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Want to start a cannabis business? It’s not a bad time to start planning. The industry is expected to experience massive growth over the next few years and the demand for cannabis continues to grow along. There are now eleven legal marijuana states (along with Washington D.C.) as well as 33 states where medical marijuana […]
Want to start a cannabis business? It’s not a bad time to start planning. The industry is expected to experience massive growth over the next few years and the demand for cannabis continues to grow along. There are now eleven legal marijuana states (along with Washington D.C.) as well as 33 states where medical marijuana is legal. You can even start a cannabis business on a budget.
While the first thing people think of when they think of cannabis businesses is dispensaries or cannabis stores, these can be very costly to start, let alone run. What’s more, it can be difficult for some cannabis businesses to get the funding they need due to strict regulations across the United States. With that said, you can start a successful cannabis business without needing a ton of money. Here’s how to start a cannabis business on a budget
No matter what kind of cannabis business you want to start, you should look into your options for funding. The problem with getting funding for cannabis businesses in the United States is that cannabis is still federally illegal. As such, many banks see these businesses as being too high-risk and are unlikely to give you a business loan.
Fortunately, there are other ways to get cannabis business funding. Many cannabis companies turn to equity funding. Equity funding involves getting capital investments in exchange for shares in the business. There are now various venture capital firms focusing on the cannabis industry that can give you the funding you need. You can also look for Angel Investors or even find investors through cannabis business events and Linkedin.
The good thing about running a business on a budget is that you won’t need too much funding and, as such, aren’t forced to trade-off shares in your business. If you don’t need much money to get started, you might be able to simply use your savings. You could also use a personal loan.
Crowdfunding is another option. This involves getting donations from people across the world to help kick start your business. It’s ideal for budget businesses as you don’t need to offer anything in return- although giving people an incentive to donate (such as free products or services in the future) will go a long way.
It’s also important to consider what kind of business you want to start. While some businesses are expensive and difficult to start, others can be launched on a shoestring budget.
Things like dispensaries, growing operations, and manufacturing plants are pretty much out of the question here. Not only do you need the capital to get a suitable business location, but you’ll need to spend thousands in licensing fees before you can even start. You’ll also need to spend a lot of money on things like legal advice, accounting, and other operations.
Starting a B2B service for cannabis businesses is a fantastic idea. With so many new cannabis businesses popping up, there are still many gaps in the market when it comes to cannabis-focused business services. Becoming the top lawyer for cannabis companies in your business or a cannabis accounting firm can work wonders.
Various other cannabis-related products and services are also in high demand. For instance, you could sell cannabis packaging- something that doesn’t take a lot of money to manufacture yet is needed by many businesses. You could also focus on smoking devices such as Bongs, Pipes, and Vaporizers.
Getting into the CBD industry can also be worthwhile. Regulations on hemp-based CBD products are much looser than restrictions on cannabis, yet there’s now a huge demand for these products all over the world. These businesses can often be launched on a budget if you plan well enough.
Once you have some funds to spend and a good business idea, it’s time to figure out how to launch your business. No matter what kind of business you plan to start, it’s always crucial to plan carefully and consider many factors.
Create a detailed business plan including things like your goals, your business model, and financial information such as how much money you need and your projected income. This will take a lot of research and you may even want to talk to a cannabis business consultant for advice. Having a good business plan doesn’t just help you map out your business- it also helps when it comes to getting investments.
Depending on how big your business is, you might need to hire a few people. As well as your main operations, you’ll also need to consider how you plan to handle accounting, legal matters, marketing, and other important business functions. Luckily, you can often outsource these roles to external services.
When you’re getting your business off the ground, it’s essential to spend some money on marketing and promotion. No matter how big or small your business is, you need to ensure you’re getting your name out there to the right people to draw in customers or clients.
Marketing can be tricky for cannabis businesses as there are many restrictions. You won’t be able to take out a billboard, advertise on television or pay for Google ads. Luckily, there are many good ways to market your business on a budget.
Make sure you have a professional website and optimize it for Google search engines. You should also start social media channels to start marketing your business across social media. Attending cannabis business events can also be great for networking and boosting brand recognition.
Another great way to promote your business on a budget is with custom cannabis products. You can get things such as lighters, grinders, rolling trays, and rolling papers imprinted with your brand and logo. You can sell these or even give them out for free at events to start getting your brand out there.
While starting a full-scale dispensary or growing operation is expensive and time-consuming, there are many ways to start a cannabis business on a budget. Consider alternative routes into the industry, such as focusing on smoking devices, CBD or ancillary services. You can also handle everything from your marketing to your accounting on a budget. If you need help promoting your business, check out CannabisPromotions.com.