Tips to Anyone Starting a New Cannabis Business (Interview with Purrple Alien)
Starting a business is no easy feat and the cannabis industry is one of the hardest industries to break into. However, despite the difficulties, the rewards can also be huge if done right.
This week, PACKAGEWEA sat down with Purrple Alien’s co-founder, Mike Casavant to discuss business, cannabis, and life. Purrple Alien is a US-based edible brand that was founded by Mike Casavant and Kelly Ramirez in Wisconsin. They specialize in the creation of “magical treats” by blending good taste with potent flowers: from gummies to cereal bars and from marshmallows to cookies, whatever it is you’re craving, they’ll find a way to make it and infuse it!
The face of the Purrple Alien brand is the funky and eccentric alien which features on most of their cartoons, t-shirts, packages (which we helped make!) or Instagram posts. You can click here to learn more and try their galactic products 👽 @purrple.alien Without any further delay, here are the main ideas discussed throughout the interview:
1. What are the biggest obstacles a new entrepreneur should expect to face?
According to Mike, the two main difficulties are both internal and external. The first obstacle to overcome is YOURSELF. In order to begin the entrepreneurial journey, one must put all fear and self-doubt on the side. Granted there will be a lot of people judging your decisions and doubting you, but it is up to you to believe in yourself and your project. You need to keep these doubts from creeping into your mind. Once the mindset is sorted out, the next thing is to find trustworthy collaborators. Mike mentioned how widespread scammers were on the internet: a lot of people out there will pretend to be someone they are not and will disappear once you give them money. The scams are even getting more and more intricate! It is your responsibility to do appropriate research and to ask the right questions in order to determine the legitimacy of your partners! The police will not be able to do anything once the scam is done. It is a long and tedious process but once you find these trusted collaborators, hang on to them and nurture your relationship with them. Better be safe than sorry.
2. What are the most important things to do for your business?
For this question, Mike emphasized two main tasks to tackle: one before starting and one throughout the journey. Before starting your journey and jumping into this new business venture, it is very important to do enough research and due diligence to clearly understand the market and its needs: at the end of the day, liking a business idea is not enough to make it successful, you need to make sure people will pay money for it! As a serial entrepreneur, Mike has experience in establishing new businesses from the ground up. The audience is the key component of all of them. You have to determine what makes your brand special. Are people asking to pay for your products? Who are you targeting? Who are your competitors? You need to have all these questions answered before jumping in! Once you study the market to find a need, you need to nurture the audience: it is one thing to find an adequate market (theory) but it is a whole other thing to actually break into it (application). It is primordial to nourish and grow the audience, especially in B2C, since at the end of the day, you need to lure customers in and get them hooked on your products! Mike highly suggests experimenting with digital tools such as Instagram, influencer marketing, and free samples to achieve a wider reach.
3. What are your thoughts on the current state of the cannabis industry?
In Mike’s eyes, the current industry is divided between big corporate brands which are in it for profit and small craft cannabis growers who symbolize the soul of the industry: “Cannabis is similar to Rock and Roll and Hip Hop, in the sense where there is a massive culture around it, it’s not just about profiting but there is a lot of history and baggage that comes with it”. Mike then re-iterates the importance of branding in the industry: “Purrple Alien is a discovery brand, think of it like an onion, whenever you peel a layer off the brand, there is a new one!” But what does that mean exactly? The Cannabis industry is sort of like the wild west at this point: legalities change so fast, what is legal today may not be tomorrow and the industry is prone to daily changes! You can’t be too comfortable when there is constant development and Purrple Alien faces these changes head-on by strengthening its brand! Granted Purrple Alien’s brand focuses on edibles. However, the company also ventured into other areas such as clothing in order to strengthen and grow the brand, regardless of the cannabis industry: the goal is to have a brand that is so solid, that it no longer depends on the developments of the industry. Think: how can you branch out and become bigger without necessarily “selling out” and maintaining your brand’s aura.
4. Any tips to entrepreneurs who are thinking of entering the cannabis industry?
To anyone thinking of entering the business, Mike has some news for you: THIS IS NOT A GET RICH QUICK INDUSTRY! If you’re thinking of going in, making millions overnight, and then leaving, this may not be the best market for you because 1) You’re not Pablo Escobar and 2) the competition is fiercer than ever in this new industry. Only enter this field if you are willing to play the long game. Don’t get us wrong, there is definitely money to be made, not quick money though. Going back on point #2, you must study the market and do in-depth research before making any moves. Once that is done, be prepared to sacrifice and sacrifice A LOT… It’s not going to be an easy road to success, you’re not going to have customers on day 1, you will most definitely face unforeseen obstacles, and the legalities are very complex (that’s without mentioning the costs of entry) but according to Mike, the willingness to pick yourself up and keep going day after day is what differentiates thriving businesses from others.
