Cannabis Business Social Network
Cannabis is increasing in popularity across the United States as more and more states make both medical and recreational use of marijuana legal. Marijuana usage is connected with a number of physical and psychological effects that people desire. They include reduced anxiety, increased appetite, pain relief, and other desirable effects.
It is not surprising that cannabis enthusiasts are seeking each other out online. In order to meet this need, many marijuana entrepreneurs have established a presence on various social media systems, including Facebook, Instagram, and Twitter. However, over time, many of these businesses in the cannabis industry have had their accounts shut down without warning.
Since cannabis businesses want to connect with potential customers and other cannabis companies, many have developed their own social media sites, thereby circumventing pushback from the Apple and Google app stores, who frequently reject cannabis-related apps.
The cannabis industry has developed considerably in recent years in response to growing legalization and an inundation of money from venture capital firms and other investors. In Nov. 2022, Maryland and Missouri legalized recreational marijuana. This brings the total of recreational marijuana to 21 states and allowed medical use of cannabis to 37 states.
The legalization and sale of cannabis are progressing quickly not only in the U.S. but globally as well. Global marijuana sales are expected to surge from $13.4 billion in 2020 to $148.9 billion by 2031.This increase in opportunity has produced a lengthy list of startups, IPOs, and also a swell of cannabis-related mergers and acquisitions involving companies in production, distribution, real estate, retailing, and other areas. Banking continues to be a dispute because marijuana companies within the U.S. are not legally allowed access to traditional banking services. Recent Federal Reserve rate increases may make it more problematic for cannabis companies to build capital for future growth.
The cannabis industry in the United States is about more than just growing and marketing cannabis. There are many 420 business related ideas and opportunities that have begun to trend. Some 420 business ideas are directly related to marijuana itself, while others provide support services to the industry.
These types of ancillary cannabis businesses include On-Demand Delivery Services, Consultancy Services that help startups that may not be aware of all the regulatory requirements in opening a cannabis business in their state. These consultancies could guide 420 businesses through the various business processes including licensing and operating within the law. Designing marijuana dispensaries is another consultancy service that has great business opportunities as more and more dispensaries are opened rather rapidly in a number of states.
Architectural firms would be well-suited to serve the dispensary owners. The 420-business concept is a niche, but well worth going after because of the revenue potential. Architectural firms would elevate the cannabis industry by providing professional design services, upscale retail spaces and increased emphasis on security within the facility.
As the cannabis business continues to grow, there are many technological applications that are in great demand as 420-businesses attempt to find the right tools that will suit the specialized needs of the marijuana industry. The specialized marijuana software industry is booming, with plenty of room for other players. Services range from cultivation software to point-of-sale, to compliance. There are many issues in the marijuana industry including distribution and supply chain. Many of these problems can be solved with technology by the appropriate software developer.
What is the best business structure for a cannabis business?
The C-corporation is one of the best and most common individual structures for a cannabis business. The C-corporation exists as a detached and discrete legal and tax entity from its shareholders, unlike partnerships and most LLCs.
As a cannabis business owner, you recognize that owning a small 420-business can be risky. The best way to protect your personal assets is by registering your cannabis business as a corporation. Once you register your business, your 420-business gains the ability to carry on business, claim liabilities, and own property. The corporation will be held legally responsible for any debts acquired. If the business begins to struggle financially and goes into debt, any personal assets that you or any officers or shareholders own will be protected.
How to start a cannabis business
If you desire to start a cannabis business, you’ll need to work with the Office of Cannabis Management (OCM) in your state, your local government offices and several other government agencies.
You will need to secure the correct licensing and ensure you have all of the proper permits and appropriate insurance. If you wish, you can get a license as a commercial grower, but this requires a license from the state Department of Food and Agriculture or some other state government agency. In some instances, other types of permits may be necessary from state agencies as well as chemical analysis of your products.
If you wish to cash in on the cannabis industry, the field is still undeveloped and increasing. The U.S. cannabis market produced about $10.8 billion in 2021, and the U.S. market is expected to grow at a rate of approximately 15% annually from 2022 to 2030. It seems that many types of cannabis startups will have a great opportunity to launch their business and grow with great success.