It’s no secret that the cannabis industry is booming. In fact, according to a report by Arcview Market Research, the legal marijuana market was expected to grow from $6.7 billion in 2016 to $22.8 billion by 2021. That’s an annual growth rate of nearly 29%. So, if you’re thinking of getting into the cannabis industry, now is the time to do it. There are many opportunities available in the industry, and it’s only going to continue growing over the next few years.
However, starting a marijuana business can be easier said than done, and there are a lot of things to consider. If you want to start a marijuana business and you aren’t sure how this is what you have to know.
Decide on Your Product or Service
The very first thing that you have to do before starting a marijuana business is deciding on the product or service that you will be selling. Contrary to popular belief, a marijuana dispensary isn’t the only type of marijuana business that you could start.
Some popular marijuana businesses like Canna Cabana include selling specific devices like distinctive electric dabs and rigs, marijuana accessories, manufacturing the packaging for marijuana products, transportation of goods, and more. Since marijuana can’t cross state lines, you will need to consider a product or service that is needed in your state. Don’t make the mistake of thinking that just because a product or service doesn’t exist in your area that it is needed.
Draft Your Business Plan
The next step to launching your marijuana business now that you have a product or service in mind is to draft your business plan. A marijuana business plan is slightly more complicated than that of an ordinary business, like a restaurant or clothing store. This is because the industry is way more regulated, and there are a lot of laws to follow.
Some important information that your business plan should include would be:
- The suppliers you have chosen
- Your plan for gaining customers
- Where your business will be run from
- What the costs of the business are
- When profit will be seen
There are more considerations to make too, so it might be best to enlist the help of a professional.
Get The Licenses
Perhaps one of the trickier steps to launching your marijuana business, and an incredibly important step, is getting the licenses you need. Before getting licenses, you will need to register the name of your business, as well as rent a physical space.
The next step is applying for a license, and unfortunately, the requirements for this depend largely on the state you are in, and they vary greatly. Some states might charge a fee of $2,000, whereas others might charge $8,000. Some states might even require you to have cash at the ready to the value of $200,000, and distribution licenses fees can cost as much as $240,000.
Figure Out Your Consumer Base
Something that every business needs to do, especially a marijuana business, is figuring out who your customer base is. Within the marijuana industry, this might prove to be slightly challenging, since there are so many different products and so many different consumer habits.
The most important thing you will have to do is find out who your consumer base is in your local area, and how you will reach them. This is because statistics related to consumers aren’t exactly available yet, so starting at a grassroots level will help you to bring in profits. In addition to this, it would be a good idea to receive feedback from existing customers as the business grows to make sure you are staying on the right track.
Consider Your Staff
Now that you have started the process of getting a license, you have a product or service in mind, and your business plan is drafted, you will need to consider your staff. When considering staff it’s important to consider what type of marijuana business you are running.
For example, if you are running a marijuana dispensary, then your staff will need to have abundant knowledge about the different strains of marijuana, the effects it will provide, which strains have what potencies of THC or CBD, and more. More than anything, your staff will need to be knowledgeable and professional, since marijuana customers know more about marijuana now than ever before.