Four Basic Strategies for Investing in a Marijuana Business

 In recent years, the marijuana industry in the United States has undergone changes that are nothing short of dramatic. A decade ago, using the drug legally for recreational and even medical purposes seemed close to impossible. In fact, it was just in 2003 when the DEA ran the infamous Operation Pipe Dreams, which effectively closed every shop that sold drug paraphernalia on the internet.

Yet in 2018, the legal marijuana industry has become a multibillion-dollar industry, and it is estimated to grow even more. In fact, New Frontier Data estimates the legal marijuana market in the United States will be worth over $24 billion by the year 2025. If you want to tap into this potential and try your hand in the legal marijuana market, then here are some basic but important strategies to get you started.

Find and Focus on Your Passion

The legalization of marijuana has opened a lot of doors not just for cannabis products but complementary products and services as well. So before anything else, figure out what your strengths are as an entrepreneur and weed enthusiast so you can narrow down your options and focus your resources on that.

Are you interested in the cultivation of marijuana? If yes, then you can start a greenhouse where you can develop your own strains to supply to various sellers and dispensaries. If you are more into the lifestyle and promoting it, then you can open a shop for paraphernalia like bongs, pipes, and products like detoxifying kits and hair testing shampoo.

Create a Business Plan

A business plan is an important tool for enticing possible investors, and it will serve as a guide for making decisions related to your new venture. In order to create a foolproof business plan, you need to take adequate steps to identify the strengths and weaknesses of your company and any threats and opportunities found in the environment. Here are some key questions that can help you define your business plan:

• What is your unique selling proposition?
• What makes your products and services different from competitors?
• Who are your potential competitors, and what are they good at?
• Who is your target market, and what are their needs and pain points?

Hire a Lawyer

Almost all businesses need a legal professional who can give sound counsel for dealing with both basic and complex legal decisions. Enlisting the help of a good lawyer will be especially useful in an industry as relatively new and volatile as marijuana.

Even if you live in a state that has legalized cannabis, you will still need help in dealing with potential legal issues as well as special permits, taxes, and licenses. A lawyer will help you find your way through various legal details and prevent any violations.

Build Your Network

The legal marijuana industry is still very new, and so it is uniquely community-focused. That said, it is important that you integrate within the community so that you can build a solid network of partners, suppliers, and a general support system. Join local conferences to keep up-to-date on the latest developments and news about weed in your state.

Reach out to key influencers to discuss legal and business strategies that will strengthen not just your business but the industry as a whole. Internet technology has also made it possible to easily reach out to other weed enthusiasts around the world, and they can give you invaluable advice for various aspects in your business, from branding to product development.