Expert Guide on How to Start a Cannabusiness

how to start a cannabusiness

Are you passionate about marijuana and want it to be a full-time job? With the ongoing cannabis legalization in the world and the power of the internet, today is the perfect time for you.

People want to try and sell marijuana. However, it is a small margin business. With the increasing popularity of the legalized market, you have numerous new choices in the type of business you want to start in the cannabis market. 

In this article, we will teach you how to start a cannabusiness and how to promote it to attract customers.  

How to Choose a Cannabusiness

As mentioned earlier, it is the best time to start your cannabusiness, and various markets legalized cannabis has established. Like for example, we have here some ideas of original businesses that you could initiate and without even having to do with selling marijuana: 

  • CBD Store
  • Social Media Marketing for Cannabis Business
  • Cannabis Business Insurance Provider
  • Vape Accessories Shop
  • Web Design for Marijuana Companies
  • Cannabis Product Promotion Designer
  • Dispensary Security Form
  • Software for the Marijuana Business

Picking a cannabusiness is an essential part of the process of how to start a cannabusiness. Make sure you pick a business that makes a profit enough to live and survive. 

Also, there must be an attractive market for what you’re selling, or you will have a difficult time looking for customers.

Perform a quick search on Ahrefs or Moz to check if people are looking for a particular product.

Like for example, you want to begin a rolling paper business that produces unique rolling papers. You can perform quick keyword research in Ahrefs and discover over 12,000 searches per month for this keyword.

This indicates that a vast number of people are searching to buy rolling papers on the internet. If the Rolling papers cost $2 to produce $5 to sell, you can earn $3 per sale. 

Suppose you become #1 on the Google search result for the rolling paper (although this is quite difficult) and have 12,000 visits per month. Even 5% of people who bought the rolling papers earn 1800 dollars per month, and that is from one keyword alone. 

This is one way of doing online marketing research, but also spend a couple of hours or days searching what you want to sell and be sure that there’s a big market for it. 

How to Start a Cannabusiness

After you’re finished doing marketing research and picking your products or services, it is now time to establish your business.

You should start a business system that splits your private and business revenue, so you are not pressured if something happens, and believe me, it’s possible. 

You need to sign up for the state’s business website and sign up for an LLC or ((limited liability company), no matter where you live.

This creates a gap in your business and personal tax, revenue, and legal problems, so you cannot be accountable personally.

Register an EIN

Since you’re already a legal business, you need to pay taxes.

Registering EIN with the IRS is the final thing to accomplish to launch your cannabusiness legally. EIN is the abbreviated name of the “employer identification number.” It is the social security number of your business. The IRS monitors your revenue and expenditure, and you need to execute anything with the business.

If you have an EIN, register with vendors, make a business bank account, apply for a business credit card, etc. 

License and Regulations

If you want to go into the dispensary, cultivating, or growing cannabis business, extra work is needed. 

Every state has its different licenses and rules that you need to launch your cannabusiness.

In Nevada, you must call the department of taxation to get your medical marijuana store license.

If you’re from California, you must call one of the departments to ask more about the licensing process:  

  • Manufactured Cannabis Safety Branch
  • CalCannabis Cultivation Licensing
  • Bureau of Cannabis Control (BCC)

To know how to get a license from your state, you can google “{Your State} Marijuana License,” and you’ll see all the information needed. 

Promoting a Cannabusiness

The only way you can market your products or services is to promote your cannabusiness. It is a vital part of how to start a cannabusiness, so you must listen attentively.

Once your business is ready, it is time to introduce it to the target audience. But how are people going to visit your website and shop for your products or services?

Social Media Marketing

Among the most prominent and influential ways to promote your online cannabusiness is by using social media. Both Facebook and Instagram have millions of active users every day.

First, you must make a profile on all the most famous social media sites such as: 

  • Facebook
  • Twitter
  • Instagram
  • LinkedIn
  • Youtube

On every social site, make sure to complete your profile. Add your business name, website, beautiful profile picture, and be sure that you’re posting informative and exciting content regularly, and you follow like-minded people.

Like, Follow, and Engage

On Instagram or Twitter, you search for hashtags that are related to your cannabusiness. 

Let’s use rolling papers as our example again. You can search for a hashtag like #joints or #joint.  

Follow all these users and interact with their postings, and often, these users follow back. 

Run a Contest

Online contests are an ideal way to attract more followers or subscribers and interact with your profile or website. You can run contests or free giveaways by having your subscribers or followers like your post, retweet, or tag friends. 

Also, you can do contests or giveaways or your products or services. We all like freebies and will do anything to win stuff for free.

Search Engine Marketing

The best option to gain more website traffic is SEO. This is the method of website optimization, so it ranks high in the Google page search results for commonly searched terms.

It is perfect for the cannabusiness market since there are low competition and high searches.

SEO has two major categories:

On-Page SEO

This is the process of optimizing a page, so it gets ranked well in Google. Be sure that your website is fast, mobile responsive, have meta titles and descriptions, and make content regularly (or multiple times each week). 

Blogging is the only method you need to increase your website traffic. 

You should write fantastic content about your content or niche. Back to the rolling papers trade, the following are some articles you can write to attract more website visitors:

  • Most well-known rolling paper brands
  • What you should know about rolling paper
  • How to roll the best joint 

These types of articles can attract more visitors and target audience, and eventually become your potential customers.

Off-Page SEO

This is the process also an essential part of SEO or (search engine optimization). Creating backlinks for your website is what will help you rank high in the Google search results.

If You have more quality backlinks for your websites and content, you can rank better in Google.

There are different methods that you can build backlinks. However, the following are some of them: 

  • Guest Posting 
  • Cannabis directories
  • Coupon Websites
  • Skyscraper method

Review Sites

Always ensure your links are related to your website or niche, so in which case, cannabis-based sites will deliver improved results. 

But remember that SEO takes time, patience, and even money. You cannot rank #1 overnight or even a week. Hence, if you have a budget for marketing, you can use pay the per click advertising method. 

Pay Per Click

This is somewhat difficult to perform in the cannabis industry, yet it is likely. But because it is against Google’s TOS to promote cannabis industries, it makes operating as little difficult.

You need to make a landing page since Google Ads will ultimately prohibit your link if it seizes your marketing for marijuana. However, if you’re a subsidiary business, then you can promote on Google.

You can run away with words like “marijuana,” “cannabis,” and “dispensary” if you’re a subsidiary business, but if you’re selling marijuana, then Google will disapprove of you.

The most effective method to undertake is getting professional service to handle your ads. There are numerous, trusted SEO services for a cannabusiness wanting to market online. 

Final Thoughts

In conclusion, now is the right time to start your cannabusiness. Every day or year after year, the business market for cannabis is consistently growing. So, what are you waiting for? Learn how to start a cannabusiness and drive things forward.

Be sure to perform your thorough market research, lawfully register the business, and promote online using the best, latest, and most effective online marketing techniques.