Ever since over half of the United States has made the effort to legalize cannabis, the weed business has been booming. There’s a lot of potential to make big money right now and in the future, as it continues to grow.
While a lot of states have legalized marijuana for medical use only, there are efforts to change that as well. There are plenty of places in the United States where citizens are allowed to use marijuana recreationally without a recommendation from a doctor.
Pot sales soared, growing by 30% in 2016. They’re projected to hit over $20 billion by 2021, as well. This is especially incredible when you consider that the industry is still quite young. But a young industry means that there are a lot of spaces that are just waiting for you to fill them.
This is a once-in-a-generation opportunity, but that doesn’t mean it’s going to be smooth and easy sailing. The cannabis industry is chock full of laws that can be confusing. There are more rules and regulations than you might have bargained for, taxes that are pretty hefty, and hoops to jump through.
If you’re looking into how to sell weed legally by starting your own cannabis business, read on to learn more!
Your Idea Has to be Unique
This is true for a business in any industry, but it’s worth repeating. If you see a need that needs to be met, meet it in a unique way. That’s the key to becoming successful, especially in today’s economy.
What part of the industry do you want to enter? For the most part, when you think about the cannabis industry, you probably think of dispensaries and growing, right?
But this can actually be a challenging and risky move. Dispensaries and grow operations have slim profit margins. This is because as we legalize marijuana the cost for an already relatively inexpensive substance will start to go down even more.
Also, these are the facets of the cannabis business that get hit with rules and regulations. Banks are also reluctant or outright refusing to, work with marijuana-based businesses because federal law still considers it illegal.
Sure, this is bound to change. But for now, you’re going to have to earn your capital without getting a loan.
If you’ve got a spare $1 million in cash, you might be able to get a dispensary license. Oh, also, you won’t be able to store your earnings in a bank. Instead, you’ll have to keep cash on hand at all times.
The Not-Exactly-Pot Business
But before you decide that the cannabis industry is too hard to get into, take a minute to think about it outside of just dispensaries and growing operations.
Do you love to cook? If so, look into making a line of edibles that is unique and different. With the current keto-craze, maybe consider a line of edibles made for people who are watching their weight?
The least risky way to get involved in the weed industry is to avoid coming into contact with the actual weed itself. Most of the rules and regulations for businesses in this industry apply to growers, processors, and sellers.
It’s for this reason that businesses connected with the pot industry are doing well. They don’t have to worry about the red tape or the crazy high taxes.
Hydroponics, cultivation products, professional training, education, consultant agencies, media companies, and an endless list of other important systems on the side are experiencing growth with endless opportunities to make money. You could even learn how to invest in marijuana.
Just make sure that your business is legal and unique. All too often, an idea is exciting but just not legal yet. Or an entrepreneur will recycle an old idea that just doesn’t work at this stage anymore.
For long-term success, you have to be able to stand up to the quickly shifting laws, as well.
Understanding Your Consumer
So, you’ve got your idea and you really think it’s a winner. Now you need to know who is going to want your product or your service. Then you need to have a deep understanding of what they want and need.
The weed industry is different from any industry out there and the space is being quickly crowded, so you need to understand your target customer intimately.
So do your research on how you can make sure that your customers are pleased with what you can give them. Get to know and understand them as well as you can. Foster a relationship with them. Once you can do these things, you can ensure yourself a customer base that’s loyal to you and your product or service.
Your success in this industry is intimately linked with your connection to the cannabis community. No matter where you choose to start, step one is to build a relationship with your customers.
Understand and Follow the Rules and Regulations
It doesn’t matter how great your idea is, how much money you have, or how enthusiastic you and your customers are if you don’t follow the law. One misstep will get you shut down. You’ll face a high price in fines and possibly jail time as well.
The rules surrounding the pot industry are confusing and complex like we mentioned earlier. This is why you should hire an experienced attorney to help you make your way through this process. It’s the only way to be sure that your business is legal.
You’ll need a license to operate, and that license is only going to be valid in one state. This means that your business plan has to completely comply with laws in your state. Luckily, the application process should walk you through how and where you can run your business.
Do It the Right Way
If you’re not responsible with your new business, you will cause big issues for yourself and the rest of the industry as a whole. When one business is reckless, the reputation of the entire industry is at stake.
This is especially true for an industry as misunderstood and surrounded by falsehood as marijuana.
This industry is new and, despite the copious amounts of rules and regulations, it isn’t regulated completely yet. This means that it’s very important for you to get in touch with other industry groups and follow the guidance of others.
Let’s use vaping, as an example. A few people with little experience in the industry didn’t take the time to do things the right way when they first started. They didn’t get proper licensing, they branded poorly, they didn’t label well, and they marketed to children.
Now, the vaping industry is facing massive regulation challenges.
Don’t give anti-pot groups or other regulatory agencies any extra reason or ammunition to use to destroy what is finally being built.
Raising Enough Start-Up Funding
Your initial investment capital is absolutely top-priority when you try to get your business up and running. Investors, like banks, don’t want to invest in the pot industry because it’s still not legal under federal law.
Instead, try to find private investors. There are many out there who are interested and excited about the pot industry and the way it is growing so quickly. These people usually want in on the action.
It’s just not feasible anymore for the average joe to foot the bill for this themselves. So raise money with investors who have experience with other industries that can potentially help you out.
This probably seems like a no-brainer, but it’s worth mentioning at least once. Just because the actual product can make people feel mellowed out and totally chill doesn’t mean that you should run your business the same way.
No matter how much you might want to ease back and relax, you need to work hard to keep your marijuana business running smoothly and legally.
How to Sell Weed Legally
Like we mentioned before, this is the most exciting time to enter into the young, exploding marijuana industry. If you’re willing to put in the hard work and follow the rules, you can wind up being very successful.
We hope this guide has helped you figure out more about how to sell weed legally. There’s no shame in the marijuana game, so if it’s legal in your state and you think you have the chops to keep up, go for it and have fun!
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