6 Tips To Build A Medical Cannabis Business
The best way to be part of the green rush
The global cannabis business is currently valued at more than $340M (about 302 million euros.) Currently, it has about 263 million consumers. Moreover, there are over 200 companies related to the medicinal use of cannabis listed on the Canadian and New York Stock Exchanges. It sums a total of $80M in market assets.
Investment in the cannabis sector has been possible for a few years and is currently an expanding market with the advancement of regulation in countries such as the United States, Uruguay, and Canada. Canada is the country with the largest legal cannabis market in the world, although it is the Asian continent that has the most business with about $132.9B, followed by North America (85.6 billion dollars) and Europe (68.5 billion dollars.)
Despite the worldwide ban, its recreational use is legal only in Canada and Uruguay. Some 30 countries have approved the use of medical marijuana and experts believe that its consumption increases in a market in full expansion.
Tips to Work in the Cannabis Business
1. Prepare the license
There are four licenses you must request to enter the medical marijuana market: seeds, cultivation, manufacturing, and marketing. You will get these licenses after applying for them in the National Narcotics Council or the Ministry of Health.
2. Be flexible
Every cannabis business is a startup. When you go to a job interview, you will most likely talk directly with the company bosses and not with an HR team. Understand that you are facing the closest thing to a family business in most cases.
3. Be open-minded
Ask about what the company is doing. Find out if there are licenses you need to prepare, if they have a financing plan they can show, and what their plan is. The idea is to know how other companies operate. You may not be interested in working in a company that operates with poor licenses or whose financing is threatened.
4. Expect changes and enjoy those changes
The changes in the cannabis industry are constant and happen overnight. To take three years in the business is to be a true veteran. Companies are subject to the laws of the states, so any slight modification of those laws causes one to have to restructure the entire company.
5. The passion is fine, but it is better that you have skills
It is good that you like the cannabis business or that you are crazy about the way startups work. But what you need to know is what skills and experience you have. This is because consumers are looking for professional sellers that guarantee the quality of the product, shipping, and handling.
6. Prepare to do many different jobs
Cannabis companies usually have less than 50 employees. Therefore, it is quite common for everyone to do tasks for which they were not hired. For example, if you have to package orders that you are in a hurry to distribute, the logical thing to do is ask help from whoever is there during the shift or simply do it yourself.
Types of Successful Cannabis Businesses
Now, let’s take a look at some business ideas in the cannabis sector. Remember that growing and selling cannabis yourself isn’t the only way to profit from this business. Let’s begin!
B2B specialized logistics
One of the biggest problems of the cannabis industry are its sales, transportation, and method of payment. In many countries, cannabis plants are not regulated yet. Therefore, it represents an illegal act. This makes business solutions of this type almost indispensable.
This is how Wayv, a logistics platform that facilitates the management of cannabis supplies, orders between companies. Founded by Keith McCarty, this company also manages sales, transportation, and payment. All of the work is done by an operating software. The platform allows users to verify the regulations in each country where it operates, ensuring compliance with the law. This business model is profitable, but it is necessary to meet certain requirements established by law.
Specialized products
Addressing the specialized needs of a market segment is another way to undertake the cannabis industry, especially when the product is focused on improving health. Daye startup has done it. This startup was founded by Valentina Milanova, who has a mission to offer vaginal pain treatments. The product promotes an analgesic effect from its CBD ingredient. CBD is a non-psychoactive substance in the plant, which helps relieve pain.
According to the company’s website, the advantage of this formula over traditional pain relievers is that it is more effective against pain. This is because the vagina has the highest concentration of cannabinoid receptors that go directly to the bloodstream.
Quality analysis
One of the main requirements for cannabis in various countries is laboratory tests that certify the quality of the strain. This factor determines its effectiveness, price, and even its harmful effects. It is worth mentioning that this business niche is one of the most profitable in the market. You can also get the potential of being funded by the sponsor. For example, Cannalysis has already received 22 million dollars.
Organic crops
An Italian company called Canapar works closely with the University of Alicante and Catania. Their mission is to improve the quality of cannabis cultivation and production, as well as its yield naturally. They do it without using pesticides, fertilizers, herbicides, genetically modified organisms, antibiotics, or growth hormones. This approach produces a sustainable and environmentally friendly way, as indicated by its website.
Takeaway
A report recently said that there had been 200,000 jobs created in the U.S. cannabis industry. It is expected that many more will arise as states begin to legalize one by one various aspects related to the sacred plant. As with any other business, there will be a risk to run it. However, if you never try, you will never know!
What other tips do you have for getting into the cannabis business? Let us know down in the comments.
This article originally published on GREY Journal.
This article originally published on GREY Journal: https://discovergrey.com/hustle/grow/6-tips-to-build-a-medical-cannabis-business/
