Mostly approved to be legal in terms of medicinal purposes in some states, cannabis, or most widely known as marijuana, is still, in general, a prohibited drug by federal law to be used or marketed.
The use of marijuana may have been legal for uses and consumption in other states, however, it is still used under regulation and by-laws of the state under the federal law.
It is risky, costly, and hot in the eyes of law enforcement, however, the return of investments and profit is huge especially to the states where this is legalized.
If one is planning to invest in this very sensitive industry, consider a few important things that are considered beneficial when making this a long-term business.
Think first of a concept or idea that will attract and fuel the interest of the consuming public of choice and that will make them want to know what you have in store. The fact that this is a sensitive business to start with, therefore, choosing carefully the consumers and knowing the needs and benefits of your business idea will help in the success of the business in the long run.
Prepare for a huge capital because the initial cost for starting up this business is very high it is delicate to find the kind of investors that will partner in this business.
Chances of getting financing options are slim to zero as financing institutions are afraid or hesitant to give financial assistance because of the liabilities under the federal banking law.
By just the regulation itself in running this business already takes time to work on therefore patience and diligence is a must. Nonetheless, it is best to have knowledge of the states’ regulations, ordinances, and everything about legalities should one operate in this kind of business, otherwise, one will be in the edge of being shut down, be fined tremendously, or even worse, be put to prison.
Also, know what are the necessary documents, permits, licensing, and regulatory partners that are needed for this venture since the licensing and documentation may differ, especially since the legality of marijuana also vary from state to state.
It is imperative that long hours of study, research, and discussions will be needed to make sure that running this business will benefit the target consuming public are planned in a way that will not compromise legalities.
It is not a guarantee that being in this business is smooth especially that the law is the surest enemy, but it may be worth the risk.
Start with a huge amount of capital, be ready for the risk, and be keen and compliant, and you get the entrepreneurship in the cannabis industry.