If you’ve ever thought about getting into the cannabis industry, now is the time to do so.
The industry is growing at a rapid rate. It’s even expected to reach a $47.3 billion valuation by the year 2027.
Clearly, there’s a lot of money to be made in the cannabis industry.
In order to benefit from the market’s growth, though, you need to follow some specific steps to break into the industry in the right way.
Read on to learn everything you need to know about becoming a cannabis entrepreneur.
Types of Cannabis Businesses
Before you start thinking about starting your own business, you first need to decide what kind of business you want to run.
There are several different ways someone can start working in the cannabis industry. The following are some of the most popular options:
Cultivation
When most people think of working in the cannabis industry, they think of the cultivation of cannabis plants.
If you choose to work in this part of the industry, you’ll be responsible for growing and selling high-quality cannabis plants to other growers and to dispensaries.
Dispensaries
Another option is to open your own dispensary.
As cannabis becomes legal in more states throughout the country (and throughout the world), there is going to be an increased demand for dispensaries. If you open one in the right location, you could be setting yourself up for a very lucrative business.
Infused Products
Maybe you don’t want to sell cannabis plants, but you still want to sell cannabis products.
If this applies to you, cannabis-infused products, such as CBD oil and edibles, are a great alternative. Many people who work in this part of the business sell these products online.
Accessories
You could also sell cannabis accessories. After all, people need tools like pipes, bongs, vaporizers, and rolling papers in order to use their cannabis.
The great thing about selling accessories, too, is that you get to stay away from all the extra-legal hoops you have to jump through when selling cannabis or cannabis-infused products.
Tech
There’s also a great need for tech-savvy people in the cannabis industry.
If you’re an app developer or web developer, there are probably a lot of other cannabis businesses who would pay very well to have access to your services.
Stock
If you want to earn passive income from the cannabis industry, you might want to consider purchasing stock in cannabis businesses.
According to the cannabis investment company Planet 13 stock, now is a great time to invest in the industry and watch your wealth grow.
How to Start Your Own Cannabis Business
As you can see, there are plenty of different ways to break into the industry. Whether you want to cultivate plants or work in cannabis tech, there are tons of options available to you.
No matter which type of business you want to start, the following are some basic rules you’ll need to follow:
Know the Rules
There are a lot of hoops you have to jump through right now if you want to work in the cannabis industry.
Before you open any kind of cannabis businesses, you ought to make sure you’re familiar with the rules in your state and the states in which you want to operate.
Know the Costs
Opening a cannabis business, like opening any kind of business, can be expensive.
You’ll need a lot of money upfront to pay for licensing, equipment, supplies, and rent for your storefront (if you’re opening a dispensary or other brick-and-mortar business). You’ll need to think about things like buying grow lights at Agron and other supplies needed to grow effectively.
Become a Resident
Many states require you to be a legal resident before you can start running a cannabis business.
For example, to run a cannabis business in Colorado, you need to have been a resident for at least two years.
Check Your Record
You need to have a clean record to work in the cannabis industry, too.
If you have a history of violent or drug-related convictions, you won’t be able to obtain a license for a marijuana-based business. You can still profit from the industry (stocks and accessories are fair game), you’ll just be limited in the way you profit.
Find Funding
Banks and credit unions in the U.S. will not fund cannabis businesses. You’ll need to secure funding from private investors instead.
Create a Business Plan
Whether you plan to sell accessories and lighting equipment or the actual cannabis plant, you need a business plan if you want your business to thrive.
Spend time writing up a business plan so that you have a blueprint to follow. It’ll also help you to secure funding and show investors that you’re serious.
Find a Location
If you’re planning to open a dispensary or other store, you’ll need to choose a good location for your business as well.
Do some research to figure out where, legally, you’re allowed to open a cannabis business before you start shopping.
Hire the Right Staff
When you hire people to work for you, you’ll need to make sure they, too, have clean records.
They also need to be fully educated on your state’s laws and regulations regarding cannabis sales and working in the cannabis business.
Advertise Your Business
Finally, make sure you’re advertising your business appropriately.
Online marketing is a popular tool for folks working in the cannabis industry. There are a lot of great returns to be made working with online influencers or making use of social media advertisements.
Become a Cannabis Entrepreneur Today
It’s not exactly easy to start working in the cannabis industry, but the returns you’ll likely receive make the hard initial work well worth it.
Now that you know more about how to become a cannabis entrepreneur, it’s time to get your business off the ground.
Keep these tips in mind and you’ll have a much easier time breaking into the industry and making a name for yourself.
If you need more business advice, we’ve got lots of resources available to you.
Start by checking out this article for tips on how to use digital marketing to expand your reach and grow your business.
