How to Start a Cannabis Business in the USA? A Complete Checklist
With the relatively recent legalization of commercial cannabis throughout much of the United States, more and more cannabis companies are cropping up to try and capitalize on this popular recreational drug. If that’s the case for you, you’ve come to the right place. In this article, we’re bringing you our complete checklist of how to start your very own cannabis business in the USA. Keep reading to get all the details you need to know to start a successful cannabis business now.
1. Do Your Research - CRUCIAL STEP
The cannabis market is a tricky market to get into, especially if you have no prior experience with it. As a cannabis entrepreneur, you’re going to have to conduct thorough market research to determine the best location for your business, as well as the best cannabis products to sell to your customers. You also want to begin running tests on your products to make sure you have something people would want to buy. Over the course of your research, you may find that certain types of cannabis products sell better in certain locations, or that certain demographics of customers respond to one kind of advertising better than another. All of this will help you to know how to best get things started. Location is a huge factor in the success of any new business, and this may be especially true if you plan on opening a cannabis dispensary. Be sure to choose a location that allows for easy access from your target demographic. Also keep in mind that laws, regulations and permits differ from state to state. Consult with a lawyer to make an educated decision.
2. Put Together a Business Plan
After conducting some preliminary research, you’re going to want to start to put together a business plan. A solid business plan should include a few key components. The first is a company description and identity. Try to come up with a specific description of what your cannabis company will be doing and what your vision for the brand and the business is. Next, you’ll want to choose a legal structure for your new business. This includes the structure of management all the way down to the basest level employees. You may want to include an organizational chart to visualize how it will all work. You will also need to look at your revenue and expenses in order to make sure your business is profitable and your numbers make sense. Finally, you’ll want to invest in some solid marketing and sales. No business can really take off without proper marketing, and the same holds true for businesses in the cannabis industry. Consider how you’ll find customers and define what a sale looks like for your company. You may also want to put together some projections of revenue and expenses to keep track of finances, especially early on.
3. Get Funding (optional)
Once research is completed, you will need to invest your own money or look for investors to fund the project. Once the money is secured, you can start to turn this idea into a reality.
4. Set up your entity
The first two steps are heavily focused on research. This step is where the action begins. Once you have researched and figured out every hypothetical factor and area of your business, you should start by hiring a lawyer and an accountant to help you set up the legal structure of your business and acquire all the appropriate business licenses and permits to operate legally in the USA. Don’t forget to open a business bank account and to get trademarks if needed.
5. Set up the logistics
So you have your money and you have a legal entity that can operate. Next you need to set up a logistical chain that will operate automatically to fulfill orders. Depending on the location and the type of business you run, your chain will possess different branches but for most cannabis businesses, many branches are the same:
- Find a grower / a location in order to grow, test and create a product you’re proud of. The product is at the core of the business so make sure to give this step all the attention it needs.
- Find a packaging partner to help you brand and acquire compliant packaging for your products. Packagewea can help you with this step, contact us today to get a quote.
- Find a warehouse to store your stock.
- Find or establish a distributor network to supply your products to potential buyers.
- Find a trucking or shipping agency that will help you move large quantities of products nationwide.
6. Build a team and grow your business!
Once you have the basics squared away, the next obvious step is to hire a team and build your business! This includes developing your operating space, forming partnerships, marketing, and public relations. If you follow the basic steps that we’ve outlined above, you should be well on your way to getting your cannabis business started in the USA. Remember to stay patient and pay attention to federal and state laws too. Good luck!
