Cannabis is a booming industry, and if you’re thinking of starting your own cannabis business, this guide will help you get started.
- What is cannabis?
Cannabis refers to the plant that produces hemp and marijuana. Hemp (or industrial hemp) refers to the non-psychoactive varieties of the cannabis plant that are used for fiber production, oil extraction, food products and more. Marijuana refers to strains of cannabis containing high levels of tetrahydrocannabinol (THC), which gives users a euphoric feeling when consumed in large quantities or smoked.
The first step to starting your cannabis business is to understand the legal framework in which you’ll be operating. Each state has its own laws and regulations regarding cannabis, so it’s important that you research the specific requirements for your home state before moving forward with any plans.
State licensing laws vary widely from state to state, but they generally fall into one of three categories:
- Recreational use only (AK, CO)
- Medical use only (CA)
- Both recreational and medical
Creating a Business Plan
In order to start a cannabis business, you need to create a business plan. A good business plan will help you determine whether your idea is viable and how much money it will take to get started. It’s important that you do this research before spending any money on equipment or supplies because once those things are purchased, they can’t be returned if your plans change later on down the road.
Creating a strong foundation for your company will allow it to grow into something more than just an idea in your head–it’ll become an actual company with real customers who trust what they’re buying from you because they know exactly what kind of quality product they’re getting from someone who has been around awhile!
Finding a Location
Finding a suitable location is one of the most important steps in starting your cannabis business. You’ll need to consider several factors, including:
- How much space do you need?
- Are there any zoning laws that affect where you can operate?
Once you’ve identified potential locations, it’s time to get your permit applications ready and submit them with the appropriate city or county officials. This process varies from state to state, but here are some general guidelines for securing the necessary permits:
Hiring employees is a big step for any business owner, but it can be especially daunting for those who are new to the cannabis industry. Before you start hiring, you should have a clear understanding of what your company needs and how much money you’re willing to spend on labor.
Before hiring any employees:
- Create job descriptions for each position in your company. This will help you determine whether or not someone is qualified for their role at the company and also ensure that everyone has an idea of what they’re supposed to be doing every day (and why).
- Recruit candidates by posting ads online or through social media channels like LinkedIn or Facebook groups related specifically with this industry; try searching “cannabis jobs” on either platform! When interviewing potential candidates make sure they understand their responsibilities as well as any legal requirements associated with them (such as background checks).