The Complete Guide to Establishing Marijuana Business
Marijuana is still classified as an illegal drug but that doesn’t mean that people can’t legally sell it for a profit. The federal government never removed this narcotic from its list of illegal drugs. However, nearly all states within the Union allow for the use and sale of marijuana. Each state has its own rules for selling and using marijuana.
This process is extremely complex since many state and local laws differ. If you want to sell weed and cash in on this great opportunity – make sure you are doing it in a legal way. The material below will give you a basic explanation about how to start a marijuana business.
Startup Needed for this Business
According to Black Enterprise, a person will need a lot of money and knowledge before they can have a marijuana business. The marijuana industry is heavily regulated. States that allow for the sale and distribution of this substance won’t qualify every person to sell this product. If you want to be one of the few individuals who meet state qualifications, then you are going to need serious resources and a solid understanding of this field to start your venture.
Many banks and lending institutions try to steer clear of cannabis business loans. This can be a grey area for a financial institution. However, some financial institutions will risk the money in this type of ventures. Without a loan, funding for a marijuana business will be limited. Don’t forget that some states only allow a few people to legally sell marijuana. You should not wrongly assume that you will be one of these individuals.
Many marijuana entrepreneurs wrongly assume that they can open a mom and pop weed shop business. It doesn’t work like that. In some states, you could pay as much as $20,000 just to get an application to be considered as a seller. Realistically, most people trying to get involved in the marijuana business will not be qualified. They simply will not have the funds to cover the startup costs. It takes a lot of money to make a marijuana business compliant. In short, you will need to have at least $100,000 just to get started.
Know your State’s Cannabis Law
Remember that the federal government still views marijuana as an illegal substance. They allow states to engage in the sale of this narcotic simply because they give them a choice to do so. If your state does allow for the sale of marijuana, make sure you understand the laws regarding this drug inside out. If you don’t, you will be nothing more than a drug dealer. The federal government will deal with you accordingly.
The financial loan website Fundera encourages potential marijuana sellers to know exactly what documentation, licensing, and regulatory bodies they will need to comply with before they get started. This will save a person time, money, frustration and from possibly being prosecuted as an illegal drug seller.
Understand how this Business Works
Remember that each state has its own rules for operating a marijuana business. You must start with your state’s legal requirements. Key areas for starting a marijuana business include financing, licensing, compliance, distribution (selling) and keeping your business legal. Most marijuana entrepreneurs have lawyers with this process. Ultimately, owning and operating a legal marijuana business is just for people who are qualified for this type of work. Hopefully, you will be able to meet these requirements and live out your dream of operating a marijuana business.