As more and more discover the benefits that one fresh flower holds, cannabis businesses have been growing across regions where the law has legalized it. If you’re a user yourself, it seems like dealers and businessmen are harvesting money from their weed. And while it is a big market that may see more demand in the coming years, it is no easy venture to get into, especially if you’re on a tight budget.
But worry not, you too can get high earnings from this buzzing business. In 10 steps, we’ll discuss the process of starting up a cannabis business, with tips and recommendations on what kind of budget-friendly cannabusiness ideas you can try that will keep you safe, sound, and selling off the shelf.
1. The 3Rs: Research, Reading, and Requirements
Before you start working on your product and naming the price, having a plan for each step along the way will help you prepare for its respective tasks and have a backup in case things don’t go as expected.
We call this first step the 3Rs, or to Research, Read, and check Requirements. Just like how you would browse the web to shop for what strain you should smoke next, the same should be done when putting up your cannabis. You will want to look up and read on the following:
- State laws on the distribution of cannabis. Depending on where you reside, laws on legal use and marketing of cannabis products may vary. From taxes, type of product or service, to how the cannabis is handled is all monitored by the respective authorities in charge. So be sure to read everything and agree to the terms and conditions before setting off on your venture.
- Safe and legal types of cannabis businesses in your area. Most regions where cannabis is legalized only permit dispensaries to cater to patients who have been prescribed to take medical cannabis. Though some may get away with this business, your options do not end here. There are plenty of other weed-related services and products to get a bang for your buck that is safe and may be allowed by your state as well.
- Requirements for starting up a legal cannabis business. Though it can be a hassle to get all these papers done, passing requirements are for your own security as well. Some requirements to put up a cannabis business includes applying for a license to operate and approval from the Food and Drug Administration, depending on your product.
2. Set Your Budget
Though running the numbers through your head is quick and simple, having a record for your budget allocations can help give you a clearer picture of how much you need to put into your savings. Set a fair amount for each process, starting at the permits alone will already cost you quite an amount. From there, you’ll know how much money should go into your product, the physical store (if applicable), and other services needed to make it happen.
3. Seek Legal Consultation
Every successful cannabusiness is backed by a trusted lawyer to help them pass the process. Even as early as the 3Rs, we highly recommend seeking legal counsel to assist you with getting papers done and educating you about federal laws on substance and drugs. Working with a lawyer is an extra security feature that’s worth more than taking any risks.
4. Keep Saving Up
Now that you know how much to spend for capital and how you’ll allocate it, you can start setting realistic goals for your budget. We’ll cover different types of cannabusiness ideas in another section that can fit any budget, so you can make more without breaking the bank and the law.
5. Connect and Collaborate
Once you have a type of business in mind, get to know your community of fellow cannabis connoisseurs who might be interested in your product and even promoters to help expand your reach. Collaborating with other local cannabis businesses can be a great starting point to help you grow and learn from someone who has experience in this venture.
6. Know Your Market
This goes back to the 3Rs and how you connect and collaborate. Make sure that your shoppers are of legal age and eligible to purchase and consume cannabis under federal law. Get to know your business partners well and check if they conform to rules and regulations. The more you know about your connections, the better growth your business gets.
7. X Marks the Spot
Depending on what type of business you’ll be putting up, finding a good store location will help attract more customers. Where you put up your weed shop may also be covered by state laws, so you’ll want to review this too. In case you’re an ancillary cannabusiness, which is a type of service that does not need to handle actual marijuana or cannabis-infused products, your spot on the map should be no problem.
8. Getting the Supplies and Tools
Buying the cheapest tools and materials to create your merch and open up shop may give you a bang for your buck, but it can leave you with negative reviews. This is important, especially if you want to supply medications, gadgets, and gardening essentials. It’s best to invest in quality items that comply with federal laws and health standards, so you and your customers get great results and stay out of a hospital or cellar.
9. Pricing Your Products
Naming the price of your products can be a tough debate. You want to be able to balance getting a fair profit and giving your buyer the best price. Cheaper will leave you in debt, too pricey, and you might not make any money.
Consider the labor, materials, and other processes needed to make a good product, and set a reasonable amount to top it off. Other factors that may affect your pricing are taxes, rent for physical stores, logistics fees, and more.
10. The Payment Process
Most shops that sell cannabis from seeds, oils, and other products for consumption cannot open a bank account solely for the business due to regulations and red tape. In the end, sellers end up having to keep big sums of cash on hand that can be inconvenient and risky.
However, you can still get help from an angel loaner or have transactions done online where this cannot be monitored. Just make sure to encrypt private information like your password and that you’re exchanging with customers who are diligent and responsible.
What Type of Cannabis Business Do you Want to Put Up?
Here are some business ideas perfect for any type of aspiring marijuana money maker for every budget:
- Cannabis Farming: If you have a green thumb and an ideal space to raise cannabis plants, you can sell seeds and buds fresh from your garden. Your business can also distribute fertilizers, soil mediums, and tools that will help fellow cannabis growers too.
- Dispensary or Collective: If you want to go big and help outpatients who rely on medical cannabis, a dispensary maybe your right lane. Working with physicians and other medical professionals is a plus, so your customers can also get consultations at your shop without the fear of stigma.
- Cannabis for Health and Beauty: Sit still and look pretty when you sell products that cater to the beauty community. There are plenty of infused makeup products, bath essentials, and skincare lines that will make you glow and give your hair and skin a makeover only marijuana could give
- Edibles: Whip up snacks and drinks that’ll satisfy hunger and cannabis cravings. From candy, desserts, alcohol, soda, and meals, a sprinkle of cannabis will get you a certified chef’s kiss.
- Weed Tech and Tools: Offer vape pens, blowpipes, rolling paper, bowls, and other ware to craft a good puff. You won’t have to handle cannabis with this one, but your store should only be open to those of legal age.
- Transportation and Logistics: If cruising in wheels is your thing or you may have experience with delivering items, you might consider transporting and shipping cannabis too. For this, though, you will need storage that keeps cannabis products fresh and secure while traveling.
- World Weed Web: Maybe you’re a prolific writer who’s inspiration sparks from the aroma of their favorite strain. Cannabis media is rising in popularity, seeking content creators to post for their blogs on all kinds of weed-related articles. Tutorials, strain guides and reviews, or business posts will usually hire writers and pay them up well depending on their experience and the quality of their output.
- Rep the Hemp: Why not make cannabis-themed merchandise? If you want to raise awareness and have an eye for art and style, you could design your own tee shirts, tote bags, accessories, and even craft handmade bowls and pipes.
You can start your cannabis business even when you’re on a budget. With creative skills, resourcefulness, and the right strategies, you can attain your cannabis business goals. There are many weed businesses you can start on a budget, such as selling vape products and weed tools.