The cannabis business is steadily growing. If you’re thinking about opening a cannabis business it is important for you to look into state and federal laws to be sure you’re in compliance before opening for business. Once you’ve done that, if you’re still considering opening a cannabusiness, check out this step-by-step guide.
Where to Start
Your first step is to validate yourself as a legal enterprise. A business license is also known as an occupational license and is used for tax purposes. Once you’ve validated yourself you must build your business from the ground up and come up with a profitable business plan.
Lenders
Before you look into farming or a cannabis distributor you should look into getting a cannabis loan. It is important to allegate funds before starting negotiations with manufacturers, producers, and the company that will produce your packaging and labels. There are a lot of unexpected financial burdens that come with a business startup as well. Even entrepreneurs that are prepared can run into financial difficulties.
To offset these costs, you can look into obtaining a loan. There are cannabis business loans that are tailored specifically for the cannabis business. Be prepared for packaging and inventory expenses and get a loan from a reputable lender who is keen on cannabis business knowledge.
To Farm or Not to Farm?
You can definitely farm your own cannabis crop as long as they abide by both state and federal laws. Your products have to be tested and you must obtain a Certificate of Analysis (COA). Your crops can not contain more than 0.3% THC which is the active ingredient in marijuana. If farming seems too overwhelming you need to find a distributor that can meet your legal terms and has good prices.
Products
There are a lot of CBD and cannabis products on the market including oils, flowers, and creams. If you’re opening a brick and mortar location you may want to sell hemp, CBD, or cannabis flowers (if it is legal to do so in your state) so that you may also sell other products in the same niche such as bongs, pipes, or papers. It is important to look into the profit margins of each product and choose the right product for your business model.
Management Tools
Just like in mechanics where the right tool will save you time and money, the right tools will save you time and money when it comes to management. Take objectives and Key Results (OKR) software for instance. OKR software can help you keep your objectives in line and ensure that you’re on the path to success. You will achieve success in your business once you’ve got clear goals and objectives in sight.
To achieve quarterly results, record 4-6 measurable outcomes in your OKR software. Once the end of the quarter comes to an end you’ll be able to see how you were able to achieve your goals or where you went wrong on your road to success. In the end, you’ll be a better entrepreneur and achieve more success while using OKR software than trying to wing it with prehistoric management options like calendar management or note-taking.
Business management is the key to a successful cannabis business. Start out by finding a good cannabis lender that understands the business rather than turning to a traditional bank loan. Don’t open your doors without having OKR software to guide you to success. Choose the right products from a trusted farmer or grow your products yourself to maximize your profits.
Read over and understand all of the state and federal laws and regulations concerning cannabis before opening for business and ensure that you’re in compliance. Once you feel as though you’re properly prepared, open your doors and watch the profits roll in!
