Cannabis comes from Cannabis indica and Cannabis sativa plants. Some plants contain delta-9-tetrahydrocannabinol (THC), while others contain cannabidiol (CBD). Cannabis is commonly associated with marijuana, but that’s not the only product stemming from cannabis plants. For example, you can produce clothing, paper, rope, food, textiles, biofuel, bioplastics, shoes, and insulation from Cannabis sativa plants.
Globally, the cannabis industry generated over $20 billion U.S. in 2020, and experts project the industry will be worth more than $90 billion by 2026. The industry’s growth is just one reason you may be considering entering the cannabis industry. Using these tips can help you launch your company and thrive in the marketplace.
Do your industry research.
Take time to learn about the cannabis industry before you launch your cannabis business. Familiarize yourself with federal and state laws that could impact your business. Ensure you understand the steps you must take to comply with local and federal regulations. You should also be aware of your competitors and look for ways to distinguish your company from theirs. You may do this by targeting a niche market or customizing products for specific consumers.
Create a business plan.
Your research informs your business plan. This document outlines the focus of your company, who your ideal consumers are, and how you’ll reach those consumers. It should include a start-up budget and operating budget, as well as revenue projections. You can use your business plan to secure capital from a reputable lender or qualify for Small Business Administration (SBA) loans.
Invest in the best resources.
Ensure you produce superior cannabis plants by using the best resources available, including bottled or spring water. Investigate local water delivery companies and find a water delivery service capable of supplying 5-gallon jugs for watering your plants. Contracting a delivery service saves you time and money because you won’t have to worry about locating purified water in a store and transporting the water to your business. With a subscription service, you can count on reliable water delivery services and be confident you’ll have the resources you need on hand.
Businesses need insurance, and cannabis businesses benefit from working with companies specializing in cannabis insurance solutions. You may need several types of insurance, including property insurance, professional liability insurance, business insurance, and product liability insurance. You’ll also need workers compensation insurance and health insurance. Consulting an insurance agent with experience with your industry ensures you’ll receive expert guidance and secure all the insurance policies you need to protect your business.
Keep a lawyer on retainer.
If you didn’t consult an attorney about cannabis laws during the research stage, take time to locate a business attorney with experience in this field. Keeping an attorney on retainer ensures you know who to call when you have a legal question or issue instead of scrambling to find someone to take your case after a problem arises. For example, vendors who sell cannabis should ensure clients have consulted their physician first to prevent bad interactions with prescription medication. Understanding your legal obligations ensures you take steps to protect your business. Your business attorney can also review contracts and advise you as you establish business practices, ensuring your operation follows applicable laws and regulations.
Promote your company.
A comprehensive business plan should include a marketing plan for promoting your products. It doesn’t matter how good your products are if potential clients never hear about them. Hire a marketing team capable of developing a comprehensive promotional strategy that will raise your company’s profile and help you generate business income by securing clients. Today, marketing experts offer a range of services, including traditional and online marketing campaigns. They may use billboards, TV and radio advertisements, and print ads to promote your products. They may also use search engine optimization (SEO) marketing strategies to raise your company’s profile online and run a social media marketing campaign to attract clients.
Starting a commercial cannabis grow company begins with industry research. Prepare a business plan, secure the best resources, and obtain the business insurance you need to protect your company. It’s a good idea to keep a lawyer on retainer and work with a marketing team to promote your products.