We are currently in the midst of a cultural and economic shift. The United States has not seen an industry take off like this since the technology boom in the early 2000s. Legal cannabis sales are through the roof, and the industry has proved to be resilient during the Covid-19 pandemic. Experts believe that legal cannabis sales will reach 50 billion by 2026.
The cannabis industry presents a unique opportunity because the demand already exists. Consumers in states that have yet to loosen restrictions on cannabis products are forced to buy their products on the black market. Over the past decade, we have watched the money generated by criminal enterprises shift to early investors’ pockets in the cannabis industry.
Public opinion regarding recreational and medical cannabis use has changed during this period as well. Nearly 70% of Americans support the full legalization of cannabis. As the government catches up, this could be the perfect time to invest in a growing industry with no signs of slowing down.
Huge Potential – Low Success Rate
In 2020, 4 states legalized recreational marijuana. One of them being historically deep red republican stronghold, South Dakota. More states are on the horizon for 2021, and the plan to federally legalize cannabis has the best chance to pass with democrats controlling all three government branches. Breaking down the barriers created by state lines will create a massive opportunity for cannabis companies to scale.
Other countries also have plans to make a move on the growing industry. Mexico could soon become the largest legal cannabis market. Investors also have their eyes on Europe, currently the 2nd largest hemp-derived CBD market behind the United States.
Starting a cannabis industry doesn’t come without challenges. Over 90% fail in their first year. Never mind the regulatory hurdles new companies must jump, new companies are popping up each day. The online CBD business is especially crowded because of the lower entry barrier than other sectors of the cannabis industry.
Green (in more ways than one) entrepreneurs need to be prepared for a difficult path forward. We will discuss the challenges new business owners will face and how to prepare for a cutthroat industry through cannabis training courses.
Why Cannabis Companies Have Potential Going Forward?
The demand for cannabis products has always existed. Where companies creating new technology have to convince their customers their product will improve their lives, cannabis companies only need to provide access.
In 2016 the black-market marijuana industry was estimated to be worth 25 billion, while the legal cannabis industry was only bringing in 6 billion. Projections indicate that by 2026, the legal market will be worth over 50 billion, while illegal sales will shrink to less than a billion.
Cannabis companies gain access to market share in two ways: loosened regulations and cultural shift. The stigma associated with marijuana is wearing off fast. As more people, especially boomers, realize that cannabis can improve their lives without getting high, more will accept cannabis as a legitimate solution to many of their problems.
Imaginary Lines
Currently, all cannabis companies are restricted by borders. Even American CBD companies aren’t permitted to ship their products overseas. Recreational cannabis companies are confined to their state’s borders and, in many cases, county lines. The US cannabis industry is on the verge of a monumental shift. Once companies are allowed to operate outside their borders, they are given a chance to scale. If cannabis is permitted to be exported out of the US, we will see the industry titans of cannabis begin to emerge.
Is the Cannabis Business a Good Investment?
An investment in the cannabis industry could be life-changing. But that doesn’t mean it comes without challenges. The potential for continued growth is evident. That means there’s plenty of competition.
The online CBD business has become especially crowded after the 2018′ farm bill.’ CBD companies are presented with regulatory challenges, but nothing compared to companies involved in producing or selling recreational marijuana.
Challenges of Starting an Online CBD Business
#1 competition. Anyone in America with a couple of thousand dollars can start an online CBD business. By no means is it easy to do, but the pool is much larger than those with the opportunity to open a dispensary.
Advertising is also a challenge for CBD businesses. Google and Facebook technically don’t allow ads (companies use loopholes to get their ads approved). Companies have to get creative and find other avenues to get the word out.
SEO is the most popular. The interest in CBD is insane if you look at the search volume. But because there is so much competition online and the best platforms restrict cannabis company ads, getting on page-one is no easy feat.
The Cannabis Industry is Tough – Be Prepared
Preparation is required to start any business, no matter the product. The cannabis industry has some unique challenges because we are shifting from a black market to a government-regulated industry. A great way to make sure you don’t run into any significant regulatory surprises in the startup phase is to learn from online courses.
No matter the type of business you are looking to start, you will find a corresponding course on Green CulturED. Choose from the eight categories ranging from cultivation to cannabis business to workplace safety. You will have to pay for full access, but there are many classes offered on the platform for free.
If you are looking to get some job experience before going all-in on your own company, THC University will give you the skills and certifications to land a new gig. For a reasonable price, you will gain access to all their courses and M-F chat support.
Position Yourself for Success
The cannabis industry has already produced a hand full of billionaires. As new restrictions are lifted, you can expect more opportunities within the already booming industry.
To be successful, a new entrepreneur must understand the industry. That means knowing the laws, banking restrictions, CC processing policies, and advertising limitations. Not being prepared is a quick path to failure.
Creating an online CBD business doesn’t guarantee success. There are literally thousands of options online. Getting visibility and differentiating your brand from the competition is a challenge. The new cannabis business must fill an existing need in the market to be successful. Merely opening up for business isn’t going to generate growth. You must bring value to an overcrowded industry to be successful.
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