If you spoke to someone about opening a cannabis-related business a decade ago, people would think you might end up in jail. However, with more than 29 states in the American union passing positive legislation and legalizing the business of cannabis, things have now changed for the better.
The industry is expected to cross the $20 billion thresholds in 2021. This means that it is registering double-digit growth on a year-on-year basis. This is good news for enterprising entrepreneurs who are looking to cash in on the first-mover advantage.
However, starting any business, let alone in the cannabis sector is not easy. There are tons of things you need to consider. In this article, we are going to help businessmen looking to cash in on the burgeoning cannabis business.
List of 5 Questions to ask yourself before starting a Cannabis Business
1. Which areas of the Cannabis Business do you want to get into?
Everyone thinks that opening a marijuana dispensary is the best option to get into the industry. In reality, there are tons of different things you can do.
If you have prior experience in supply and logistics, you can try your hand in retail delivery. On the other hand, if you have always wanted to get into the production side of things, you can start a farm to grow the produce.
It is essential that you first understand the area that you want to get into.
2. Where do I need to apply to get a Cannabis Business License?
The first thing you need to get before you start any business is a license. Here too, different states have diverse requirements for securing licenses for cannabis-related businesses.
Licenses are more often than not set according to the kind of business model you are choosing. A retail dispensary license will be different from the one you need to get to open a farm.
You will need the help of experts as the process is not a straightforward exercise.
3. How do I hire the best talent and employees to build my team?
One major challenge area for business owners in the cannabis industry is assembling the right team.
You need to fulfill all the verticals, right from marketing to sales, finance, and legal issues. Building the team requires hiring professionals that share the same passion and drive for success as you do.
Ensure you are hiring individuals that are educationally qualified and skilled. This is similar to any other business. It is just that the product here is marijuana.
4. Which Payment Processing Companies should I partner with?
Another important area that you need to focus on is the kind of financial partner you would want by your side.
It is best that you choose a business like Paybotic that offers everything from gift cards to cashless ATMs for dispensary payments.
This will be a huge asset for your business and allow it to satisfy the multiple payment options that customers prefer in the digital age. The more financial services you can offer, the better will it be for the business.
5. What Legal Regulations do I need to understand and take care of?
We have already mentioned that different states have various laws pertaining to the business of cannabis.
For example, you might not be allowed to do business in a different state if you do not have the necessary paperwork. Cannabis businesses are still very much in a grey area as federal regulations still deem them to be illegal.
Taxation is also one such area that requires a proactive approach. This will ensure your business does not get into legal trouble.
The Bottom Line
In the last few years, some great start-ups have made massive strides as far as cannabis businesses go. They have been able to bring in technology, address the new-age consumer, and create favorable conditions that are paving the way for legalization. If you have any other questions on starting a cannabis business, let us know in the comments section below.