Whether you’re looking to start a medical marijuana business or you’re interested in the cultivation or wholesale aspects of cannabis, there are plenty of decisions you’ll need to make before you even begin the application process. As with any type of business, entrepreneurs can’t expect an overnight success, and this is no different in the cannabis industry.
Producing and selling cannabis presents unique business opportunities, but it also comes with its own challenges. Before you get started on your cannabis business license application, consider these three steps first:
Ensure that you have adequate financing
Any type of business will need to secure a loan before getting established. Before you start a medical marijuana business or other type of cannabis company, you’ll need to ensure that you have the money to get started. You’ll need to factor other costs into the business, as well, such as securing a cannabis business license. However, this goes beyond your start-up costs: consider your potential to make money in the long run. Will you be able to not only pay all of your business’s costs, but turn a profit? Furthermore, consider the taxes that your state charges cannabis businesses; Washington, for example, charges a 25% tax at the producer, processor, and retail levels in the cannabis industry.
Evaluate your real estate options
Part of the battle in getting started in the cannabis industry is finding an ideal location. There are four states so far that have fully legalized cannabis: Colorado, Washington, Alaska, and Oregon. There are also 23 additional states plus the District of Columbia that allow for medicinal cannabis sales, and there are more states that are poised to join them over the coming years. Once you’ve narrowed down which state you’d like to operate in, you can begin thinking about where to open. Consider specific neighborhoods, and take local ordinances into account, as well.
Consider working with a team of cannabis consultants
Finally, you don’t have to apply for your cannabis business license alone. You can work with a cannabis consulting firm to make the process go more smoothly. Cannabis consultants are a great resource because they can help prospective business owners learn about the industry and get advice on running the business. From developing a cultivation plan to creating marketing campaigns, there are plenty of resources that a cannabis consulting firm can provide for your cannabis business.
Have more questions about what to do before you officially begin your cannabis business plan or start a medical marijuana business? Get in touch with a consultant today. Leave a comment with us for more information.