It is not a secret that the cannabis industry is a currently booming and rapidly growing sector. In America’s 2020 election, marijuana was a big topic, and there is sure to be a rise in legalization across the country. Currently, medical marijuana is legal in 34 states and recreational marijuana has been legalized in 15 states. For business-minded entrepreneurs, the cannabis industry seems like a sure bet and many are trying to break into this growing industry. While there is definitely money to be made in this industry, those just starting to consider a cannabis business must make certain considerations.
Type of Cannabis Business
Like any startup in any field, you must have a plan for the type of cannabis business you are considering. Many people think of the cannabis industry simply as the cultivators, growers, or dispensaries, but there are many other opportunities to be had in the cannabis industry, particularly in manufacturing and even in specialized marketing of the cannabis business. Make sure you have thoroughly researched your options before locking yourself into any one track.
What is your Market?
Choosing the right market can make or break your cannabis startup. Thoroughly research laws, regulations, and costs beforehand in the market you want to break into. With the legalization of marijuana spreading across the U.S. there are many opportunities for growth, but each state has a vast number of different regulations and restrictions.
How to Get Legal
Licensing your cannabis-based business will be one of the biggest obstacles in beginning the operation of your business. Licensing requirements vary greatly from state to state and vary in relation to the type of cannabis business you will be engaging in. It would be wise to consult an attorney with experience in the cannabis industry to help you through the process of successfully obtaining a license in your desired market. The added cost of hiring legal guidance and representation will be worth securing a license as quickly as possible. Trying to obtain a license without proper guidance can cost your business a great deal of money or possibly prevent it from even operating.
Secure the Proper Funding
Navigating the cannabis industry is a pricey endeavor. Although cannabis has been legalized in many states either medically or recreationally it is still considered illegal at the federal level. This creates a huge obstacle when it comes to funding your cannabis business because your first instincts for obtaining a business loan are out of the question. There is no SBA Loan for the cannabis industry and most big banks will not give loans for activities that are in contradiction with federal law. So that leaves your primary options in the more non-traditional routes such as seeking investors or crowdsourcing. Although you may not need to have all the cash on hand to start your business, you will need to have a considerable amount in order to appeal to possible lenders.
Surround Yourself with the Best Team
Going over everything you will need to succeed as a cannabis business can be overwhelming. It is not a business for the faint of heart or the ill-prepared, but there is a lot of money to be made in this sector. Take the time to research, prepare, and research some more of this ever-growing industry. One of the most critical things you can do to ensure your success in the cannabis industry is to surround yourself with a knowledgeable team of legal, financial, and business solutions professionals specialized in helping businesses like yours succeed and thrive.
At MaxQ Technologies we are experienced in the cannabis industry and can help your business navigate through the process from preparation to opening your doors and beyond. Contact us to see how we can help.