I want to get into the marijuana business, but I don’t know where to start. I understand your urge. Selling weed has become a huge money-maker for many people, and there are currently many new cannabis-related businesses sprouting up all over. But getting in on the action isn’t as easy as it sounds. You need to know some things before attempting it yourself, which is why we put together this blog post to help guide you through the process of starting a cannabis business of your own!
Why should I go into the marijuana business?
One simple word: profits! And lots of them, too if you do it right. The typical profit margin for cannabis retailers is around 30%. On top of that, there’s no ceiling. Many business owners don’t like to think about it, but the demand for cannabis is essentially infinite.
While you might not have the capital to start a dispensary right off the bat, you can still get your foot in the door by selling marijuana-related products such as pipes, bongs, portable vaporizers or private reserve strains. You could also sell concentrates like hash and dabs, which are much more potent (and profitable) than traditional weed. And while they’re not as popular in mainstream society yet, edibles are another product gaining traction with cannabis businesses around the country.
How do I get my marijuana business license?
Getting a marijuana business license can be a daunting task. There are specific criteria you must meet in your state, and on top of that, there’s the added challenge of overcoming pre-judgement. Many people still believe that you’re automatically a drug dealer just because you’re involved in the cannabis industry. Your connections to other business owners and politicians will come into play. Just as with any other small business, networking is key to success.
What are the requirements for opening a marijuana business?
One of the most common mistakes new business owners make is thinking that they will be able to start their cannabis company simply by filling out a few forms and paying a small fee. While it can be that simple in some states, there are several factors you will have to consider before getting your business up and running. Among them are location, state and local laws, security measures, insurance, taxes, and considerations like whether or not you want to use the word “marijuana” in your business name.
I’m thinking of opening a medical marijuana dispensary. What are my choices?
You have many options with medical marijuana dispensaries depending on your location, but the most popular growing methods are either hydroponics or indoor grown. You’re going to want to consider the type of products you want to sell and what you feel would be most profitable for your customers. For example, if you’re selling concentrates, edibles and other cannabis extracts, then you’ll probably want to go with indoor growing. While it is more expensive and more work, you’ll get a higher yield, and you’ll be able to compete with the prices at your local dispensary. On the other hand, indoor-grown cannabis doesn’t always have the same taste or smell like an outdoor grown weed. For many marijuana users, this makes a huge difference.
What’s the best way to advertise my marijuana business?
The most popular and highly recommended method of adverting for cannabis businesses is through cannabis specials. Sending out handouts or coupons for free or discounted products can be a great way to get your business on people’s radars and help establish yourself as an authority in your field.
How much money will I need to get started?
Speaking generally, the more money you have to invest in starting your business, the more profitable it will be. However, it’s not always a requirement. Cannabis businesses can range in size and scope so widely that it’s too difficult to give a definitive answer. Some people may only need $500-$1000 to pay for an ad campaign, and some dispensary owners have started with $50,000 or more investments. The biggest things you need right off the bat are a location and some cannabis-related merchandise or growing supplies. Afterwards, all you’ll require is advertising expenses, but even those can kept minimal if you do things right from the beginning.
What else do I need to know before starting a marijuana business?
The most important thing you should understand is that the cannabis industry is still in its infancy, especially if you don’t live in a state where recreational or medicinal use is legal. Many people don’t want to work with cannabis businesses because they’re afraid of being arrested or reprimanded. That means that you’re going to have a very hard time getting your foot through the door without the right connections. Remember: It doesn’t matter how cool your products are if no one can find them! So make sure that you choose who you deal with wisely and never cut corners with security and safety measures.
Do I need to be a cannabis expert?
Not really, unless you want to make your brand. By owning your own business, you’ll have the power to set the rules and create your brand’s image. Doing that gives you a decided advantage over many of your competitors. However, even if you don’t know much about plants or cures for cancer, there are still several activities you can take on to help out with the business and build up a personal network of support.
Is it possible to get involved in the cannabis industry if I’m underage?
Yes. While most state and local laws don’t allow you to work in the marijuana business until you’re 21, you can still invest if you have your parents’ permission. You can take on a managerial, consulting or networking role from the safety of your home or college.
How much money do I need to make to consider it a success?
Like any other industry, there’s no set amount of profit that is considered successful. Everyone who owns a cannabis business has their own goals and ways of measuring their success. Don’t worry about it too much now. Instead, focus on building up your business and networking. That will help you get to know people in the industry and determine which goals are realistic for you.
