Cannabis is the hottest market now for others to start a business because of its current legalization worldwide in many areas. While it can be time-consuming and less than budget-friendly, there are ways around the monetary startup costs that can save a great deal of money. This is not to say that NO money is needed as like any other business, there are start up costs, from registration as a business, to equipment (even if minor equipment), advertising costs, and storage and distribution costs.
While starting cannabis business usually takes quite a bit of equity there are budget-friendly ways.
Marketing and advertising must be factored into any business start up costs as without marketing or advertising you are only “shouting into the wind” and others will never know you even exist. For samples’ sake here, the discussion will use approximately a startup capital of $1000.00 USD which is very minor in any business venture. The marketing tips will include referrals (word of mouth) as well as digital marketing as this overall is cheaper and with a broader reach than traditional advertising. Curepen from West Coast Cure Pen is one of the highest in demand and quality products that are available now in the market which has a high market value.
- Buy some cannabis seeds. These can be used to experiment with growing your own small crop and can also be resold to others at a higher price thus bringing a profit. The price for seeds is a LOT cheaper than the price of sapling plants. Research the different types of seeds and experiment with what grows well for you or sells well to others. You need knowledge here first and foremost. Cannabis seeds are of all different varieties and cannabis can be either a male or female plant. Knowing which seeds you are purchasing, how to grow or sell them and at what cost is crucial!
- Purchase containers and soil for your own cannabis growing. Purchasing the right type of soil is paramount as all soils are not created equally for cannabis growth. A certain mix of chemicals and nutrients must be present in the soil. Containers should be clay or an organic material and changed when a plant grows so as not to inhibit growth.
- If you choose to grow plants, remember that cannabis requires, like a lot of plants a lot of light. Natural sunlight is best, but any hardware store has UV lights that with a little ingenuity can be set up indoors or outdoors to add to the light. No need for expensive lighting equipment in the beginning.
- Start a blog or website. These do not need to cost a lot of money as you can now make your own with many of the apps and software additions out there for a few bucks a month. The need for a presence must be taken seriously though. Again, digital marketing is needed now in today’s world for any business but especially cannabis as many searches for product and or medical suppliers are done online.
- Make flyers to hand out, even if homemade. These can be left anywhere that residential or medical marijuana sales are legal. Medical marijuana while extremely safe has proven in many areas to be costly and consumers are always looking for cheaper alternatives.
- List your website for free online everywhere you can. There are many business listing free sites online; it just takes research and time.
- On your own website and on business listings, Ask for testimonials. Testimonials not only help rankings but are proven to increase trust and of course sales.
- Involve friends and relatives and offer a portion of proceeds for some of the capital. Many will be delighted to do so since cannabis is so popular.
- Advertise for “angel investors.” There are investors who seek start up cannabis businesses. They routinely search for newcomers and will invest capital into your business if you show them a good business plan and marketing plan. But remember, you must do your homework. No investor will invest in anything that lacks a solid business and marketing plan. Project yourself as a good prospect and offers may come your way. A simple Google or other search engine search will reveal which investors are actively looking for start-ups. Some angel investors will offer 25,000 USD and up to 250,000 USD to what seems to them a solid start up. Be prepared though, as these investors do want results. You are using their money and they will not take excuses for not putting the time and effort into a business. They do not expect immediate results but do expect that any person they invest in will work hard and put in the necessary time and energy to achieve results. They may require or even provide a timeline that a business must follow with goals set and achieved by certain dates.
- Got to “meet ups.” This is a good way to meet investors, form relationships, advertise and acquire knowledge about the cannabis business. Most “meetups” are free and can be found online and in offline classified ads.
- Sell other products that are tied into cannabis on your website and elsewhere. This will give you a little running capital in the beginning which you will need. All types of other products can be sold as even cannabis lip gloss exists. Other vitamin and mineral supplements can also be sold as well as cannabis oils and even reports on cannabis. You can write cheap, free reports yourself and use them as downloadable giveaways prompting others to revisit your website or blog time and again thus increasing sales revenue.
- Attend seminars online on cannabis. Some involve a certificate which you can then earn and post on your website or blog. Remember, trust in business is everything! Most seminars are free online or cost a minimum of monies.
- Place most of your advertising where it will matter the most. Research areas on cannabis usage and laws. For example, in the United States, California is the state with the highest usages of cannabis and the most demand, while Colorado is the lowest. Since most advertising of your cannabis business will be done online, marketing primarily to regions with the most usage will see a bigger profit and cut advertising costs.
- Be creative. Research how others have started lucrative cannabis businesses with little to upfront costs on their part. The creativity is astounding and well worth the time to do the research before starting. There is no need to reinvent the wheel when many great examples of low-cost budget marijuana dispensary examples exist online.
Most of all remember that lack of funding is only a temporary obstacle.
Seeking monies in other avenues must always be done and saving money where possible another priority. While more capital means quicker success, small budget cannabis businesses can see success. The guidelines above will help but always remain open to new ideas also. If something seems to work for someone else, try it yourself. Failure only occurs when business owners give up on their dreams. If a cannabis business IS your dream do not let lack of monies deter you!