The marihuana plant, also known as cannabis indica, has been known for its beneficial healing properties. But despite being used for thousands of years, the perception of marijuana as a gateway drug to harder substances such as heroin and cocaine has led it to its classification as a schedule 1 substance.
Thankfully, most states today have reassessed laws on how they view marijuana and have legalized or decriminalized the usage of the plant as a drug.
People are using marijuana to relieve pain, relax the body, increase social skills, and generally provide “good time”. The two compounds mainly associated with marijuana are Tetrahydrocannabinol (THC) and Cannabidiol (CBD) both have properties that are beneficial to a person’s health in many ways.
THC can positively impact a person’s central nervous system and alter the perception, emotion, and cognitive skills. Meanwhile the lack of psychoactive properties made CBD very popular in treating different metabolic disorders.
Due to the myriad of health benefits CBD and THC have gained great popularity in America today. With all that the sale of cannabis in the U.S. hit a record $17.5 billion this past year.
Without a doubt, there’s never been a better time to join the cannabis industry. Let’s talk about how you can start a successful cannabis business, as well as ensure the success of your venture.
5 Steps to Starting a Cannabis Business
1. Figure out what kind of cannabis business you want to start
The key to having a successful cannabis business is knowing for certain what kind of venture you want to have. The main types of businesses involved in cannabis are dispensaries, grow operations, and edible sellers. Decide which sector of the marijuana industry you want to join and try to create a venture that fills an unmet need in order to build a loyal and thriving customer base.
2. Create a clear and detailed business plan
The next step to having your own cannabis business is creating a business plan. Because cannabis is a highly-regulated industry, your business plan will need to be exhaustive and concise. You should ensure that your business plan considers federal and state laws. In addition, it should also specify how you can run your business by detailing your business costs, marketing strategy, and supply operations.
3. Register your business and obtain necessary permits
After nailing your business plan, you should choose a business entity that works best for your new venture. It’s important to get this right since this will outline the taxes you pay, as well as the level of legal risk you’re exposed to. Some popular options for small businesses today are limited liability companies (LLC) and corporations.
In addition, you should also acquire the business licenses, permits, and registrations that will allow you to legally run your cannabis venture. Because cannabis is not legalized at a federal level and each state has varying cannabis laws with regard to it, you’re going to need to do your due diligence and even employ the services of a legal professional in your state. This way, you can ensure that your business gets all the proper permits and complies with the law.
4. Find a way to raise enough capital
One downside of opening a cannabis business is that the federal banks often deny loans to such businesses. This is because marijuana is not considered legal under the federal law, and banks don’t want to be associated with ventures that even involve CBD. Thankfully, there are plenty of ways that you can raise capital for your business, such as angel investors, crowdfunding, and informal lenders.
5. Establish a brand identity that resonates with your mark
Before launching your cannabis business, it is crucial that you know your consumer base and have created a brand identity that speaks to your target market. Doing so allows you to ensure that your products and services are being delivered to those who actually want them. To do this, you should first conduct thorough market research and competitive analysis. Then, you can work with a team of creatives and marketing professionals who know how to expertly build a winning brand identity.
6. Invest in Quality Cannabis Processing and Extraction Equipment
If your business involves cannabis processing or extraction, having the right equipment is crucial. High-quality, efficient machinery can not only improve the quality of your products, but also your operational efficiency, which can directly affect your bottom line.
Here are some points to consider when investing in cannabis processing and extraction equipment:
Understand your needs: Depending on the specific type of products you plan to produce, your equipment needs will vary. For example, if you’re creating cannabis edibles, you might need different equipment than if you’re extracting oils for vape cartridges.
Research and compare options: There are numerous brands and models of cannabis processing and extraction equipment on the market. Take the time to research and compare different options, considering factors such as capacity, efficiency, reliability, safety, and cost.
Training and safety: Once you’ve selected your equipment, make sure your team is properly trained to use it safely and efficiently. Mishandled or improperly used equipment can lead to accidents, product waste, and decreased efficiency.
Maintenance: Regular maintenance of your equipment is key to ensuring its longevity and reliability. Plan for and budget regular maintenance checks and potential repairs.
Compliance: Finally, remember that all equipment used must comply with any applicable regulations. This can include health and safety regulations, as well as cannabis-specific regulations related to product purity and consistency.
Investing in the right cannabis and hemp processing and extraction equipment and maintaining it properly can make a significant difference in the success of your cannabis business.
2 Ways to Secure the Success of Your Cannabis Business
1. Sharpen your knowledge in business and entrepreneurship
As we’ve mentioned, cannabis is a tricky industry to break into, with all the strict laws and regulations surrounding it. To ensure your success as a business owner, you should boost your knowledge of business and entrepreneurship. One way to do this is by enrolling in a business short course.
These will provide a good, cost effective overview on how to run a business. However, if you have time and money to spare and want a much more in-depth course then many of the country’s top universities offer online business courses.
An online business administration degree is 100% remote and allows students to work to a flexible schedule, making them ideal for entrepreneurs who don’t want to take a three-year break from their business.
These types of courses will help you develop your skills in economics, business law, statistics, and financial accounting, as well as enhance your competency in key business aspects such as management, human resource, and marketing.
In today’s competitive world, where the startup failure rate is at 90%, taking the time to learn about business practices will give you an edge on your competitors and increase your chance of longevity.
2. Streamline your marketing strategy
In today’s world, there are plenty of ways to capture the attention of your target audience. One marketing strategy that you should employ is social media marketing (SMM).
Social media can greatly impact your target market, so you should effectively leverage its power through carefully devised ads and campaigns.
Another marketing strategy that can help you propel your cannabis business is search engine optimization (SEO). This allows you to generate visits to your website by helping your business become more visible on search engines such as Google and Bing.
As more people visit your site, you will be able to build up a loyal community who will help spread the word about your products.
The world of cannabis is a very difficult industry to penetrate and thrive in. However, you can ensure the success of your cannabis venture by remaining vigilant of the laws and regulations concerned with your product, as well as having a good foundation in business and marketing.
Written by Alice Stacey Myrtle
Exclusive for www.pureforlife.com