Starting a Cannabis Business
With the increasing popularity of cannabis, more and more people are reading about record sales and incredible growth in the industry. Naturally, many of them are starting cannabis businesses and hoping to earn some of the profits. As legalization progresses in more and more areas of the country, it seems like everyone wants a piece of the pot pie, but many people are simply jumping in without doing their research on how competitive the industry actually is.
Although the industry is getting more and more cutthroat with budding cannapreneurs, there are still opportunities to create a successful cannabis business. The industry is growing quite nicely and all you need to do is explore the opportunities. Here we will discuss small business ideas for people looking to break into the cannabis industry.
Everyone seems to assume that opening a dispensary is a foolproof way to get rich quick, but it’s a little more complicated than that. For instance, in some states, you’ll need over $1 million put away before you can get started. Licensing and regulatory fees are prohibitive and it’s likely you’ll need to survive your first couple of years without making a profit. But if you’ve planned accordingly and are able to wait it out, you’ll most likely be looking at a solid profit margin after the initial hurdles.
If you want to enter the cannabis industry but don’t have enough money to open an dispensary, consider becoming an edible producer. While you will incur high startup costs (licensing and regulations, a commercial kitchen and equipment, the cannabis, etc), they won’t be quite as steep. The great thing about being an edible producer is you have the freedom to market your product to multiple dispensaries, and you can even look at out-of-state franchising if your business takes off. One thing you’ll definitely need to invest in is good advertising, so that you can properly market your brand to retailers and consumers.
The great thing about the cannabis industry is that there are so many different business opportunities with varying levels of involvement with the actual plant. Many businesses don’t actually ever come in contact with any cannabis, but still serve the industry in a number of roles. For instance, there are equipment and packaging companies, lab testing facilities, financial consultants, and more, who aren’t dealing with the enormous fees dispensaries and cultivators face with licensing and regulations. Education and distribution are two areas the marijuana industry is particularly lacking in, and whoever is able to fill those gaps will likely make amazing profits.
These are three small business ideas that you can use to start your own cannabis business in the United States. Before you start your business, make sure you get to know about the laws and legislation of your state. Each state has its own laws and licenses are issued accordingly. Furthermore, you should also check which state has a better market where you can supply your products so that the profitability is increased.