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Last Updated on July 4, 2021 by Work In My Pajamas
With the rise in popularity of marijuana and cannabis products, it’s almost silly not to invest in the industry. As more and more states legalize medical marijuana, the industry continues to grow at a rapid pace. There are now 33 states that have legalized medical marijuana and 11 states that have legalized recreational marijuana.
If you currently reside in one of the 33 states that decided to legalize marijuana, then you’ll want to jump on the chance to build your own medicinal marijuana business. Owning your own medical marijuana business from home is an investment that you can’t turn away from. There are serious opportunities for you after doing so, as long as you do things the right way.
Are you ready to make a break in the marijuana industry? Before you begin your business, you must understand a few basic steps. This will ensure that your business meets success.
Continue reading below for everything you need to know about starting a medical marijuana business from home!
In This Post:
Know the Marijuana Business
The first thing that you must do is decide on what type of marijuana business you want to own. Sure, you know that you want to work with medicinal marijuana, but there’s much more to it than that. There are businesses that grow marijuana, dispense it, and even those that deliver it.
Which type of business do you want to own? You could even consider starting a business that does all 3. Once you decide on the business that you want to run, you can then move on to further steps.
If you know a bit about running a business, keep in mind that working with marijuana is much different. There are specific rules that marijuana businesses must follow depending on the state. Do your research, speak to other marijuana business owners, and then proceed to the next step.
Create a Business Plan
As with any business startup, you need to create a business plan. However, when creating a business plan for a marijuana company, you’ll need to spend a bit more time on the smaller details to ensure you’re doing everything legally. There are a lot of regulations regarding the marijuana industry, and these regulations are constantly changing.
Stay on top of your state’s laws at all times. The following are a few things that your business plan should cover:
- Legal counseling
- Business costs and profits
- Names of suppliers
- Marketing and advertising
- Business location
- Competitors and creativity
All of these aspects are important to touch on, but remember that these are only a few things to include in your business plan. Also, keep in mind that the marijuana industry is growing in popularity, so you’ll need to find a way to stand out from the competition.
Understand the Cost
Understanding the cost of opening your own marijuana business is an essential part of the preparation process. The cost of opening your business will depend on a few factors including the type of business you decide on, the location, the size of your business, and more. Remember that the state that you live in also plays a role in overall costs.
This is because each state will have its own regulations that you’ll need to follow. Starting your own marijuana business can sometimes cost hundreds of thousands of dollars or millions of dollars. Be sure to understand the costs before getting too deep into the process.
Look for Financing
Speaking of costs, we understand that not many people have hundreds of thousands of dollars lying around. This is where financing comes into play. However, because marijuana is still illegal at a federal level, banks are unable to fund marijuana business owners.
If banks do fund a marijuana business, they put themselves at risk for prosecution and/or penalties. This has become a huge problem for those looking to start their own marijuana business. Thankfully, the Safe Banking Act is currently in the process of becoming a law.
If passed, banks will be protected when lending this money. Until then, raising money from family members, friends, and angel investors is a good option.
Obtain Licenses and Register Your Business
Depending on the state that you live in, you’ll need specific types of licenses, permits, and registration practices. The best way to ensure that you have everything you need is to work with a professional. Hiring legal counseling will give you peace of mind that everything is done as it should be.
You’ll then need to register your business as a business. This is another important step that takes some time to consider. Will you register your business as an LLC, as a corporation, or another entity?
How you register your business will affect your taxes and your risks. Take the time to decide which option is best for you and your business.
Know Your Taxes
As a new medicinal marijuana business owner, you need to know the ins and outs of your taxes. Again, different rules apply to different states, so you’ll need to look into your own state’s rules. However, no matter where you live, you’ll need to apply for a business tax ID number or an Employer Identification Number.
To do this, head online to the IRS website and apply. You’ll need this number when filing taxes, applying for a business account, or when looking for funding.
Start a Medicinal Marijuana Business Today!
If you have plans to start a medicinal marijuana business, then you’re already on the right path. The industry is booming and a great place for investment. Keep this guide in mind when beginning the process for the best chance at success!
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