How To Start A Marijuana Business
Are you tired of shady dealings to get your favorite plant? I am too. Luckily, the attitude towards marijuana in the general public has shifted from widely negative to neutral and positive thanks to people’s common goal to enjoy it without repercussions. 18 States legalized marijuana for medicinal and recreational use, and 13 decriminalized it.
We are slowly but steadily entering the golden age of weed consumption, and now is the best time to start your own business. Of course, enthusiasm and passion aren’t the only necessary elements; there are economic mechanisms and the business ins and outs.
So if you wanted to start your own company of marijuana products, stay within legality, and build a successful brand in the industry, who better to consult than Confia, a cannabis-oriented financial platform?
Brand And Entity Type
A good idea is a primary source for any thriving business on which you will build upon the whole structure. A good idea needs a good, catchy name that will establish your brand on the market. I am sure you can come up with a few good brainstorming sessions with a memorable name for the marijuana business.
The goal is to be simple and straightforward because you want your future clients to tell your brand apart from the plethora of other startups.
Entity type will determine how the business will handle taxation, ownership interests, assets transfers, how the business is run, and the type of license required to comply with the legalities.
Business Types
In general, s marijuana business can be divided into three major categories, with some nuances depending on whether you are going for recreational or medicinal use. These three categories consist of dispensaries, infused cannabis products, and cultivation.
Cultivation is kind of difficult to start due to tons of regulations and paperwork. It also requires significant capital ready for investment and agricultural expertise.
Products are a different story. Here you can avoid the regularities that plague cultivation and focus exclusively on products containing cannabis. This makes your life much easier because you don’t deal with cannabis production directly, which makes the legal side of the business significantly bearable.
Dispensaries sell products to clients. You can sell products you made or marijuana in its natural shape and form; note that some states might require clients to provide a prescription. This type of business falls under a more difficult category because of the paperwork and investment requirements. Still, there’s good money to be made if you play it right.
Things To Consider
Starting any business is challenging. It takes time to understand how the law works and thrive by playing by the rules. Marijuana business is in its infancy. Rules and regulations change daily, and it can be confusing at times, especially if you don’t have a partner who can cover the legal questions. Here are some basic steps that will guide you through to success:
Make a plan – You need costs, timelines, goals, and milestones. It is much easier when you put everything on paper because it helps you stay focused but also provides a tangible business plan for potential investors.
Location – It is best to establish your business in a state that’s most flexible with the laws and regulations
Licenses – It can take some time to obtain all the necessary licenses, be patient.
Implementation – Once you obtain licenses, you need to implement them into the business structure.
Make Contracts – You need to make a contractual agreement with all your partners and employees.
Marketing – Get into the circles of other marijuana businesses. Put your name out there by using Instagram or any other popular social network.
