Getting into the weed industry isn’t as difficult as people make it out to be.
Marijuana is currently one of the most popular topics because it’s progressively becoming legal in states across the US. As it’s legalized, entrepreneurs are wanting to enter the industry so that they can capitalize on the marijuana boom.
Learning how to start a marijuana business will allow you to earn a lot of income and knowledge about the weed industry. While starting one isn’t that difficult, the process is a bit different from other businesses.
Read on to learn more about how to get into the weed industry in 2020!
In This Post:
Learn the Law
The marijuana industry is full of rules and regulations because the drug wasn’t legal in the US until recently. In most states, cannabis was illegal except for medical marijuana, which was very hard to obtain.
Many people couldn’t get medical marijuana because they didn’t live in a legal state or their symptoms weren’t enough of a reason to get it. For example, medical marijuana and glaucoma go hand in hand but headaches don’t. Although some people would use marijuana to relieve chronic headaches, they couldn’t prove it.
You’ll need to look at the states where marijuana is legal so that you can determine if you’re able to start a cannabis business. If you’re not located in a legal state, you could consider moving to one but you’ll end up having to spend more.
Create a Plan
Creating a cannabis business plan is essential when trying to enter the industry. Without one, you’ll most likely set yourself up for failure. You need a plan not because you aren’t capable of starting a business, but because cannabis businesses aren’t like most.
Because there are still many laws surrounding cannabis, you have to be smart about where you’re starting a business and how you do it. Cannabis is a somewhat stable market, but the problem is that it isn’t legalized on a federal level. This means you run the risk of getting your business shut down at any time.
If your business is selling cannabis of any kind, you must operate in a state where it’s legal. Keep in mind that some states have legalized recreational weed whereas others only have legalized medical weed.
Aside from choosing a legal state, you’ll have to consider what city you’ll start in. You don’t want to open up shop in a low-population state that has legal weed because you won’t gain many customers. If you went to a state where marijuana is a part of the culture, you’ll quickly find business.
For example, you can go to Colorado, a state that’s notorious for cannabis, and find a customer base willing to shop with you. In smaller markets, people usually stick with the stores they currently shop at because they know the marijuana is consistent.
Will you sell cannabis, accessories, or both? You can enter the marijuana industry without selling weed because there’s a variety of tools that people use, such as bongs, joint papers, lighters, etc.
You must come up with a business model so you can better advertise to your target audience. While people that smoke weed will be your main customers, you’ll be able to offer products to a wider clientele if you sell more than just cannabis.
After everything is said and done, you need a way to finance your business. This is best done by paying for everything with cash, but you can resort to loans if need be. You can choose between several types of loans, such as personal loans, payday loans, and a line of credit.
Most people have credit cards, so you can start investing in your business if you already have one. Providing that you pay your debt, you can continuously use it to fund your business.
Start Advertising on Social Media
Arguably the most important part of starting a marijuana business is advertising. In the beginning, you’ll need to advertise a lot to let people know that you’re new in town. Long gone are the days of putting up posters and billboards, so you should get creative by advertising on social media.
Social media is a great place for those in the weed industry because many marijuana users are active on social media. This stems from the fact that most social media users are young, with the majority being 16 to 34 years old.
Using social media allows you to better choose who you advertise to because you can use a variety of filters. When publishing an ad, you can choose the age, location, and even gender of those that you’d like to see your ad.
Advertising like this ensures that your target audience sees your advertisement whereas physical ads are based on hope. As you start advertising more, your customer base will quickly grow and you’ll make a name for yourself in the industry.
Now You Know How to Get Into the Weed Industry
Opening a cannabis business can provide aspiring entrepreneurs with a ton of room for growth. After reading this article, you now know how to get into the weed industry the right way. All it takes is a little research, time, and persistence.
If you decide you’d like to start up a marijuana business, we recommend you start by seeing if weed is legal in your state. If it isn’t, you’ll have to consider the costs it will take to move to another state. The cost of products and rent will vary in each state, so you should keep that in mind.
Browse our articles to find more business advice that will help you start and grow a business.