If you’re a cannabis enthusiast then you might know that it dates back thousands of years. If you’re passionate about the cannabis industry then you might be interested in starting a cannabis company.
While it might seem overwhelming to pinpoint what’s necessary to start a cannabis company, there’s hope. This article will take a look at the different factors you’ll want to consider before you begin. Read on to explore these different factors and make sure that you’re ready to start a business today.
1. Picking Your Angle
Different industry leaders in the cannabis industry such as Jasdeep Singh, COO of 3BC can give you helpful tips and tricks for starting a cannabis company. Before you begin, it’s important to pick your angle carefully.
Determine whether you’re interested in selling clothing, consumer items such as toilet paper, perfumes, etc. Decide what your strengths are for different cannabis products, and do what you’re passionate about.
2. Hire a Lawyer
Even if it’s legal in your state, there are local cannabis laws that you’ll need to abide by. There are also different fees, taxes, permits, and licensing requirements.
As with any other business, you’ll need to look into tax paperwork, checking copyrights and trademarks, etc. Even if you think that you’re all set, it’s still a good idea to hire a lawyer who is knowledgeable on the legalities and requirements of the cannabis industry. Even if you’re selling cannabis online.
3. Have a Business Plan
All businesses need to have a business plan including their goals, budget, and plans for the future. This can include your digital marketing strategy as well.
While it’s not a requirement, it’s good to have in order to figure out whether you’ll be borrowing money or not. This can include money from investors. It’ll also include how you plan to scale your business and make a profit for the long term.
4. Understand Your Consumers
Starting any business will require you to identify your ideal audience and target them in your digital marketing strategy. This will let you know who is interested in the products or services that you’re offering. Dive deep and figure out what their different wants and needs are.
It’s best to form connections with your ideal audience. Be active on social media and offer informative advice and provide meaningful content on your blog as well. When someone has a comment or concern, write back to them in as little time as possible.
5. Raising Capital
Unfortunately, many investors won’t put their money into the cannabis industry since it’s a gray area. Many banks won’t fund these businesses either.
Your best option is to reach out to private investors. While some might decline, there are others who are excited about this prospect.
6. Time
Certain states will make you wait months, even over a year before you can obtain a license. You’ll need to be patient and willing to wait for your license.
7. Business Structure
You’ll need to form your business with a name that’s not copyright or trademark. This needs to happen before applying for a license.
There are different business structures as well such as corporations, LLC, etc. It’s best to speak with a lawyer and accountant for legalities and fees.
8. Don’t Cross State Lines
If you cross state lines, it can get you into legal trouble. This includes transporting cannabis from one location to another. This includes transporting funds that’ll be used toward the cannabis industry.
Before you consider crossing state lines, look into the laws and regulations for each state. This is especially important if you plan on operating in more than one state.
9. Trademarks Are Tricky
The Patent and Trademark Office might refuse your application for cannabis services and products. This is because while it might be legal in your state, it’s not legal in all states. A way to work around this is to submit an application that isn’t specific to cannabis.
Tips on Starting a Business
First, think about what you’re willing to do in order to be successful. Take a look at your motivation level and make sure that a business is right for you. The biggest risk is putting money toward a business and then burn out fast or lose interest.
Be Passionate About It
Make sure that the business that you choose is something that you’re passionate about and that you’ll enjoy. Think about different needs that consumers have that you can fill. Remember that being unique will help you stand out.
Check if There’s a Market
Before you begin, it’s a good idea to make sure that your business will be profitable. Head over to Google Trends and you can type in different keywords to see the interest online for different topics.
Know Operational Requirements
Think about how your business will operate. Is it in a building or online?
If you’ll accept credit cards, will you need to create invoices? Figure out whether it’ll be you or someone else who will promote your business on social media, and on your website. Decide what the requirements are if you’re going to open up a physical shop.
The Different Factors To Consider When Starting a Cannabis Company
There are different factors to consider when starting a cannabis company. Follow this guide to make sure that you’re ready to open up shop for your business.
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