How to start a Cannabis Brand
If you are aiming to start your cannabis brand, you are very fortunate as this industry is young and growing. The US and many other countries are using cannabis for pharmaceutical, healthcare, and agricultural purposes. This has expanded the cannabis industry and increased the opportunities for newcomers in this field.
You want to start your own cannabis brand and earn a great reputation in the market in a shorter span of time? No problem. We have got you covered. We will guide you step wise how you can start a cannabis brand considering the modern business demands and needs. Our easy step wise guide will help you in establishing your cannabis business.
Let’s have a look at the following steps.
Step 1: Opt for the Business model niche.
A business niche is a focused area of a large business market which businessmen select to differentiate them from the competition. Choosing the right niche has a significant role in establishing a business as it gives a unique identity to the businesses. It’s an area where businesses can serve the unmet and underserved needs of the customers. Rightly selected niche distinguishes your business from the competition and allows you to excel in your sector.
Cannabis business is an underserved area. The U.S cannabis industry is only legal at the state level. This means that major accounting firms, including the big four, are avoiding this industry. If you step into this industry now, you can receive an amazing response from customers.
There are some types of cannabis business. You have to decide which type of cannabis business you want to opt for.
- Cannabis cultivation.
- Cannabis product manufacturing.
- Cannabis dispensary.
- Vertically integrated operation.
Choosing a unique business type/niche will give the following benefits.
- Specific niche. Specific niche will ensure that specific consumers will want to buy from your business as their demands and needs are not answered anywhere else in the market. They will eventually end up at your business door! Also, targeting a smaller audience keeps you adhered to making quality items and helps in establishing a long lasting relationship with the buyers.
- Reduced marketing costs. Selecting the right niche helps you target an interested audience and this minimizes your marketing costs. You don’t need to advertise your brand on a large scale. You simply target the relevant parties and it saves your money account.
- Increased profit. Experienced entrepreneurs, when open about their experience they say that selecting the right business niche leads to higher rates for products or services. The demand and supply ratio, especially for those pioneering a new industry sector, can be highly lucrative.
A rightly selected niche quickly introduces your new business in the market. You attract the relevant consumers in a shorter span of time. Providing the unmet needs of customers gives you a unique identity in the market and also helps in gaining trust!
Step 2 : Prepare a Business Plan.
Since cannabis is a billion dollar industry. You can’t simply dive into the packaging industry without proper planning. A solid business plan will help you in launching your own cannabis brand. Your business plan will guide you on how you can target the interested customers and meet with the other cannabis brand owners. Your business strategies include following things.
- How much investment do I need to start my cannabis brand?
- How and where will cannabis be cultivated?
- Selecting the high quality packaging material for cannabis.
- Does my account match the cost needs of materials and equipment?
- The market price of cannabis.
- Knowing the competitors.
- Targeting the relevant audience.
- Unique packaging ideas.
- Where will I set up my factory unit?
- What will be my business structure? I-e whether a private limited company, Public limited company, etc.
Your business plan is a living document that should be updated annually as your company grows and changes.
Step 3: Establish a location.
Choosing a right location for your cannabis business is an integral part of your business strategy. Document your location and see how this location will impact your success. For example, will you sell your products directly to customers via stores? Will you sell your products online? For this you must need a warehouse. Or if you want retailers to sell your products then you must need an office space for holding meetings with customers.
There are some factors that should be considered while choosing location for your business.
- Thorough Research. There must be thorough research about location and its neighborhood. Will this location fulfill your business demands? Is that suitable for your future business affairs? All of these things must be sorted out before plotting the location plan. So you can start working on your location freely without the fears of failure.
- Government incentives. There are different government incentives on different industries on both federal and state level. Selecting the right location for business, you qualify for certain incentives that apply to your business.
- Taxes. There are tax implications on locations depending upon areas. Knowing about tax implications will help you in making better decisions.
Step 4: Adhere to the licensing and registration requirements.
For businesses that deal with plants, licensing and permitting are essential. For getting your cannabis cultivation license, you have to go through a regulatory body in your state. Basically, this is a type of marijuana control board but the exact process varies from state to state.
Every state has different requirements for issuing licenses depending upon the business type of your cannabis brand, if not fulfilled then it can bring some serious problems to your company in future. Therefore, it’s important to know which of the licenses and permits you need before you introduce your company to the public.
After successfully receiving a license and permit to start the business by your state, your next step is to get registered. There will be some requirements for this depending upon the type of your business. You will get registered by the state accordingly. If it’s a partnership based business then you have to register this partnership. Once you got the license and registered your business, you can initiate working on other things.
Step 5: Select the Right bag packaging for your Cannabis brand.
You have to be very keen when it comes to packaging steps. High quality material is required for cannabis packaging. That prevents cannabis from moisture and dangerous rays. Also, the packaging must be attractive and appealing. The colorful packaging attracts the buyers and insists them on purchasing. There are some other things you must consider in packaging cannabis.
- Durability. Packaging material selected should be durable. It should serve in the long run. Since cannabis is a food item, it should have a long shelf life. For this purpose, packaging bags should be durable.
- Budget friendly. Packaging bags should be in the affordable range of buyers. High prices will minimize your sales. Budget friendly packaging bags benefit both the manufacturer and buyer.
- Child resistant. The packaging should be child resistant that children under age 5 cannot open.
- Tamper evident. Packaging should be tamper evident. There are usually two types of tampers used for sealing the opening. I-e Glass and plastic. It’s for the safety of cannabis packaging and evidence of not being used by anyone before you.
Step 6: Initiate the operations and market the business.
After getting done with all the planning and jotting out things, you will initiate the operations; physically bringing out the things, deciding your business type and then stocking the required stuff, and holding meetings with farm owners/retailers as per your business type, and applying for license.
When it comes to marketing cannabis brands, it is a bit of a challenging job as it requires unique ideas to commercialize the brand. Electronic and print ads should attract the audience with the help of appealing sounds and graphics. Your brand must have a social media handle that can advertise your cannabis brand on social media and keep updating the followers about your new launch. You can publish some blogs on cannabis usages for different purposes on your company websites that are unknown to many people.
The whole success of your brand depends on the marketing strategies. So make sure that you come up with amazing and unique marketing ideas that elevate your brand to new heights of success!
The bottom line
Starting a cannabis brand is not a single step process. You have to go through a complete process to introduce your brand in the market. For this you have to make solid business plans and strong business strategies. You have to be aware of government policies before you launch your cannabis brand, and much more.
If you chase your business step wise, you can reach heights of success in a much shorter span of time. And this step wise guide turns your business dreams into reality.
So what are you waiting for? Why waste time on thinking and not doing? Let’s start working according to these steps and own your cannabis brand!