The most successful companies aren’t run by one ultimate leader. They are operated by a team of leaders that work together well, execute defined goals, and contribute in ways that optimize for impact and maximize for success.
First, you must ask the following: How do I add value, and where can I contribute my skills the best? From there, you can identify critical gaps and determine which roles you need to fill—hiring people to do what you can not.
4. How do I build out my team?
You can’t have any type of business without customers. But acquiring customers isn’t as simple as it sounds.
The primary benefit of developing a business plan is that it forces you to think through the business model’s details and whether it will eventually earn a profit.
3. How do I get a cannabis license?
Besides the tremendous risks and inconvenience for companies forced to operate in cash, the status quo amplifies financial barriers to entry for entrepreneurs who do not have family, friends, and associates who can readily provide start-up capital.
Jeremy: So basically, anyone who can afford to get a license, they can get one, which makes it very competitive.
Nancy: Those situations begin to favor people who’ve traditionally had good access to capital.
Adriana: It is very white male-dominant. And there’s no reason that that is what it should be.
But truly, the least risky kind of cannabis business to start is one that doesn’t directly touch the controversial plant at all. According to the Controlled Substances Act , the bulk of the regulations for businesses in the cannabis industry are only applicable to cannabis growers, processors, and sellers. This is why ancillary marijuana businesses are doing so well—they aren’t burdened with all the red tape and high taxes. From hydroponics and cultivation products to professional training and education, consultancies, media companies, the plethora of new technologies—the list is endless, and so are the opportunities.
With any startup, investment capital is crucial to getting your business plan off the ground. Some investors don’t want to put their money into cannabis businesses since it’s still illegal under federal law. And, as stated earlier, forget about asking the bank to fund your marijuana business. Focus on finding some great private investors. While some are still wary, there are many investors out there excited about how fast the marijuana industry is exploding with growth, and they want in on the action. Look here and here for starters.
Marijuana Business Daily put out a useful chart showing the profitability of each type of cannabis business— take a look here .
Hopefully, now you have more of a solid idea of what it takes to start a business in the marijuana industry. Those willing to work hard and play by the rules have the potential to be extremely successful. Follow these guidelines and you will be well on your way to having a profitable business in the cannabis industry. Good luck!
Understand your consumer base
If you’re technical and a savvy inventor, you could design a product that helps marijuana user process or ingest their medicine—think about all the fancy vape pens that have been coming out, or the rosin presses that easily extract solvent-free oil from bud or trim.
“The days of bootstrapping a start-up in the cannabis industry are quickly coming to an end, if not already over. My advice is to raise smart money with investors who can bring experience and expertise from other industries to the table. Raise enough capital to quickly be able to compete.”
If you are irresponsible with your new cannabusiness, not only can this cause huge problems for you, but also for the cannabis industry as a whole. When businesses are performing reckless practices, it hurts the reputation of this new industry that still has many negative stigmas against it from the wider public.
Work hard and have fun!
“Success in the cannabis industry is uniquely tied to the connection and brand that leadership has with the local cannabis community. It doesn’t matter if you’re starting your cannabis business in Washington, Colorado, or Maine; you should start by building authentic relationships with your local cannabis community.”
“When considering starting a business in the cannabis industry, entrepreneurs must first ensure their concept is legally viable and offers a unique solution for the space. Too frequently, a concept is exciting but cannot be supported within the legal framework or is simply a recycled concept that is reliant upon ‘first mover’ advantage in their jurisdiction. For long-term scalable success, a company must be able to withstand the dynamic regulations and business factors in this rapidly changing space.”