The marijuana business has been on the rise since its legalization for use in the United States. Given how fast this industry is growing, it is expected to reach USD 66.3 billion by 2025. It is understandable why you are interested in this business! However, before you venture into “cannabusiness”, there are things that you need to know. Here are four tips to guide you:
1. Hire a consultant
Like any other business, when you join the marijuana industry, it is difficult to know everything at the onset. This business may be complicated to begin, difficult, and risk-prone. For this reason, you need a consultant to take you through the process. Consultants in this industry will help you navigate the complex business issues and help your company stand out so that it grows faster. However, before you bring any consultant on board, there are a couple of things that you should consider. For instance, you need to establish whether they understand this business by asking them about their past clients. You should also establish whether they share the same vision of how your company fits in the cannabis industry. Lastly, you should find out whether they can get things done efficiently.
2. Device a unique idea
As the market grows rapidly, the only way you stay in businesses is if you have a unique idea that you feel has not been explored fully. Before you start, you need to identify what sector of this industry you want to venture into. Often, most people think about growing sectors and dispensaries. Given the continuous legalization of marijuana in the United States, it is likely that in the next couple of years the profit margins will begin to decline. The businesses that will be hit the most are those grow-ops and the dispensaries. Therefore, you need to think outside these populated domains. Among the potential businesses that you should explore include making edibles and cannabis lodging. In case you are tech-savvy, you should think about how you can design devices that help people ingest and process this product. Such ancillary businesses will earn you big bucks!
3. Be compliant with the rules
Despite being legal, having a solid plan, enough funding, and a large clientele, is not enough because you may wind up in prison when you do not follow the rules. There are a ton of legal issues that you need to work through before your business can begin to operate. For instance, even setting up your customer’s payment options is legally laborious. To be on the safest side, you need to get an attorney to demystify these regulations lest you get charged a hefty fine for failing to comply with the law. Different states have varied rules when it comes to adult and medical-use cannabis businesses. Understanding these laws will have your business booming without any problems.
4. Have sufficient capital
Cannabis commerce is not your average business. Do not think for a second that you will walk into the bank with your proposal and get funding for it. Despite its rapid growth, marijuana is illegal under federal law hence banks want to stay away from it. What do you do then? You need to find private investors for your business on cannabis business directories or you can also attend cannabis industry events where you will get a chance to meet face to face with other marijuana enthusiasts. Additionally, you can ask whether your friends would be willing to partner with you, use Crowdfunding, or network online. With these ideas, you automatically find an investor given that some people are always looking to fund the next big thing and cannabis meets these criteria. However, you need to have an elaborate plan for people to trust you with their money.
It is an exciting time to venture into this industry as the opportunities are endless, the money is good and the customers are many. However, you should not get carried away with all the things it has to offer. Before you start, be sure to hire a consultant, find your niche, get capital, and follow the law!