Thursday, May 19, 2022
High Yields Cannabis/Marijuana/ Weed News
  • Home
  • Cannabis Stocks
  • Cannabis Strains
  • Cannabis Laws
    • Marijuana Laws in All 50 States
    • International Marijuana Laws 2021
  • Product Reviews
  • Growing
  • Write for Us
No Result
View All Result
  • Home
  • Cannabis Stocks
  • Cannabis Strains
  • Cannabis Laws
    • Marijuana Laws in All 50 States
    • International Marijuana Laws 2021
  • Product Reviews
  • Growing
  • Write for Us
No Result
View All Result
High Yields
No Result
View All Result
Home Cannabis Stock Quotes & News

The cannabis business is booming – but for entrepreneurs, success requires diligence

Jeremy Vedder by Jeremy Vedder
March 29, 2022
in Cannabis Stock Quotes & News
0
Jushi Holdings Inc. Reports Second Quarter 2021 Financial

READ ALSO

TILT Holdings Inhalation Hardware and Cannabis Extraction

Medical Marijuana, Inc. Reports $7.8 Million in Net Revenue

According to the Bureau of Labor Statistics, around 70 percent of small businesses fail in the first 10 years. When that small business is in the cannabis sector, the chances of failure are even higher.

As more and more states legalize cannabis for medical and recreational use, more and more entrepreneurs are looking to enter the market. Like all new businesses, though, they face tough challenges. But the nature of the product adds extra levels of complexity, not least because the regulatory landscape is incredibly variable and cannabis is still illegal at the Federal level.

What looks like an appealing opportunity-rich sector at first glance can quickly turn into a tricky area of business. It is not for everyone. But if you wish to establish or invest in a cannabis business, the following key steps will improve your chances of success.

1: Choose your state wisely. Eighteen states plus D.C. have legalized recreational cannabis use. More are in the process of formalizing detailed regulations. But that does not mean that each of these states is the right place for your business.

For most start-ups, state taxes will be a dominant factor in choosing location. While that is still true for cannabis businesses, the really key consideration is licensing. Some states like California have no limits to the number they make available – but that means intense competition and low prices. New York, however, is looking to limit the number of licenses issued, which will ensure better control over production and market volumes and allow for more competitive pricing. But it also means licenses are harder to obtain and makes it almost impossible to vertically integrate production, distribution and sales.

Elsewhere, some states limit what products can be sold in-store; others require applicants to have a specified level of liquid, land or building assets; still others require licenses to be renewed annually. In Maine, license applicants must be residents for four years. In New York, green and social equity initiatives are being integrated into cannabis business regulations.

Whatever the licensing requirements, they will inevitably affect your prices, competition and business growth prospects.

2: Understand the geographical nitty-gritty. Regulations are not just a state-level issue. Cannabis businesses are subject to local zoning and environmental impact plans, and the requirements of individual municipalities. Like it or not, some towns simply do not want cannabis retail in their neighborhood – and have voted it down. In New York, the Office of Cannabis Management is expected to consider both geographical and census information when determining who gets a license, as well as the number of licenses to be issued.

Like state governments, local authorities are walking a very fine line. In Massachusetts, cannabis clusters have developed in certain neighborhoods as they are squeezed out of others. What’s more, communities that are too restrictive run the risk of the illicit market filling the gap. All these considerations will have a very real impact on the future success of your business.

3. Weigh risks and rewards. This is something every entrepreneur has to do, but operating within a highly regulated industry like this comes with above-average cost burdens. You need to be sure that this is something you really want to get into as an entrepreneur. Just because the opportunity is there doesn’t mean that sustainable profits and long-term success will inevitably follow.

You will naturally need sound knowledge of the cannabis business, whether in retail or cultivation, but you will also need the acumen and the know-how to run a business. As an entrepreneur you have to master all these components and make a fully informed decision as to whether the advantages outweigh the disadvantages.

To Read The Rest Of This Article By Matthew VanDerbeck on Benzinga

Published: March 29, 2022

Founder & Interim Editor of L.A. Cannabis News

[Original Source]

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Share 0

Related Posts

Medical Marijuana, Inc. CEO Featured on Seeking Alpha’s CEO
Cannabis Stock Quotes & News

TILT Holdings Inhalation Hardware and Cannabis Extraction

May 19, 2022
Appointment of the Head, Team Development and Culture
Cannabis Stock Quotes & News

Medical Marijuana, Inc. Reports $7.8 Million in Net Revenue

May 19, 2022
Proactive news headlines including KGL Resources, Critical
Cannabis Stock Quotes & News

Isracann Biosciences Subsidiary Praesidio Health Submits

May 19, 2022
Allied Corp. Initiates Additional Shipment of 200kgs of CBD
Cannabis Stock Quotes & News

Verano Announces the Opening of MÜV Ocala, the Company’s

May 19, 2022
Jushi Closes Ohio Cannabis Processor Acquisition – New Cannabis Ventures
Cannabis Stock Quotes & News

These LA cannabis startups are blazing a trail in the metaverse

May 19, 2022
Appointment of the Head, Team Development and Culture
Cannabis Stock Quotes & News

Kevin Durant to David Letterman on cannabis: ‘I’m actually high right now’

May 18, 2022
Next Post
Cronos Group Launches Delicious New Dual-Flavor Cannabis

Analysts agree, federal cannabis legalization unlikely to happen soon. Does SAFE Act have better chance this year?

  • Trending
  • Comments
  • Latest
Monthly Spotlight: The Best of Plain Jane CBD

Monthly Spotlight: The Best of Plain Jane CBD

April 8, 2022
The Ultimate Dr. Dabber Stella Vaporizer Review for 2022

The Ultimate Dr. Dabber Stella Vaporizer Review for 2022

April 19, 2022
volcano hybrid review 2022

The 2022 Volcano Hybrid Vaporizer Review: All You Need To Know

March 19, 2022
The Utillian 5 v3 Wax Pen Review for 2022

The Utillian 5 v3 Wax Pen Review for 2022

March 27, 2022

The 7 Best Smell-Proof Weed Bags To Keep Your Bud Stash Safe

April 27, 2022
The Best Synthetic Urine Kit to Pass Your Drug Test in 2022

The Best Synthetic Urine Kit to Pass Your Drug Test in 2022

March 28, 2022
The 10 Best Smell Proof Backpacks for Weed in 2022

The 10 Best Smell Proof Backpacks for Weed in 2022

May 5, 2022
HEXO Corp.’s Shareholders Overwhelmingly Approve Redecan

TILT Holdings Inhalation Hardware and Cannabis Extraction Collaboration Launches in Massachusetts

May 19, 2022
Former NFL Running Back Marshawn Lynch Launches Premium Blunt Brand

Former NFL Running Back Marshawn Lynch Launches Premium Blunt Brand

0
Major Marijuana Coalition Forms To Coordinate Legalization Push, But Some Key Advocacy Players Aren’t Involved

Major Marijuana Coalition Forms To Coordinate Legalization Push

0
MMJRecs - cannabis leaf

How Medical Marijuana Can Help Treat Sleep Disorders

0
Colorado Cannabis Sales Exceed $2 Billion in 2020

Colorado Cannabis Sales Exceed $2 Billion in 2020

0
HEXO Corp.’s Shareholders Overwhelmingly Approve Redecan

TILT Holdings Inhalation Hardware and Cannabis Extraction Collaboration Launches in Massachusetts

May 19, 2022
Grove Inc. Expands into the Programmatic Advertising

Planet 13 reports 1Q revenue increase as the company expands operations in California and Florida

May 19, 2022
California cannabis brands fined for violating Environmental Laws

Canopy Growth Acquires Jetty Extracts

May 19, 2022
Pharmagreen Taps Revenue Potential of Proprietary

Cresco Labs secures $38 million tax breaks for New York cannabis facility

May 19, 2022

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • March 2020

Categories

  • 1933 Industries
  • 4front Ventures
  • Acreage Holdings
  • Ascend Wellness
  • Ayr Wellness
  • Body & Mind
  • C21 Investments
  • Cannabis Stock Quotes & News
  • Cansortium Inc
  • Captor Capital
  • Ceres Acquisition Corp
  • Chalice Brands
  • Columbia Care
  • Cresco Labs
  • CuraLeaf
  • Gage Growth
  • Glass House Brands
  • Green Thumb Industries
  • Grown Rogue International
  • Harborside
  • Item 9 Labs
  • Jushi Holdings
  • Lowell Farms
  • MariMed
  • MedMen Enterprises
  • News
  • Next Green Wave
  • Planet 13
  • Plus Products
  • Product Reviews
  • Red White & Bloom
  • SLANG Worldwide
  • Sol Global Investments
  • TerrAscend
  • TILT Holdings
  • Trulieve
  • Verano Holdings
  • Vext Sciences
  • Vibe Growth

Recent Posts

  • TILT Holdings Inhalation Hardware and Cannabis Extraction Collaboration Launches in Massachusetts
  • Planet 13 reports 1Q revenue increase as the company expands operations in California and Florida
  • Canopy Growth Acquires Jetty Extracts
  • Cresco Labs secures $38 million tax breaks for New York cannabis facility

QR Code

The cannabis business is booming – but for entrepreneurs, success requires diligence
No Result
View All Result
  • Homepages
    • Home Page 1
  • News

© 2021 High Yields