Since hemp and hemp byproducts became legal for sale in the United States in 2018, the cannabis industry has exploded. While recreational and medical marijuana have been profitable everywhere that usage has been legalized, compounds like CBD that are derived from hemp have an advantage in the retail world due to the less complicated legal landscape.
This means business owners interested in working in cannabis can reduce some of the hurdles they would face if they were trying to grow and sell products containing THC or open a dispensary. If you’re considering getting into the industry, keep reading to learn how cannabis businesses can succeed.
What Services Do Cannabis Businesses Need to Grow?
The cannabis industry has become extremely profitable in a short period of time, which has made it appealing to savvy entrepreneurs. However, working in the cannabis space does present unique challenges. The legal landscape is constantly evolving, which can make deciding where and how to sell your products difficult. If you’re working with CBD, which was legalized nationwide through the 2018 Farm Bill, you will have an easier time than if you want to sell marijuana products that contain THC, which remains illegal on a federal level.
You may also run into problems obtaining some things that most companies rely on, like loans and insurance services. It’s a good idea to look for cannabis insurance solutions from brokers that are friendly to cannabis businesses. You can find licensed insurance agencies that are more than happy to work with any businesses within the cannabis, hemp, and marijuana industries. Everything from your extraction equipment to your cannabis crop and packaging can be insured and there are a number of policies to consider.
What Popular Products Should Your Cannabis Business Sell?
You can look to popular brands like Edens herbals for inspiration. Their philosophy is that quality health and wellness products should be for everyone, so they strive to provide a high-quality product at an affordable price. They also offer a wide variety of products, including tinctures, gummies, topicals, isolate powder, and even dog treats. You can focus on one or two products and make sure you’re offering the best versions of those products or curate more broad-base appeal by offering a wider selection.
When it comes to cannabis, whether you’re in the CBD or marijuana industry, quality is of the utmost importance to consumers. They have plenty of options in a competitive business, so you should make sure they have a reason to be loyal and continue to purchase from you.
It’s also important to remind your customers that they should talk to a healthcare professional before making cannabis a part of their routine if they’ve never tried it before. A doctor can give you a better idea of how cannabis products will impact any health conditions they have or interact with the medications they take. They may even be able to provide advice on products and what an appropriate dosage would be.
It makes sense for aspiring business owners and investors to be interested in the cannabis industry. In recent years, it has proven to be a lucrative industry with a large customer base. While the cannabis industry can be incredibly profitable, you should be sure you do your research and understand the challenges that cannabis business owners face. You’ll need to ensure your business is compliant with all local laws, and if you sell products that contain THC or own a dispensary, you’ll face additional hurdles. This is due to the fact that marijuana remains illegal on a federal level. CBD and the legal cannabis industry can be less difficult, but your business will still have unique needs that others don’t. As long as you’re prepared for that, it’s worth considering whether or not you can make a transition into the cannabis business.