5 Things You Need to Know in the Marijuana Business

If you’re interested in starting a business in the medical marijuana industry, you’re in good company. Medical marijuana growth and sales are booming in the United States. As a result, there is the potential to make a lot of money in this field.

The federal government has not passed a bill to legalize marijuana use. Although, 18 states allow it recreationally. And 36 states allow for medical marijuana use.

By 2025, revenue from legalized marijuana is forecasted to break $25 billion. So by that estimate, you can imagine how much money businesses will be making in 2030 and beyond!

As lucrative as medical marijuana sales can be, there are some challenges and pitfalls to be aware of. The following are five things to keep in mind before opening a medical marijuana dispensary.

1. It Is Still a Schedule I Restricted Substance

If you live in the 36 states that allow medical marijuana use, there’s something to keep in mind. Congress has not yet legalized or decriminalized marijuana distribution, cultivation, processing, and sales.

Therefore, it is illegal at a federal level. For this reason, marijuana is a Schedule I restricted substance. It has the same legal status as drugs like LSD and heroin. But, surprisingly, it’s in a more restrictive category than cocaine, a Schedule II drug.

As such, you can’t transport marijuana across state lines. This is still true even if both states have marijuana programs.

However, the Rohrabacher-Blumenauer Amendment does provide some protection. It prohibits the DEA from using funds against those in states with medical cannabis laws.

2. An Educated Staff Is Preferable

When starting a business, recognize that not everyone will be experienced with marijuana. There’re likely many customers that’ll use medical marijuana for the first time. Therefore, your staff should include wellness consultants. These types of consultants are referred to as budtenders.

Wellness consultants must be knowledgeable about the products you sell. If possible, hire employees who use marijuana themselves.

That way, they will be familiar with the ailments marijuana can treat. This is especially important for medical marijuana newbies. In addition, it’lll be helpful to give new users guidance so they can decide on which products to buy.

Your facility may also offer educational classes promoting medical marijuana and wellness. You can address specific conditions. For example, a program can cover the needs of senior citizens. Or, a course may discuss how marijuana helps those who have PTSD.

3. Overcoming Banking and Financial Challenges

The biggest challenge you will face is banking. Since marijuana is still illegal, FDIC-insured institutions cannot do business with them. You may have to work with state-chartered banks or private banks.

Additionally, you will need to receive payment from patients in cash. Another option is to use apps designed explicitly for this payment type.

In California and many states, the app CanPay serves as a middleman. CanPay makes it easy for patients to purchase medical marijuana from a dispensary.

After registering with the app, an individual can buy at a dispensary using a QR code. The dispensary will then withdraw funds from the patient’s bank account. It’s like an ATM transaction.

4. Advertising Limitations

Advertising your medical marijuana business can be challenging in many states, including California.

You can send promotions to your customer base. However, you won’t be able to advertise on social media platforms.

Why is it challenging to advertise on social media? Illegal drugs are against the terms and services of these platforms. Facebook has taken down ads and fan pages for medical marijuana dispensaries without warning.

5. Business Protection with Armed Security Guards

Theft and vandalism are possible in any business. However, the built-in risk of marijuana dispensaries makes having armed security guards a must. Since marijuana is becoming more prevalent in California, security is all the more essential. Special Security Services has well-trained guards who can help protect your business.

Marijuana dispensaries are mostly cash only. This means that your business will have large sums of money at the end of the day. Unfortunately, with a lot of cash, your business becomes a target for criminal attacks.

Marijuana is easy to transport because it is small and easy to hide. In addition, there is a considerable street demand for marijuana, which further incentivizes thieves.

If your inventory gets robbed, you may lose thousands of dollars. That’s frustrating, considering you may have no financial recourse if it gets lost.

Medical Marijuana Can Be a Lucrative Opportunity

Public opinion and legislation are leaning toward a more favorable view of marijuana. So, it’s only reasonable to expect its use to grow.

Medical marijuana can be a lucrative opportunity for daring business owners willing to learn.

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