Staying on the Right Side of the Law: What Beginners Need to Know About Starting a Marijuana Business
Managing health in a non-traditional way and relaxing with the help of herbs. Many people would assume you’re looking at a business in massage therapy, aromatherapy, or some other new-age type of practice.
In actuality, you could be on the path to starting a marijuana business. It sounds fun, trendy, and like something most people would buy. So why not jump head first into it?
Before you get involved in a cannabis business, there are a few pointers to keep in mind. Keep reading to learn more.
Learn Everything You Can About Your States Marijuana Laws
Marijuana laws vary across the United States. It’s important to remember that federally, cannabis is illegal.
However, each state makes its own choice on if the drug is legal. If so, is it legal recreationally or only medically?
Consider what type of business you’ll operate, the consumers you’ll serve, and how your business plays a role in the cannabis industry. If you live in a state that considers marijuana completely illegal on many levels, you don’t have to give up on your dream.
Consider moving elsewhere where you can engage in a marijuana business. Alternatively, you can campaign and work to make changes in your state for marijuana advancement.
Figure Out Necessary Licensing
Once you know where you’re opening a business, it’s important to figure out the laws around licensing for your state. Even if it’s legal, there are still several hoops you’ll need to jump through to stay compliant with laws while getting your company off the ground.
If your business is on the East coast, you’ll have to jump through additional hoops in order to get approved. Not only will you fill out licensing paperwork, but you’ll need to go before a process to prove you’re the best-suited individual for this business.
The government agencies on the East coast limits the number of individuals that can operate such a business. Keep this in mind if you want to get started since you’ll stand up against the competition.
If you try to open a marijuana business but don’t have licensing completed, you could run across problems that include stiff fines, among other issues. Even if the process is time-consuming, make an effort to get started on the right foot.
You’ll thank yourself later once everything is in order and you can focus on what you truly care about. If you need to wait on licensing or you want to make yourself look qualified, consider getting cannabis training to help increase your knowledge.
Know Your Consumers
Now that your business is getting underway, think about your ideal customer. Who are they and what are their needs?
Are you looking for customers who enjoy using recreationally? Perhaps they’re already consistent users, to begin with, and now they need to use more marijuana or a different strain to get the buzz they’re looking for.
Or perhaps you’re interested in working with customers who have a medical need. They need medical marijuana in order to subside their pain, treat a condition, or even help with their depression.
Consider what types of marketing and branding would appeal to your ideal customer base and keep them coming back for more. This includes everything from your logo and website to any ads you choose to run online, in print, or on the radio.
After you’ve established who your consumers are and what you’ll do to attract them, you can begin devising your plan. Knowing who you’ll serve and how can encourage them to come to you rather than a competitor makes a difference in getting the results you’re looking for.
Start Off On the Right Foot With Enough Funding
Funding is a tricky aspect for any business.
Although the cannabis industry is trendy and can bring in a variety of individuals willing to spend their money, it’s a turn off for many investors due to the fact that it’s still federally illegal.
For that reason, banks and other traditional types of commercial lending institutions won’t help you get the funding you’re looking for. If you have a family or friend who is willing to invest or plans to leave you money for a business, this is one route of obtaining the money you need.
Otherwise, there are many investors interested in marijuana. You’ll likely need to contact several individuals, but because of the high growth level anticipated with the industry, there’s no shortage of interest.
If you’re still uncertain how much capital you can raise on your own, consider other ways you could supplement an investor. Using your savings, taking on additional work, or saving up to fund part of your business can lessen the amount of money needed.
Overall, it’s easier to get the funding you need first, rather than trying to scramble madly to secure investments.
Learn More About Starting a Marijuana Business
There’s a lot that goes into starting any type of company when you’re building a business from the ground up. The same applies when starting a marijuana business.
Ensure you know everything about cannabis as it applies to your state. Getting the correct licensing is necessary to avoid fines or other legal problems that could get you shut down.
Consider your consumers and what would entice them to come back for more. You want to market in a way that’s appealing to the right people. Finally, make sure you have enough capital to get started and sustain your company.
Getting off on the right foot with your cannabis business can be tricky. We’re here to help make a smooth transition.
Check out our blog on cannabis concentrations and learn more on the different ways marijuana can be used.