The cannabis industry is rapidly growing, increasing the amount of marijuana business entrepreneurs. As any business would, the marijuana industry has a lot of startup costs, from buying equipment, merchandise, and marketing.
The marketing of any business, especially one that is considered to be risque, can be the determining factor of success, it can help in many aspects, from getting start-up capital, finding investors, and even maintaining revenue. Research, paired with a well-done marketing plan can be the necessary green-light to getting your marijuana business off of the ground via cannabis business loans.
The Basics of the Marijuana Industry
With the legalization of marijuana in the majority of states, either recreational or medicinally, the industry has grossed nearly $10 billion in the year 2018 alone. With the taboo of marijuana decreasing, the amount of entrepreneurs in the weed industry is growing. Even with the immense return, start-up costs are high.
There are a few hiccups in creating this business prototype; while many people are making money selling legal marijuana, a lot of mainstream banks and loan offices are still afraid to touch these startups, regardless of a high chance of a return. Due to the drug’s Schedule 1 status, the participating FDIC members cannot extend financing or handle money associated with this industry. Even with the smaller local loan options, there are necessary regulations to follow to secure a cannabis business loan, which is why the marketing of your business is important.
There are many opportunities in the marijuana industry, but if you want to stand out, marketing is important. The marketing of a product can determine how much you will earn overall. For some people, the initial capital will be hard to acquire; with that, it is important to have a great business plan. Again, the small number of companies willing to take the risk want to make sure you are a secure investment. Knowing your audience and making sure they are legal is important because the negative push-back of marketing to minors will kill the potential growth of a business, making your chances of getting funding smaller.
Also, make sure not to offend certain customer demographics (being sexist or discriminatory). Avoiding big company copyrights is also necessary; the last thing you want when becoming an entrepreneur is to be sued by big business, especially if they do not want to be associated with the industry. Also, advertising in magazines and industry-specific publishing opportunities will help you spread the word on your business ventures.
Businesses require startup capital, and for the entrepreneurs that cannot afford it upfront will have to get funding; based on how you market your business plan, there are numerous resources, such as crowdfunding and angel investors, that can assist you in achieving your dreams.
To be successful, do the necessary research to assist in properly starting and maintaining your marijuana business. Who knows, your marketing my attract a large investment opportunity that will get your business high as a kite.