- By 2022, two states have more or less legalized cannabis, while another three have voted against legalization.
- Each state has its own laws governing the medical and recreational use of cannabis, and all businesses must comply with the laws that govern the areas in which they operate.
- Cannabis remains illegal at the federal level, but institutional enforcement at the state level is largely suspended and receives no funding from Congress, making these markets safe for the foreseeable future.
- This article is for entrepreneurs considering starting a cannabis business who need to understand the regulations surrounding a complex and growing industry.
Every year, new legal cannabis legislation or election polls open up new markets in the rapidly growing cannabis industry. For many entrepreneurs and small business owners, this is an opportunity to tap into a fast-growing international industry with great growth potential.
We take a look at what the growth and expansion of the cannabis industry means for entrepreneurs interested in the space and explore some of the biggest business opportunities available.
Cost of the cannabis industry in the United States
According to industry research group New Frontier Data, the US cannabis market will reach $72 billion per year by 2030. The projection comes at a time when marijuana remains illegal at the federal level, a despite the fact that medical marijuana is legal in 37 states, three territories and Washington. DC, legalizing adult (sometimes called recreational) cannabis programs in 21 states. two regions and Washington, DC
As cannabis legalization expands to new states, and some members of Congress are pushing for reforms and even legalization at the federal level, the cannabis industry appears poised to continue its explosive growth as new markets open up. .
State vote to legalize cannabis
Five states voted to legalize marijuana in some form in the November 2022 election. Additionally, proposed legalization measures failed to garner enough signatures to be on the ballot in two states.
In November 2022, the initiative to legalize marijuana is an electoral referendum in Arkansas. This law would have legalized the use of marijuana by adults 21 and older and would have allowed adults 21 and older to purchase and use recreational marijuana at a 10 percent state tax. Voters did not approve the bill.
Maryland voted to legalize marijuana in November 2022, making it at least the 20th state to legalize adult marijuana. The law allows adults 21 and older to consume up to 1.5 ounces of marijuana and grow up to two marijuana plants in a home.
Missouri voters voted for an initiative to legalize marijuana. This law allows the retail sale of marijuana with a 6 percent tax and also expunges the records of residents who commit non-violent marijuana-related crimes.
In Nebraska, neither the Patient Protection Act nor the Medical Cannabis Regulation Act came up for a vote in November. If Nebraska's Medical Marijuana Patient Protection Act is included on an upcoming ballot, it would allow patients and healthcare professionals to possess and use medical marijuana. The Medical Cannabis Regulation Act would create a regulatory commission to oversee marijuana production and provide patients with a path to reliable marijuana products.
In North Dakota, the New North Dakota Approach group collected enough signatures to put cannabis legalization measures on the November ballot. However, this measure failed in the polling stations. If this measure is approved, the use and possession of up to 1 ounce of cannabis, 4 grams of concentrates and up to 500 milligrams of food products would be legalized.
An organization called Oklahomans for Responsible Cannabis Action was the driving force behind collecting signatures in support of State Question (SQ) 818 and SQ 819. However, neither amendment is on the ballot for 2022, although they could be in future years. . SQ 818 is a state constitutional amendment that guarantees access to marijuana and legalizes its use by adults, while SQ 819 introduces a 15 percent sales tax on cannabis products. SQ 820 is the third reasonable measure of marijuana law in Oklahoma. Marijuana is legalized for adults 21 and older and includes a 15 percent tax on all entertainment purchases.
In November, South Dakotans voted against an initiative to legalize marijuana in South Dakota. The initiative was aimed at legalizing the possession, use and distribution of marijuana for adults over the age of 21.
Two states took steps to legalize cannabis in November 2022, and three more voted against legalization.
Business opportunities in the cannabis industry
It's easy to think of the cannabis industry as farmers who grow the plant, growers who process it into products, and distributors who sell those products. While these elements are critical to the legal cannabis supply chain, the cannabis industry is much more complex and diverse.
Cannabis businesses can be divided into two main categories:
- Works that affect plants
- additional acts
Here's a closer look at these categories and the business cases that fall under each.
Cannabis Companies That Touch Plants
Companies that deal with plants include those that come to mind when you think of the marijuana industry, such as breeders, cultivators, cultivators, and dispensaries. However, other plant-related businesses may not be as obvious, including trucking and delivery companies that get harvested marijuana and finished products from point A to point B.
Here are some of the cannabis companies that deal with the plants:
- Breeders: Breeders focus on spreading existing marijuana strains and developing new strains through breeding. They are responsible for developing seeds for farmers' use and for identifying and disseminating high-quality genes to future generations of plants.
- Growers: Growers have large growing facilities, which are usually rooms located in large buildings like warehouses. They use a variety of cultivation methods to grow high-quality, healthy cannabis plants, which are often harvested and sold in bulk to healers or pharmacists.
- Growers: Growers, like extractors, are responsible for processing harvested cannabis flowers into finished products such as concentrated extracts, food, and regular products. Manufacturers make it possible to get a wide variety of cannabis products on drugstore shelves.
- Dispensaries: Dispensaries are the distribution centers of the cannabis industry, operating in the same way as retail stores in other industries. Dispensaries differ in their approach to outlets. However, they are usually staffed with knowledgeable individuals who can help patients and consumers choose the right products for their needs and preferences.
- Transportation and logistics providers: Without a transportation network, the cannabis industry will not be able to survive. Truck fleets deliver flowers and marijuana products from vendors to customers and deliver the necessary equipment to keep the marijuana business running. It also includes direct-to-consumer shipping services, which are legal in some states.
Factory-related companies are the most regulated companies in an already highly regulated industry. To open a plant-based business, entrepreneurs typically must obtain a cannabis business license through an application process that can be lengthy and expensive with no guarantee of success. Software licensing processes vary from state to state, and there is usually a limit to the number of licenses available, similar to how liquor licenses work.
Some countries require "vertical integration" in which one company manages all growth, processing, and distribution. Other countries use a specialization system in which licenses for each activity are kept separately and are often issued to different companies.
Entrepreneurs can legally start a CBD business and sell the products as long as their product line contains less than 0.3% THC.
cannabis supplement business
Cannabis ancillary businesses include all other types of businesses in the cannabis industry. These companies support companies that deal with the plants, but do not necessarily breed, grow, process, or distribute hemp products. These can include professionals such as lawyers and marketers, as well as packaging or equipment companies that can improve business processes that affect factories.
- Professional Services: Attorneys, business accountants, and digital marketers are common professional services for businesses in all industries that must comply with state and local business regulations. It is also important in the cannabis trade. Due to significant regulatory restrictions and regulatory frameworks that vary widely from state to state, these professional advisors must have additional experience in the cannabis industry.
- Packaging: Packaging companies rarely have direct contact with the factory. Instead, they focus on regulatory compliance, shelf appeal, and branding. Packaging companies must consider business needs, such as ways to engage consumers and showcase the company's brand, as well as regulatory requirements. In many states, colored packaging or certain trademark methods are illegal.
- equipment. The factory management business requires a variety of equipment to get the job done. For example, farmers use large machines to extract the compounds from the harvested cannabis flower to produce cannabis candles and oils. Similarly, growers may wish to freeze cut flower to preserve it in transit.
- Construction: Culture facilities and dispensaries often must be built in strict accordance with state laws and regulations. For this reason, there is a high demand for qualified contractors to develop these facilities.
- Security – The cannabis industry is dependent on security for both organizational and practical reasons, which is why security equipment and video surveillance systems are often required. Regulators often require certain areas to be monitored by security cameras at grow and distribution facilities; They may also require special lighting and room monitoring systems. In addition, many marijuana businesses are forced to operate primarily with cash due to the financial restrictions imposed by the current federal marijuana prohibition, making them prime targets for theft.
- Investment – Because the cannabis business is largely excluded from standard financing options, private financiers such as venture capitalists and angel investors have entered the industry to provide financing. Family offices, private wealth management advisory firms that specialize in serving wealthy investors, are a common source of financing for cannabis businesses, and investors relish this booming industry. Investment options are especially important for plant-based companies, which face application fees in the tens of thousands of dollars and need significant capital to get approved.
While many people would be happy to start a cannabis plant-based business, the side business is likely to present a lower barrier to entry. Additionally, businesses still face significant regulation compared to many non-cannabis businesses, but do not need to compete for a license through a complicated and expensive application process.
Start a side business by funneling your existing business strategy into the cannabis garden. For example, an experienced digital marketer can easily apply their skills to cannabis.
The growth potential of the cannabis business
Cannabis businesses face challenges beyond those faced by startups in other industries. Facing these challenges in the early days of your business and building a foundation that allows you to grow and adapt to the inevitable rule changes will be critical to your success in the cannabis industry.
Here are some common problems that cannabis growers face and some tips to overcome them:
Develop the right partnerships
It is difficult, if not impossible, to do it alone in the cannabis industry. The partnerships you develop early on can make or break a new cannabis business.
How you start your business is critical to its long-term success, said Scott Rudder, president emeritus and founder of the New Jersey CannaBusiness Association.
"The best way to do it now is to hire a consultant to help develop your plans with you," Rudder told Business News Daily. "You have to develop partnerships and relationships across the country to give your team a competitive edge: the right processes, the right [standard operating procedures], the right security plan. Hire the right local lawyer and local accountant… with experience in cannabis.
change the rules
The rules that apply to your daycare are also likely to be subject to change, as the industry is a new and evolving space and government officials work regularly to update and revise rules and regulations. Jessica Gonzalez, an intellectual property and cannabis attorney in Helera, PC, advised aspiring marijuana entrepreneurs to contact an experienced attorney who can look to the future.
"Looking at the different regulations around the country … the best way for people to know what their state requires is for them to have a lawyer who can interpret the rules and the laws," Gonzalez said. “All of us who work in the cannabis industry understand that the industry is constantly changing, so…entrepreneurs, we have to be prepared for change at any time.”
Banking, financial and insurance problems
Banking is a particular challenge for cannabis companies, especially if their name reflects the industry. Because the federal government still considers cannabis a Schedule I illegal drug under the Controlled Substances Act, many banks are reluctant to work with marijuana companies for fear of losing FDIC status or facing drug charges. money laundering. It is associated with drug trafficking, despite the legal status of cannabis in many countries.
"In any other industry, you can open a business bank account and connect to an LLC or whatever corporation you want, and that's not a problem," Gonzalez said. "But if you go to a bank and have the word marijuana in your name, you could have big trouble finding a banking partner. I'm not lying to your bank about what you do, but… having "weed" or "marijuana" .in your name Cut your knees. I always advise people setting up an LLC or corporation to stay away from these names because they also hinder banking and insurance options."
Advertising and Marketing Restrictions
Government regulations and private company policies limit the scope of cannabis advertising. Реклама каннабиса на радио, телевидении или на рекламных щитах часто запрещена, и многие местные маркетинговые каналы, включая Facebook, усложняют ее, запрещая покупку спонсируемого контента для предприятий, занимающихся марихуаной.
Эти ограничения означают, что многие компании, занимающиеся каннабисом, должны полагаться на сочетание контент-маркетинга и более органичного контента в социальных сетях, маркетинговых кампаний по электронной почте и личных маркетинговых мероприятий на выставках и отраслевых мероприятиях. Networking and referral are on the minds of all your clients in today's market.
Cannabis has a strong hold on the city with a rock-kilter. Once upon a time, patients and farmers of cannabis products received their highest levels of wisdom. Izbegaite zakreplyayuchik stereotips, svjazannihs with cannabisom, like atmospheric magazines or even positive associatizii, theirs with the most poisonous juice.
Most of this is a test done by a well-tolerated stronomer and a strong-willed lithopedist, which is a very small part of his strength. Это будет иметь большое значение для получения любых необходимых разрешений регулирующих органов и достижения ваших целевых клиентов, которые, вероятно, больше разочарованы стигматизированной одеждой прошлого, чем вы думаете.
“The story of this story is very important to those who love marikhuans,” says Radder. “Oni mamy and papy, yurists, slesary trooperodochiki – this is smart cherry picking cannabis. The same cannabis as a cardinal and wanted to be older. Also, be careful, the pain of a healthy heart… it's a wonderful and medicinal story.
Take note of new clients and information. “Potrebital, because a patient or a veterinarian is a patient who lives and provides good health,” — Observer Radder. "Ljudy has a lot of money and you have a lot of money."
Conflict of business strategists with multi-problems. It is necessary to establish your company with each of these problems, according to a comprehensive business plan and state-of-the-art flower beds.
Начало работы in the cannabis industry
No new business in the cannabis industry is not for everyone. This is a lot of territory in Turkey, Russia and Germany. Licenses. Now that the majority of the country's population, which is Canada, is 90% of the US population, which is legal cannabis. As a result of the prosperity, the marijuana regime trains the neighbors, and the commanders of the authorities, grant guarantees, which are even more powerful. Please do not leave roommates in your room and do not consider the positive results of your studies. And this is what you do when you're in the store.
Not many people want to post problems. Before the approval of the party of the party, you are the one in command, which is your brother's decision. And I with nekotoromy razumnemy metodami biznes-bejudjetyrovania in you bedete gotovs as your body is on your bizneza. Just as your business has become stronger and stronger, you must also be in business in the new season.
Max Friedman lives in Ukraine and enters this state. Для более RANNEY VERSII THIS STATUI BLOWEDEN NESCOLOGY INTERVIOUS WITH ITSTOCHNICAMES.