When recreational cannabis became legal in California in 2016, many entrepreneurs were ready to enter the cannabis industry. Just four years later, California boasts the largest, most profitable, cannabis industry in the world. It’s now worth more than $3 billion and expected to grow to more than $5 billion in 2020. Therefore, not surprisingly, even more entrepreneurs are considering launching cannabis businesses.
If you happen to be interested in cashing in on the market for recreational cannabis, you need to understand the industry fully. Here are seven tips you should keep in mind:
- You’ll first need to decide if you want to launch a dispensary, a growing operation, a distribution business, a manufacturing business or a startup creating branded cannabis products.
- As part of researching which type of cannabis business you want to start, you’ll want to consult an experienced attorney who understands California’s cannabis industry laws. The laws are complex and vary based on what type of business you plan on launching. You also need to keep in mind that recreational cannabis isn’t legal on a federal level or in every state, which may impact how your business operates.
- You’ll want to develop a business plan, which should detail your business costs, how you plan to market your business, what sets your business apart from the competition and where you’ll operate your business.
- You want to register your business’ name and your business structure.
- You’ll want to apply for all the permits you’ll need to operate your business. Again, working with an attorney with experience in the cannabis industry can help ensure you have all the permits you need to operate legally.
- You might need to raise money to launch your business, perhaps working with business partners or investors to do that.
- You need to register for a tax ID, so you can file taxes once you’ve opened for business.
Joining the cannabis industry is an opportunity you may not want to miss out on. However, you’ll need to ensure that you understand all the regulations and permits needed to operate, as well as follow the steps above. Then, you’ll have the best chance to see your cannabis business succeed.