Medical marijuana use is now legal in a majority of states. With 11 states legalizing recreational marijuana use, cannabis is quickly becoming big business. According to Forbes, up to 18 states could give the green light on marijuana for medical or recreational adult use in 2020. Grassroots campaigns were behind the first wave of legalization, and cannabis seems headed toward mainstream consumption. In fact, Illinois is already taxing marijuana like alcohol.
Benefits of Cannabis
Cannabis’ main selling point is its ability to reduce pain, which makes it a valuable resource for those suffering chronic conditions such as cancer.
“Neuropathic pain is largely associated with tingling in your extremities and various degrees of burning sensations in the affected areas. CBD puts a hold on that glutamatergic system…serving as a “neuroprotective” that allows your body to manage the sensations of an out-of-control neuron system,” according to Corante, an online blog media company.
It may also help treat diabetes, aid in weight loss and decrease depression, according to the latest research. Medical researchers are still discovering new ways that cannabis can improve individuals’ health and welfare.
Getting Starting in the Canna-business Isn’t Easy
With new openness surrounding the use of cannabis, it seems that everyone should be jumping at the chance to get into the cannabis industry. However, steep taxes, a changing legal backdrop, fierce competition and difficulty with funding create high hurdles for newcomers.
Those willing to risk opening a dispensary, becoming a grower or otherwise entering the cannabis industry should make sure they have a detailed business plan and supportive investors before moving forward with their operations.
Understand the Consumer Base
Once you decide what type of canna-business you want to open, it’s time to conduct marketing research on who your customers are. Satisfying their wants and needs ensures the longevity of your new venture.
Know the Laws in Your State and Municipality
You can put together the perfect business plan and have plenty of consumers to swamp your shop as soon as the doors open. However, if you don’t understand the laws regulating the sale and production of cannabis in your state, you will get shut down. You could even end up in jail.
Include money in the budget for a good attorney and then hire one that understands the complexities of cannabis law. If possible, hire an attorney who has worked with other dispensaries and businesses in the area that you plan to open your business. This will give you the experience you need when dealing with local authorities, seeking a business license and complying with local zoning and other regulations.
Raise Capital Before You Open
Startups rely on investment capital to get up and running. It’s also crucial to know where to go for funds if you plan to expand your business. Cannabis is not yet legal under federal law, so obtaining funding through conventional lenders is tough. Focus on stable private investors who want in on the ground floor of a budding cannabis business instead.