Launching into the cannabis industry right now is a very exciting prospect. With marijuana being legalised in various states, CBD trending all over Instagram and more and more people climbing on the bandwagon, what could go wrong?
While getting on the cannabusiness train could definitely be profitable and yield great results, it is a tricky business to get involved in. Here are a few important things to think about.
You Need a Niche
Standing out in this industry is a must, especially since everybody seems to be climbing on board right now. Choosing where you want to take your business and then doing something that makes it special is key.
If you’re going to sell marijuana or marijuana-infused products, try to stand out in terms of your products, flavours and branding. You could look into beautifully designed pre-roll packaging for your cannabis products to make it more of an experience for your customers.
You’ll Have to Get Legal
Staying on the right side of the law should be your top priority when looking into this type of business. Nobody should be skirting around legalities in order to make a profit, no matter how appealing it all seems: the reality is that you’ll probably be caught.
Do your research on what is and isn’t legal in your area, and make sure to stay within those parameters. Also, keep in mind that the terminology you use on your products and packaging is important: there are legal and scientific differences between hemp and weed, for example. Make sure you have a clear understanding of what you’re working with.
Capital is a Must
Starting a business in this industry is, unfortunately, going to have some major start-up costs that you probably won’t be able to avoid. This is largely because of the permits and other requirements you’ll need to fulfil. Keep in mind that while profitable, your new business will in all likelihood be very expensive to get going.
Marketing Might Be Tough
In any business, marketing, branding and brand image is everything – and the marijuana industry is no exception to this rule. In fact, it might be even more important in this case.
The stigma still floating around marijuana is a tough one to beat, and so you’ll need to make sure that the way you present your business, and its practices are not only eye-catching but professional. Finding the right balance between an exciting cannabis business and being ‘not-shady’ might be tough, so it could be in your best interests to work with a professional marketing and PR company.
The main takeaway is always to consider risk versus reward. If you have the capital to make your company blossom and you’re confident in your ideas and business model, there’s no reason not to take the plunge. But if you’re second guessing every step you take, it’s best to make sure you know exactly what’s going on before diving into this opportunity.
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