{"id":3065,"date":"2021-12-15T19:06:28","date_gmt":"2021-12-15T19:06:28","guid":{"rendered":"https:\/\/www.leafly.com\/wp-home\/?p=188455"},"modified":"2021-12-15T19:06:28","modified_gmt":"2021-12-15T19:06:28","slug":"6-ways-to-grow-a-cannabis-business-in-illinois","status":"publish","type":"post","link":"https:\/\/thcinct.com\/?p=3065","title":{"rendered":"6 ways to grow a cannabis business in Illinois"},"content":{"rendered":"<p>  <title>6 ways to grow a cannabis business in Illinois &#8211; Leafly<\/title>     <!-- This is Index Exchange, a script\/\/3rd-party integration that interjects GAM. It needs to be 'ahead' of GTM in the DOM, which comes from Cephalopod. GTM loads GAM. This script needs to setup it's interjection stuff before GAM loads. --> <!-- End Index Exchange --> <!-- Quotes = strings--><!-- No quotes = boolean-->\t   <!-- This site is optimized with the Yoast SEO Premium plugin v17.5 (Yoast SEO v17.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->                   <!-- \/ Yoast SEO Premium plugin. --> <\/p>\n<p> <!-- BEGIN Sailthru Horizon Meta Information --><\/p>\n<p><!-- END Sailthru Horizon Meta Information -->  <!-- Google Publisher Tag --> <!-- End Google Publisher Tag --> <!-- Google Tag Manager --> <!-- End Google Tag Manager --> <!-- Chartbeat --> <!-- End Chartbeat --><br \/>\n <!-- Google Tag Manager (noscript) -->   <\/p>\n<div id=\"copy_clipboard_success\" class=\"fixed top-0 left-0 right-0\">\n<div class=\"bg-white p-lg container mt-xl flex justify-between elevation-low rounded\"> <span class=\"flex items-center\">     <span class=\"ml-md\">Link copied to your clipboard<\/span> <\/span> <button id=\"copy_clipboard_close_btn\">    <\/button> <\/div>\n<\/p><\/div>\n<p> <!-- End Google Tag Manager (noscript) -->   <title>Leafly<\/title>     <title>Leafly \u00ae<\/title>                                                                                                                                                                                                                                                                                                                                                                                              <title>Loading\u2026<\/title>                <\/p>\n<div class=\"bg-white fixed flex hidden inset-0 items-start md:h-auto md:items-center overflow-auto\" id=\"age-gate-container\">\n<div class=\"bg-white md:h-auto mx-auto p-lg text-sm w-full\" id=\"age-gate\">\n<p><label for=\"select-country\">Where are you from?<\/label><\/p>\n<div class=\"age-gate__info\">\n<p><button class=\"button\" data-testid=\"age-gate-no-button\" id=\"tou-cancel\">no<\/button><button class=\"button ml-md\" data-testid=\"age-gate-yes-button\" id=\"tou-continue\">yes<\/button><\/p>\n<p><label class=\"checkbox__label my-xl\"><span class=\"text-xs\" id=\"remember-user-label\">Remember me for 30 days. <br \/>I confirm that this is not a shared device.<\/span><\/label><\/p>\n<p class=\"error error--underage hidden\">Darn! You&#8217;re not old enough to use Leafly.<\/p>\n<\/div>\n<p class=\"hidden age-gate__loading\">Redirecting you to<span class=\"redirect-domain\"><\/span><\/p>\n<p class=\"text-xs mt-auto\">By accessing this site, you accept<br \/>\nthe <a class=\"py-xl\" data-testid=\"tou-link\" href=\"https:\/\/www.leafly.com\/info\/terms-of-use\">Terms of Use<\/a><br \/>\nand <a class=\"py-xl\" data-testid=\"pp-link\" href=\"https:\/\/www.leafly.com\/info\/privacy-policy\">Privacy Policy<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"container my-xl\">\n<div class=\"row\">\n<div class=\"col md:col-9\" id=\"article-content\">\n<p class=\"has-dark-green-color has-text-color has-small-font-size\"><em>Th<strong>is article is the eighth<\/strong><\/em><strong><em> in a series called, <\/em><\/strong><em>\u201cSo you want to start a canna biz?\u201d<\/em><strong><em> created in partnership with <u><a href=\"https:\/\/www.goodtree.capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Good Tree Capital<\/a><\/u>. <\/em><\/strong><em>The last article in our series focuses on growing your cannabis business. <\/em><\/p>\n<hr class=\"wp-block-separator\">\n<p class=\"has-drop-cap\">So you have acquired a license in Illinois and your cannabis business is up and running. Next up, establish a solid plan for growth.<\/p>\n<p>Growing your cannabis business doesn\u2019t happen overnight, and different business models help a business grow in different ways. The common thread across all business models, however, is the need to steadily increase the revenue you pull in.<\/p>\n<p>Here are six different considerations for cannabis business owners that are ready to grow their weed business in Illinois.<\/p>\n<h2 id=\"h-1-increase-your-sales-goals\">1. Increase your sales goals<\/h2>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"683\" alt=\"sales graph concept hand drawing on blackboard\" class=\"wp-image-188476 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois.jpg,compress&amp;w=1480 1480w\"><\/figure>\n<p>Finding the balance between price and quantity is essential, and to find it, you have to know your finances, and customers, to a tee. Outright increasing your prices can increase your bottom line, but it will likely be at the expense of your customers. <\/p>\n<p>To mitigate this, you can increase your sales goals, focusing on attracting new customers.<\/p>\n<h2>2. Expand your product or service offerings<\/h2>\n<p>Another route you can take to grow your cannabis business is to expand your offerings so that some products can be sold at a premium and others can be sold for a discount. <\/p>\n<p>If you are a manufacturer, grower, or another business higher up in the supply chain, the same logic applies. In all cases, you are selling more products, and growing organically over time as you continue to optimize your operations \u2013 as long as you can keep up with the costs of more production!<\/p>\n<p> <a href=\"https:\/\/www.leafly.com\/news\/industry\/how-much-does-it-cost-to-start-a-cannabis-business\" class=\"wp-block-leafly-blocks-leafly-single-inline-block leafly-inline-related-story\"><\/p>\n<div class=\"border border-deep-green-alt border-l-0 border-r-0 my-xl p-md font-bold\">\n<p>Related<\/p>\n<p>How much does it cost to launch a cannabis business?<\/p>\n<\/div>\n<p><\/a> <\/p>\n<h2>3. Acquire additional cannabis business licenses<\/h2>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"575\" alt=\"Licenses on Business Folder in Multicolor Card Index\" class=\"wp-image-188493 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-1.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-1.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-1.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-1.jpg,compress&amp;w=1480 1480w\"><\/figure>\n<p>As your business grows, it is likely you will hit an inflection point that signifies a need to expand. <\/p>\n<p>If you are a grower, you may hit the limit on how much flower your business is permitted to grow under your license. Or if you are a dispensary, you get to the point where your business is solid and in essence \u201crunning itself\u201d so you can shift your focus and bring your expertise to new markets. <\/p>\n<p>In both cases, all signs point to expansion, which currently means that you will need a new license. Replicating the model across the state by acquiring more licenses allows your business to increase revenue coming in, but also cements your brand as a known and reputable company for the services you provide.<\/p>\n<p class=\"has-small-font-size\"><a href=\"https:\/\/www.idfpr.com\/profs\/adultusecan.asp\" target=\"_blank\" rel=\"noreferrer noopener\">Click here for up-to-date information about cannabis business licenses in Illinois<\/a><\/p>\n<p> <a href=\"https:\/\/www.leafly.com\/news\/industry\/cannabis-business-models-101\" class=\"wp-block-leafly-blocks-leafly-single-inline-block leafly-inline-related-story\"><\/p>\n<div class=\"border border-deep-green-alt border-l-0 border-r-0 my-xl p-md font-bold\">\n<p>Related<\/p>\n<p>Cannabis business models 101<\/p>\n<\/div>\n<p><\/a> <\/p>\n<h2>4. Consider vertical integration<\/h2>\n<p>Some businesses know they have perfected their craft and seek to multiply, while some businesses see the opportunity in taking operation optimization a step further. A crucial element of optimizing your operations is decreasing costs. <\/p>\n<p>Over time, you can develop relationships and cut deals with other businesses that are part of your supply chain. But prices can only go so low, and these business partners still need to profit from you to keep their business running. This encourages a lot of companies to vertically integrate.<\/p>\n<p>Vertical integration is when a company develops or purchases other companies in its supply chain. Profit margins will always be larger for companies that supply themselves before they supply others, and being in control of your supply chain allows you to have even greater control over your revenue drivers- price and quantity.<\/p>\n<h2>5. Become a multi-state operator<\/h2>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"643\" alt=\"Colorful USA map with states. Vector illustration\" class=\"wp-image-188478 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-2.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-2.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-2.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-2.jpg,compress&amp;w=1480 1480w\"><\/figure>\n<p>Whether going the route of vertical integration or opening more locations across your state, when your business wants to take expansion a step further, you have the option of becoming a multi-state operator (MSO). <\/p>\n<p>MSO\u2019s have licenses across state lines, and although they can\u2019t freely move products from state to state, their strength lies in the intellectual property, equipment, branding, and manpower between the operator\u2019s cannabis companies.<\/p>\n<p> <a href=\"https:\/\/www.leafly.com\/news\/politics\/neighbor-states-give-illinois-10-million-in-cannabis-taxes-every-month\" class=\"wp-block-leafly-blocks-leafly-single-inline-block leafly-inline-related-story\"><\/p>\n<div class=\"border border-deep-green-alt border-l-0 border-r-0 my-xl p-md font-bold\">\n<p>Related<\/p>\n<p>Neighbor states give Illinois $10 million in cannabis taxes every month<\/p>\n<\/div>\n<p><\/a> <\/p>\n<p>The key to an MSO is operational efficiency, which is driven by strategic growth and expansion. This can take two forms. One avenue is rapid expansion, getting a stake in several states regulated markets, and growing with the market. Another is to target states with fewer licenses and establish yourself as a dominant player in younger markets before it gets too established.<\/p>\n<p>Regardless of which route you choose, it is key to ground your strategy in operational efficiency. MSO\u2019s have a history of racing to gobble up as much of the market as possible, and while this is effective for expansion, it doesn\u2019t guarantee, and oftentimes hurts profitability.<\/p>\n<h2>6. Apply for funding that will help you grow<\/h2>\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"576\" alt=\"Plant trees on coins and calculators, financial accounting concepts\" class=\"wp-image-188482 has-ll lazyload\" data-srcset=\"https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-3.jpg,compress&amp;w=550 550w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-3.jpg,compress&amp;w=740 740w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-3.jpg,compress&amp;w=1100 1100w, https:\/\/thcinct.com\/wp-content\/uploads\/2021\/12\/6-ways-to-grow-a-cannabis-business-in-illinois-3.jpg,compress&amp;w=1480 1480w\"><\/figure>\n<p>Depending on where and how you will grow, you may need additional funding to get there. As we outlined in our previous article, <a href=\"https:\/\/www.leafly.com\/news\/industry\/how-to-get-funding-for-a-cannabis-business\">How to get funding for your cannabis business<\/a>, you have three options for financing: profit, debt, or equity.<\/p>\n<p>If you can support your growth strategy with profit you have made from operations, then great! However, even the most successful, profit-generating businesses want to ensure they can use their cash flow to sustain their operations, like buying inventory and paying vendors. This is why debt and equity investment options are more than likely the best way to go.<\/p>\n<p>Debt and equity financing can come from investors like trusted friends and family, private equity firms in the cannabis space, cannabis lenders like <a href=\"https:\/\/www.goodtree.capital\/illinois-social-equity\" target=\"_blank\" rel=\"noreferrer noopener\">Good Tree Capital<\/a>, and even the State of Illinois with the <a href=\"https:\/\/www2.illinois.gov\/dceo\/CannabisEquity\/Pages\/LoanInfo.aspx\" target=\"_blank\" rel=\"noreferrer noopener\">Social Equity Cannabis Loan Program<\/a>. <\/p>\n<p>Pathways to financing are out there, so it\u2019s all about choosing which one aligns with your business model and growth objectives as your cannabiz continues to thrive!<\/p>\n<hr class=\"wp-block-separator\">\n<div class=\"my-xxl wp-block-leafly-blocks-leafly-related-articles\">\n<p><h2>Read the whole series from Good Tree Capital<\/h2>\n<\/p>\n<\/div>\n<div class=\"leafly-sailthru-signup p-lg my-xl bg-white rounded elevation-low border border-light-grey\">\n<p class=\"text-xs pt-lg\">By submitting this form, you will be subscribed to news and promotional emails from <a href=\"https:\/\/www.leafly.com\">Leafly<\/a> and you agree to Leafly&#8217;s <a href=\"https:\/\/www.leafly.com\/company\/tos\">Terms of Service<\/a> and <a href=\"https:\/\/www.leafly.com\/company\/privacy-policy\">Privacy Policy<\/a>. You can unsubscribe from Leafly email messages anytime.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/div>\n<p> <!-- Chartbeat --> <!-- End Chartbeat -->  <!--\nPerformance optimized by W3 Total Cache. Learn more: https:\/\/www.boldgrid.com\/w3-total-cache\/ Served from: _ @ 2021-12-15 19:11:18 by W3 Total Cache\n--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>6 ways to grow a cannabis business in Illinois &#8211; Leafly Link copied to your clipboard Leafly Leafly \u00ae Loading\u2026 Where are you from? noyes Remember me for 30 days. I confirm that this is not a shared device. Darn! You&#8217;re not old enough to use Leafly. Redirecting you to By accessing this site, you accept the Terms of Use and Privacy Policy. This article is the eighth in a series called, \u201cSo you want to start a canna biz?\u201d created in partnership with Good Tree Capital. The last article in our series focuses on growing your cannabis business. 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