5 Things You Should Know Before Starting Up a Cannabusiness
According to an article from Business Insider, the marijuana business in the United States is a booming business. In fact, the industry saw $52 billion in sales in 2016 and experienced a 76% increase in cannabis jobs for 2019. It simply goes to show that the cannabis business is booming nationwide. The industry is estimated to have an impact of $77 billion to the US economy by 2022.
If these numbers convince you to start your own cannabusiness, then it’s best to begin honing your cannabis marketing skills. Read on below to find out five things you should know before starting a cannabusiness.
- Decide what kind of cannabusiness to start.
There are many cannabis strains available in the market. Leafly has quite a few in their inventory that they group them into effects, wellness, flavors, and even symptoms. That is to help the consumer pick the right strain for them.
When you’re diving into cannabis marketing, it is crucial for you to know your product to the best of your abilities. It’s a good thing that with a few clicks and some time on the internet, you can find out a lot of stuff about cannabis via websites like Leafly, PotGuide, and Weedmaps.
Make sure that you have a good understanding of the basics like differentiating indica from sativa, finding the equilibrium, and the happy point of CBD. Do get acquainted with the different profiles of every type of terp available. Take courses if you have to, join meetups, listen to podcasts, whatever you need to do to sharpen your cannabis marketing knowledge. Go ahead and do it, so you can accurately choose the type of cannabusiness you want to put up.
- Create a business plan for entering the small market.
Getting into the cannabis industry means developing a good relationship with neighborhood authorities and area leaders. Taking this point into account, it’s best to start in a lawful state. You could just be an early leader in the area supplies-wise and financial-wise and second. Better yet, you could plan an upgrade to become a regional business later on. Starting from the grassroots is the key to all of these.
It’ll be easier to come up with a marketing campaign when you start small and apply your cannabis marketing skills to a small market.
- Get funding for your business.
Any business will need seed money to get started. The best way to do this is to join a network. This step requires a lot of time and patience. So, be prepared to invest in these factors from your end. Establishing a connection and networking can be a great way to get funding for your business. Ask around for a connection to help you get started.
- Register your business and obtain licenses and permits.
Before you even start selling your cannabis products and applying everything you need to know about cannabis marketing, don’t forget to register your business. You will need to get an EIN with the IRS. Paying your legal taxes is crucial. Make sure not to skip this part.
It’s essential to take note of the specific regulations in your state and get the appropriate license for your cannabusiness. Your cannabis marketing knowledge won’t be put into good use if you’re not operating your business legally. Make sure to contact the correct department in your state to get the required retail license.
- Pay taxes.
Any legal and law-abiding business pays the correct tax amount on time, so make sure that you do the same for your cannabusiness. Make sure to study the tax requirements in your state to ensure that your business complies with the tax regulations of your state. Note that the structure of your cannabusiness will also affect the taxes you need to pay. Ask yourself the following tax-related questions when you’re defining the structure of your business:
- Do you have growth goals for your business? What are they?
- What type of legal entity do you want your cannabusiness to be?
- Is there anything that your investors are looking for?
- How do you envision the structure of your business’s compensation and benefits?
- What are the items you need to tick off to be compliant?
Overall, it’s important that you study your potential market. It’s also crucial to improve and invest in your cannabis marketing skills. Finally, make sure to follow the rules and regulations for cannabusiness in your state.
Credit: Olivia Davis