It’s no secret that the cannabis industry has exploded in North America. There was a time when you’d see a marijuana leaf in a window of a store and wonder how they got away with promoting marijuana accessories and then asked if they didn’t also sell weed illegally in that store too.
These days, however, the tides have turned and weed, as well as many other cannabis-based products, are not only mainstream; they are taking over. It’s not unusual to walk down the street in a city or town and smell the distinct odor of cannabis wafting somewhere in the air. Sure, it’s still illegal in many places, but just like the cigarette companies, the cannabis industry and its subsidiaries are slowly taking over as the new normal.
People who never tried cannabis products before it was legalized are not making regular trips to pick some up on their way home from work. We’re not here to judge and say whether or not this is a good thing, but to provide some insight into the opportunities that exist for people who want to get into this industry and cash out big time.
There is a difference between legalized, medicalized, and decriminalize marijuana laws. It’s essential to understand the difference between “legal” is thrown around loosely when talking about cannabis products.
Fully legalized cannabis is not everywhere. Medicinal use of marijuana is permitted in some places, but not all, and if you are caught with more than you are prescribed, you can get into a lot of trouble. Decriminalized means that the authorities don’t want to see it or hear about it, but if you are caught with a small amount (which differs from state to state), you may not be penalized. According to THC Physicians, medical marijuana renewals are a reason why there is so much money in this sector: most states where medical marijuana is legal, you have to maintain your license to continue to buy it, meaning ongoing revenue for the medical clinics.
Understanding the laws in your area is the first step in determining if you can get even get in on the cannabis boom. Of course, there are not many restrictions on accessory development and sale. You may choose to manufacture or sell cannabis accessories – you can check out Badass Glass as an example.
The real money, however, is in the government contracts to be an authorized grower and distributor. But it’s not as easy as it looks.
Becoming a Government Partner
Cannabis became legal in 2018 in Canada, and within the first year of operation, the provincial government of New Brunswick decided it was not going to be involved in the cannabis industry anymore.
It turns out that governments are not very good at retail sales and can`t manage such a large-scale retail operation.
The sales were good, no doubt, but the logistics of dealing with growers turned out to be too much for them. That means that if you want to be a grower or distributor for the government, Canada, or otherwise, you need to make sure you are making it easy for governments, as well as other retail operations, to sell your product.
It’s no different than any other kind of business: you need to bring value to the table well beyond what you are manufacturing and selling.
Of course, becoming a government partner comes with a lot of red tapes. Even if you are fully prepared and have experience with this kind of logistical operation, dealing with the red tape can be too much for some distributors.
Rather than let it get you down, figure out ways to make the process easier for those who are in the business. Rather than focus on growing and distributing, you could consult with governments and private industry to help bridge the gaps. It’s not like this has always been a business opportunity for people.
Growers, distributors, governments, and retailers are all trying to figure out how to make this work. If there’s a way to reduce the friction and bring the sides together for profit, you’ll be able to make a tidy profit on it yourself.
If you live in an area where the government is not the one running the show on cannabis sales, you’ll have a lot more flexibility and opportunity to cash in on this gold mine. While there might be red tape, not having to deal with government bureaucracy will make setting up a private operation that much easier.
Again, understanding the laws in your area about legalization, medicinal use, and decriminalization will help you determine how you can set up and operate. If there are any other partnerships, you need to consider them.
Opening a retail shop, like all retail shops, means that you need to provide a great deal of supply for your customers. Working with growers of your own is very different than growing the product yourself.
Again, laws may dictate how much of this you can have your hands on while operating a retail operation. However, adding extra services, like delivery, supplies, and accessories and holding events, are several ways you can increase your revenue and profit margin in the cannabis industry.
What’s more, you might even consider partnering with other retail establishments to offer specials and discounts to drive sales. Of course, there is always the online world of cannabis sales and distribution – don’t rely on walk-in customers alone. You might be better off running a strictly online store if you can get away with it – depending on your location and the rules where you live.
You’ll Always Have to Deal with Someone in Charge
Here’s the thing: no matter what route you choose to venture to make money in the cannabis industry, there will always be some authority.
All along the way, the government and regulatory bodies have their hands in the pockets of cannabis growers, distributors, retailers, and online retailers. It’s not as bad as it sounds if you run a tight ship.
Understanding what is required and expected of a cannabis operation will help to keep your hands clean and your operation profitable. And if you aren’t interested in running a service yourself or do want to be a businessperson, there’s always an option to invest in someone else’s.
Opportunity is all around, and you need to be willing to dig in and learn the rules, be flexible as the rules change, and find ways forward – like any other business.