Business in the cannabis industry is booming and has been since 2016 when marijuana sales in North America grew by 30%. In 2021 sales are projected to reach over $20 billion. That being said, the path to a successful cannabis business is not a smooth and easy one to navigate — it’s full of confusing laws and regulations, steep taxes, and many other unforeseeable roadblocks. That’s why we’ve outlined a few guidelines to help you navigate the start of your cannabis business.
Showcase a Unique Idea
Finding unmet needs and making something unique to fill that need is what starting a business is all about. With the cannabis industry being an ever-changing one, creating a unique idea is key. There are several different sectors in the cannabis industry, and each one has unique set of unmet needs that your business can focus on filling. There are the more commonly known sectors such as: dispensaries, growers, and edible lines. But there are also cannabis businesses that don’t deal directly with the plant: from hydroponics and cultivation products to professional training, education, consultants, and media companies. This is the kind of business that Cannabis Brands is under. We’re a tool that any number of the above sectors can come to for generating marketing ideas unique to their business.
Understand Your Consumer
Knowing your consumer base is never a bad idea, regardless of the business you’re in. You should know exactly who is interested in your products/services and understand their needs and wants. This means getting out and doing your research! There are a number of online tools that can assist you in the demographic research of your consumer, but why is this so important? In the cannabis industry specifically, it’s all about connection and brand. Your consumers build a level of trust with you and your company, so establishing connections with them and having a memorable brand will help you stand out in their minds. Start by building authentic relationships with your local cannabis community. These aren’t just consumer connections, they’re also B2B connections that will help you establish yourself within the industry.
Know and Follow the Rules
The laws, rules, and regulations for opening a cannabis business are incredibly confusing and complex. If you don’t play by the rules, you’re going to get shut down, get hefty fines, and could even go to jail. Even setting up a means of accepting payments can be tricky, so here’s an article to help you figure out your best payment options. Since cannabis is not federally legal, each state has their own set of laws regarding cannabis, so being up-to-date on your state’s rules is helpful. Hiring an experienced attorney is extremely important and beneficial in helping you navigate these processes. If you fail to follow the rules and are irresponsible with your new cannabis business it can cause huge problems for you, but also for the cannabis industry as a whole.
Raise Enough Capital
As with any startup, investment capital is crucial in getting your business off the ground. However, it can be trickier when it comes to the cannabis industry. Some investors don’t always want to put their money into cannabis businesses since it’s illegal under federal law. This also means that you cannot get a loan from an FDIC insured bank, as you might be able to in another industry. The best thing you can do is try to find private investors and show them who you are and what your business is about.
Starting any business always comes with its own set of complications and in the cannabis industry these complications are plentiful. By using the above guidelines, your cannabis business should be able to thrive.
About Cannabis Brands
Cannabis Brands serves cannabis corporations, growers, distributors, and dispensaries providing award-winning marketing communications strategies that give you the competitive edge. Accelerate your cannabis business with proven cannabis marketing and advertising strategies. Contact the professionals at Cannabis Brands to learn more.