This is one of the best times to be a cannabis entrepreneur. The laws are changing and a lot of the legal cannabis markets are starting to mature. The pioneers have already plowed the lands; now it is time for the settlers to come and build their businesses on top of it!
Before you get started as a cannabis entrepreneur, you need to take a hard look at your ‘why’. If you are looking to start any old money generating business, cannabis might not be the best place for you. The competition is stiff, and you will be assuming a lot of risks if your business touches anything with THC. You will need passion and a belief in the product to help push you through those Jeff Sessions scares and unprofitable months.
Pick Your Niche
Once you know for sure that you want to make a difference in the world of cannabis, you can start planning what products or services you want to offer. The easiest way to pick a business model is to start with what you already know.
Are you good at making edibles or growing cannabis? How about blowing glass or writing about cannabis? Use these passions as a jumping board. Next, you need to decide if you want to manufacture products, go retail, or start an information-based business.
If you are already an expert in your given niche, starting an information-based business is going to give the most freedom and lowest overhead. You won’t need to invest in a commercial kitchen, growing facility or storefront. You can start a blog or Youtube channel teaching your expertise for next to nothing and, if you are good, the margins are the best that you will find.
Not everyone wants to tie their face publicly to a cannabis business, however. If that sounds like you, there is still plenty of options for you they just will require more upfront capital. There will also be setup fees and more taxes to pay then if you started an information-based business.
If you are worried about getting your hands dirty with cannabis and you have good ideas for smoking accessories you still have a chance to make a lot of money in the cannabis space. Choosing to enter the accessory market will put you in a very competitive space, but the potential for interstate commerce makes it very appealing.
If you don’t have any experience in anything, maybe you should consider getting a job in the cannabis industry first to see how things operate. You can also try an internship, freelance work or even investing in a private cannabis business to get access to behind the scenes.
Know Your States Laws
As of 2018, there are currently 29 states with legal cannabis programs. Some are strictly medical while the others offer recreational programs too. If you want to run a successful cannabis business, you absolutely have to know your state laws like the back of your hand.
Make sure to consult a lawyer before undertaking any business plan. The last thing you want is to sink your life savings into a business that can be shut down because you are unknowingly operating it illegally. The industry is highly regulated and every state varies in licenses, fees, taxes, permits, and what you are legally allowed to sell.
You should not let the fear of these laws stop you from pursuing this dream. There are plenty of resources online that will walk you through the steps you need to take to have all of your ducks in a row.
Learn How to Navigate the Market
You need to do your market research before jumping in. Everyone is trying to join this green rush, and it is quickly starting to become oversaturated. Look no further than the Oregon market right now.
You need to create a business plan with margins that can withstand the race to the bottom on the price while the markets mature and level out. From day one think of ways that you can differentiate yourself from your competition or you will quickly find your journey as a cannabis entrepreneur coming to an end.
