How to start a cannabis business?
Posted by Jamesgonzalez on March 16th, 2020
In those states where medical and / or recreational marijuana is allowed, business opportunities have been opened for those who are willing to get involved in the complex and changing web of cannabis laws and regulations.
Types of marijuana business
The main types of businesses related to marijuana can be classified into three broad categories: (1) cultivation, (2) cannabis-derived products and (3) retail or retail. In addition, there are business opportunities in the field of testing facilities, delivery services, consumer devices and software or online services.
- Cultivation: companies dedicated to the cultivation of marijuana are subject to strict regulations and a large initial investment of money and knowledge about horticulture is required.
- Products derived from cannabis: these businesses are dedicated to trade in products such as edible marijuana and tinctures, oils and creams with cannabis.
- Retail (retail): in cannabis stores, also known as "dispensaries" or "collectives," cannabis products can be sold. This type of business is, as a rule, the most expensive to start, but it can also be the most lucrative. And one must aware about CBD Extraction Processbefore stating business.
Factors to consider when starting a marijuana business
Starting a marijuana business is more complicated than starting another type of business, mainly due to the regulatory environment and the uncertainty surrounding it. The following factors must be considered before taking the step of starting a Cannabis in China business. So below come to know How to Start a Marijuana Business.
- Costs: costs vary by location, laws and type of business and include licenses, leases, public services, marketing, security and workers.
- Residency requirements: Marijuana license holders (and in some cases also investors) must be residents of the state in question.
- Criminal records: most states prohibit people convicted of certain drug offenses and violent crimes from licensing marijuana businesses.
- Risk: the marijuana industry is risky due to the regulatory environment variable, but it can also be very lucrative.
- Waiting: obtaining the necessary licenses may take several months and even more than one year.
- Investors and partners: as with any other business, capital is required to start. Most of the financing for these types of companies comes from private investors and not from banks.
Steps to follow to start a marijuana business
- Form a company: before requesting a license, you must establish your company or company in accordance with the applicable regulations and identify your partners.
- Obtain a license: this takes several months and the process can be delayed if you make mistakes in your application.
- Put the operational infrastructure into operation: Be sure to comply with existing regulations and the terms of your license.
- Hire the necessary personnel and services: the type of people or companies with whom you must hire will depend on the type of business you are starting. For example, store owners should probably hire marijuana growers and sellers of derivatives.
- Advertise the business: there are many ways to do this, including newspapers, online directories, specialized magazines and trade shows.