The marijuana industry is huge, and in places where medical and recreational marijuana is legal, passionate experts can take advantage of the high demand of those seeking the benefits of tetrahydrocannabinol (THC). That being said, running a THC business requires a great deal of research as it operates far differently than other business types.
Have you been asking yourself, should I be running my own hemp business? If so, let’s take a look at a few major considerations that will determine whether or not you’re ready to run a THC brand.
Do you have access to the funding needed to run a business?
Arguably one of the most important items to focus on when considering starting your own cannabis brand is funding. Leasing out the space to conduct business operations, growing your own hemp, and packaging your products are just some of the costs of a cannabis business that many do not consider when thinking about starting their own company. Add onto this legal expenses, business licenses, and other must-haves to launch your business, and you’re looking at hefty startup costs. The key to knowing whether you’re ready or not lies in knowing if you can acquire the funding to launch your business.
You’ll also want to consider costs you may encounter in the future. For example, to help your business run more efficiently, you may want to purchase a cartoner packaging machine. Carton machines can prepare hundreds of cartons at a time, making it easier for you to package and fill your orders by having all of your products ready to ship out, whether you’re filling trays of cannabidiol (CBD)extracts or cannabis edibles and beverages. While a carton machine is just one example of an investment you can make to improve your operations, it will help you think more about what types of tools you will need to be successful as a THC brand.
Do you understand the different types of products that your consumers are looking to buy?
The customer experience lies at the core of every business, and being able to provide a wide range of products to your customers is what will keep them coming back for more. Take, for example, popular products like those that offer delta-8 THC. Delta 8 THC is a cannabinoid that is said to be an analog (similar to) delta-9 THC, or the main substance that provides the psychotropic effects found in the cannabis plant. Because delta-8 THC is a cannabinoid (other examples include CBN, CBC, and CBD), delta-8 products are considered legal under the Farm Bill as long as they contain less than 0.3 percent delta-9 THC.
The benefits of delta-8 are very similar to delta-9 due to the fact that they bind to the same receptors in your endocannabinoid system. Many people report delta-8 helping them experience a greater sense of ease (with less paranoia), combat nausea, and experience similar effects to using normal hemp plants with the main difference being less of an overwhelming experience.
As long as your product lines are high-quality and can offer your customers what they want, you should be able to get your business off the ground with relative ease.
Are you confident that you can work through the many challenges faced by THC businesses?
Cannabis businesses face a slew of challenges that can be insurmountable to some business owners. Some cannabis company challenges include a lack of banking due to the fact that cannabis is still illegal at the federal level, high startup costs that act as a barrier to entry for smaller business owners, major tax filing issues that come with running an all-cash business, and the stigma that still accompanies the consumption or use of cannabis. Before you consider what your business will look like, understand how difficult it can be to launch and operate, and look for ways to circumvent these issues.
There’s money to be made in cannabis, but it’s not without its risks and obstacles. Make sure that you’re ready to start your own THC brand by considering the points above and preparing for the road ahead.
