With the recent legalization of marijuana, more and more people are considering starting a small business selling and distributing cannabis in the United States. It’s not enough to simply want to participate, however. A deep knowledge of local state laws, taxes, investing and the medicinal properties of the plant will help immensely in avoiding financial pitfalls and getting you started on the right foot. Below are a few useful tips on starting a business in selling cannabis, from obtaining a cannabis business license to investing in the marijuana industry.
The medicinal properties of marijuana have cemented it as a much desired commodity in many industries. Over 76% of doctors approve of medical marijuana use in the United States and, as of now, twenty-three states as well as the District of Colombia currently allow medical marijuana. While only 6% of studies on marijuana analyze its medicinal properties, this number is expected to grow as demand continues to increase.
Not only is marijuana used to aid with physical conditions and chronic pain, it’s used to lessen the side-effects of severe mental illness. A few non-governmental studies suggest as many as one in five military personnel returning from Iraq and Afghanistan suffer from a form of PTSD or panic disorder. As of 2012 more than 20 cannabinoids were being studied by the FDA for its medicinal and coping properties.
A cannabis cultivation business plan needs to be aware of both stateside and international market growth. According to a study by The ArcView Group, a research company focused on general cannabis industry investment saw the United States’ market growing by nearly 75% back in 2014 — the prior year had pulled in nearly $1.5 billion. Currently there are 17 million people living in states that have already legalized recreational marijuana and this is projected to grow to nearly 25% of the total American population.
Ongoing estimates for the global market for hemp involves at least 25,000 products in nine different submarkets. These include, but are not limited to, personal care, paper, textiles, agriculture, advertising and more. In the next five years the earnings for legal cannabis are expected to even exceed the film industry, organic foods and NFL revenues.
Starting A Cannabis Business
With the industry only continuing to grow at exponential rates year after year, it’s a wise decision to seek out the aid of cannabis consultants before getting started. Cannabis consultants are familiar with the ins and outs of cannabis, from industry relevance to individual properties, and will help you cement the basics before moving ahead. Marijuana consulting will assist with receiving a certification as well as a business license to sell in certain areas. A business plan to help you reach out to customers can also be done with the aid of cannabis consultants. Making your mark takes a little research and patience, but it will be well worth it.