The cannabis industry is one of the fastest-growing industries in the world today – and one of the most attractive to would-be entrepreneurs. According to new research from the Brightfield Group, the cannabis market is estimated to reach over $31.8 billion in annual sales by the end of 2023 alone. Opening a cannabis business can be a great opportunity for entrepreneurs looking to break into the industry. But it requires thorough research, knowledge, and planning in order to stay compliant and ensure your business’s success in the short and long term.
The Before: What You Need to Know Before Opening a Cannabis Business
The cannabis industry is unlike any other industry – and still relatively new in the U.S. What does that mean for you as a new cannabis entrepreneur? The first thing you need to know about the cannabis industry is that regulations vary drastically by state and region, as cannabis is not yet federally legal. These regulations are likely very different than any other industry, so even if you have experience as an entrepreneur in other areas, joining the cannabis industry will be a new challenge.
Even things like taxes and insurance are very different in the cannabis industry, so consulting experts early on is advised. Regulations also vary depending on your business’s position in the cannabis lifecycle, so it’s important to decide what role you want your business to play as soon as possible.
Here’s a quick rundown of some of the different types of cannabis businesses that exist across the industry:
- Distributors and Transporters
You will also want to consider the culture of the cannabis climate in your area. Does your state offer an adult-use market or medical only? Will you be joining a newer or more established market? What does regional competition in your area look like? Ultimately, the more information you can gather about your unique position and the industry at large, the more prepared you will be as you begin building your brand.