Want to Join the Cannabis Industry? Here are 4 Types of Businesses You Could Start
A few years ago, when specialists and experts projected the growth of the hemp and cannabis industry, they had no idea it would reach such heights. New reports suggest that the global cannabis industry for adult use is bound to reach $90.4 bn by 2026 and even further beyond this time. It, therefore, comes as no surprise that more and more investors are looking to venture into the marijuana business.
Before venturing into this industry, it’s important to figure out beforehand the niche you want to fill. Doing so will help give your business purpose and direction; crafting a solid business plan may also come in handy when seeking financiers and investors. In this article, we’ve compiled a list of four cannabis businesses you should consider.
1. Cannabis Cultivation
The roots of the cannabis industry are its farmers, working diligently to ensure their harvests are not only plenty but also of premium quality. Therefore, you could set up a cannabis cultivation business and either supply marijuana to retailers or sell it in your own dispensary.
You should know- running a cannabis growth project (whether indoors or outdoors) is energy and labor-intensive, thus requires quite a bit of capital. However, you could optimize yields by incorporating such modern techniques as vertical farming, thereby increasing your profits.
2. Extraction
Cannabis can be consumed in more ways than just smoking. While smoking remains most people’s preferred option, products extracted from cannabis have a lot of demand as well. The extraction of CBD, THC, and other cannabinoids from the cannabis plant requires quite a bit of skill and equipment. However, since it facilitates the manufacturing of numerous cannabis-infused products, it is quite profitable.
3. Manufacturing Business
If you’d like to open neither a cultivation nor extraction business, then manufacturing may be the venture for you. Manufacturing companies in the cannabis industry utilize raw materials from the extraction process to create such products as THC and CBD oil. These tend to have a long shelf-life and are a more discreet way of consuming cannabis than smoking. Their market demand is therefore relatively high.
4. Dispensaries
When most people think about the cannabis industry, they imagine opening up a cozy and hip marijuana dispensary. What some of them don’t know is that there are a good number of restrictions and legalities that make entering this business quite hard. They also cost a great deal to start and run.
However, if you can comfortably raise funds and have no problem adhering to these regulations, a cannabis dispensary is quite profitable. Most dispensaries only sell cannabis, but you can include cannabis-infused products and even smoking accessories to diversify your catalog.
Get in the Game!
If you’re looking to get into the cannabis industry, the time is now. The world is a lot more receptive of the plant, and there exists a ton of information you can use to make sure you’re on the right path. Whichever business you decide to get into, finding the right insurance solution will be the difference between whether your business flops or succeeds.