Three Ways to Enter the Cannabis Market Quickly
The cannabis industry is booming. Legal sales hit $66 billion in 2019, and the number of new businesses entering the market is skyrocketing. The industry is finally starting to gain ground on legal sales. Experts estimate revenues from legal purchases to surpass 34% by 2025. Now’s the perfect time to jump into the market and secure a piece of the historic new industry.
Cannabis Services Industry
There are several ways to enter the cannabis market. Not all require a green thumb or a ton of capital. There are many services available now get into, and startups are popping up daily. Some ideas for law-abiding sales include:
- Dining/prepared foods
- Medical cannabis exams
As the industry matures, many of these services will expand. For example, with national legalization, packaging will have to meet strict requirements, like tobacco and alcohol. The addition of strict standards will mean brands will need help falling in line with the new lines to stay out of trouble. It’ll also increase production from small and medium-sized companies to large-scale facilities for thousands of products.
Another area that’s going to see growth is the entertainment side once COVID-19 is under control. Before the 2020 pandemic, these services were already expanding. For example, Vegas just opened the first cannabis lounges that would be similar to bars, but with smoking, vaping, drinks, and edibles.
The first locations were even set to have live music. Festivals were on the rise across the U.S. and throughout Canada, where users celebrated legal use with concerts, sales, and other fun activities.
In November, New Jersey voters approved recreational cannabis. Current and potential entrepreneurs are chomping at the bits to get in on these budding new businesses’ ground floor. Many experts believe the legislation can help replace falling casino revenues.
Main Product Opportunities in the Cannabis Market
The services industry may not be for you. There are plenty of other options. If you have a green thumb, you could have an advantage. Cultivating is an essential part of the legal cannabis trade. Other business opportunities involving products include:
- Product tracing
- Point of sale transactions
One cannabis market entrepreneur that’s found her niche in both areas is Tiana Burse. The business owner started as the co-founder of District Media Press, has recently moved into the cannabis industry. Ms. Burse and a group of investors purchased California Bud Co. after seeing the opportunity in the marijuana market space.
She went to work immediately using her experience and success with District Media Press, a Consulting Agency, to start solving one of the cannabis industry’s biggest problems—the black market. Legal sales have historically fallen behind black-market purchases. Ms. Burse set out to educate the public about the advantages of legal cannabis.
Combining the two industries, she leads by example. The California Bud Co. has forged partnerships with several female farmers. The focus is on cultivating high-quality cannabis strains by using natural sunlight to capture nature’s benefits while still controlling some of the environment.
She is showing customers her commitment to the benefits of legal cannabis. By putting the time and care into growing and selling safe, potent, all-natural products, The California Bud Company builds trust in the industry and wins customers.
Similar to the services industry, The Cali Bud. Co. will see their area expanding, too. As more brands emerge and federal legalization looms, regulations are sure to increase and change. However, by staying on top of all rules, Ms. Burse has no reason to worry.
Ease in with Smoking Accessories
There are several ways to break up product categories. In the cannabis market, some items carry less risk. Although cannabis is legal in over two dozen states for medical use and nearly a dozen for recreational, it’s still illegal federally.
The legal status can create headaches for businesses. Smoking accessories are often multipurpose. You can use them with cannabis, CBD, and tobacco products. Another advantage of this type of startup is you can draw sales from all three industries.
A great example of a non-cannabis product is iRollie. This company developed custom accessories, like the rolling tray phone case, as well as cannabis packaging. Co-founder Joseph Khoury’s two-person startup grew until acquired by Marimed.
Other products that are useful in both industries include:
- Rolling papers (Cannabis, hemp, tobacco)
- Personal, portable safes (Protect expensive cannabis items and other valuables while on the go)
- Vape and e-liquid devices (Cannabis, hemp, tobacco)
He went a step further and sold his expertise along with his award-winning accessory & packaging business. Mr. Khoury is also the director of business systems and spends his days developing and improving cannabis tech.
Mixing the Different Areas of Legal Cannabis
These subindustries often cross paths with each other. Josue Arteaga, the creative director of the California Bud Company, also works in the cannabis marketing industry. This allows him to contribute to Tiana Burse’s strategy and help her business succeed through carefully scripted content that educates consumers.
Similarly, Ms. Burse used her previous experience in marketing to collaborate with Mr. Arteaga and get the word out about the benefits of purchasing legal cannabis. Together they keep costs and handle most advertising and branding needs for The Cali Bud Co. with minimal expenditures. Using a lean marketing strategy, the company can place more funding towards producing high-quality products with a proven safety and satisfaction rate. An excellent reputation does more for sales than 100 paid advertisements across multiple mediums.
Additionally, Khoury took the knowledge he gained by creating iRollie to move into the cannabis packaging market with Marimed. The skills, such as Google Sketchup and how to operate a 3D printing company to develop his own prototypes, became tools to help him grow in his current position with Marimed and launch new, related companies using the same lean startup up principles.
Take advantage of the overlap to improve your chances of a successful startup. If your product or service isn’t instantly a hit, working with a fluid idea that floats between different areas can help you reduce losses and get right back up on the horse after a setback.
Legal sales are taking over black-market purchases in California and throughout the U.S., where you can use medical and recreational marijuana. Also, the COVID-19 pandemic is fueling sales as consumers rush to find new, organic ways to reduce stress, calm nerves, and get a laugh during these trying times. Experts agree, there’s never been a better time to jump into the growing industry. Stop procrastinating and turn your cannabis business dream into a reality.