Has The Cannabis Industry Become Too Corporate?

Is It Hard To Get A Cannabis Business License?

Those who want to get involved in the cannabis industry will need to jump through a few hoops first. Although you can easily open a head shop or hemp store, you’ll need to get a cannabis business license if you’re handling marijuana directly. This doesn’t just apply to farms and dispensaries – it also applies to testing, transporting, and even delivering marijuana to customers.

How easy it is to get a cannabis business license depends on where your business is operating. Some states issue a decent amount of licenses each year, although you’ll need to meet strict requirements. Other states offer few to zero cannabis business licenses, making it hard for new cannabis businesses to open.

On top of that, getting a cannabis business license in any state is a lengthy process. You’ll need to deliver a solid cannabis business plan, gain funding, secure a suitable location, and ensure you have the resources you need to run a successful business. Doing all of this before you even open your business can be incredibly tough, leaving many people wondering whether it’s too late to get into the legal cannabis industry.

Is It Expensive To Open A Cannabis Business?

If you want to open a cannabis business, the cost is another major barrier. Since marijuana is still federally legal and the industry is seen as high-risk, banks won’t issue business loans to cannabis business owners. Although you can find independent lenders and investors, it’s still an uphill battle to get the funds to open a cannabis business.

It’s also worth noting that opening a cannabis business involves significant costs. Not only will you need to worry about your property, equipment, and staffing, but even getting a license costs a lot of money. Because of this, many would-be cannabis entrepreneurs are priced out of the industry.

You can gain funding with a great business plan and enough luck with investors or venture capital firms. However, many people are discouraged from opening a cannabis business due to these hurdles. Many also find it hard to compete with established cannabis brands, giving credence to the claim that the cannabis industry has become too corporate.

Is Cannabis Franchising A Good Option?

Getting funding, securing a business license, and building a new brand from the ground up can be incredibly hard. Because of this, many people choose to simply become cannabis franchisees. Many major cannabis brands now offer franchise opportunities for those who want to start a cannabis dispensary.

Franchising is often a good option for those who want to get involved in the cannabis industry without jumping through hoops. Becoming part of an existing brand makes it easier to attract customers. On top of that, it gives you a franchise infrastructure to follow and plenty of helpful resources. This can save a lot of time, money, and planning.

Some people even buy existing cannabis businesses. That way, they gain access to a cannabis license and an existing business without needing to go through the difficult licensing process. With that said, not everyone wants to take over an existing business or become a franchisee. Many cannabis entrepreneurs would prefer to build a new brand to reflect their values and ideas.

Is It Hard To Start A Cannabis Store From Scratch?

Many people will likely be discouraged by the corporatization of the cannabis industry. Government restrictions make it hard to start a cannabis dispensary. On top of that, you’ll have steep competition from long-running cannabis brands. However, you can still start a new cannabis business with enough dedication.

Starting a licensed cannabis business can take a lot of time and money. However, many cannabis businesses start as CBD stores or even head shops. You can offer legal hemp-based products or even custom-branded cannabis accessories to build your brand. If you want to sell marijuana in the future, you can apply for your cannabis retail license as you expand your business.

Creating a new brand allows you to run your business as you like. Many cannabis brands avoid becoming too “corporate” by implementing equity and social justice programs. It also helps to operate in states where gaining a license is easier. It’s also worth considering other cannabis business options.

Other Opportunities In The Cannabis Industry

While many cannabis entrepreneurs think of opening a dispensary, farm, or manufacturing plant, there are plenty of other opportunities in the cannabis industry. You can avoid the hassle of needing a license and instead consider alternative options.

Selling hemp products, merchandise or cannabis accessories is a great option for those who want to start a retail business. You can even sell these products online without needing a cannabis business license.

You could also consider starting an ancillary cannabis business. For instance, you could become a cannabis lawyer, accountant, marketer, graphic designer, or offer other services tailored to cannabis businesses.

Conclusion

Has the cannabis industry become too corporate? Major cannabis brands, government restrictions, and high costs make it hard for mom-and-pop shops to thrive. With that said, it’s still possible to build a unique and meaningful cannabis brand from the ground up.

If you want to start a new cannabis business, you’ll need to work hard to build your brand and attract customers. You can find branded products and a range of helpful guides for promoting your business at Cannabis Promotions.