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Go Green! What You Need to Know to Break Into the Cannabis Retail Industry

May 15, 2019

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According to Drug-Free World, at least 94 million US citizens admitted using marijuana at least once. Also, another study revealed that one in seven adults used marijuana in 2017. Cannabis retail is booming because of the large number of users.

Weed is in the air, and the high potential cannabis industry is unfolding. It’s not too late in a break in the emerging cannabis business.

With prospects high and more states legalizing the use of cannabis, it’s time to join the industry. This article will educate you on various ways to benefit in the cannabis business. Read On!

Understanding the Legality of Cannabis Use

The first step in joining the bandwagon is to understand the legal aspects of cannabis use in the US. Currently, nine states and the Columbia District have legalized recreational marijuana use. In 30 states, medicinal marijuana use is legal.

Anyone looking to join the cannabis industry must understand the laws that govern cannabis. In some states, marijuana is illegal, and you can’t do any business with them. You have to understand the difference between medicinal and recreational use.

For medicinal purposes, the user has to be prescribed by a doctor. Approved medical situations that patients can use marijuana includes Glaucoma, cancer, Crohn’s disease, post-traumatic stress disorders, and HIV/Aids.

For recreational purposes, there is no prescription required. However, the potential user must be above 21 years old. You should be aware of all rules governing cannabis retail in the different states.

Prepare for Uncertainty

There is a lot of improbability in the marijuana business. Things can change anytime, and so you should be prepared for anything. What if the state can illegalize cannabis business anytime?

Are you prepared to lose your insurance in case your investment collapses? Uncertainty can occur from different things, from illegalization to unfavorable legislation. Laws keep changing the next one could be heading to your marijuana empire.

Since marijuana use is still a fragile affair, you can prepare for uncertainties in various ways;

  • Insuring your business
  • Investing in different states
  • Distributing resources across multiple activities, i.e., farming, processing, distribution

The above methods can cover you in case something unfavorable happens. Still, the federal government classifies marijuana use as illegal. Putting all eggs on one basket can backfire on you.

Research on Cannabis Retail

According to the rule of thumb, research is the first thing you must do before starting any business. Since the industry is still in its early stages, adequate research will help you overcome multiple challenges.

You are joining an industry so delicate that you can fall anytime. The essential thing to do is to get facts right and plan accordingly. Many cannabis businesses fail to take off because the owners don’t invest in research.

To get the right stats, you can conduct personal research or obtain data from various research institutions. Personal data is the best because it’s detailed and accurate. Also, you tend to focus more on the target population rather than generalized figures.

Get Legal Assistance

Since marijuana is subject to changing laws and regulations, a good lawyer will help you in the paperwork. Nuanced laws, statutes, and regulations on the book can be tough to keep up with without legal assistance.

Nearly every business requires some legal assistance. Taxes, permits, licenses, and fees arrangements can be cumbersome to handle. Alongside legal work, you need to do much more on registration, copyrights, and trademarks.

Operating a cannabis business without business legal assistance is next to impossible. Also, if you have a cannabis firm, understanding cultivation rules matters, and here are some of the regulations you should know.

Craft a Business Plan

Why do you need a business plan for your cannabis retail? A business plan might be a simple document but very vital for your venture. Putting together strategies might be one of the most challenging undertakings ever.

To avoid slipping somewhere in the way, you need to create a business plan that will involve all details. To get a foothold in the industry, you need to set a map on the aspects of your business and operations.

Since the industry is still emerging, you might revisit the business plan regularly. A perfect, formal business plan proves your professionalism and viability of the business. Also, it can be helpful when seeking potential investors.

Entry and Operation is Expensive

The startup cost in the marijuana business is high and can be challenging. The blunt truth is that you will incur much more than you think of. In some states, you will have to part with more than $10000 for the licenses alone.

You need to pool lots of resources to start a sustainable cannabis business. Also, there is a minimum startup capital that you need to meet to get a license. If you don’t reach the threshold, the chances are high that you won’t make it past the initial step.

Marijuana products are highly taxed. You can part with about 60% of the product value to tax before it reaches the consumer. Mostly your profits are about 1-5% of the product value.

The cost of running a marijuana business is high, and without proper financing, it’s hard to manage. Profits are very minimal, and you have to operate on economies of scale.

Working In the Cannabis Industry

As more states are legalizing marijuana, more and more jobs are being created. Getting into the cannabis is not all about investing or being a business owner. If you have the necessary skills and expertise, you can secure a job opportunity.

Here are some of the jobs you can secure in the cannabis industry;

  • Botanical specialist and grow master
  • Cannabis extraction technician
  • Cannabis consultant
  • Financial officer
  • Distributor

The cannabis industry is full of opportunities that you can exploit to build your career. If you are unemployed and have the above skills, you can shift your job seeking attention to this industry.

The Bottom Line

The above are some of the things you need to know to break into the cannabis industry. This is the best time to join cannabis ventures because there are lots of opportunities to exploit.

Cannabis retail has high prospects, and you have a chance to establish as one of the most prominent players. Strategize on how to venture, and it will be easy for you to maneuver.

For more information, be sure to watch this video on marijuana.