Is Starting a Cannabis Business Difficult?

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Is Starting a Cannabis Business Difficult?

With legalization becoming increasingly common in the United States and all over the world, it’s no surprise that there has been a lot of interest in the cannabis industry of late. Many savvy entrepreneurs and investors are wondering if they should get involved in the cannabis market and how much the industry will grow over the next decade. While there are many advantages to working in cannabis, it’s important that you understand there are some hurdles you’ll need to overcome, too. If you want to know more, read on to find out how difficult it can be to start a cannabis business.

Is it difficult to start a cannabis business?

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It’s never easy to build your own business, but there are some unique challenges that come with working in the cannabis industry. It can be harder to have your operation insured, for example, though there are some insurers that advertise specifically to cannabis businesses. Restrictions on where you can advertise products can also present an issue, though the internet has made it easier than ever to employ creative marketing strategies that will help you capture the attention of your target audience.

Considering that some states have stringent packaging requirements for anything that contains cannabis, you’ll also need to be familiar with regulations and invest in quality boxes, roll tubes, and jars for your products. Most cannabis companies need quality pre roll packaging, as well as containers for other products like edibles and cannabis flower. Choosing the right packaging is essential if you want to ensure that your customers are receiving quality products.

No matter what type of cannabis business you own, it’s important to make an effort to educate your consumers. You should always remind customers to check in with their health care providers before trying cannabis for the first time. Their doctors can explain how cannabis could affect any health conditions they have or interact with prescription medication they’re currently taking.

What should you know about the legal status of cannabis products?

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The legal status of your cannabis products in the United States depends entirely on what type of product it is and how much tetrahydrocannabinol (THC) it contains. Currently, 38 states have some type of medical marijuana program, though some are far more restrictive than others. Eighteen states permit recreational use, though this number is expected to grow in the coming years considering how much more widespread legalization is becoming. If your goal is to open a dispensary, you will also want to familiarize yourself with the licensing process, as it can vary in difficulty depending on the state in which you are applying for a license.

Those who are new to the industry or don’t want to deal with a more complex legal landscape should consider focusing on opening a cannabidiol (CBD) business. Hemp extracts like CBD were legalized on a federal level as a provision of the 2018 Farm Bill, as long as they don’t contain more than 0.3 percent THC. Since it became legal in 2018, the CBD industry has expanded considerably, and experts believe it could bring in as much as $20 billion annually by 2024. If you were waiting for the perfect time to get into the business, that time is right now.

As you can see, there are a lot of factors to take into account. The cannabis business is complicated, and the legal landscape is always changing. However, just because there are some specific challenges you’ll have to face doesn’t mean it isn’t worth it to start your own cannabis business. The industry’s visibility and profitability are projected to continue to improve for years to come, and if you wait too long, you might miss out on the opportunity to get in on the ground floor. If you have a solid business plan and a clear vision for your brand, you can find incredible success working in cannabis.

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