The CBD industry is booming. In the US alone, it grew by 25% between 2020 and 2021, and that’s a trend that is set to continue.
If you’re looking to get started in the marijuana business, you couldn’t have picked a better time to get ahead of the game.
Hash Out the Fine Detail
Cannabis has many uses, from recreational use to health benefits. And before you can start selling your cannabis products, you need to figure out what corner of the market you want to work in – and what’s legal in your state.
Consider the following points:
- Are you planning on shipping CBD products over online dispensaries?
- Do you want to grow marijuana for recreational use?
- Do you want to focus on artisanal, tailor-made accessories?
- Are you looking to supply wholesale or cultivate your own brand?
With a solid idea in mind, you can move on to drafting your business plan.
Write Your Marijuana Business Plan
Your cannabis business plan is the real deal. This is where dreams and vague notions begin to turn into reality. Your business plan should account for every aspect of your business.
The laws surrounding marijuana in your state are the best place to start.
Pay special attention to every aspect of legality: Who you’re selling to, who is supplying you, and where your physical stores are situated is all relevant. There’s a lot of legal red tape to chew through, and regulation changes constantly.
The other core questions you need to answer up front are:
- Cost of business
- How you’ll attract new customers
- What your brand identity is
- The size and scale of your business
- Who your suppliers will be
- Outside services (such as legal professionals) you’ll need
Apply for Funding
You don’t need to have all the startup cash on hand and ready to open your own marijuana store. That’s where banks, grants, and other funding schemes come in.
There are many paths to riches if you know where to look.
This is where your business plan has its time to shine. A well-written and thorough business plan shows potential investors you’re serious, you’re committed, and you’ve done your homework.
Unfortunately, it’s difficult to secure funding through the big banks because they operate at the federal level (and are beholden to federal banking laws that frown on marijuana).
Even so, there are options available if you shop around a little.
Take Care of the Legalities
Before you can start selling, your marijuana company needs licenses and permits – and it needs to be registered as a business entity. That means you’ll need a catchy (and available) brand name.
Consider whether you plan to operate as an LLC or a corporation. You’ll also need to register to pay taxes, and it’s a good idea to have a legal professional review everything to make sure you’re above board before you start operating.
Be a Part of the Hype
Opening your own business and being your own boss is a dream for many, and if it’s a marijuana business you’re hankering for, you may well be on the right side of history.
The law and the times are changing, and the market is booming. So don’t sit around on the fence for too long. You’ll only regret it.
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