Cannabis is an exciting, rapidly-growing new industry across the country. While cannabis-related businesses present many novel opportunities for economic growth, it is important to make careful considerations beforehand. After all, because cannabis businesses are so new, and because the laws surrounding the cultivation and sale of cannabis are so complex and varied, it is helpful to consider a few essential points prior to starting any cannabis-related business.
Know the Laws
One key point cannot be stressed enough if you are considering starting a business in the cannabis industry: you must know all relevant laws. Cultivation of cannabis remains illegal on the federal level, and laws surrounding its cultivation and distribution vary widely between states. While many successful cannabis businesses have sprung up in the last couple of decades, the industry remains quite new — and in certain respects — unstable.
Take the time to know all laws in relevant states where you look to create a business. Pay special attention to concerns that may have broader bearing for your business, including how you will access loans, or process financial transactions.
Find Your Niche
With so many different types of cannabis businesses around, there are some concerns about the market becoming over-saturated. Consequently, it is useful to find a “niche” in the industry that you can work to develop. For instance, perhaps you are interested in making edible products for consumption. Or maybe you are interested in CBD, which is regulated differently than cannabis products containing THC.
In general, finding a unique sub-field in which to grow your business can be helpful in finding success.
Get Experience Before Starting a Business
While this is often true across industries, prior experience in the cannabis industry is quite helpful before starting a business. Understanding both the horticultural aspects of the plants — as well as the financial side of the business — can help as you work to build your own company. You will ultimately be able to more effectively navigate market conditions, state laws, and other hurdles as you build your business — while understanding and preparing for any potential hurdles that may arise over the course of business.
While challenging, success with a cannabis business is increasingly possible in many areas of the country. If you are interested in the field, be sure to do thorough research beforehand, and consider the points above, to best set yourself up for long-term success.