If you want to start a cannabis business in 2020, you need to know the ins and outs of the industry. From getting a license to finding the right location, there’s a lot to consider. But don’t worry, we’re here to help.
In this blog post, we’ll give you a step-by-step guide on how to start a cannabis business in 2020. We’ll cover everything from getting a license to finding the right location for your business. So if
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Decide the Type of Cannabis Business You Want to Start
The first step to starting a cannabis business is deciding which type of business you want to start. The type of business you start will determine the licenses you need, the permits you must acquire, the zoning regulations you need to follow, and the amount of money you need to start your business.
The four main types of cannabis businesses are retail dispensaries, cultivation facilities, product manufacturing facilities, and testing laboratories. Each type of cannabis business has its own unique set of regulations that must be followed.
Retail dispensaries are the most common type of cannabis business. Dispensaries are businesses that sell cannabis products to customers. Dispensaries can be either medical or recreational. In order to start a dispensary, you must obtain a retail license from the state in which you plan on operating your dispensary.
Cultivation facilities are businesses that grow cannabis plants. Cultivation facilities can be either indoor or outdoor. In order to start a cultivation facility, you must obtain a cultivation license from the state in which you plan on operating your facility.
Product manufacturing facilities are businesses that make cannabis products such as edibles, concentrates, and topicals. In order to start a product manufacturing facility, you must obtain a manufacturing license from the state in which you plan on operating your facility.
Testing laboratories are businesses that test cannabis products for potency and contaminants. In order to start a testing laboratory, you must obtain a testing license from the state in which you plan on operating your laboratory.
Research the Cannabis Industry and Local Laws
Before getting too far ahead of yourself, it’s important to take a step back and do some careful research. The first thing you need to understand is the current legal landscape of the cannabis industry. Unfortunately, cannabis is still illegal at the federal level in the United States. This can create a unique set of challenges for entrepreneurs who want to start a cannabis business.
However, many states have passed their own laws decriminalizing or legalizing cannabis for medicinal or recreational use. In these states, it’s important to understand the specific laws and regulations surrounding the industry before starting your business. For example, in California, cannabis businesses are required to obtain a license from the state Bureau of Cannabis Control.
In addition to understanding state and local laws, it’s also important to research the cannabis industry itself. This includes understanding the different types of products that are available, as well as the target market for your products or services. Additionally, you should have a solid understanding of your competition before starting your cannabis business.
Create a Business Plan
Creating a business plan is one of the most important steps you will take when starting your cannabis business. Your business plan will outline your business goals, strategies, and how you plan on achieving them. It will also be used to attract investors and partners.
Some things to consider when creating your business plan:
-Your company name, logo, and branding
-Your target market
-Your product or service
-Your marketing and advertising strategy
-Your financial projections
Find a Suitable Location for Your Business
The first step in starting a cannabis business is to find a suitable location for your business. The ideal location for a cannabis business is one that is close to the target market and has good infrastructure.
If you are planning to grow cannabis, you need to find a location with good soil and water resources. If you are planning to open a dispensary, you need to find a location with good foot traffic and visibility.
Once you have identified a suitable location for your business, the next step is to obtain the necessary licenses and permits. In order to obtain a license to grow or sell cannabis, you need to submit an application to the state government. The application process can be lengthy and expensive, so it is important to start the process early.
If you are planning to open a dispensary, you also need to obtain a license from the state government. In addition to the state license, you will also need to obtain a local business license. The local business license is typically obtained from the city or county where your dispensary will be located.
Obtain the Necessary Licenses and Permits
Before you can open a cannabis business, you will need to obtain the necessary licenses and permits. The type of license you need will depend on the type of business you want to open. For example, if you want to open a dispensary, you will need to obtain a retail license. If you want to start a cultivation business, you will need to obtain a cultivation license. You can learn more about the different types of licenses here.
The application process for obtaining a cannabis license can be lengthy and expensive. You will likely need to hire an attorney to help you navigate the process. Once you have obtained your license, you will need to comply with strict regulations. For example, you may be required to keep track of all the cannabis products you sell and how much each product contains.
Raise the Required Start-up Capital
The amount of money required to start a cannabis business depends on the industry you want to enter and the state where you will be operating. Start-up costs for a dispensary can range from tens of thousands to several million dollars, while starting a cannabis cultivation facility may cost anywhere from several hundred thousand to several million dollars.
To get an idea of how much money you will need to start your cannabis business, you will need to complete a Business Plan. This will help you estimate the start-up costs, operating expenses, and revenue potential for your business. You can create a Business Plan using our free Business Plan Template.
Once you have an idea of how much money you will need to start your business, you will need to raise the required capital. There are a number of ways to raise start-up capital for a cannabis business, including:
-Savings: If you have saved up money over time, you can use these savings to finance your cannabis business.
-Loans: You can apply for loans from family and friends, banks, or other financial institutions.
-Crowdfunding: You can use crowdfunding platforms like Kickstarter or Indiegogo to raise money from the general public.
-Venture Capital: You can seek out investment from venture capitalists or other investors interested in funding high-growth businesses.
Hire Qualified Employees
While you might be able to get away with hiring your friends and family to help you out in other businesses, the cannabis industry is highly regulated. This means that you will need to hire employees that are properly qualified and licensed to work in a dispensary. The best way to find qualified employees is to post job ads on websites that focus on the cannabis industry. You can also reach out to local colleges and universities that have programs in cannabis studies.
Market Your Business
Assuming you have a great business plan and product, branding and marketing your business is essential to success in the cannabis industry. You need to stand out in a rapidly growing, highly competitive market. Fortunately, the internet has made it easier than ever to reach your target audience.
Here are a few tips for marketing your cannabis business:
-Develop a strong brand identity. This includes designing a logo, choosing color schemes and fonts that represent your brand, and creating consistent messaging across all of your marketing channels.
-Build a responsive website. In 2020, having a mobile-friendly website is essential. Make sure your site is easy to navigate and provides visitors with the information they’re looking for.
-Create valuable content. Whether it’s blog posts, infographics, or videos, informative content can help you attract attention from prospects and customers alike. Just be sure to avoid anything that could put your business at risk of running afoul of state or federal regulations.
-Leverage social media. Social media platforms like Facebook, Twitter, and Instagram are powerful tools for promoting your cannabis business. Use them wisely to reach new audiences and connect with potential customers.
With a little effort, you can develop an effective marketing strategy that will help you succeed in the ever-growing cannabis industry.