With the progression of the legalization of cannabis in the United States and many other countries all over the world, the cannabis or marijuana industry is projected to make billions of dollars in sales in the next few years. Cannabis-based products and seeds are making a massive wave that every business owner should take advantage of while it is still in its early stages. However, starting your own marijuana seeds business can be a daunting task as there are still tight regulations regarding the plant and its overall production.
An Overview of the Marijuana Industry
In North America alone, the marijuana industry has set an unprecedented $20 billion profit in 2020 and the following year. It is even expected to double in the next few years. Recreational marijuana use has been legal in 11 states, while the use of medical marijuana is now available for use in 33 states. As more and more states become open to the use of marijuana, the demand from cultivators to produce high-quality medical-grade cannabis is also getting high.
Cultivators of both classifications of marijuana are slowly becoming one of the most highly anticipated demands in the years to come. With that in mind, business-minded people should begin to realize where these cannabis growers find their strains of marijuana to cultivate and how they can provide a steady supply to every cannabis farm all over the country.
With that said, starting a marijuana seeds business is not just simply about providing a steady flow of seeds to your regular clients. There are far more intricate processes that need to be met before you can call your business venture a success.
Useful Guide to Starting Your Own Marijuana Seeds Business
The first and most important aspect before you give head first into this industry is to acquire a good amount of funds to procure your license and sustain your business in a few years. When it comes to making up a draft for your fund, you will need to consider a lot of things such as the application process, tax, lease or rentals, emergency fund, and many other factors that will help build your business.
A new entrepreneur will need to face this reality from the start to ensure that you are solid with your venture. Not everyone can provide immediate funding for their dream cannabis business, but finding an investor or lender would be a good start.
The Application Procedure
Depending on where you want to establish your business, the application process for your cannabis business can be very complicated, time-consuming, and very expensive. The license to operate a controlled substance would mean a hefty amount of application fee. The concern right now is whether you are willing to risk losing this much amount of money in the earliest stage of your venture.
If that does not deter you from going forward, you will likely have a very small chance of getting approval. This is the reason why a lot of business owners who venture into the cannabis industry would hire a team of consultants to make it easier. These consultants also aren’t cheap, so if you are still willing to shell out a lot of cash, then you should have a solid decision at hand.
There are also different licenses for different transactions that you want to do with your business. The three main licenses are for grow facilities, manufacturing of cannabis-infused products, and dispensaries. But, where does a marijuana seeds business fall under? It still depends on the state you are in, and your consultants should provide you with all the information needed. Most likely, they will be giving you the grow facilities license since you will be handling plants and produce seeds, or they can give you the license to dispense these seeds. Some states even ask you to get both.
During the application process, you will also need to provide proof of your capital and all the other expenses needed for the license. Be prepared to invest in a lot of money for your venture.
Finding The Right Spot
Let’s say you finally have your license, and you have been given the go signal to start your business. Finding the right spot is your next target. In most states, finding a good spot for your business might be one of the major requirements before they approve your license to operate. This can mean that the establishment must be a certain distance away from a school or daycare or some other requirements that include renovations and construction within the establishment.
This can pose another set of setbacks for your venture, as finding the right spot for your business establishment can be very tricky. Another complication might be neighboring establishments might not be welcoming you with open arms or the community within the supposed area might not be tolerable with you setting up a business within their area.
Your team of consultants should have these covered in the first place. We all know that location plays a huge part in the success of any business venture, and with this intricate and complicated process for a marijuana business license, a team of consultants is highly needed.
Choosing The Right Products
Now that you are good to go with your license and establishment choosing the right seeds to produce and sell is another significant milestone in establishing your foothold in the marijuana industry. Choosing to go seeds is a more convenient way as you will only get three major types, which are feminized, regular, and auto-flowering seeds.
Feminized seeds are much preferred since the resulting plants are composed of females that produce buds or flowers that are rich in cannabinoids. While they may be more expensive than the other two, the advantage here is that it guarantees the result will always be female and your clients avoid wasting precious time in cultivating male plants.
Regular seeds are far less expensive than feminized seeds, but they may also pose the risk of developing male plants, which can be detrimental to the overall result. Auto-flowering seeds are also in-demand these days as they tend to grow smaller than the other two and are often take less time and effort to grow.
Choosing which strains and seeds to sell is vital to the longevity of your marijuana seeds business venture. Most people would tend to sell all three, while others focus on providing feminized seeds with different strains to cater to that certain group of customers.
The best advice that anyone can give when it comes to starting your own marijuana seeds business is to plan everything and get the right funding. Countless other businessmen have failed to sustain their venture due to a lack of funding or a lack of planning for significant changes within their business. Always consider a lot of complicated processes when it comes to the marijuana industry. With that said, the marijuana industry is still young and has a lot of potentials and promises to be a multi-billion dollar industry that you should be taking advantage of right at this very moment.