If you’re interested in starting a new business, it’s worth contemplating whether or not you’re interested in getting involved in cannabis. While the market is newer, cannabis businesses have become incredibly profitable in a short amount of time. The CBD industry alone is projected to be worth $20 billion by 2024. It’s no surprise that competition is starting to increase within the cannabis industry. Still, there’s ample opportunity for profit for creative entrepreneurs, especially those who know their way around the business. There are a lot of laws and restrictions that are unique to the cannabis world, as well as challenges related to advertising and sales. Anyone considering getting into the industry should read on for four simple tips for running a cannabis business.
- Educate yourself about laws and restrictions.
Depending on what products you sell, you’ll have to contend with a variety of laws and restrictions. Due to the passage of the 2018 Farm Bill, CBD products are legal for possession and sale in the United States. However, this is only true for cannabidiol derived from hemp and which does not contain THC. Marijuana and CBD containing THC and not made from hemp are still illegal in many parts of the U.S. and the world.
It may be a good idea to focus on CBD rather than get involved in the complicated legal landscape of marijuana or medical marijuana sales, especially if you’re newer to the industry. There are still parts of the world where even CBD use is restricted though, so do your research before deciding where you’re comfortable shipping and selling your products.
- Learn about cannabis products.
It may seem obvious, but many people who get into the cannabis industry to make a profit don’t know very much about cannabis or how it works. You can learn a lot from websites like AmericanMarijuana.org if you haven’t had the opportunity to research cannabis or CBD before. There are a wide variety of cannabis products, so you’ll need to decide which ones you want to focus on. CBD products specifically include everything from joints to edibles to topical products like lotions and oils.
- Invest in quality business software.
A business is only as good as its ability to process transactions efficiently. This means you need quality point of sale software. Your POS software is an essential part of any sales-based business, and it’s a good idea to do your research to ensure that yours is able to handle your needs. You can even try POS software for free while your business grows. After your business expands a little more, you can set yourself up with a permanent and unlimited account to continue serving your customers.
- Advertise creatively.
Even though CBD products are legal, some social media platforms and websites still restrict their advertising. While some of the larger platforms have loosened their restrictions regarding CBD advertising, many haven’t. This leaves business owners in the position of finding creative ways to promote their products and develop an audience. You’ll need to learn to adapt to this advertising landscape and make it work for you.
There are unique challenges presented by the cannabis business, but there are also incredible rewards for those who succeed. The cannabis industry is projected to continue to grow exponentially in the coming years, and continued medical and scientific advances could spur even more growth and innovation. It’s an exciting time to work in cannabis, though you will have to work hard to stand out amongst the competition and ensure that you’re able to develop an audience for your products. You’ll also need to invest carefully in the staff, software, and equipment necessary to keep your business up and running. As long as you’re up for navigating the complexities of the industry, your cannabis business will have the potential for incredible success.