by Allen Brown
Write an article about Cannabis businesses. It’s hard to believe it’s been nearly two decades since California legalized medical marijuana in 1996. According to Marijuana Business Daily, the cannabis industry is booming. With over $6 billion in sales in 2016 and a projected $21 billion by 2020, there’s no denying that marijuana has become America’s fastest-growing industry. With major state initiatives like legalizing recreational marijuana use in California on November 8th of last year, this trend doesn’t seem to be slowing anytime soon. What are some things you should know before starting your own cannabis business?
1) The Legalities Are A Little Shaky
Technically speaking, cannabis isn’t legal for recreational purposes in America because the plant falls under Schedule I drug classification under the Controlled Substances Act, which is the most restrictive category reserved for drugs with high potential for abuse and no accepted medical use. However, in over half of the states in America, marijuana is legal for medicinal purposes, and 8 states (plus Washington D.C.) have legalized recreational use. So while it’s not completely legal across the board just yet, it’s becoming more and more accepted, which means that there is a lot of open space for potential retail growth. In States where you can sell weed, it is important that you get your weed measurements correct. Clients want to know that suppliers are consistent. If not, they will simply go elsewhere. Therefore get the upper hand on your competition by supplying good quality and consistent products.
2) It’s An Emerging Industry
Much like the technology industry, cannabis is a very new industry that is rapidly growing as time goes on. The cannabis industry is still in its infancy, so there are a lot of opportunities to get in on the ground floor. But with that comes some risk, as the industry is still developing and evolving. What will be considered legal and illegal tomorrow is anyone’s guess. Therefore it’s important to stay on top of the latest news and regulations. Due to this, it’s important for business owners to stay on top of current trends and news related to the industry. What works for someone else’s business may or may not work for your own. It is important to be flexible and adaptive.
3) There Are A Lot Of Opportunities
The cannabis industry is still in its early stages, and as such, there are a lot of opportunities for businesses to get in on the action. From picking cannabis seeds, cultivation and production to retail and wholesale. There are a lot of opportunities for business owners to get in on the action. There’s also a growing trend toward cannabis tourism. Meaning that there are opportunities for businesses in the hospitality industry as well. So if you’re thinking of starting a cannabis business, there’s definitely no shortage of opportunities.
4) There’s A Lot of Money To Be Made
As mentioned before, the cannabis industry is booming, and with that comes a lot of money to be made. But it’s not just the growers and sellers who are raking in the cash; ancillary businesses are also seeing the benefits. With that comes a lot of competition, so it can be tough to get your foot in the door, but with innovation and getting creative about how you make money, there’s still plenty of room for success.
5) The Competition Is Fierce
With such a limited number of states where cannabis is legal, and with such a high demand for weed, competition in the industry can be fierce. There’s a lot of money to be made in cannabis. There are already many well-established businesses that are vying for market share. It doesn’t help that the cannabis industry is still new, so there aren’t a lot of established protocols or habits. As such, new businesses face a high degree of risk, which can be both exciting and intimidating.
6) It Can Be A Wild Ride
Since the cannabis industry is still developing and evolving, make sure you’re prepared for the wild ride that is starting a cannabis business. It can be exciting and rewarding, but it can also come with a lot of challenges and risks. Things are always changing in the cannabis industry, so make sure you’re ready to adapt and pivot when necessary.
Everyone wants to get in on the cannabis industry, but it can be a wild ride. The good news is that there are plenty of opportunities for entrepreneurs without any experience in this space. And the more states that legalize weed, the better off we’ll all be.
