money related challenges are not just limited to the limitations of funding platforms for marijuana startups, storing the transaction amount is difficult too. 

Although there is a lot of money in the business, especially since you do not have to worry about the inventory and the cost of cannabis delivery app development is also low, the architecture to move the money or store it is not in place. There are very few banks that allow accepting money made from cannabis transactions or freely give the facility to store those money. 

Hitting a Rut

Cannabis delivery app business is one of the most profitable avenues for entrepreneurs to enter in. For they don’t have to worry about the strict regulations or cultivation efforts. 

But this easeness is a double edged sword. While on one side, your cannabis delivery business model hits an absence of cannabis delivery app growth ideas state very early, on the other hand, your profit charts starts declining as well, much before you anticipated.

These three challenges can turn out to be a deal-breaker for the scalability dreams of a cannabis delivery app entrepreneur. 

Presence of such limitations is what makes it all the more important for entrepreneurs to approach the methods to scale cannabis delivery app with well-planned strategies. 

Cannabis Delivery App Scaling Strategies

Improve Efficiencies

You are at a stage where you have the economic power to capitalize on the increasing business size. What you need now is to capture the benefit and elevate it. The way to do that is by improving efficiencies in your business.

The ways these efficiencies can be achieved are: through streamlining team communication, getting pricing from vendors to bring the cost of cannabis down, etc. Ultimately, the more efficient you are able to make your process, the more you would be able to capture the benefits of increasing the scale of your business. 

Build the Right Team

You might have an excellent team – one that specializes in their domain and have supported you thoroughly at your development stage. But assuming that the same team would help you scale your business can be a short-sighted thought. 

You will have to hire more specialists in your team, who understand the industry inside out and are skilled to push your hardworking team in the right direction. Only by increasing your team size, you will be able to sustain the scalability requirements your business needs.

Differentiate Yourself From Other Cannabis Delivery Apps  

Medical Cannabis Delivery Service app sector is the one where the differentiation gap can fill up pretty soon. You will always have to think ahead of your competitors and would have to continue adopting newer technologies and offer newer services to keep big tech giants from wiping you off the charts. 

A few ways you can differentiate and scale a cannabis delivery app business are:

  • Through ISO approval
  • By increasing the offerings on your app
  • Through competitive pricing
  • Use cannabis cryptocurrency integration
  • By becoming a 24*7 business
  • By becoming an AI-powered cannabis delivery app

The key to achieving scalability in your cannabis delivery app business without many hassles is a movement that would require you to find a mix of the right team and continuous innovations. Only when you are able to find an equilibrium between both, you would be able to sustain the challenges and fluctuations that come with scaling a cannabis delivery app business and ultimately become a part of the future of cannabis app industry

Peeyush Singh
Peeyush Singh
Chief Operating Officer
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