Just in 2017, the cannabis industry scored $9 billion in sales. Now, when cannabis is becoming legal in more and more countries, the cannabis industry’s value is only going up.
Stock experts even believe that by the end of 2021, the cannabis industry’s value will go up to $21 billion – which is a lot!
The cannabis industry is continually evolving and those being part of it know just how much time, effort, and knowledge one needs to invest in running a successful cannabis-related business.
So, you are thinking about starting your own legal cannabis business? Otherwise, you wouldn’t be here reading this, right?
With that on ming – Congrats! because you are one step closer to running your own successful cannabis business. Here is what you should know about this moving industry.
Write Your Business Plan
The cannabis industry is no different than any other sector in terms of process and operations. So, like with any project, when starting something new, you will need a plan.
A simple vision isn’t enough. You need a real, bulletproof, business plan. Before you order any supplies or search for perfect customers, you need to have an in-depth business plan.
You wouldn’t open a restaurant without a business plan, right? The same logic applies here. A business plan will push you to learn more about the law.
You need to have your business in line with the law.
The cannabis business comes with a massive amount of regulation that is continuously changing. Here is what your business plan should include:
- Business costs
- Market research
- Marketing channels
- What will separate you from the others
- Who your supplies will be
- Do you have a legal counsel
Find Your Niche
The cannabis industry is a huge industry, so you need to know what aspect of it makes you excited the most when it comes to starting any kind of cannabis-related business. There are a lot of various industries and products that fall under the cannabis industry.
Are you interested in creating the perfect strain? Are you into consumption apparatuses? Do you like the smell? Do you like edibles? Knowing the right answer will help you become a better specialist.
Having a niche can help you grow your business faster and make it more sustainable.
For example, if you are interested in consumption apparatuses, you will need to start a store or start thinking about vaping products and vape pens.
Simply, if you decide to work in the vaping sector, you need to get well familiar with the wholesale vaping supplier. The same principle applies to any other cannabis sector.
Register to Pay Taxes
No matter where you decide to open your cannabis business, you will need to apply for an Employer Identification Number, which is sometimes also called a business tax ID number. Getting this number means that your business is legal.
You can apply for an EIN online directly from the IRS and get approved almost immediately. EIN will serve when you decide to open a business bank account or need a business credit card.
You shouldn’t overlook these steps also. Make sure to:
- Form Partnerships
- Think about Marketing
- Hire employees when you start generating significant income
- Search for available funds for your cannabis business
- Know regulations
- Learn about licensing and permitting
- Mind your finances
- Get the right licenses
Like with any other business, you will need a lot of energy to run your business.
Make sure that you follow law-changes and that partner up with the right people. Have good supplies, have a clean marketing strategy, and be ready to sell.