The cannabis industry is booming right now, and it’s not showing any signs of slowing down. It’s currently a multi-billion dollar industry, and 2019 alone saw a 76 percent increase in cannabis jobs.
Are you interested in starting a cannabis business of your own? Are you unsure of how to begin or what steps you can take to make sure it succeeds?
If so, keep reading. Explained below is everything you need to know.
Identify the Type of Business You Want to Start
The great thing about working in the cannabis industry is the fact that there are lots of different types of cannabis businesses you can run. The following are some of the most popular options you might want to consider if you know you want to work in the industry but aren’t sure exactly what you want to do:
- Growing cannabis plants
- Making cannabis-infused products (oils, edibles, topicals, etc.)
- Opening a retail store or dispensary
There are benefits to starting each of these types of businesses. Whether you’re fascinated by the growing and breeding process, like the idea of creating unique cannabis products, or prefer to work on the sales side of things, there’s something for just about everyone.
Do Your Research
Once you’ve decided on the type of cannabis business you want to start, it’s time to dive in and learn about it. The more research you do at this stage, the easier it’ll be for you to create a thriving, profitable business later.
Make sure you have a clear understanding of the specific permits you’ll need, as well as the laws in your state regarding cannabis businesses.
Do you live in a state where it’s legal to grow cannabis plants? How many can you grow? Are there limits on the types of products you can sell or how you sell them?
It’s important to answer all these questions now before you invest a lot of money in creating your company. It’ll protect you from potential legal issues and help you start your business on the right foot.
Write a Business Plan
Once you’ve done your legal homework and figured out what kinds of steps you need to take to start a cannabis business in your state, it’s time to write up a business plan for yourself.
A business plan is a template that helps you map out the progress of your business and figure out what steps you need to take to help it become successful.
You don’t have to marry yourself to your business plan 100 percent (there’s always room for adjustments). Having something to guide you can make a big difference, though, especially when you’re first trying to get your business off the ground.
Choose Your Location
When you’re putting together your business plan, you’ll need to think about where you’re going to conduct business.
Where are you going to grow your cannabis plants? Where are you going to open your dispensary? Are you going to have an online shop to sell your cannabis-infused products?
Location is a key factor to consider no matter what type of business you’re going into. It’s especially important if you’re going to open a dispensary or retail store, though. You’ll need to think about foot traffic and accessibility, as well as your city’s specific zoning laws and regulations.
Don’t forget about the rent, either. How much can you afford to spend per month on a location?
Secure Funding
Unless you recently received a large inheritance from a wealthy relative or have been saving up for years, there’s a good chance you’re going to need some financial assistance when starting your business.
It can sometimes be hard for business owners to get funding when they’re entering into industries like the cannabis industry, which still has some stigma surrounding it.
If you have trouble getting access to cash, consider working with private investors or peer-to-peer lenders. They might be more willing to give you a loan than a traditional bank or credit union. They might even give you better loan terms and interest rates, too, especially if they’re impressed by your business plan.
Build and Promote Your Business
Once you’ve taken care of the basics of licensing and funding your business, it’s time to start building and promoting it to your target audience.
Look into hiring employees or working with contractors to handle various aspects of the business, such as website design, packaging design, and marketing. You can use platforms like LinkedIn or ZipRecruiter to help you find the right people to fill these roles.
Reach out to cannabis publications and other businesses in your area that might be interested in partnering with your company, too. For example, if you’re selling cannabis-infused products, you could benefit from partnering with a local health food store or naturopathic doctor’s office.
Protect Yourself
Finally, make sure you’ve taken steps to protect yourself. The cannabis industry is constantly evolving, and it’s imperative that you cover yourself and your investment.
Keep up with the latest changes in the industry and new laws that are being passed that might affect you as a business owner. Staying informed will help you avoid finding yourself in unpleasant or costly situations.
Work with a lawyer to make sure all of your business decisions are compliant with state regulations, too. It’s also a good idea to invest in comprehensive insurance coverage. That way, if something bad happens to your business, you can recoup at least some of the damages.
Are You Still Interested in Starting a Cannabis Business?
As you can see, there’s a lot that goes into starting a cannabis business. It’s definitely not for the faint of heart.
If you’re still interested in pursuing this type of business now that you know more about what’s involved, though, you should definitely go for it. Follow these steps and you’ll have an easier time getting your business off the ground and make sure it’s a success.
Don’t forget to check out the startup section of our site today for more advice.
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