10 tips for starting a cannabis business

Business News | 12 Aug |

What should someone know before starting a cannabis business? 

To help aspiring entrepreneurs plan their own cannabis business, we asked business leaders and fellow cannabis business founders this question for their best advice. From finding the right insurance to researching your competition, there are several tips that may help you successfully form your hemp-based company. 


READ ALSO: How are recreational marijuana sales doing after six months?


Here are 10 recommendations for starting a cannabis business: 

  • Find the Right Insurance
  • Get Print Materials Organized
  • Establish an Organic Growth Strategy
  • Create a Solid Business Plan
  • Work with a Financial Advisor 
  • Figure out Licensing
  • Pick the Best Location
  • Solidify Which Suppliers You Want
  • Assess Product Shelf Life
  • Research Your Competition 

10 tips for starting a cannabis business

Find the Right Insurance

The legalized cannabis industry is fairly new and here’s something you should consider: marijuana life insurance industry policies. Although the industry is now legalized in several states, there are still quite a few hurdles that many industry companies have to endure. That’s why at Marcan Insurance we specialize in helping you find the right forms of insurance that you need to protect your business.

Chris Abrams, Marcan Insurance

 

Get Print Materials Organized 

If you are starting a cannabis business, one thing you should keep in mind is all of the collateral and printing materials you need to train your new employees and inform potential customers about your products and offerings. As the cannabis industry grows and more people are interested in learning about the benefits or side effects of cannabis products, there will be a need for resources to teach your employees and share with your clientele. Getting pamphlets or product information packets created and ordered early can help prepare you for employee training and customer demands once your business has launched.

Eric Blumenthal, The Print Authority

 

Establish an Organic Growth Strategy

Anyone starting a cannabis business should have a solid organic growth strategy for digital marketing. If the business is local, creating a Google My Business page with complete and relevant information can help build visibility with nearby customers. Blogging about educational information and creating landing pages for services are also good content marketing steps to take when increasing inbound traffic. Whatever the tactics, establish a thoughtful organic growth strategy to help support your cannabis business for the long term.

Brett Farmiloe, Markitors

 

Create a Solid Business Plan

The cannabis industry is not for the faint of heart. It’s a young, rapidly growing industry that has attracted many people who are looking to get rich quickly. Many people will enter this space with little understanding or experience in the business world and without an adequate business plan. It will take time until the industry matures.

Erin Stone, Hinderland Co.

 

Work With a Financial Advisor 

As a new business owner in a relatively new industry, it can be confusing to navigate the complexities of fundraising, taxation, and other financial concerns. It helps to work with a financial expert who can help you find alternative financing solutions and understand tax laws and regulations.

Erin Zadoorian, Ministry of Hemp

 

Figure Out Licensing

If you want to start a cannabis company, you’ll need to know what type of license you’ll need and how much it’ll cost. This varies from state to state. You can call your local licensing office to figure out what steps you need to take to get your cannabis license.

Randi Shinder, SBLA

 

Pick the Best Location

Location is everything for a cannabis business. Know where your audience is and if your business would be welcome in a certain area. Cannabis is still somewhat taboo in some areas, so choose your location carefully. Do your research, find out what type of area it is and the overall values it may have. This will be the key to your success.

Olivia Young, Conscious Items

 

Solidify Which Suppliers You Want 

Make sure to do the research on suppliers and local farmers. It is important to make sure they are licensed and qualified to supply your store with the plants and produce. This will keep your business safe at all times since there is always a risk when starting a cannabis business. Have all your ducks in a row.

Kiran Gollakota, Waltham Clinic

 

Assess Product Shelf Life 

One thing you should know before starting a cannabis business is that your product has a limited shelf life. Cannabis is only fresh and able to be sold for a finite amount of time, and you need to do your best to preserve the life of your inventory as long as possible. Losing inventory due to degradation of the product is not profitable for you long-term. Keep this in mind before you start your cannabis business. 

Craig Carter, Jack Mason

 

Research Your Competition

The cannabis industry is growing rapidly, and the competition is stiff. Before you start a cannabis business, you should know that there is a lot of competition. Ensure that your brand has differentiators from the market and is competitive prior to starting your business.

Chris Gadek, AdQuick

 

 

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