First of all, congratulations are in order since you are considering joining one of the fastest growing industries, not to mention profitable. The market figures are definitely in your favor. Of course, such an appealing venture is gaining in popularity continuously, so you should better read these tips carefully in order to stand out from a plethora of other cannabis entrepreneurs.
Choose the sector
Fortunately, the cannabis industry is offering you so many amazing opportunities that it is quite hard to choose from. Of course, on the one hand, it depends on your preferences and inclinations, but on the other, you should take some cold hard business facts into consideration.
For instance, cannabis production seems to be at the very bottom when it comes to how profitable a business is. However, fear not. That does not mean that cannabis manufacturing is a lost cause. Quite the contrary, if you deliver a high-quality product and invest some time and money into good marketing, you will be able to create a recognizable brand. It just takes some time.
As for the other options, they are numerous. You can choose to engage in retail business, productinon of cannabidiol in particular (the market value is expected to grow by 700%(!)), or maybe bud and breakfast business (cannabis friendly hotels). In addition, you could be providing services to cannabis companies, such as web design, public relations, or business consulting. If you’re skilled at crafting, you may design and make original wood pipes or vaporizers. Manufacturing and selling cannabis branded merchandise is always an option since you needn’t worry about rules and laws because you’ll be selling t-shirts and backpacks, for instance.
Therefore, the choice is all yours, and it is a vast one.
Rules and regulations
Having chosen the right area for you, it’s time you dealt with perchance the biggest obstacle to your road to success: the law. Depending on the state where you are living in or thinking about setting up your business, you can encounter completely different regulations. Despite the fact that medical marijuana is legal in 33 states that does not mean recreational use is permitted by the law. If you’re wondering why this is the case, let us say the real reasons for cannabis ban may not be the concern for the citizens’ health. They are more of a financial nature.
Either way, even if the state you have opted for allows legal use or production, the number of licenses for that may not be unlimited. On that account, do your research wisely and thoroughly. You could apply for membership in local cannabis industry groups or association, or book an appointment with a lawyer specializing in cannabis markets in order to get the best information.
Make a plan
The next logical step would be to do what every aspiring entrepreneur has to do: make a sound business plan. Get down to looking at what you are trying to achieve and how you can get there. Set time limits for your short and long term goals. Do market research, define who your target customers are, and adjust your services accordingly.
What about the cash?
Once you’ve established your goals, it’s time for a dose of (sometimes harsh) reality: are you going to have enough money for what you have envisioned? While in the neighboring Canada banks are more than happy to finance your cannabis business, in the US the situation is completely different since the trade and production have not been fully legalized. In short, banks could be responsible for financing illegal activities, so no bank in the US is going to approve of something which could be interpreted as illegal under federal law.
So, what are you to do? Unless you have enough funds, or well-off friends and family to borrow from, try looking for some private investors. As we have already mentioned, the cannabis industry is on the rise and it will continue to be so. The math is pretty simple, so you shouldn’t have too much trouble finding keen investors.
Finally, bear in mind that you may face with some rental restrictions in this business, and by that, we don’t mean some people would be reluctant to rent you business premises, but the fact that you may not obtain the official permission if the building is located near a school, park or a church.
As we have already stated, you’ve definitely made a wise career choice. Follow these steps, and you’ll soon turn from a beginner into an experienced player in the cannabis industry.