Today, more than half of the states in the nation have legalized cannabis in some form. While most states have legalized cannabis exclusively for medical use, CBD and marijuana laws are beginning to become more flexible. As a result, more and more entrepreneurs are launching start-ups in the cannabis industry.
Although profits within the industry have skyrocketed in recent years, running a business is often associated with a multitude of legal obstacles. With that in mind, here’s why you should consider hiring a cannabis lawyer to advise your business.
Laws vary between states
An increasing number of states are beginning to pass laws relating to cannabis. State legislation outlines legalization of marijuana for medicinal use, recreational use, and who can cultivate and sell cannabis. Because specific conditions must be followed to cultivate and sell cannabis, it’s necessary to strictly follow the laws to avoid potential jail time.
Along with state laws, some local provinces have additional rules that mustbe followed. State and local laws also govern what type of businesses can sell cannabis and what kind of license is needed to do so. A marijuana lawyer will be able to advise you and help you ensure that you’re selling marijuana legally on both state and local levels.
Marijuana-specific investment laws
As with any small business, raising investment capital is paramount to getting your business running. Current state laws require proof of at least $1 million for a dispensary license. Although $1 million may seem costly at first, regulated dispensaries make about $3 million each year in revenue, which is significantly higher than 90 percent of all small businesses.
Investors often hesitate to invest money into the cannabis industry because it’s illegal under federal law. For the same reason, banks will also refuse to work with businesses that grow and sell marijuana. When funding your start-up, consider pitching your idea to private investors. While some may be hesitant, many investors are excited by the fast growth of the marijuana industry. However, make sure to seek the advice of a marijuana lawyer to ensure that all investments are obtained following the law.
Know what you’re selling
According to Bethany Gomez, a director of cannabis-related research, starting a cannabis business requires “understanding the unique challenges of [the] industry and understanding your consumer base and the unmet need you are filling for them.”
The cannabis industry is significantly different from any other type of industry, because it has unique regulatory, banking, taxation, and advertising laws. Misunderstanding of these laws can quickly eat away at potential profits and deter success. With the help of a marijuana lawyer, you’ll be able to understand how you can offer and sell products to future customers without losing profits. Learning the expectations and demands of future customers will help you gain a loyal customer base.
One great way to ensure that products are high quality is to read a cbdistillery review of a product before purchase. CBDdistillery reviews provide comprehensive, honest reviews of cannabis products along with information on where the crop is sourced, extraction methods used, and testing information from third-party labs. In addition, each review provides a current Good Manufacturing Practice certification with the FDA.
Although opening a start-up in the cannabis industry may seem intimidating, there’s no better time than the present. Today, more than 55 millionAmericans use cannabis recreationally, and the cannabis market continues to grow each year. If you’re considering starting a small business in the industry, familiarizing yourself with state and local regulations is paramount. Hiring a cannabis lawyer to advise your business will pay off immensely in the long run and contribute to the overall success of your business.