Cannabis has become a big business for a range of people. From the growers to the budtenders to the owners of dispensaries, there is plenty of opportunities. The question is; how one becomes involved in the industry? If you are looking to do more than just get a job, you are in the right market. According to Forbes, the industry is destined to start bringing in $57 by 2027.
Getting your foot in the door will take a little bit of planning, but it can be done. Here are some tips to help you get started in this exciting industry:
Understand the Legal Requirements
One of the biggest stumbling blocks for cannabis entrepreneurs is the legal requirements. You will be responsible for getting in order:
- Licensing
- Registration
- Permitting
- Other Requirements
The specific requirements of your establishment will depend on a few things. Namely, what kind of operation you are running, what state you operate within, and what city you operate within. Remember that on a federal level only CBD has been legalized in certain formats. Thus the cities and states have huge latitude for creating their own requirements. It is your responsibility to be sure you are in complete compliance. Take the time to talk to the local chamber of commerce for additional assistance.
Make Sure Your Business Stands Out
You are not the only one looking to start a cannabis business. As such, you will need to assure that your business stands out. Marketing is one of the best ways to differentiate your business from the rest. Make sure you are utilizing social media as well as email marketing to get the word out.
It is also a good idea to set your brand apart from the rest by searching for a hole in the market. If you are seeking to start on the growing end of things, discover a specific growing practice that is desirable that no one else is using. If you are on the selling end, find out what people want the most in a dispensary and build your brand around that.
Get the Financial Backing
Take some time to look over your financials as well as your growth potential. Develop a solid business plan to indicate your income projections over time. Build all of this into a solid business proposal you can bring to investors.
Remember that banks will not be able to help you with a loan. This is due to the fact that cannabis is illegal on the federal level. Since banks are federally backed institutions, they are prohibited from offering loans to businesses in violation of federal law.
The good news is there are plenty of private investors happy to work with you to get you the financing you need to start your business. There are several examples of how to properly develop a business plan as well as courses you can take to guide you through the process.
Sell the Right Products
Whether you are in the business of growing, or selling products like vape pens, you will need to have products that are marketable. You can do some product research in the market to see which products are in the highest demand. This will help you to determine which products will make you the most profitable.
Keep in mind your overhead whenever you are looking into the products you will sell. Not all products in high demand will bring in a large Return on Investment (ROI). To maximize your ROI, seek out products with lower overhead, higher yields, and a generous perceived value. This will offer you the best chance for increased profit margins.
As you grow, you may determine different markets demand different products. Don’t be scared to try new products in a market that doesn’t show demand for it. You may discover they just have not been introduced to the product, and wanted it all along.
Get the Right Staff
Once you have all the legal stuff out of the way, you have the money and you know what you selling, you need the right staff. This includes everyone from management all the way down to the lowest-paid employees. This assures you the best environment for your workers as well as the best product. As mentioned above, many people start cannabis businesses. If you have a staff everyone enjoys dealing with, they will be happy to continue to doing business with you.
Final Thoughts
At the end of the day, being a cannabis entrepreneur can be a lot of fun. You are involved in a business bringing joy to the lives of so many people. When done correctly, it can be highly profitable. If you follow these tips, you will be well on your way to getting started in this industry. Don’t be put off by the horror stories of those who have failed. Where they fell short, you can succeed by paying attention to the fundamentals of the industry.
