3 Questions to Ask Yourself Before Starting a Cannabis Business
The world of medicinal cannabis and cannabis for adult use is a fascinating and profitable one. As more and more states join the legalization bandwagon, private investors all over the country are venturing into the industry. In fact, this report predicts that sales from legal marijuana could reach up to $30 billion by 2025.
In light of all this, it makes sense that you’re considering dipping your toes into this world as well. Due to the many legalities surrounding the plant, its use and its sale, starting a cannabis business may not be as easy as you think. We’ve therefore compiled a list of 3 questions you should ask yourself before starting your own cannabis business.
1. Where Should My Business Be Located?
When starting a cannabis business, you should know that different municipalities, cities and towns all have their different policies and rules. Certain cities are completely pro-cannabis, while others have implemented special city legislation to stop businesses from selling cannabis and derivative products. Others allow the use of cannabis for medicinal reasons only and prohibit recreational adult use.
It is therefore important to ask yourself beforehand the community you’d like to set up shop in. Understanding the political landscape of your preferred area will help you figure out the best way to operate, and even whether or not it is an ideal location.
2. What Products Should I Sell?
Most people associate starting a cannabis business with setting up legal dispensaries. While these are profitable in their own right, dispensaries are not the only business model you can go for.
Before choosing your company’s business model, it’s important to consider your experience. This will help you start something you can comfortably manage and operate. You should also look into the demographic you want to cater to.
For example, if your motive is to help women deal with menstrual pain, you could go into making infused balms, soaps and topicals that will help relieve this pain. Having such a plan will ensure your company has a goal and a sense of direction all through the course of its operations.
3. Do I Need a Cannabis Trade License?
Contrary to what many people believe, the cannabis industry is not free and open to enter. To operate a cannabis business, you will need to obtain a license from the relevant authority. Remember, in certain states, having local municipal approval to conduct business is a prerequisite to receiving a state license.
You should keep track of what the rules and regulations are in your specific area. It would be a good idea to consult with a business lawyer as the application process may be quite complex.
Starting a Cannabis Business - Setting Up Shop!
To start a cannabis business, you will need to assemble a small team of gifted, motivated and talented individuals who can help move your dream forward. Before doing so, you must do a thorough assessment of the needs your company has, and the roles you will need to fill out.
Match these roles up with the skills you have- figure out what you can bring to the company, then go out and look for people to do what you can’t. Make sure to hire individuals that share the same vision for growth, and who can comfortably take up more challenging roles as the business expands and grows.