In recent years, the marijuana and cannabis industries are booming. You can find all sorts of products that boast ingredients that include CBD oil and THC. And you can find them everywhere, from neighborhood soccer moms to CEOs. The taboo is largely going away with the legalization measures across different states in the country.
With this kind of popularity, it’s a good bet that cannabis will be a lucrative business to get into. But there is another thing to consider – uncertainty. We’re not exactly sure how stable this business will continue to be because the industry is brand new. However, once upon a time they would have said the same thing about eCommerce, and look how that went.
What You Need To Know Before Starting Your Cannabis Business
We’d assume you know a lot about marijuana, cannabis, CBD oil, and THC if you thought of opening a business in this industry. But that’s not necessarily true. You might just be interested in a business opportunity in a fast-growing industry. If that’s the case, you need to do a lot of research into the benefits and types of products before you begin.
The next thing you need to know about is state law. While CBD oil made from hemp is federally legal, states have their own regulations when it comes to these products. You need to know how they work. And it’s not only about the type of products that are legal where you live, you also need to know about any state regulations for the industry and your business type.
Steps to Starting your Cannabis Business
Once the preliminary research mentioned above is out of the way, you need to decide on the type of business you’d like to create. Research other businesses in your industry. You can easily find listings of Denver dispensaries to see what your competition is. Research other businesses thoroughly to see what they offer and then decide what sets your business apart.
You might decide to create your own products. In which case, you’d need to research the products on the market and decide what type of product you could create that meets a growing need. There are many small businesses today making specialty items, like ointments, lotions, and foods, with CBD or THC. Whatever type of product you’re interested in making, you do need to verify the regulatory requirements and all licensing prior to beginning. You may want to learn about the purple kush strain and others you can get seeds to grow. You will also need to learn about finding marijuana seeds as growing your own is the most cost effective option.
Once you’ve decided on the best business or type of product, you need to develop a business plan. This is the same step you’d take to create any type of business, but you’ll want to include the regulatory costs and any licensing you need to obtain in your business plan.
A solid business plan includes all of the costs for starting the business, overhead, where your business will be located (online or a storefront), and how you plan to attract customers. If you’re planning a brick-and-mortar location, you’ll want to look at the area for foot traffic and parking and find out if it’s a good location for your key demographic.
Your business plan will also include all of your financial information. Traditionally, these plans are used to help you gain funding, but they also should be used as a blueprint to plan your business. Many businesses fail in the first year because they weren’t well planned. Don’t skip this step. Make sure that you have enough investment money to carry your business through six months to a year before turning a profit. It takes most new businesses quite a while to catch on with customers and gain a loyal following. And this market is becoming saturated with new businesses.
Develop or source your products. This is a key step. There are different types of marijuana, CBD, and THC products available on the market. Some are known for exceptional quality. Other products are known for specific effects, such as being good for stress relief or excellent for pain relief. Some products are known for giving you a certain kind of euphoria. Decide on the type of products that you want to be known for.
Secure your funding, set up your business structure, and obtain licensing. Funding might mean that you’re investing your own money or you may attract other investors or partners. Bank loans may be more difficult to secure in this industry because marijuana is still illegal at a federal level.