Any business owner would agree that their business legality is fundamental, as it protects them from the troubles that arise in the future from government officials. The cannabis industry is relatively newly legalized, and the market now shifts to the mainstream and controlled market as opposed to the old and unregulated market in the past.
Before the legalization, most of the cannabis sold is through the black market, and it was illegal to sell or buy as at that time. However, with the legalization of cannabis, the industry has experienced significant growth while the proper government agencies regulate it.
Building any industry from the ground to a more sound stage can be challenging most significantly in a business-like the cannabis industry. Although the industry legalization has attracted entrepreneurs from all walks of life, trying to understand the business concept and fit into the drive equally.
From the tech experts who have developed applications for effective management of the cannabis business to cultivators who are the producers and the distributors in charge of the customers, the cannabis industry is yet to reach its full potential.
Of course, everybody wants a piece of the multibillion-dollar pie of the cannabis industry; however, understanding the industry and how to navigate successfully would be the best move. Simultaneously, the industry is experiencing rapid growth, although it is still a new industry where a lot is to be learned and understood ideally before setting up your businesses.
Cannabis education is crucial to your business’ success as you would understand the core aspect. Information regarding growing, selling, and obtaining all the necessary licenses would be taught to you as the potential business owner. Understanding the industry ideally would be the best move for you. It would avail you of all the business tricks, models, and how you can effectively succeed as a cannabis business owner.
While the industry of cannabis is still in its early stage, there are optimistic projections that the experienced growth would triple over the coming years. With seemingly nowhere to go but up, the industry is still open to entertain new business owners who intend to launch their business in the cannabis industry.
Although the cannabis industry is a complicated space, this is basically because of its newness and the legal circumstances around its activities. It is, however, vital that you obtain the proper education and information to help you grow your business effectively.
Whether you are planning to open a dispensary business around the cannabis sector or looking to obtain a license for cultivation purposes, knowing the basics of the industry is essential to your success. Building a successful marijuana business is up to you and solely dependent on how you source your information and also research for the necessary steps you should follow.
The Birth Of The Cannabis Industry
In the United States, more than 33 states have legally supported the sales of medical marijuana. In comparison, about ten states also endorsed the adult use of cannabis which is considered recreational marijuana. More so, 15 states have decriminalized cannabis, while you can only possess some amount under civil law before you can be charged.
The legality behind the sales and use of cannabis is somewhat confusing. However, you must understand that there are several pieces of information you should obtain before setting up your business. Colorado and Washington’s legalization of recreational cannabis in 2012 had many states following the legalization. In a short while, what has been considered a black market product is now a heavy cash industry where many new entrepreneurs invest in.
However, as the industry keeps growing, there are projections and estimates that the sector would eclipse up to $20 billion in the future. Being a scheduled and controlled drug, the federal government still holds a strict policy on the distribution. It then shows that cannabis is still much considered an illegal substance that can be used medically and for recreational purposes in some states. At the same time, there is a potential for abuse if it is not regulated.
Despite the control and prohibition of cannabis the federal government has on the industry, it thrived and multiplied, which signaled the industry is here to stay. The Department of Justice’s 2013 missive known as the Cole Memorandum stated clearly that the feds would not interfere in any operations and cases relating to states that have abided by the legal framework and the control of usage in their State. Besides, the federal government also laid down amendments that protect medical cannabis while there are enforcements on the controlled use, distribution of this marijuana.
However, with the bottleneck experienced by many states on the distribution of cannabis, you must have the correct information used by the successful entrepreneur in the cannabis industry. The legal cannabis industry keeps growing and burgeoning without any slowing down. Based on the industry analyst New Frontier Data, the US cannabis industry is worth more than $10.4 billion in 2018.
It shows that the relatively new industry is going places with new figures emerging yearly. The value growth proportion $26.3 billion in the year 2025, while more than 300,000 jobs are expected to be created, excluding the support businesses. Besides, the likes of professionals, market advisors, and other support systems would be very informative.
Variety Of Business That Exists Under The Cannabis Industry
The cannabis industry is extensive and scalable as it associates itself with several sectors and organizations. With the big numbers that are considered to be the worth of the business, you might be thinking that the opportunity of owning a portion of this industry is closed. However, based on the insider’s report told on business.com, the sector is considered very early, which means you can easily buy into the business as long as you have the correct information and education.
President and CEO of industrial hemp company, a medical marijuana incorporation business, said that start-ups of all nature have a great potential to launch and grow their business in the cannabis space. It shows that there are varieties of options for you as a new business owner in the industry as long as you can implement the right moves.
At its early stage, the entire industry itself said Titus during an interview he had at the Cannabis World Congress & Business Exposition. It is certain that the industry is not near its potential growth and maximizing all the industry’s necessary aspects. However, the right move is linked to how well you are informed and how effective you can stabilize your business and make a great deal out of it. The sudden legalization of the industry and business around the cannabis industry makes the company somewhat complicated for the novices.
Some Types Of Cannabis Business
The cannabis business comes in all shapes and sizes, as there are many business sectors you can invest in. The majority of people believe that massive cultivation of the plant is where they can make the most money, while the operation or dispensaries with jars full of buds. There are certainly other aspects of the business that are very lucrative, but only a few people pay attention to it.
However, many entrepreneurs in the cannabis industry do not touch the plant itself, as other aspects of the business such as logistical support business, like distribution and transportation. Other parts of the implementation of technology, where dispensary software is used or high tech infrastructure for grow houses and many more factors.
Science is also one of the huge drivers in the cannabis industry, as the agricultural aspect endeavors to bring improvement in the planting, and multiple labs are created for testing and the potency of the plants.
Other aspects related to genetic cannabis, extraction of the cannabis oil, and other requirements used in harvesting the oils can also be ventured into. It is pretty important that you familiarize yourself with several aspects of the industry to understand how well you are integrated into the business.
Indeed, the cannabis industry is regulated; however, educating yourself and correctly understanding what it entails would give you firsthand information on how you can successfully buy into the industry and make money effectively.
Research provides insight into how well you can venture into the cannabis industry and either focus on the medicinal aspect of the business or the business’s recreational aspect. It is believed that there are plenty of opportunities for newbies who are hoping to launch their business in the cannabis industry and also have a share of the multibillion-dollar industry. Being creative with your thinking would also assist you in getting the right mindset for your business.