The Challenges and Opportunities of Starting a Cannabis Business
Are you interested in starting a cannabis business? If yes, then you’re right on par with countless others, who, in the light of the booming industry – feel very strongly about the potential to make huge profits and make a career out of cannabis.
Over half of the United States have legalized cannabis in some form, with 29 states including the District of Columbia. Moreover, while many of these states have only legalized cannabis for medical use, more and more are turning towards recreational legalization. This is great news for aspiring cannabis entrepreneurs as the industry opens itself up to fresh takers.
Marijuana sales in North America are projected to surpass the 20-billion-dollar sales mark in 2021 – and that’s only in the infantile stages of the industry. Need we say more? The point is, with so many gaps just waiting to be filled, those with green fingers and gold aspirations alike are rooting for their place under the sun.
That said, the path to a successful cannabis business is not particularly smooth nor easy. With a bunch of laws, taxes, and other unforeseeable roadblocks, it can be tricky to navigate. Hopefully, the following tips will give you a road-map and enable you to prepare for the exciting, yet challenging and very fulfilling journey ahead.
#1 Be Unique, Original and In-Demand
When starting a cannabis business, having a unique idea that fulfils an unmet need is the key to success. Remember that the cannabis industry is so much more than just grow operations and dispensaries. Do you want to do it all and open a dispensary, grow marijuana, and deliver it?
If you like food, you could consider making a unique THC or CBD infused edibles line. Or how about a bud and breakfast for cannabis-friendly lodging offering a cannabis-infused oil massage to lucky guests?
Even in the light of legalization, it remains true that the least risky kind of cannabis business is one that doesn’t directly involve marijuana buds. So, if you have any other talents like being technical, you could design a new vape pen, rosin presses, or applications and web-based software if you’re more technology inclined.
#2 Sticking to the Rules
Unfortunately for some, when entering any cannabis business, it’s pivotal to ensure one follows all the laws, rules, and regulations.
Cannabis-specific permits, licenses, and registrations are to be dealt with following the registration of your business in the state. Seeing that it could become a tricky and very cumbersome process, it’s recommended to hire an experienced attorney to help you navigate this process to ensure sure your business is legit and on track for future reviews.
#3 Raising Enough Capital
As with any start-up, investment capital is crucial to giving your business wings to take off. While it’s still illegal under federal law to invest in a cannabis business, folks are better off finding some trusty private investors. While some are yet cautious, there are many investors excited about the speed at which the marijuana industry is exploding with growth – and everyone that is wise as they are green wants in on the action.
The good news is, alternative lenders have stepped in to fill some of the gaps in lending capital to owners of marijuana businesses. However, before you dive head first into starting a cannabis business, it’s important to become aware that your financing and funding options – which are limited compared to most traditional businesses.
#4 Let the Games (and Hard Work) Begin!
There’s no doubt about the fact that an exhilarating atmosphere arises with blooming of the cannabis industry. The time is now – as boundless opportunities and potential collaborations arise with a huge variety of businesses.
Hopefully, after reading this article, you will have a better comprehension of what it takes to start a cannabis business. In summary, remember the following to be successful: Work hard and remember to play by the rules. Good luck!