5 Things You Need To Know Before Starting A Cannabis Business

What To Know Before Starting A Cannabis Business

5 Things To Know Before Starting a Weed Business from CannabisNet on Vimeo.

Want a piece of the "investing in marijuana" pot pie? You might just start seeing more green if you do the greens business right. Think the multi-billion dollar cannabis industry is already ripe for the pickings? It’s just the tip of the bud that grows on the proverbial iceberg. Each day is an opportunity for millionaires as well as billionaires who have made their mark in the marijuana industry. The legal cannabis industry is forecast to bring in over $80 million in revenue by the time it’s 2018.

While it seems tempting to join the ranks of many who have left their corporate, dead-end jobs to pursue their ganja while working to break a stigma, it’s important to go in prepared. The marijuana industry favors the bold and the prepared as going in without doing your research can have serious financial as well as legal implications.

Increase the chances of your business turning into a success by understanding these rules:

1. Stay informed.

The pot industry is here: it’s real, it’s thriving, and there is serious money to be made. But to earn from it, you’ll need more than a passion for lighting up. It’s important to stay as informed as possible in order to get ahead. Talk to as many knowledgeable people as you possibly can, research about various strains, and learn the basics of marijuana farming. If you are leaning towards growing your own strains, it’s important to keep in mind that marijuana farming is actually very labor intensive and thus requires patience and dedication on your part.To truly succeed with farming, you will need to invest time and energy into learning the art.

2. Study the laws.

Remember that while cannabis business is booming, ganja is still illegal under federal law. Laws regarding the use and purchase of the herb vary from county to county, and the current laws on usage can also change under a new administration. Your full understanding of marijuana is crucial to the success of your business and can spell the difference between raking in the greens and being swooped up by the feds. Legalities can affect many aspects of your business, such as the fact that dispensaries and growers are not qualified to apply for bankruptcy law protection. In addition, warning labels and packaging are some of the most regulated aspects in this business given that edibles make up a large percentage of sales and need to comply with packaging specifications to ensure that they are child resistant. If you aren’t sure how to navigate your way through the legalities, your best bet is to hire a lawyer who specializes in cannabis law.

3. It’s an all cash business.

One of the biggest challenges faced by ganjapreneurs is finding safe places to keep the money. It’s not uncommon at all to meet business owners who are literally keeping wads of cash in backpacks, in storage rooms of dispensaries, and in their homes. This is also a reason why there have suddenly been so many new security companies sprouting, who specialize in safekeeping weed businesses with trained and armed men. Very few banks will actually keep cash that has been generated by pot businesses and only time will tell if that will change any time soon.

4. Know your location.

Many federal sentencing laws dictate that drug trafficking offenders are bound to more jail time in the event that he or she is caught manufacturing, distributing, or cultivating controlled substances within around 1,000 feet of schools or parks. The location laws can be pretty tricky and this is why landlords are often hesitant to lease their properties to marijuana businesses.

Proprietors also need to adhere to rigorous square footage requirements.

5. Choose your partners.

Your partners, if any, will be crucial in your plan from turning green into gold. It’s important to partner with people whom you trust, and who also have an equal or even better understanding of the business you’re planning to get into. You should also consider contractual relationships depending on the nature of your cannabis business. For example, retailers such as dispensary owners.

Your cannabis business can be a smoking success if you follow these tips!

The 5 Things You Need To Know Before Starting A Cannabis Business

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