(Newswire.net — October 28, 2021) —
As of 2018, the cannabis market value stood at $10.6 billion, projected to reach $97.35 billion by 2026.
Are you considering starting a cannabis business to take advantage of the opportunity it holds in making money? The opportunity might be great, but you should consider other limiting factors before venturing. Even after several states legalized marijuana, it remains federally illegal.
Lucky for you, this article will divulge five important things every cannabis entrepreneur should know.
1. Bank Issues
Since dealing in the cannabis business remains a federal crime, getting a bank account can be challenging. Your account can be closed if the bank finds out you’re running a cannabis business. The requirements for banks to deal with cannabis businesses attract high charges.
That doesn’t mean you can’t access banking services in a state where cannabis isn’t prohibited. Make sure you clear out with your bank on which business you intend to conduct. More so, it’s advisable to choose a bank that’s cannabis-friendly.
2. Target Audience
Understanding which customer base you intend to target is crucial as it will influence your business plan. Do you want to be a retailer or a distributor of cannabis? That way, you would know if you need to rent a warehouse or operate a storefront.
More so, if you intend to sell medical marijuana, your target audience would be hospitals. You would thus need to have a compliance certificate with the governing medical board in your state. Analyze the competitive landscape in the area you intend to set up the marijuana business.
3. Marketing
Branding is an integral part of kick-starting your marijuana business to ensure you are successful. Long gone are the days when you could have a simple booth and customers flock to your business. Marketing can make or break your business; you thus have to establish strategies that will skyrocket your business to success.
However, you won’t be able to advertise on big platforms such as Facebook and Google. You can post your products on those platforms, but paid promotions are unacceptable.
4. Licensing Requirements
Getting a license for a regular business can be challenging; now, imagine the hassle of getting the license for a cannabis business. That wasn’t meant to scare you but for you to brace yourself on the prospect of getting the permit. The amount of time taken to get the license varies with the state.
You also need to understand 280e tax codes to comply with cannabis taxes. Do your due diligence by researching the requirements needed by your state to set up the cannabis business.
5. Crossing State Lines Is Illegal
The federal government prohibits trading recreational cannabis between states. It doesn’t matter if the two states have legalized the use of cannabis. Transfer of funds between two states to further cannabis business is not allowed.
Learn the Key Things to Become a Successful Cannabis Entrepreneur
Despite the hurdles, you can navigate the cannabis business landscape and become successful. You’re set to become a successful cannabis entrepreneur if you pay attention to the above tips.
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