The United States, and indeed all of North America, seems to be changing its stand on cannabis, especially when it comes to recreational use. To date, 19 states and Washington, D.C., have legalized cannabis for recreational use, and other states across the country are slowly adopting softer stances, such as the legalization of cannabis for medical use or decriminalization of cannabis. Moreover, the cannabis industry is a multibillion-dollar industry and is showing steady growth, making it a prime business opportunity for cannabis enthusiasts with an entrepreneurial spirit.
Even though the cannabis industry is fun, exciting, and burgeoning, many pitfalls are unique to cannabusinesses. Moreover, the U.S. government has yet to legalize it at the federal level, so business owners must tread carefully to protect their investments. If you’re considering going into the marijuana industry, it’s a good idea to take the time to learn about some challenges that are unique to the cannabusiness. Continue reading to learn about some pitfalls that are endemic to the cannabis industry.
Commercial Cannabis Growers Need Specialized Grow Houses
One thing about cannabis enthusiasts is they’re knowledgeable and picky when it comes to quality. Cannabis strains and brands that are high quality quickly become famous while those lacking flavor and potency quickly go down in infamy. That’s why cannabis growers need special equipment to build efficient grow houses. Commercial greenhouse rolling benches are premium equipment for growers who want to maximize their greenhouse space. Furthermore, rolling benches prevent greenhouse workers from having to stoop and reach to tend to plants, making your commercial greenhouse more productive, efficient, and safe.
Cannabis Businesses Have Unique Insurance Needs
Cannabusinesses also have unique insurance needs. It’s a good idea to do your research to learn the different types of coverage for the type of business you own. It’s essential that you get enough of the right coverage, as there are cannabis insurance solutions for wholesalers, builders, landlords, dispensaries, and growers. You can get coverage for product liability, surety bonds, business income, and much more. Be sure to do your due diligence to get the right insurance products and the best rates.
Cannabis Business Owners Need Expert Legal Representation
With cannabis still being illegal at the federal level, the cannabis industry can be a bit of a legal minefield. Indeed, all cannabusinesses need expert legal representation to be sure they remain in compliance with state regulations and receive professional legal advice should they come under scrutiny from federal authorities. Furthermore, having a business lawyer is like having a great business partner.
Cannabis Operations Often Have Trouble Finding Banking Solutions
Another challenge unique to the cannabis industry is finding banking solutions. Once again, cannabis’s status at the federal level makes it an industry that national banks don’t want to touch. In fact, one of the most valuable services a cannabis lawyer can provide is helping you find a bank that works with dispensaries and growers.
Business Owners In The Marijuana Industry Face Greater Security Concerns
As you can imagine, cannabusinesses also face greater security risks than most other businesses do. First of all, they sell a product that many people love. Furthermore, they’re also frequently the targets of robberies, as many dispensaries deal solely in cash. So, it’s imperative to invest in an advanced physical security infrastructure that utilizes the internet of things (IoT) and deep learning technologies.
As you can see, there are a lot of challenges that are unique to the cannabis industry, from tight state regulations and the fact that marijuana is still illegal at the federal level to exposure to security and liability issues. Business owners in the marijuana industry have to be diligent to protect their investment and build a successful business. With the right strategy and resources, your cannabusiness can become an industry leader in the rapidly growing marijuana business.