Only a couple of years before, debating the cannabis business should end wisely, it plunged into disguise. Growing and distributing marijuana were denied entirely. Fortunately, reality has continually changed. Although the herb is still illegal under numerous conditions in the American Union and the nations of the world, the fantasy of establishing a weed business is becoming increasingly evident. Currently, each room that allows the use of the herb, regardless of whether it is therapeutic or recreational, is an opportunity to enter the cannabis segment through different types of exhibition and creation.
Since California legalised the herb for medical use for the first time in 1996, the cannabis industry has grown exponentially. According to ArcView Group analysts, combined marijuana sales between wholesale and retail, reached a staggering 2.7 billion dollars in 2014.
If you have ever considered creating a legal marijuana business, we will tell you below the basics to consider. Always be sure to check your local laws and be up to date with them.
Types of marijuana companies
The primary business modalities with cannabis could be divided into three general categories: cultivation, manufacture of products (marijuana or derivatives) and commercialisation or retail sale. Of course, there are other models such as marketing, delivery services, cannabis use devices, and online software or services.
– Cultivation: Commercial interests linked to cannabis cultivation are carefully regulated. Its operation requires significant initial investments and horticultural knowledge.
-Production of products: Many patients or recreational users prefer to consume edible marijuana, tinctures, ointments and other infused products. Check what could be your best option.
-Commercialisation or retail sale: It regularly works through dispensaries or collectives, but they are generally stores that sell cannabis-based products to authorised customers. These are usually the most difficult and expensive to start, but also the most lucrative.
Starting your marijuana business: general factors to consider
Growing legal cannabis or opening a marijuana dispensary is more complicated than starting many other types of companies, due to the regulatory environment and the uncertainty surrounding it. State laws in the American Union tend to vary. They are continually changing. Consequently, you should consider the following factors before deciding if the cannabis industry is right for you:
– Costs: These vary according to location, state laws and type of business. The most convenient is first to investigate how much you will need to cover expenses on licenses, rentals, utilities, equipment, supplies, marketing, security and employees.
– Residence: Being a bit more specific in the United States, virtually all people with a commercial marijuana license (and investors, in some cases) must be residents of the state. Colorado, for example, requires a two-year residency before granting a permit.
– Criminal records: most rules prohibit criminals convicted of drug offences (or violent crimes) from applying for a commercial marijuana license.
-Risk: The cannabis industry presents some “dangers” due to its constant changes and regulations, but the rewards are potentially high.
-Time: Make sure you spend time and consider that it could take several months to obtain a license. In California, a permit can take approximately ten months, but in Washington up to 18.
-Investors and partners: As with any other business to undertake, you will need capital to get going; Keep in mind that some investors remain concerned about investing in something that is still illegal under federal law. Most of the financing for marijuana companies comes from private investors, not banks.
Your marijuana business step by step
Any new company requires the right combination of market, investment and administration profile. In this sense, the basis for creating a cannabis-based business does not differ much from other companies. However, even if it sounds repetitive, the most significant complications you’ll find will be the changing regulations and the federal ban. Check the following steps to start your marijuana business:
1. – Write a business plan: Describe the objectives of the company you will create; Review startup costs, deadlines, finances and relevant information. This will help you stay organised and focused. It will also serve as a source of consultation when looking for additional investors.
2.- Find a location: In addition to the state licensing requirements, local laws and regulations, real estate costs could also largely determine where you could locate your business.
3.- Shape the business structure: Design your business within the applicable legal and regulatory restrictions and identify the company’s partners before applying for a license.
4.- Obtain the permit (s): Waiting for the approval of any applicable license usually takes several months, and this can take even longer if you make mistakes when applying for it or when forming your company.
5.- Start up the operational infrastructure: Once you have obtained all the necessary licenses and permits, you must implement the regulatory measures in your business, to ensure that it operates in compliance with the terms of the license (s) ).
6.- Contract with partners: The type of partners with whom you will need to consolidate contracts and agreements will depend on the type of business. To mention an example, dispensary owners (retailers) often hire growers and wholesalers of marijuana or derived products.
7.- Promote your business: There are several online advertising forums and directories available to retailers. Growers and other wholesalers will want to consider advertising in trade magazines and attend trade shows for marijuana.
As you will see, starting your Maryjane business is a dangerous task that requires additional persistence, devotion and a deep understanding of the fantastic guidelines and legitimate changes included. If you have further questions or need authentic help, consider speaking with a legal advisor with experience in the Maryjane business.