Starting a marijuana business is a very lucrative venture since it is now legalized in many countries.
However, knowing how to start and the processes are important in this venture as time, skill, knowledge, and some capital must be on hand before implementation. This product is a plant and therefore has growing requirements as to light, minerals, equipment for harvesting, packaging, and many other types of requisites that other products do not. It can be either produced for resale as recreational product or medical product but all facets of whatever usage, including legal requirements must be known and adhered to see the success.
It also is a competitive field right now with many entering the arena. That is another reason to take the time to gather as much knowledge as possible when starting out or even enlarging an existing marijuana business. With all that said, there are some basics besides the knowledge of growing cannabis plants that are part business and part marketing basics.
Business basics for starting a marijuana business are as follows.
This is not all inclusive but will assist beginners in this new venture:
- Write a business plan. Every business needs one and without a business plan then failure results usually. It does not have to be complex but should start with expenses and capital needed for the start-up. Running up debt that cannot be repaid initially is only a formula for failure. Only a business plan can assist in keeping track of the time and expenses incurred each month.
- Check into local zoning and regulatory laws. Not every area in every region or country has the same requirements for the growing of marijuana or for its resale. Regulations also can sometimes prohibit the resale of it for residential usages, and medicinal usages can be strict on the regulatory requirements. Do not just jump in and start growing plants without this knowledge or research. Some areas and regions still prohibit recreational sales and growing. If in doubt, contact an attorney for advice on this, or even look this up online as it is readily available knowledge. Most state and regional websites may also list the requirements needed in areas where growers seek to produce marijuana. In addition, there are actual dozens of “cannabis business attorneys” now available almost anywhere globally. While a consultation will cost some money, it might very well be necessary in to start successfully. There are fines and penalties in place for the improper growth of marijuana and improper sale of marijuana.
- If seeking a fast start up there are two ways to do this. Start small, with growth of plants occurring on a small parcel (such as a backyard), and learn as you go along, OR seek partnerships with those in the business that already have thriving businesses. Great partners, if you have the capital to invest are sometimes a good way to just jump into this type of business as they already have all the permissions and regulatory requirements that are needed.
- Have a marketing plan. Like a business plan, without the knowledge of which to market to and where to market you might find you have product that is thriving but no buyers. Any business also needs a marketing plan just as they do a business plan. Research is also recommended when establishing a marketing plan into the exact number of competitors or users in an area. Marijuana is popular with some individuals while others do not really care for it. Having too many competitors or not enough purchasers should be avoided at all costs.
- Develop patience. Because of the regulatory and distribution requirements, it can take several months to get approvals to start this type of business. While traditional type businesses usually simply require the registration of a business name and tax information, a marijuana business takes a more in-depth and longer approach to start-up. In fact, since this type of business is subject to fluctuations in procedures and regulatory laws, constant upgrading to the newest regulations might be necessary for the life of the business. Patience in this business is a needed virtue in any owner/grower/supplier.
- Make connections and network. There are many online forums, trade shows, and classified ads that target growers and purchasers. Learning firsthand about the business is a great way to start, and marketing of the product and your business can be done via these avenues. Marketing like with all business is a must have!
- Learn the different types of marijuana and ways to grow them successfully. These are plants and it is not simply a matter of “digging a hole” and plopping plants in. Be prepared to fail occasionally as even the most seasoned producers find this happening. It is an agricultural product, and all farmers see crops fail. Infrastructure in equipment is important here to prevent crop damage from the elements and bugs. Soil type is crucial also as is lighting. A marijuana business is more than just sales, it is farming.
To ensure the most successful attempts at starting marijuana business please tries to follow the guidelines above and find out more guidelines which may be critical. The marijuana business can be very lucrative, but it is not for everyone. It takes a lot of time, energy, commitment and knowledge.