The cannabis industry is most certainly the most influential and fastest growing industry related to a wide range of industries and jobs. States from Washington, DC to Oregon to Colorado are seeing new regulated cannabis retail stores opening while new job growth is also taking place across the cannabis industry from sales representatives, distributors, lab assistants to consultants. If you have been thinking about getting into the cannabis industry but didn’t know where to start, now is definitely the time. This industry is a cash cow and will continue to grow in both dollars and product line. With that being said, starting a cannabis business is a very serious undertaking, one that should be approached with care and caution.
The most important information for anyone considering starting a cannabis business is that it is federally illegal to operate a cannabis business in any state in the country without a valid license. So you have to decide whether or not you want to go solo or start a company that will allow for multiple distributors and personal sales. Many small, boutique-type companies are popping up these days as people seek out a high end and socially acceptable product to buy socially. In addition to that, it’s important to remember that it can take up to 2 years before you actually receive your cannabis tax ID and tax certificate.
As far as what kind of business you can open, you have many different options including pot shops, production facilities, labs, delivery services, Websites, testing labs, aggregators, consultants, and more. You will want to make sure that the one you pick is state licensed, if not then you’ll have to reapply right away. Even if it’s a hard time, you’ll want to make sure that your state is able to support your business if need be. All of these things will play a factor in what kind of cannabis business plan you’ll need.
The next thing you’ll need to consider are your finances. It’s common knowledge that cannabis businesses require large amounts of money to start up, so the money you put into the business will be directly related to the amount of profit you make. This is why it’s important to only get into enterprises that have plenty of potential. With that being said, there are many things you can do to make sure that your marijuana shop or dispensary will have the financial resources to stay open.
One thing many new marijuana businesses forget is overhead costs. Not only do you need a certain amount of capital to get your store or dispensary up and running, but you’ll also need to pay taxes and have licenses in order to legally process your clients and sell your product. It’s important to know how much everything will cost before you go into business. You may not be able to borrow the money needed, but you can certainly invest some of your own money into the business. Most importantly, though, if you don’t have the right financial backing then you’re not going to last very long.
Last but not least, one of the biggest risks associated with starting up a marijuana business is that you’ll face a legal issue that could shut down your operation before you’ve really gotten started. Since it’s currently against the law to sell or consume cannabis in most states, the only way to legally cultivate, distribute, and consume it is through a licensed distributor. However, distributors aren’t the only ones who can legally sell cannabis. The United States government considers any plant that has been altered or hybridized to be illegal, even if it was historically used by patients as medicinal. To combat this, most distributors of medical marijuana must get a state-issued license to stay in business.