Here’s What You Need to Do to Start a Cannabis Business
Cannabis, and products made from cannabis, can be used to benefit health. It can treat a number of conditions, including eating disorders, pain, muscle spasms, nausea, and seizures, to name a few. The cannabis plant contains a wide variety of compounds, such as cannabinoids. They produce their effects by interacting with specific receptors, located in different parts of the central nervous system. Cannabis can be consumed either orally or by inhalation (smoking or vaping). Cannabis can also enter the bloodstream when placed under the tongue and held in the mouth. Another way of consuming cannabis is through topical applications.
Cannabis is a multibillion-dollar business. It’s expected to grow as new markets open and more states legalize cannabis for medical and recreational purposes. In Europe, there’s opportunity for players to get strategic and enter the market via the integration of cannabis as a consumer packaged good. Europe is just beginning to realize its potential as the world’s leading cannabis market. If you’re interested in exploring this high-growth industry, go right ahead. There’s a chance to get a piece of the pie even if you don’t have significant expertise.
Choose a Niche to Focus on For Your Cannabis Business
Determine the focus on your cannabis business and make efforts to hone your skill set. Find a niche you want to work from and innovate from there. You can specialize in:
- High-end concentrates. Advances in extraction techniques are leveraged to produce high-potency products, referred to as cannabis concentrates. They’re often consumed by dabbing. Small extracts are vaped out of a dab ring, vaporizer, or smoked out of a pipe. Cannabis concentrates have very high levels of THC.
- Vegan/organic cannabis. You can grow cannabis that’s free of pesticides and heavy metals. To get cannabis seeds delivered to your door quickly, order them online. Simply Green is an example of a place to buy cannabis seeds.
- Edibles. Edible products, edibles for short, are made with cannabis leaves or high potency cannabis extracts. They come in many different forms, such as gummies and brownies. Edibles are the main purchase for every generation, except Gen Z, which prefers vapes.
Having a niche helps your business stand out from the crowd. Also, it doesn't leave people in doubt about what you do. Spend enough time doing your research so you completely understand the ins and outs.
Write a Detailed Business Plan
Your business plan needs to be a bit more detailed. After all, you're not opening a jewelry shop or a restaurant. The business plan will attract investors and will demonstrate your professionalism. Perhaps you need some pointers to get started. Well, here you go.
- Keep the executive summary concise. It shouldn't be more than one or two pages long. Write the executive summary after you've finalized the business plan. Investors will read this part closely, so include useful information.
- Position your company's opportunity. Provide details of the opportunity your cannabis company will take advantage of. Two or three paragraphs are enough. Highlight the areas of greatest potential in growing your business.
- Describe the problem you've identified and how your company solves the problem. At its heart, every business exists to solve a problem. Describe what problem is crucial to your mission and strategies and articulate why that issue is important.
- Define your target audience. Describe the segment of consumers you’re likely to want or need. Not everyone should be included in your target market. Come up with a realistic number of customers you can reach within the first years of business. Also, list competitors.
- Describe how you'll maximize the opportunity for your business. Establish how you’re going to drive operations forward. This section should include strategic partnerships/alliances, your team and company information, a marketing plan, key assumptions and risks.
- Refer to the activities you’ll engage in on a daily basis. This is where you explain your company’s goals, procedures, and timeline. Describe your physical location, facilities, and location. Moreover, include information about inventory, suppliers, etc.
Get Your Affairs in Order
To sell cannabis, you’ll need a license. Every state has different laws regarding cannabis businesses, so the process of obtaining a license depends on where you want to open your business. In the Netherlands, for example, cannabis is decriminalized for recreational use. Low-volume cannabis sales are tolerated in the so-called “coffee shops”, which are allowed to operate under strict licensing conditions. These shops offer 100% legal products, all of which are tested and certified before they reach the shelves. At any rate, if you have a strong business plan, funding, property, and a well-written application you have a good chance to secure a license.
Find a Cannabis Industry Supplier
The success of your cannabis business depends on your inventory. Price matters when choosing a supplier, but reliability is the most important factor to take into account. What you need is someone who can deliver the goods on time. Large cannabis industry suppliers, such as Simply Green, are reliable because they have sufficient resources and systems in place to make sure they can honor their deliveries if something were to go wrong. Stability is another aspect to consider. Work with someone who’s been in business for some time. A company with a positive reputation with other customers is a good indicator that the company is stable.
When you choose a cannabis supplier, review their website and marketing materials. Be certain they demonstrate commitment to quality assurance. Your supplier should use third-party testing. Demand to see a lab result for each batch of product. Cannabis comes in many forms, so a dependable business partner will offer a wide array of products. Skim over their catalog to ensure they have the products you’re interested in selling. Last but not least, you’ll need attractive packaging. There’s no replacement for professionally designed packaging.
Even if you’re a local business, having a web presence is important. You can hire a web designer to make your site. Or you can do it yourself using WordPress or Shopify. Don’t write overly complex product descriptions.