Now more than ever is a great time to open a marijuana business. There has been growing support from the public due to legalization and more states are starting to legalize cannabis for recreational and medical use, creating huge opportunities for the industry. According to the Marijuana Business Factbook 2017 that was published by Marijuana Business Daily, it is estimated that $4million will be spent on legal cannabis products. It was not until recently that we started to better understand how cannabinoids work and their potential benefits for health and wellness.
And now, with legalization sweeping the nation – more people are finally able to reap these benefits without fear of repercussions from law enforcement or employers. The best thing about this shift in our culture is that people can now enjoy marijuana products legally, and even purchase them online. A broad range of devices like bongs and vaporizers are available in online head shops such as DankStop and are extremely popular among cannabis consumers. It’s no surprise then that cannabis is becoming one of the fastest-growing industries in America. And before jumping into the opportunity of starting a cannabis business, you need to ensure that you understand some aspects of it. This article will highlight what is needed to get a business licensed for your marijuana company.
Table of Contents
Start with a business plan
The very first thing you are required to do is put together a business plan. A good business plan puts everything on paper and it will make sure that you are taken seriously when looking for funding or when you’re applying for a cannabis business license. You need to write out your business plan while keeping in mind the laws of the state that your business will be operating in. you also need to consider how the laws might change in the future years to come. Your business needs to be built on solid foundations because the cannabis industry is constantly evolving at a rapid pace. You also need to ensure that your business is agile enough to grow the market. If your business plan is incomplete, you can forget about getting a license.
Budget and calculate expenses
It is impossible to start a business without any money and to obtain a cannabis license, you will need a sizable amount of it. You can be expected to pay thousands or even hundreds of thousands for licensing fees and application fees depending on the state that you are in and the type of license you are looking to get. You will also need quite a bit of money to start your business and keep it operating until you start generating profits and revenue. Many states require you to make annual payments to keep your license once it is approved. With this in mind, you should develop a budget that includes your rental costs, licensing costs, employee salaries, utilities, security, supplies, and anything else you might need to account for. It is advisable to work with a financial expert who has an understanding of the cannabis industry and can help you create realistic financial projections.
Create procedures
In many states, It is a requirement to include SOPs or Written standard operating procedures with your license application. The key here is to enlist the help of an expert to write your SOPs. You want someone with experience in this industry who understands the operations as well as compliance requirements. If your state requires written procedures, include details that are clear so that you can increase your chances of success.
Find employees
You need to source employees and partners to help get funding and a business license. Employees also benefit you if you are looking for investments to launch your business. When your license application is reviewed, they want to see that your team possesses the necessary expertise and skills to keep your business running.
Property and funding
Marijuana is still illegal at the federal level so you can forget about banks loaning you money. You can expect to use your own savings and investments from family friends or angel investors. If legalization passes, things might change in the future but until then, you have to get creative when looking for ways to generate capital. You will need a lot of money to start this venture and you will need to prove that you have access to this money in your license application. Many states also require a cannabis business to have real estate for your business so make sure you find a property that meets the license application requirements.
The license application
Once the research is completed and all application requirements are in place, you will need to write your cannabis license application which can take many months to compete with the help of consultants and industry experts. Stay honest and thorough and explain everything down to the finest detail.
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