Just a few years ago, the idea of selling marijuana would have been met with scorn, and (quite real) legal consequences. Now, in 2018, the cannabis business is booming, and it is about to hit $11 billion in sales according to some reports.
Only 10 years ago, even the concept of using marijuana for medical purposes was a taboo; but now it is perfectly acceptable to think about opening your own cannabis business and earning a pretty good dollar while at it. More lax laws have enabled that, not only in some US countries but also around the world.
Naturally, since it has become a true business, the bureaucracy has to follow, and marijuana sales are closely monitored and taxed, and many people are exploring this still unclaimed and unexplored market.
But how easy is it actually? What do you need before starting your own weed business, and what are the most important things to have in mind? We’ve created a list of the most important points, for your convenience:
Do Your Research
Before starting any business, it is good to know some of the most important issues that you can face. Do you plan on growing your own marijuana, or do you just plan on reselling it? This question can define your business, as the costs involved vary (farming marijuana can be very expensive). If you are interested in running an organic business, that only complicates things a bit. Finding a good seminar is a good starting idea, so find something online that can help.
It is good to know your market and see where you can fit in. The competition can be quite difficult for you, and you must find your own unique niche where you will be able to profit and be successful. Does your area have other retailers, and how big are they? Will you be able to compete with them?
Know Your Finances
When it comes to any startup, you need to know how expensive it can be. Creating a brand is not an easy road to take, but you need to invest heavily if you want to be memorable. After that, keep in mind that all startups carry risks, and an additional problem here is that banks are not always really open to helping with loans for businesses that deal with marijuana.
The next step would be thinking about operating fees. See how much money do you have ready for the initial phase to help you out, and how much you’ll need to earn to cover all the other costs. Do you require special equipment? What are the taxes associated with the area you are trying to operate in?
Every business has its own unique legal issues that it could run into, and when it comes to marijuana, being compliant with all the strict (and extensive) current regulations is essential. Before starting anything, it would be wise to consult a lawyer and see how feasible all this actually is.
This market is scrutinized closely, and keeping good records is another important thing to have in mind. Many businesses use seed-to-sale software that can help with that, and a good example is https://mjfreeway.com/software that can help with managing the demand and keeping all records in order, but it will also allow you to quickly expand if the need arises.
Build Your Network
Did you know that most US countries that have legalized marijuana have restrictions on the digital marketing of weed related products? So, even though you might start your business, you could have problems reaching out to new customers and building your networks. How do you plan on overcoming this hurdle?
Online social platforms like Facebook or Google are off limits as they don’t allow drug-related ads on their networks, and that can be a big hit for your business – those two are the biggest players in the advertising industry worldwide.
Being strategic and creative is the key here. You can have your online presence, and you cannot simply advertise it. Once again, you will need a professional, so you could consult a marketing agency and figure out what your next step can be.
In essence, have a sturdy business plan, and be prepared – and you will soon achieve all the desired results.
Will is the Executive Managing Editor at Feedster. Will and his team from Content HOW work with venture capital, marketing co-ops, and companies to attract and gain qualified leads.
His primary focus on developing a sales funnel for a company and finding out of the box / growth hacking style ways to convert and drive traffic.