How to start a weed business

Published Jun 8, 2019 12:14 p.m. ET
Credit: Soifer

Learning how to start a weed business can be overwhelming to the average person and should not be attempted without the aid of a lawyer. All new business ventures should have a business plan accompanying them.

To start a weed business, let’s look at what the cannabis industry has to offer. The business is comprised of legal producers, cultivators, and consumer products to name some of the branches of the cannabis industry.

The business of growing marijuana and distribution of marijuana in Canada is legal, so long as you obtain the proper federal licenses.

There are three types of licenses that you will need to obtain.

  1. Processing license: two types:
    Micro-processing
    Standard processing

  2. Federal sales license: this license will allow the sale of medicinal and recreational cannabis

  3. Cultivation license: which has four classes
    Nursery
    Hemp
    Micro
    Standard

Growing marijuana is, by far, not the only aspect of starting a weed business. The opportunities are vast. This is a new emerging business, and many aspects of the cannabis industry are budding and ready to produce.

There is a move in the direction from recreational growing marijuana to the medical opportunities that are available. Moving forward, there is an emerging third market for the cannabis industry, wellness. This market is right along with and may surpass the demand for one or either the recreational or medicinal markets. Private companies are now offering medical cannabis coverage to its consumers.

A unique idea is imperative to a successful venture.

The common misconception is that the best and most profitable section of the cannabis business is growing marijuana and dispensaries. There is so much more if you are into the food business, why not consider an edible line. This sector of the cannabis business in Canada is ready to explode. October 2019 is the second round of legalization in Canada and promises a wild ride for the cannabis industry.

The hospitality industry is also primed for the cannabis business explosion. Bud n breakfast accommodations are becoming popular. The cannabis user is looking for a safe and relaxing environment to enjoy their marijuana while travelling across the country.

With the legalization of marijuana in Canada, there is a vast number of new consumers who are looking for methods of consuming cannabis. Vaping is a method of consumption that consumers look on as healthier and safer than smoking a joint. The weed vape industry is a significant part of the cannabis industry that a new business may fair well in. The variety of pens to use for the consumer who enjoys a weed vape is enormous. The market that includes the sale of vape accessories has an excellent chance for succeeding. This method of consuming marijuana is becoming very popular.

Credit: Fidan Babayeva

Know who your consumer is

Your idea must fill an unmet need to succeed. Know what it is that your consumer needs from you. Get to know your consumer and build a relationship with them.

Understand and be knowledgeable about the laws and regulations

The opening of a legal cannabis business can be very confusing and warrants the hiring of an experienced attorney that is knowledgeable to the laws and regulations of the area you plan to conduct business.

As of October 2019 approaches, Canada is ready for the cannabis industry to explode for the second time with the addition of edibles, concentrates, and tinctures are becoming available. Learning how to start a weed business can be a profitable venture. Starting on the ground floor of the growing marijuana business in Canada can be the advantage you need in this budding industry.

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