As for now, more than half of American states have legalized the medical use of marijuana while more than 10 of them have legalized the cannabis general use for adults; and cannabis expansion is not stopping there. More and more states discuss legalization which allows the business to constantly grow. It’s estimated that marijuana consumers’ spendings will increase to $23 billion by 2022. Apart from medical products, we can now find cosmetics, oils, food and even household items, like CBD pillows. A lot of entrepreneurs saw their chance in this rapidly developing business and they took it. Should you be a part of it as well? And how could you go about it? What are some of the cannabis industry business ideas?
{ 1 } Dispensary
This is the most obvious side of the business – retail, working with consumers. If you want to run a cannabis dispensary, you need to obtain a special license from the state which is a highly competitive, thorough and difficult process as the licenses are limited in number. You will need a good infrastructure, a vast network and a strong funding source; and it’s not even the end of the challenges. Some aspects of the use of cannabis may be legal but not all of it and not everywhere in the USA yet, that’s why many banks don’t want to work with cannabis companies – it’s still illegal on the federal level. It’s a problem for the industry as a whole but since only dispensaries actually sell the products, they struggle the most and in most cases, operate only in cash. It’s not impossible, though, as you can see by the growing number of dispensaries around you. And it must be totally worth it if you consider that even something as a 24 hour dispensary has appeared.
{ 2 } Breeder
Breeders do not grow cannabis for sale. It’s their task to develop seeds that will produce strains of cannabis. Very often, they try developing whole new strains by experimenting with plants. As a breeder you will need to be reliable – cultivators and dispensaries have to know that your seeds will always be of good quality.
{ 3 } Cultivator
Cultivators get the seeds from breeders and they grow the cannabis plant itself. It’s a tough industry sector to enter as there are many regulations and requirements that you have to meet to even start your business. In most states, you will need to buy or lease a warehouse and convert it to a growing place as it’s only allowed to grow cannabis indoors. What’s more, you will have to get grow lights and climate control systems, which are a bit energy-consuming, hence costly; plus, you will need a budget for security as it’s not rare to have your cannabis plants stolen. Just like in the case of a dispensary, you have to apply for a license having prepared a business plan, funding sources, floorplans, and more beforehand. In some states, it’s only possible to be a cultivator when you have a dispensary as well.
{ 4 } Extractor
Extractors turn raw plant materials into concentrates, that is famous oils, which emphasize the cannabinoids or other compounds, like THC or CBD. They can be used directly in vaporizers or to be cooked into cannabis-infused meals. Very often they are sold to manufacturers who create products like edibles or household items. If you want to be an extractor, you will need to invest in the machinery and gain a lot of knowledge about how it works and how you can use it.
{ 5 } Manufacturer
That’s where you take the raw product material and turn it into a variety of different products, e.g. edibles like cookies, gummy bears or famous brownies infused with cannabinoids. Just like in the case of extraction, you will need to invest in the facility and machinery if you want to sell your products on a larger scale. Make sure you’re familiar with all state regulations to avoid any problems.
And this is not all
You don’t have to start your own growing/manufacturing/selling business to profit from the growing cannabis industry. You can become a regular worker or an ancillary service provider. This is a chance for professionals who want to use the skills they already possess and their experience to conquer the cannabis industry. There are many various companies providing B2B services in the field. The market is new, the law is still changing, but everything is only expanding – that is your chance. If you’re in digital marketing, think about specializing in cannabis marketing; the same if you’re a lawyer, salesperson or an HR specialist. Think about what you could give to other companies. Make sure you know the topic – learn everything there is to know in the subject of cannabis, even if you’re not using yourself, know the industry, join an association; become an expert and you will be just fine. Don’t miss out on this chance!