Now that the marijuana industry has begun to take off in 48 states, there has never been a better time to get into the business. Like any major industry in America, there are many aspects you need to consider when getting into a major industry.
When you need to find the simplest yet most detailed tips on how to get in the marijuana industry, we have compiled them here in these 7 pro tips.
1. Do Your Research
Before you make the first purchase, you need to do some detailed research.
The marijuana industry is one of the most regulated, monitored, and controlled industries in the free market today. Each state has its own laws, rules, and regulations, so it is important that you research each area of the law pertaining to the marijuana industry in the state you live in.
During your research, you will need to decide what area of the industry you will have a business.
There are growers, operators, dispensaries, and researchers.
- Growers are licensed farmers and cultivators who grow marijuana plants for the sole purpose of harvesting marijuana to sell to licensed operators, dispensaries, or researchers.
- Operators are licensed and manage the many areas related to the marijuana industry.
- Dispensaries are the licensed retail stores that sell marijuana, cannabis, and hemp products that are allowed within their jurisdiction.
- Researchers are licensed in researching cannabis for CBD, medical marijuana, or other practices allowed in their jurisdiction.
If you live in a state that permits both recreational and medical marijuana, you should ask yourself which field you want to join. If medical marijuana is allowed in your state, you should know that it typically costs more money in taxes and applications. Additionally, there may be more requirements, rules, and regulations on medical marijuana in your jurisdiction, so you will need to research this and factor it into your decision.
2. Check Your Background
Because the marijuana industry involves a controlled substance, you will need a clean record to enter the business. Each state will have varying requirements for having a clean background, so you will need to check your state’s background check requirements to determine if you meet the current requirements.
Some states require you to be felony-free for five years yet may give a break for non-violent crimes. The state of Washington, for example, will perform a background check on your spouse, even if he or she has no financial involvement or ownership in the business. Therefore, you may have a clean record, but your spouse may disqualify you, so this is something important you should consider.
3. Expect the Unexpected
Clear as mud, right? Unfortunately, that is the nature of the everchanging marijuana industry. This is a relatively new industry with many unchartered territories that legislators are learning about each day. What may work today may change tomorrow based on something new that a lawmaker has learned about the cannabis industry.
Regulations are constantly changing, so you should always be aware of new laws that are being introduced into potential adopted legislation for legal marijuana.
4. Use Seed to Sale Software
This pro tip is huge, especially when you have made it into the marijuana industry, and you need to know what to do now.
Seed to sale software will handle every aspect related to the marijuana business you choose. Whether you are a farmer, operator, researcher, regulator, or dispensary, seed to sale software will keep you organized and make your business successful.
Seed to sale software can create invoices, track each plant, compile customer information, organize transportation information and credentials, and run required reports for government agencies.
5. Make a Budget
Your budget will not only need to include all of your costs (materials, supplies, seeds, software, etc.), but you will also need to figure in the most important part: profit.
Getting into the marijuana industry can be costly upfront, but if you turn a profit after the first year, you can likely forecast how each year will go and how much money you can make.
Making a budget may mean that you have to take out a small business loan to get started. Fortunately, the upfront costs are relatively affordable, with the most expensive purchases being the license you obtain, the software you use, and any supplies or equipment you purchase.
If a small business loan is not the route you wish to take for your cannabis business, consider asking an investor to invest a small amount of money upfront. The money you request doesn’t need to cover every cost of the business. Asking an investor to cover the cost of the license or software can help kickstart your business so that you can begin to turn a profit.
6. Always Be Prepared
Inspections from governing authorities can happen at any time, so you should always be prepared for an inspection on any given day.
Being prepared for an inspection means that your business can run reports, give a tour, or present specific information requested at any time with no delays or hesitation. When you have nothing to hide, you hide nothing, and this should be the same mentality for operating a marijuana business.
Your marijuana business should be an open book ready to open for an inspector or governing authority to review any time.
7. Always Consider the Possibility of Relocating
While 48 states have adopted some form of legalized marijuana use, some states are more relaxed than others. If you live in a state with stricter laws and regulations than others, you may want to keep your options open for moving so that you can maximize the potential for your marijuana business.
States that are more relaxed with laws, rules, and regulations have pros and cons.
The pros of operating a cannabis business within these states mean that you have less restrictions on what to sell and how to sell it.
The cons of operating a business int the marijuana industry within these states mean that the competition will be fierce. You will likely be a small fish in a big pond, but that’s what makes a competition worth it, right?