With legalization gaining momentum, it’s understandable that interest in cannabis has grown in recent years. The industry itself has expanded significantly, too, and it continues to bring in billions on an annual basis. That’s why so many savvy entrepreneurs are looking for ways to break into the cannabis business, but it isn’t as easy as you might think. There are a number of unique challenges that cannabis business owners need to deal with. The industry is also getting much more competitive, so it isn’t easy to make your cannabis brand stand out. If you want to start a cannabusiness, keep reading to find out everything you need to know.
What do you need to start a cannabusiness?
The first thing you’ll need to decide is what type of cannabis products you want to sell. This will also affect the legal landscape surrounding your business. Hemp and hemp derivatives, like cannabidiol (CBD), were legalized on a federal level through the passage of the 2018 Farm Bill. Marijuana products, on the other hand, remain illegal federally, and laws can vary on a state-by-state basis. If you’re new to the industry, it’s probably smarter to focus on products that can be sold nationwide like CBD.
You’ll need to think carefully about how you package your products. Keep in mind that some places have requirements for labeling and packaging cannabis products, so you should make sure you’re aware of all the local laws in your area. Depending on what products you sell, you may need pre roll packaging, edible jars, or containers for vape cartridges. You should also consider looking into eco-friendly packaging alternatives rather than using containers that rely on the use of fossil-fuel plastics. Not only is it the right thing to do, but it can also help bring in customers who care about sustainability.
Logistics like marketing, advertising, and even insuring your business can be difficult. Leave yourself plenty of time to overcome any hurdles you run into and look for services like insurers that work specifically with cannabusinesses. Let your customers know that if they’ve never used cannabis before, they should check with their doctors before trying it for the first time. A doctor can explain how it may affect their health conditions or interact with medications they’re currently prescribed. Providing accurate information is essential if you want to earn consumer trust.
What else should you know about the cannabis industry?
Despite the legal hurdles, the cannabis industry has grown exponentially in recent years. Experts project that the CBD market alone could be worth more than $20 billion by 2024. A large part of the industry’s success is due to product diversity. You can find the versatile cannabis compound infused into everything from body lotion to coffee. It’s a good idea to be innovative and try to think outside the box when developing your product line; that way, your cannabis brand will appeal to an even wider audience.
There are also many clinical studies underway aimed at identifying potential medical applications for cannabis, especially with regard to CBD. For example, the FDA approved the first prescription drug containing cannabidiol in 2018. Epidiolex was designed to treat seizures caused by two rare forms of epilepsy, Dravet syndrome and Lennox-Gastaut syndrome. Industry professionals are hopeful that this is just the beginning and that new uses for cannabis will be uncovered in the coming years.
We still have a lot to learn about cannabis, but it seems unlikely that its popularity will fade anytime soon. If you’re new to cannabis, it’s probably smart to focus on products that are legal on a federal level, like CBD. Once you have some experience, you can think about opening a dispensary or a business that deals with marijuana products, which can be more complicated from a legal perspective. No matter what type of cannabusiness you’re interested in, now is the perfect time for anyone considering a foray into the industry to take the plunge.