Weed is a big business.
It always has been, but now legalization is becoming increasingly common, it’s only getting bigger.
For instance, the legal marijuana business is expected to be worth over $146 billion by 2025.
As cannabis gets legalized, the stigma around it reduces, and growing numbers of people want to get their hands on it. That demand is driving this thriving industry to ever greater heights.
As a budding (…get it?) entrepreneur, you might see an opportunity to get in on the action.
It’s as good a time as any. As the market for it grows, so does your chance of making a profit. But that doesn’t make success easy to come by. You have to know what you’re doing.
After all, any new business venture requires a plan of action. Are you thinking of getting into the legal weed business?
Keep reading to learn exactly how to start your very own successful cannabis business.
7 Steps for Starting a Successful Cannabis Business
The cannabis-industry is only going to get bigger. Now’s a great time to get in early and capitalize on this burgeoning market. Many, such as Planet 13 stock, already have! Below you’ll find the information you’ll need to get started.
1. Write a Business Plan
All successful businesses start with a plan of action.
The cannabis-trade should be no different!
Start this process with a solid understanding of how you’ll grow your business over time. Start with a mission statement that succinctly explains the purpose, goal, and intention of your business. Then put some thought into timelines, the money you’ll need, particular milestones, and any other important information required.
Consider potential problems you’ll face along the way too.
Knowing in advance the possible issues will mean:
a) they’re less of a surprise when they happen
b) that you have a solution in place in advance
Having a solid business plan is essential for taking forward into meetings with possible investors. They’ll want to see exactly how you intend to use their money, and when they can expect to make a return on it.
2. Decide Your Niche
Where will your business fit into the weed-industry?
Your business could be one of many things. Do you want to grow cannabis? Dispense it? Cook with it? It’s for you to decide.
Analyze the market and figure out if there’s a particular gap. Do your market research to find out where the demand lies. Oftentimes you’ll need to niche down.
In legalized states, there will be established competition in most categories.
Hone down on how you can be different. Maybe you can combine two themes together (heavy metal weed dispensary? Game of thrones cannabis supplier? And so on).
3. Understand Your Audience
You need to know your target-audience before customers start coming through the door.
It might sound backward- how is that even possible?
It demands imagination. Sit down and think about who your ideal customer is. Again, this will relate to your particular niche (indeed, your ideal customer may dictate your niche…). Create a solid picture of their demographics, their background, their appearance, interests, likes and dislikes, and so on.
The more detail the better. Every decision for your business should be made with them in mind.
4. Find the Location
The location of a cannabis business is essential to operations.
That’s true of all businesses. Real estate makes a major difference in terms of through-traffic and potential revenue generation. However, it’s even more relevant to you.
That’s because, as you know, not all states have legalized weed. You can’t set up shop where you want. Furthermore, the laws vary between states where it’s already legal.
Meaning you can’t operate the same way in all legal parts of the country either.
It all ties in together. Your particular niche may work best in a certain location, which will determine how you can operate from a legal standpoint.
5. Learn the Legality
You can’t start a marijuana business without knowing the legal stuff.
However, as we’ve seen, the laws you need to know will be specific to the particular business and location you choose. With those things decided, get yourself up to speed with the relevant policies and regulations for your particular practice and state.
Don’t get too bogged down in it all though. There’s a lot to learn, and trying to understand it all at once is a recipe for concern and inaction. Both are kryptonite for any start-up.
The best approach is to speak with a lawyer to discuss the essentials. That way you know you’re moving forward in line with the rules. That could save a lot of hassle in due course.
6. Get the Money Together
It’s time to start raising the money. With your business plan in hand, you’ll already have an idea of how much you need. Now you just have to get it.
Unfortunately, investment capital can be hard to come by for a cannabis start-up. Banks may be disinclined to lend you the money. Investors may still hesitate due to federal law issues. Private investors are your best bet.
Indeed, it should be about making money. And it’s hard to deny the possibility for that in the booming cannabis-market.
Why not try crowdfunding too? The right idea could generate all the capital you need.
7. Do Your Research and Work Your Socks Off
Next up, you need to turn yourself into a weed expert in your particular area.
Learn how to grow and harvest the weed, where to source it from, and how to work best with it. Hone your recipes, perfect your processes, and generally figure out what goes into being successful in your chosen cannabis niche.
Finally, you need to work. Work harder than ever before to get your start-up off the ground! A great idea coupled with hard work and the right approach is a recipe for success.
Time to Wrap Up
There you have it: 7 top tips to help you start your very own successful cannabis business.
The cannabis industry is growing at an exceptional pace. As legalization continues, the market is only set to grow. And that equals opportunity for aspiring business owners. If you love your weed, then now’s a great time to get started with your own business.
Hopefully, this piece has highlighted how to get started along the road to success!
Find it useful? Click here to read more about investing in marijuana.