Cannabis sales are expected to reach $33 billion this year, a massive 32% increase from 2021.
If there’s a time to start a cannabis business, this is it. You have the potential to capitalize on incredible growth opportunities.
Starting a cannabis business right now doesn’t automatically mean success. There are still plenty of examples of cannabis businesses that fail in the first couple of years.
Your business doesn’t have to end up that way. Read on to learn five steps for starting a cannabis business.
1. Write a Business Plan
A business plan is your guide as you start the cannabis business. This is where you decide what kind of cannabis products you’ll sell and build the business model.
If you plan to seek funding from outside sources to start the business, this needs to be a formal business plan. Expect to write a 20-30 page document with a lot of details about the business.
You need to know the market conditions and competition. Don’t forget to include financial reports like startup costs, sales projections, and a breakeven analysis.
2. Define Your Brand
There are hundreds of other marijuana businesses that offer the same things that you do. How will people be able to tell the difference between your business and the others out there?
Your brand.
Your brand isn’t just a logo. It’s what comes to mind when customers think about your business. It gives your business personality and identity.
Once you have the brand established, you can create the visual identity of the business. That includes the logo and product packaging.
You can use packaging that reflects the brand, like these tins at assurpack.com.
3. Get Good Advisors
The best cannabis companies have a team of people working together on a shared vision. You might not have a team of people on your payroll, but you can get advisors.
It’s necessary to use the expertise of others when you’re starting a cannabis business. There are tax obligations and licensing requirements that are challenging to understand.
Hire an accountant and business attorney with expertise in working with marijuana businesses.
4. Register the Business
Your next step is to make your business legal. A business attorney should advise you on choosing a legal entity for your business.
They’ll also help with the paperwork and operating agreements that are necessary to set up an LLC in your state.
There may be additional permits if you sell cannabis products wholesale or through retail.
5. Create a Marketing Plan
A marketing plan has a few essential elements. It contains research about your target market.
You learn what your target audience wants from marijuana businesses. The marketing plan has key messages to connect your business with the needs of the audience.
The Essential Steps for Starting a Cannabis Business
Starting a cannabis business at this moment in time puts you in a prime position to capitalize on a huge opportunity. The cannabis industry is growing quickly as more states make recreational cannabis legal.
The best cannabis companies have something in common. They took the time to think about their businesses before they started.
You can do the same and become one of the top marijuana businesses.
Now that you know how to start a cannabis business, check out the Business section of this site for more helpful business advice.
