Starting Your Edibles Business the Proper Way
The marijuana industry has been growing rapidly since the legalization of medical marijuana in states like California and Alaska in the ‘90s. Now, nearly 60 percent of Americans live in a state where marijuana consumption is legal in some form. The edibles market alone is responsible for nearly $10 billion of the profits earned in the marijuana industry for 2017.
Edibles are now one of the fastest growing markets, making it an extremely lucrative business opportunity for entrepreneurs thinking about joining the market. Whether you run a subscription-based business in Colorado or open a storefront in downtown Seattle, you can almost guarantee you will make a profit if you are following the state laws and keeping up with ordinance amendments.
Know the Local Marijuana Laws
Each state in the U.S. varies in its marijuana laws, from states that offer medical and recreational sales to those 21 and older, states that only allow medical marijuana with a prescription, and states that allow no consumption of marijuana and punish marijuana users similarly to heroin users.
Because of the wide variety of legalization that spreads across the country, it is important to have a broad knowledge of the local laws in your area. Marijuana businesses have been known to be shut down for failure to follow state ordinances, so being one with the law is vital in this industry.
Establish a Kitchen or Shop
One of the many ordinances laid down for the edible industry is the requirement to cook your edibles in a commercial kitchen. Not only do you have to find a commercial kitchen, the kitchen itself also has to be sanctioned for marijuana use. This makes finding a space somewhat more challenging, but not impossible.
There also comes the additional burden of affording a space. Commercial kitchens are by no means cheap and often require money down for security deposits, insurance and other fees which can cut into your overall profit. The benefits of combining a kitchen and a shop means you don’t have a middleman to sell your treats; instead you make them in the back, bring them to the front and sell them.
The Financials
Money is the most stressful aspect of starting a new business. In fact, finding funding for your marijuana startup can be nearly impossible, especially when there are only a few financial institutions that will give business loans to companies that work in the marijuana industry.
Many entrepreneurs joining the market start their companies with their own money that they have saved. This is a smart option for doing business and avoiding debt, but it can make your profit potential feel low to start off. Though startup loans are difficult to come by depending on the state you operate out of, there are some places that will work with you.
Grow Your Own Cannabis
The best way to ensure you are using the highest quality buds is by growing them on your own. Nowadays, getting a license to grow your own plants is not too difficult in states where recreational use is legal. The most difficult aspect of growing your own bud in bulk is finding the land to grow it and the employees to maintain it.
Consider purchasing a cheaper piece of land that requires some maintenance. Spend some time working on the land, leveling the ground, tilling the soil, and fertilizing the dirt. Once you have a nice area to begin growing, it will only take a few short weeks before your plants start to turn out buds and you can begin baking.
Build Your Cannabis Brand
Your brand is one of the most important elements to perfect before you begin selling your products. In this industry, there has to be some element of purity and rarity to your product. Most edible businesses that have found success have done so by honing in on a specific niche like gluten-free treats, sugar-free treats and all-natural treats.
Recognizing the potential for profit based on your aesthetics is also vital. For example, if you want to sell an edible that looks like the real thing, you must present it thusly in the packaging by using earth tones and slogans like, “Tastes like home,” or “Like mom used to make.”
Another element of packaging to keep in mind: packaging regulations and standards. For instance, it is now required to have packaging and colors that are not attractive to children, as well childproof to avoid dosing your underage children with CBD and THC. Thus, your cannabis gummy packaging will most likely be muted or in black, which would make kids think it’s something that is only for
adults.
Develop Relationships
Relationships are important for any new and upcoming business, weed-related or not. If you haven’t created the proper connections and developed your professional network, it can be difficult to gain momentum in the market and build a reputation for your company. The edible industry is a market where developing relationships is especially important.
As a business-owner, you want to find people who work in similar fields to you and learn about their successes and how they achieved them. In the marijuana industry, the best way to build your network is by attending legit and professional marijuana conferences where you can test other products, learn about new trends and market your products to thousands of people.
If you are an entrepreneur hoping to join a market with massive growth and even more massive growth projections, the edibles industry can be an excellent choice for you if you live or are willing to move to a state where recreational use is legal.
Bud bakers are always welcome.