More and more countries are legalizing marijuana, making the cannabis industry one of the fastest growing and most promising. It has been predicted that by 2028, European cannabis market could cross EUR65 billion. This figure is enough to show how lucrative the market could be as well as the growing size of the business.
The U.K., earlier, considered cannabis as a drug without medicinal value but after the campaigns of patients like Billy Caldwell and Alfie Dingley who suffer from epilepsy, this has changed. It was recently announced by home secretary, Sajid Javid, that cannabis for medical purposes will be legalised for patients with exceptional clinical needs.
If you are interested in entering the cannabis market, whether it is for research purposes in the U.K., or for exporting, follow the steps listed below to start cannabis business in the U.K.
- Since cannabis business is fairly new and unexplored in the U.K., study the American cannabis market to know which areas in the cannabis industry are more profitable.
- You will have an idea regarding which sector to work in.
- Then, make sure your product or service is catering to the market need.
- Identify your competitors and their business structure. This way, you will have an idea whether your product will be successful or not.
2. Have a unique idea
No matter the business, having a unique idea that caters to unmet needs helps significantly in making it a success. It is because the competition is increasing day by day, and since this highly profitable area is yet to be explored, it will attract a number of businesspersons.
Decide upon the sector of the cannabis industry that you wish to work in. You can open a dispensary or grow marijuana. However, keep in mind that if the competition grows, the prices of weed will drop. So, opening a dispensary would not be lucrative in the long run. Also, strict rules and regulations make it more risky to set up a dispensary.
3. Find a reliable wholesale supplier
When it comes to retailing cannabis, you need to have a reliable wholesale supplier on whom you can bank upon to fulfill all your requirements. It must deliver high quality products and ensure uninterrupted supply. Canapath is one such trusted CBD wholesaler which will fulfill all your needs of cannabis light and hemp.
4. Make a plan
- Now that your business idea is conceived, construct a business plan.
- You can jot down your plan on the back of a napkin or draw a detailed structure in a notebook. But your plan should be noted somewhere.
- Look into the legal work that you need to perform in order to ensure your business is legal.
5. Plan your finances
- If you are starting up, you do not require a huge capital. However, some initial investment in your marijuana business and running costs are needed.
- Take a sheet and note initial costs like licenses and permits, insurance, equipments, inventory, market research, branding, property lease, legal fees, trademarking, etc.
- Now, add running costs of at least twelve months. These costs include utilities, rent, advertising and marketing, production, travel expenses, supplies, salaries, etc.
- This will give you a rough idea about how much money you will need.
- You can look for investors if the amount cannot be solely covered by you.
6. Choose your business structure
- If you want to work alone, choose sole proprietorship. You can also opt for a partnership business, limited liability company, or corporation.
- This will affect many factors like business name, your liability in it, how you file taxes, etc.
- Initially, you may start up with a small business structure and re-evaluate it as your business grows.
7. Choose your business name
- Look for names that relate to your product. It should be short and easy to remember.
- Your name should be thought through a number of times since it will play an important role in every aspect of your cannabis business.
- Your chosen name should not be currently in use or trademarked.
- Next, register it.
- As soon as your name is registered, get your domain name also registered.
8. Get licenses and permits
- Cannabis business will involve a lot of permits and licenses. Take legal advice and thoroughly go through the laws to ensure you are not breaking any law.
- If you choose to grow marijuana or sell a cannabis product for medical purposes, obtain the respective licenses to avoid legal trouble.
- You will need a license for growing industrial Hemp, which is a source of therapeutic products based on cannabis. While if you claim your product to have medicinal value, you will need to obtain a medical license.
9. Choose an accounting system
- An accounting system is necessary for creating and managing your budget, rates and prices, taxes and conducting business with others.
- You can appoint an accountant to lessen your work.
- You should look for different accounting software to choose the perfect one for you, in case you decide to manage your business’s accounts yourself.
10. Set up the business location
- Choose a suitable location for your business and make sure it is legal for cannabis-related work.
- If you plan to open a store, you need to do so in a market place. For the producers, it is vital to set up their location in outskirts.
- Consider the costs and facilities provided in that area.
- You can either buy or lease the space based on your budget.
- Next, set up the place based on the business’s needs.
- Get the required equipments, furniture, tools, etc.
11. Build a team
- You will need professionals for carrying out every aspect smoothly. For starters, you will need an engineer to build your website. Similarly, you will need expert marketers to make sure the marketing of your product is successful.
- Hire individuals who understand your goal well and are willing to work hard for achieving the goal.
- Look for professional and experienced candidates who are dedicated and sincere.
12. Begin with production
- Once everything is settled, start with production.
- Look for potential clients and always listen to their expectations from the product and their feedback after they use it.
- It will tell you about the desired improvements as well as customer needs.
The U.K. market will soon be supporting cannabis business due to its therapeutic properties. Since dealing in marijuana is not legal completely, you will need to follow the legal procedure carefully. If you play by the rules and work hard enough, you will surely make it big in the cannabis industry.