Like every other business, the journey in the legal cannabis business can be fun, invigorating, and yet somewhat overpowering. Thus, following a couple of tips to make the initial steps can help to make a solid establishment and set up a successful business.

The legalization of medical and recreational and marijuana in specific states has provided cannabis business opportunities in the market for bold entrepreneurs and visionaries.

You are not the only one wondering how to legally start a cannabis business? Or how to start a marijuana business? Or how to get into the cannabis industry? So to answer this we have provided you with brief points regarding what steps you should take and what to consider to get your business up and running.

But, before we dive into the details and a complete procedure, let’s just address some cannabis facts:

According to the Market Study Report, the Global Cannabis market is valued at approximately USD 20.6 billion in 2020 and is anticipated to grow with a growth rate of more than 28.5 % over the forecast period 2020-2027.

As per some reports by Glassdoor, cannabis jobs pay higher than U.S. median salary.  The average salary in the cannabis industry amounts to $58,511. In comparison, the average salary in the US is $52,863 per year.

Few reports state that, according to the New Frontier Data, a cannabis market-research and data-analysis firm, estimates that the US cannabis industry employs at least 250,000 people.

The U.S. cannabis industry is now projected to be worth $100 billion USD by 2030.

Starting A Cannabis Business Isn’t About Growing Plants And Enjoying Life!

 Although Cannabis has been legalized in some states, it is still illegal in many other states; which makes it illicit to consume at the licensed facilities. Also, if you are growing marijuana, then you know how it requires all the licenses, charges, taxes, financing, and a lot of paperwork (unless someone is doing it illegally!!).

Apart from the paperwork, taxes, and all, having a successful and effective legal cannabis business additionally needs modern and updated legal skills. Many organizations don’t simply hold expert legal counsel for guidance, but they additionally retain full-time ‘compliance officials’ to stay aware of the changing laws.

You should know before starting a business that cannabis is regulated more rigorously and strictly than liquor and tobacco.

How To Get Into The Legal Cannabis Industry?

Research and come up with ideas

When you’re thinking of starting a business in any industry, then you should make sure to have a distinctive idea that is crucial to start upon.

In the case of a legal cannabis company or a marijuana startup business, here you have to first decide which sector of the legal marijuana business you want to explore and bring into action. Normally, when thinking about the type of weed business, dispensaries and growing (production) operations come to mind.

Now that you have ideas and are thinking of taking one for your business, it’s time for you to research the legalities of the industry and market.

The legal field is a decent area to begin your research. For example you can:

• Research your state’s laws for utilising and consuming marijuana and start a legal cannabis business.
• Familiarize yourself with cannabis laws.
• Then discover the licenses and permits that you require.
• Can also scale cannabis app business.

Next step is to understand financing options and consider how the business will deal with its funds. Limitations like not getting enough funds or refusal of deposits from a legal cannabis company, or difficulty in getting loans from an insured bank, make it hard to launch a cannabis business. Prior to bringing resources into your venture, it is better to understand and know where you’re getting into.

Understand regulatory and legal requirements

The new sanctioning of cannabis in many states has been an amazing advance towards commercializing the legal cannabis industry. However, the terms of legalization, particularly the regulatory standards for various cannabis organizations, differ under various jurisdictions.

The shortfall of government regulatory compliance demonstrates that you need to remember and keep in mind the regional laws while beginning a weed business.

Search and explore the regulatory policies thoroughly for your preferred cannabis business startup in the local neighborhood, where you want to set up the business. Cannabis laws are unpredictable now, and henceforth ensure you are up to date on the most recent policies.

For new entrepreneurs, taking the easy way out while complying with the laws in the cannabis startup business could assist in building up a successful business. It is better to search for portions that have less regulatory prerequisites. 

Create a business strategy

Thinking about the venture idea and strategy are two different things. Strategy to start a medical marijuana business will help you to achieve your goals. Having a strategy may include:

• A Description about the company: In this explain what your business is into and who it serves. Make sure to also add the competitive advantage that your business will have.
  
• Market investigation: One of the ways to calculate strategy is analysing the market needs and asking questions. What pain-point your business will solve while serving the clients and customers? Are there any trends that your business is hoping to benefit from?
  
• Organization and management: Select a legitimate structure for your business. Make sure that you have everything on papers and everyone is aware about the laws. Also make use of the modern technologies to fuel your cannabis business.
  
• Sales and Marketing: Making a pitch is a deal when it comes to sales and marketing. As this pitch decides your customers and characterizes the deal. Make sure you know who your customers are.
  
• Delivery: You need to brainstorm on how to deliver the products in your state and when required in other states. For that you need to understand the laws of other state as well where the delivery needs to take place. You can also start a cannabis delivery business side by side, to reach maximum potential customers.

In case you’re into a business strategy to look for financing, then incorporate a funding request section. Here, you can depict how much financing you’ll require, and how you’ll utilize the capital. In short, Be transparent.

Register your business name and entity

Since marijuana isn’t legalized federally, retail sales from dispensaries are or will be allowed in all states where the drug is legal except for in one state: Vermont in U.S.

Due to non-acceptance of the cannabis market at the national level in the U.S. the cannabis startup business will probably be local and on a limited scale. Don’t get discouraged as you still need to pick a business substance that is ideal for you.

The business entity chosen by you will affect the taxes you pay and the degree of risk you’re open to. You may be inclining toward starting your business as a limited liability company (LLC), or perhaps a company. Both the entities can protect owners from individual obligation or liability. However, there are some key contrasts with regards to an LLC versus corporation.

You will be required to pick a name for your cannabis business startup. The procedure for picking a business name will be specific to your state, however by and large, you’ll need to take out a pursuit to make sure the name you need is accessible, and afterward there will be a little fee related to holding the name for a set measure of time. Nail down both of these things before you attempt and register your marijuana startup business, as you’ll require this data to do so.

Attain permits and licenses

Though marijuana organizations are not federally legalized, yet most licenses and enlistments needed for your organization should be gained from state bodies.

Subsequent to sorting out a business idea, strategy, and financing, the next initial step is to plan for the different legal enrollment needed to start a legal cannabis business. Start by enrolling your organization name and the kind of business you will be doing, as the latter influences your tax liabilities.

Since, every state has its own set of guidelines for starting a cannabis business, thus, you need to do a thorough research on licenses, enrollments, grants needed to open the business. The most ideal approach to ensure you have covered all the legitimate necessities is to rope in a legal advisor or association to assist you with getting all the documents and reports.

Make a point to finish general documentation other than marijuana related enlistments, for example, tax enrollments. When you have all the proper documentation prepared for your business, you are good to go to begin your business.

Raise funds to grow

Finance is the main factor in setting up any business. There is a requirement for adequate funds to begin and run a cannabis business, whether it be from authorizing expenses to operational costs.

At the same time, finance can be perhaps the greatest obstacle for growing entrepreneurs. The explanation for this is that unlike normal organizations, financial institutions, such as banks, don’t offer credits for new establishments especially in the cannabis section.

The quick development in the industry has supported a ton of interest from capitalists and other different financial investors hoping to investigate open doors in the area. You can exploit this cannabis business opportunity to give a great business strategy to raise the essential funds.

Also To develop an app like ‘Eaze’ (a cannabis delivery app), make sure you know the cost for development of such apps like where to invest and what to look out for?

Be genuine and make a sensible monetary projection taking care of multitude of expenses, including overheads and huge contingencies, to secure funds from interested individuals. Ensure you have sufficient funds and backup to endure till your business turns productive.

Parting Thoughts

Establishing a legal marijuana business can be a challenging task. Yet, with the right assets and efforts, the degree for development and achievement is vast. You just have to be careful and ensure to keep in mind the legal parts of operation in the cannabis area before taking any step in this developing industry. 

In case you are thinking about building a business with cannabis through websites or using custom healthcare software development company apps, then schedule a free call with our expert healthcare app developers. You can also clear your doubts with a reputed healthcare app development company in USA like ours.

The post How to Successfully Launch a Legal Cannabis Business appeared first on Appinventiv.

Is it legal?

Well!! This is the first response of most people when they hear this word. Right?

We all know what cannabis is and how it is used for health and wellness. But what we are missing is the use of technology in the cannabis industry and its growing market.

So here we will talk about the ways through which technology in cannabis industry 2021 is making an impact.

Let’s Start!

Generally, the innovation in the cannabis technology industry has been slow and tricky due to its ban in most of the countries.

The legalization of cannabis by many nations and currently by the US for recreational use has opened up new spaces for development by permitting more individuals to take an interest. As more individuals embrace cannabis because of its therapeutic impacts, cannabis organizations are adjusting to the trend by streamlining operations utilizing state of the art tech advancements and bringing cannabis business online.

The last decade has seen innovative breakthroughs by leaps and bounds that will change how we develop, grow, and use cannabis.

One thing that is pushing this industry upwards is a rise in cannabis technology, which serves better harvests, associates customers and marijuana businesses, guarantees quality safety guidelines, and offers a wide range of choices for cannabis consumption.

Today, we can see that there are not just a pile of farming and security technologies used for growing cannabis, but additionally there are different tools, from dispensary robots to APIs- to assist with selling cannabis in a manner that is advantageous, convenient, and compliant with the guidelines and regulations.

Market and Sale Stats for Cannabis Industry

A report by Grand View Research states that, the global legal marijuana market size was valued at USD 9.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 26.7% from 2021 to 2028.

The global cannabis market is estimated to be valued at USD 20.5 billion in 2020 by Markets and Markets, and is projected to reach USD 90.4 billion by 2026, recording a CAGR of 28%, in terms of value.

According to some reports, the Global cannabis sales reached $21.3 billion in 2020, with a rise of 48% over 2019 sales of $14.4 billion. BDSA forecasts global cannabis sales will grow from $21.3 billion in 2020 to $55.9 billion in 2026, with a CAGR of more than 17%.

With useful reports of marijuana, the use of medical marijuana is reported to alleviate pain. With more people becoming aware of the cannabis consumption benefits, the market is expected to grow rapidly.

The transformation in the marijuana industry growth is mostly technology-based. Meaning that many new technologies are either reforming the industry in one part, or are on the verge of doing so in another. Let’s look at the most prominent and exciting technology in marijuana industry.

Top Emerging Technologies Redefining The Future Of The Cannabis Industry Growth

Cultivation and Extraction

The marijuana industry has swayed investors around the world, and obviously, their currency has been utilized appropriately. The rising interest for cannabis has supported the utilization of new and cutting edge technologies while cultivating the plants.

But, Weed Gummies stay on the cutting edge of the CBD (cannabidiol), medical marijuana business. Thus it is important to use the cannabis technology market when cultivating to quicken the harvest time and work on the quality to match the customer’s requirements. This makes it simpler for organizations to produce quality products.

With each innovation, there are new methods of extracting and planting CBD. For example, Enterprises utilize remote sensors to help with the process of plant growth.

The use of these innovations in the medicinal marijuana business provides the separation of medical compounds from marijuana elements. Cannabis goes through tests prior to being passed on through the end product to guarantee quality and product safety.

Cannabinoid Biosynthesis

Cannabinoids are compounds or groups of substances found in cannabis plants. 

Most cannabis producers utilize traditional extraction techniques to extract cannabinoids from the crude cannabis plant. The drawback of these methods is the extravagant expense that is reflected in the cost of finished products.

Cannabinoid biosynthesis is a new innovative technology that has come out to be a cost-effective method of creating CBD, THC, and other cannabinoids. The leading medical marijuana industry growth makers are currently putting resources into this medical marijuana technology, expecting to change the whole cannabis supply network.

This arising extraction method utilizes microorganisms to develop yeast strains that can create valuable cannabinoids and make marijuana industry worth. The technology is relied upon to bring down production costs, improve quality, and lower the end cost of cannabis products.

Personalized and Quality Products  

Technological advancement has customized the utilization of marijuana. Meaning that, a couple of years back, smoking was the only way to devour cannabis.

But now, with marijuana industry technology services, one can decide to consume the plant in different forms, such as – vapes, oils, sweets, candies and gummies, and other food items.

Thus, it is fundamental to develop the right mix of THC and CBD present in every product, discovering which could be very difficult. Consistent endeavors are likewise en route to encapsulate the chemical substance found in cannabis to improve the items’ viability as individuals’ biochemistry makes them process cannabinoids differently.

Since this is a psychoactive substance, hence, utilization of an alternate strain that is different from your physiological need can cause a genuine issue. Technology helps in eradicating this issue by preparing cannabis contents in a deliberate and measured proportions.

LED lighting

Another intriguing technological advancement that is being implemented for the cannabis industry growth, is the utilization of LED lights instead of high-pressure sodium (HPS) bulbs.

Now you must be thinking, how come a light came in between the technological ways?

It is because the marijuana cultivation area is in connection with lighting technology. If the plant is grown indoors, then it requires high-intensity discharge bulbs that are expensive and consume an enormous electric current, which in turn raises the production cost.

Well! The cannabis industry (legal and illegal) has been inclining toward HPS bulbs for quite a while. These HPS bulbs devour a lot of power and electricity, their lifespan is short, and they create a great deal of warmth, which frequently requires producers to use a climate control system which additionally uses electricity.

LED lights here come to the rescue for marijuana technology companies. LED lights last longer than HPS bulbs, draws less power, and imposes less strain on a climate control system, and less production cost meaning the end product is not expensive.

E-Commerce Technology

Web technology has changed how customers access cannabis. You can now efficiently arrange or order top notch cannabis products from the comfort of your home. The quick development of the e-commerce business in the cannabis industry growth altogether adds to the worldwide cannabis sales.

The retail online business space is another medium for cannabis organizations to expand the new purchase medium previously restricted to different organizations.

According to some reports, the cannabis market is expected to hit $166 billion by 2025, as more cannabis organizations embrace eCommerce platforms.

The acquaintance of seed-to-sale and point-of-sale software streamlines activities to producers and retailers. With medical marijuana software, there is no need to keep manual records, which makes tracking stocks simpler. Retailers can now effectively get to critical data about their stock a lot simpler.

For example, information on a specific strain’s accessible cannabis products are only a touch of a button away.

With regards to payment processing, cannabis dispensaries have few alternatives. Hence, seamless electronic payments are arising, making payment of cannabis simple and easy to use. E-commerce business is additionally enjoying wide payment service options and presently offer prepaid cards, cryptocurrency, and e-wallet payment service systems.

Let’s look into the technology trends that entrepreneurs should consider to get a successful cannabis market.

Cannabis Industry Technology Trends

Use of the Cloud

Data is the most important thing in every industry. Regardless of whether talking about growing plants, customer and order management, task management or compliance with the state, cloud platforms are empowering producers, representatives, and other partners in the cannabis space to take important information and drive productivity across cannabis operations.

In today’s time, computing services and solutions, for example, Amazon Web Services, Microsoft Azure, and Google Cloud offer storage and processing power, offering organizations across industries expanded efficiencies. The best part is that these cloud platforms can be accessed from any smart device containing internet connection. Relocating your information to the cloud likewise guarantees that it is consistently accessible and retrievable at any time.

From seed to deal, there are various viewpoints that can be improved all through the cannabis development cycle to improve the whole process. Data collection and storing it in the cloud today can empower early adopters the capacity to monetize that information by improving the seed-to-sale lifecycle.

Applications

The COVID-19 pandemic has taught us many things and one of them is that enterprises should be prepared to adjust to global events as fast as they can to limit any economic impacts. This is something that the cannabis business figured out and managed to accomplish rather effectively.

As COVID-19 lockdowns fell upon the business, cannabis dispensaries used applications, for example, Eaze and Budly to give curbside pick-ups and deliveries without breaking social distancing norms. 

This implied that while different ventures had to lose sales during the pandemic, the cannabis industry figured out to get an increment in sales across the U.S. This lead to more individuals getting into the cannabis delivery business and increase in global cannabis spending worldwide.

Applications have played a game changing role to increase the cannabis market. Apps like WeedMaps, advise users where their closest cannabis dispensary is.

Other app, Leafly, provides loads of data on cannabis strains with the help of user reviews to assist and help users attain knowledge on which strain is the best.

Another region where cannabis businesses have used applications is with Australia’s Althea Group Holdings, who developed ‘Concierge‘ application. 

Concierge is a platform for patients, pharmacists, and medical care experts where they respond to the questions of each other while improving and simplifying the prescription process. Thanks to the simplicity of the App, healthcare app development company in USA are trying to serve as many people by providing apps like Concierge.

Ending Note

The cannabis business has encountered innovative thoughts that totally changed the manner in which producers grow their crops and how customers find and use cannabis products.

For each technological progression that has caused a seismic shift inside the cannabis business, there are huge loads of different businesses, items, and applications that have arrived and gone suddenly and abruptly.

While it is difficult to determine what the next big thing will be, it is sure that cannabis innovation will remain an awe-inspiring phenomenon providing healthcare software development services with no indications of easing back down in the coming years.

If you wish to make use of this moden hemp health technology, then you can contact the experts of our custom healthcare software development company for consultation.

The post How IT is Fueling the Budding Cannabis Industry? appeared first on Appinventiv.

However, it is not yet a safe game to step into this business industry. Especially since the industry faced a significant downturn last year, resulting in major loss for cannabis industry investors and CEOs who have been involved in this domain.

Also with many legalities, licenses, laws, and rules, launching a successful cannabis business has become both adventurous and daunting task. What you need is a proper guidance and knowledge.

Taking the same into consideration, we are writing this article to bring your cannabis business online by focusing entirely on the successful tips for Cannabis entrepreneurs.

Before we begin, let’s take a look at the current state of the cannabis market and what issues businesses suffered from in the last year.

Why Legal Cannabis Businesses Struggled in 2019?

1.  Inconvenience due to laws and regulations

Since marjiuana and other such products were entwined with illegal activities, various rules and regulations were introduced in Canada, US, and other parts of the globe. It was made imperative for the companies to follow these regulations in their successful cannabis business strategy.

However, many existing companies failed to meet these laws and regulations, and revamp their business and revenue model accordingly. Because of this, they suffered from temporary or permanent closures.

2.  Minimal support from investors

Due to the history of marijuna and other products, cannabis industry investors feared getting defamed by remaining a part of this domain. So, they hesitated to support Entrepreneurs and existing companies who wished to make their recreational business grow. This made the CEOs suffer in terms of raising funds for their business and forced them to shift to another business idea later on.

What’s worse, the rules of legalization of marijunana made by the US prevented cannabis cultivators and associated companies from filing for bankruptcy.

3.  Competition from Liquor and illegal market

As per the Statistics Canada, around 75% of canadian users have been turning towards the black market for accessing marijuana. Also, it has been found that cannabis legalization can make an adverse impact on the alcohol industry. Medical marijuana is predicted to reduce the monthly alcohol sales by 15%. Something because of which the liquor companies have been giving a cut-throat competition to the cannabis companies and preventing them from flourishing further.

4.  Lower profits

Last but not the least, the Cannabis startups and established businesses struggled with making money. It has been recorded that the 6 largest companies in this industry lost a total amount of USD 25 billion in 2019 and the Marijuana Index fell over 78% in the past one year. 

And the three prime reasons behind which are –

• Since the industry is still evolving, there’s no such cannabis business plan to go with. So, various companies experienced aggressive selling of products for a limited period, but couldn’t scale up their business later. Meaning, they found it tough to make a perfect balance between investment and earning to plan for the future.
• In 2019, around 40 countries legalized medical cannabis while various revealed to be planning for the same in the next 12 months. However, they introduced various stern regulations and heavy taxes. This again made it tough for Entrepreneurs to make their cannabis business grow, without cutting upon the human resources.

In fact, it was recorded that some of the cannabis companies such as MedMen, CannTrust, and Hexo laid off 190, 180, and 200 employees respectively to become publicly traded.

• Last but not least, the illegal market does not follow any kind of standard and are still considered as first priority by users in need of recreational marijuana. This is again one of the challenges faced by companies in the cannabis industry.

Now, as you have a clearer picture of the legal marijuana market size and growth, let’s look into how to prepare, survive, and flourish your business this year.

What is the successful cannabis business strategy to follow in 2020?

1.  Look for better Business Models

Currently, Cannabis startups are running a blog or Youtube channel to generate revenue, in addition to delivering products. However, it is required for them to look for new cannabis business models for getting better results. For example, you can merge with any of the top cannabinoid pharmaceutical companies or collaborate with biotech organizations targeting the same audience. 

So, look ahead to such partnerships for better business opportunities in 2020.

2.  Get an investor by your side

The two reasons why investors are failing to support cannabis business even after legalization of marijuana are- 

• They consider it an illegal activity.
• They are less patient to wait for a longer period to see significant ROI.

But, the situation is expected to change in 2020 with the revelation that On-demand or educational cannabis applications will be one of the apps that tech investors will fund.  

So, when it comes to answering what cannabis entrepreneurs must know in 2020 for successful business, having an in-depth knowledge and a revenue-centric business plan for receiving higher ROI to convince investors tops the list.

3.  Follow Government regulations and compliances

There’s no denying that the set of regulations and compliances imposed by the governments is one of the reasons behind lower growth rate of different types of cannabis businesses. However, it is advised not to get disheartened with these laws and regulations. Rather, prepare their business processes and make everyone in the team familiar with these regulations to ensure better outputs.

4.  Plan for taxes and other hidden cost factors

Another major reason why CEOs failed to take their cannabis business to newer heights is lack of planning against the taxes and hidden cost factors. So, it is important for one to have a clear understanding of where and how to invest money into any process to get better outcomes.

In context to this, it is advisable to Entrepreneurs to integrate latest technologies and techniques to optimize their processes in an effective and efficient manner.

5.  Handle competition from liquor and illegal market smartly

Illegal cannabis sales and liquor markets are ever-present threat to the industry. One can’t control and prevent users from the growth of these markets. However, anyone looking ahead to start or scale their marijuana delivery app business in 2020 can enjoy higher user attention via the following strategies:-

• Loyalty Programs

When you offer some additional incentives or benefits to your customers, they tend to remain clinged to your brand and return back more often. So, it is advised to introduce various loyalty programs to relish better cannabis app industry opportunities in 2020.

• Embrace Originality

When looking into what cannabis entrepreneurs must know in 2020, it has been found that delivering something original can make your business rise over illegal ones. So, it is again recommended to cannabis CEOs to create and deliver personalized products/services that aren’t available in the illegal market.

• Spread Awareness

Last but not least, spreading words about your product/services and the probable benefits is also one of the successful tips for cannabis entrepreneurs to consider in 2020.

When talking about making your target audience aware of the potential benefits of your cannabis business, one way you can opt for is to launch your own app via connecting a reputed mobile application development agency.

6. Focus on operating performance

Believe it or not, operating performance is also one of the effective ways to outshine the competition in the Cannabis market. So, it is again advisable for Entrepreneurs to pay attention to the cannabis supply chain model and other related concepts while planning their entry to this industry.

7.  Be quick

Lastly, not remaining sitting on the fence is also one of the successful tips for Cannabis entrepreneurs.

With the growing awareness of medical marijuana usage and legalization in Canada and other countries, a sudden rise in the competition is experienced. In such a scenario, it is imperative for an Entrepreneur to consult with the experts and step into the market at the earliest to get a bigger share of the market revenue.

The post Tips for Entrepreneurs to be Successful in the Cannabis Market appeared first on Appinventiv.

This is Part II of the series. 

Every year, a technological element latches itself to the year’s nomenclature. While 2017 was the year of cybersecurity, 2018 became the year of temporary rise and fall of cryptocurrency. And now 2019 is the year of Cannabis.

Legalization of cannabis had been a hot topic since the past many years. But this year saw the support coming in from multiple sources – politicians, recreational and medicinal users, and economists alike. Cannabis has become the bipartisan issue has seen support coming in from all corners – an event which has aided the flourishing of the cannabis delivery market size.

The beneficiaries of this mass support and weeding legalizations have been the various entrepreneurs who have entered the space with some apprehensions, only to find a massive amount of revenue generation opportunities. 

What came leafed with massive revenue generation abilities was the influx of new-age entrepreneurs who entered the industry at the first sign of legalization. And today, the cannabis entrepreneurs have found themselves on such a growth spike that they have now even entered the stage of scalability. 

But they are not finding this transition, from being a startup to converting into a full-scale business, easy. 

Majority of these growth spurt experiencing entrepreneurs are not able to chart their scalability journey. There are a number of reasons behind this unclarity that entrepreneurs are facing in terms of whether it is time to expand their business or continue growing at the rate they are:

• Unsurety in terms of where the industry is headed next
• Limitations in gaining financial help needed for scaling
• Availability of the ‘right team’
• Rising competition clouding the grow vs scale decision

By getting tangled within these webs of confusion, entrepreneurs are not able to get the necessary nudge that is needed to act on their preparedness to scale cannabis delivery app business. 

This article is intended to give the entrepreneurs who are economically ready, the methods to scale cannabis delivery app. 

Let us start by looking at the elements that will play a contributory role in formulating the cannabis delivery app growth ideas.

Elements You Need to Scale a Cannabis Delivery App Business

There are three things that any business book will tell you, which directly impact the potential of whether or not you are ready to scale a cannabis delivery app business. Here are what those three factors are – 

More Money

This one is a no-brainer. Your cannabis delivery app funding model should be able to support the requirements and necessities that will come stringed along with your scalability needs. Arranging capital is the first thing that you will have to consider when you are out preparing to scale. 

More Originality

While you would have started off as an innovator bringing something new to the cannabis industry, chances are that if you look around, you will find more businesses following the trend. Now in order to scale up your business and emerge as the utmost leader, you will have to deliver something out of the box to the users. Only when you are constantly upping the cannabis delivery app growth ideas, they will stick by your brand and contribute to its utmost growth. 

More Help

Irrespective of whether or not you started the business as a one person army, you will need help to take your cannabis business to the next level. This, in turn, will require you to form a team, which would work together to convert your cannabis idea into a wide-scale business. 

Once you have hired a team to help scale your cannabis app business, you will have to delegate tasks effectively to ensure that the process is smooth-flowing. 

Another factor that will help you scale a cannabis delivery app business is being proactive – something that you will be able to achieve only when you understand the challenges that can emerge in the lifetime of your cannabis app business. 

Challenges of Growing Cannabis Delivery App

The post How to Scale a Cannabis Delivery App Business? appeared first on Appinventiv.

When Brian and Stewie from Family Guy sang and danced to the tune of everything is better with a bag of cannabis, little did they know that they are not just insinuating a happy world but also a green P&L statement of businesses operating in the cannabis industry. 

With the legal marijuana market poised to be USD 66.3 billion world by the end of 2025, there is hardly any cannabis enthusiast and money enthusiast entrepreneur who is not thinking of entering the goldmine space. 

Now, while the stringent rules are keeping people from entering the industry as cultivators and dispensary owners, there are a few low-stringent sectors, which offer a chance at growing green money (pun intended). 

One such cannabis sector that entrepreneurs are willing to enter and investors are ready to fund in 2021 is Cannabis Delivery Service Business. 

And through this article, we are going to help you start the business. 

But first, let us give you a few feel high statistics on how big the market, which you are only a few steps away entering from, is.

Cannabis Delivery Market Size

How to Start a Cannabis Delivery Service Business in 8 Steps

The infographics that you just saw above is a sign of how lucrative the cannabis industry is for people who wish to start their business in the domain and how bright is the future of marijuana industry. But, because of the presumed taboo around the sector emerging from the impression that it is illegal, makes it seemingly difficult for entrepreneurs to enter the domain.  (See here: how entrepreneurs can survive in the cannabis market).

We say seemingly because when you know the steps to start a cannabis delivery service business, it becomes a matter of crossing the steps to emerge as an industry leader. 

Let’s get started with the steps for starting a medical marijuana delivery service business. 

1. How to Raise Funds for Cannabis Delivery Service Business?
2. Where to Set Up Your Cannabis Delivery Business
3. Follow the Rules and Regulations to the Letter
4. Sourcing the Cannabis to Sell
5. Understanding Cannabis Delivery Compliances
6. Cannabis Service Delivery Business Payment Options
7. How to Get Cannabis Delivery App Approved on the App Stores?
8. How to Find a Cannabis App Development Company?

Step 1. How to raise funds for cannabis delivery service?

Finding funds for your business is never an easy shot. And when you are looking for funds for your cannabis delivery business, it becomes all the more difficult. Inspite of financial institutions opening up to the idea of cannabis being legalized across nations, they still are wary when it comes to lending credit to entrepreneurs to start their cannabis delivery service business. 

So how can you get your cannabis cash in place? 

Let us show you some ways. 

Seed Capital

“A seed round is aimed at building a product, service or technology; and getting some early traction, typically in the form of beta or pilot customers,” Viridian Capital Advisors President Scott Greiper explains. “This will help you establish some reference cases. Investors will want references from clients in the future.”

Your seed capital should mainly come from your friends and family or your personal savings. Full disclosure, you will not have many options if you choose to take the traditional funding route because banks and other loan organizations would not be willing to get associated with your business. 

Alternative

It is understood that not everyone come with the same financial background, so for them finding alternatives for seeking funds become the need of the hour. 

Here are some other ways you can get funding for scaling your cannabis delivery app business.

• Cannabis specific funds (and a couple hedge funds)
• High net worth individuals
• Angel investors
• Business accelerators and incubators
• Musicians, athletes and other celebrities
• Industry-specific holding companies

*Bonus: Funding Platforms for Marijuana Startups* 

Here are some cannabis industry’s institutional investors you can reach out to when seeking funds for your cannabis business:

• Ackrell Capital
• Canna Angels
• Benchmark Capital
• Floris Funds
• Casa Verde Capital
• Green Growth Investments
• Founders Fund
• Ground Zero Ventures
• Greenfield Capital Partners
• Halley Venture Partners

Step 2. Where to Set Up Your Cannabis Delivery Business?

Location choice is pivotal to the success of your cannabis business. While every other state in the USA allowing consumption of cannabis, it is important to know where to set base of your cannabis delivery business. 

An open market would allow anyone who adhered to the legal formalities to start a cannabis business to start their delivery business, irrespective of which state they reside in. 

Contrarily, closed market only makes it possible for its residents to start a cannabis centered businesses. You will have to live in the state and pay taxes for a few years to become eligible to start a cannabis business. 

This is why, it becomes important to do a proper market analysis before crafting a complete cannabis delivery business plan.

Let us look at some of the most cannabis friendly states in the USA to start your cannabis business in. We have arrived at these states following certain metrics like: legal environment, ease of market entry, cost of market entry, market opportunity, and tax climate.

Step 3. Follow the Rules and Regulations to the Letter

One of the very first things you will have to do is get the necessary licenses to get your cannabis delivery app business off the ground. While in California it is legal to deliver cannabis until it meets the necessary weight, it is not the same everywhere. 

To be on the safe side, you will have to have a Business License in place. 

When attaining the licenses, you will come across two different scenarios: A. When your marijuana delivery service is affiliated to a storefront dispensary and B. When your marijuana delivery service is not affiliated to any storefront dispensary. 

If the cannabis delivery service is not affiliated with any storefront dispensary you might want to apply for Retailer Non-Storefront business license, which would require you to secure a not open for public premises.

If you have a storefront dispensary, you would have to apply for a regular Retailer business license. 

Now, the important thing to note here is different states come with different set of rules and regulations. Here are the details of state wise rules and regulations that your cannabis business must follow, depending on where it is operational. 

The Bureau of Cannabis Control has published a document of Instructions for Completing the Cannabis Retailer Application. And in order for you to operate legally, you too will have to adhere to the application’s requirements.

Step 4. Sourcing the Cannabis to Sell 

The prerequisite of being a cannabis delivery business is to have a source from where you will get your product to then sell ahead. Most of the cannabis dispensaries already have their delivery service, so it might be difficult to get in touch with a dispensary and propose to handle their deliveries. 

The best bet that you have when it comes to getting your product if you don’t cultivate it in your farm is to talk to the cannabis manufacturers or the growers and get it from them upon striking a wholesale discount deal. 

At this stage, it is very important that you only partner with manufacturers who are legally allowed to grow cannabis and not people who are operating as black market. 

Step 5. Understanding Cannabis Delivery Compliances

Unlike your regular food delivery app business, the cannabis delivery business model is very different. 

The first thing that you will have to keep into consideration is the cannabis delivery license in terms of the amount of cannabis you can transport at any given point in time and the amount of transactions you can make. 

In terms of the vehicle that you are using to deliver cannabis from point A to point B, you would want to go with a vehicle that is not too big in size or have the words similar to cannabis painted on it to attract attention. 

You will also have to ensure that there are necessary security measures in place to ensure that the drivers carrying the product are safe. 

In addition to this, the GPS installed in your vehicle should be connected with your cannabis delivery service app and should be kept switched on at all times. 

Things to consider with respect to the drivers:

• Should be minimum 21 years old
• Should have the necessary documents highlighting that they are allowed to carry cannabis
• Should not drive under the influence, under any condition. 

Step 6. Cannabis Delivery Service Business Payment Options

“Transactions in the U.S. involving the purchase or trade of marijuana are not permitted on the Visa network, until such time as federal law allows,” a Visa representative wrote in an email.

No matter how legal cannabis become in the USA, card companies and 90% of the operative banks will not open up to the idea of allowing making transactions for buying and selling cannabis. 

Now until you want to take the offshore route, like opening a Swiss bank account or charge money under false names, you will only have 2 options to take money from your clients and devise your cannabis delivery service business financial model. 

1. Take Cash Payments
2. Use e-Wallet Apps

Option A, is something that we don’t promote because of its own set of challenges. Option B however, is a lot more feasible considering you will be able to get access to the amount in a more expedited and safe manner.

Step 7. How to Get Cannabis Delivery App Approved on the App Stores?

While the world is opening up with the idea of legalizing Cannabis, the App Store and Play Store are taking their own sweet time. 

There are a number of cannabis specific apps that have seen resistance on the stores for the presumed nature of the service. While some said that words like “recreational,” “retail,” “adult use” or “21-plus,”  instigated app rejection, others didn’t have any answer as to why were their cannabis delivery app rejected. 

Google, on the other hand, announced a ban on marijuana apps in May. 

Talking about the statement, a Google representative went on to say “These apps simply need to move the shopping cart flow outside of the app itself to be compliant with this new policy,” the spokesperson said. “We’ve been in contact with many of the developers and are working with them to answer any technical questions and help them implement the changes without customer disruption.”

Ultimately, the cannabis delivery approval process comes down to the context your app description is portraying to the stores. 

Step 8. How to Find a Cannabis App Development Company?

The process of shortlisting an app development company is very similar across genres. But the only thing that will differ in case of cannabis app development company is that these agencies would have a very in-depth knowledge about the industry and the rules, regulations that prevail in it. 

It would help to go with a mobile app development company who has worked on cannabis delivery app project before for they will have a good understanding of how to develop an app that gets approved in the store while not demanding a hefty amount on the name of medical cannabis delivery app development cost. 

FAQs about Starting a Cannabis Delivery Service Business in the USA

Q. What types of financing are available for cannabis businesses?

Since it is difficult to get seed funding from banks because of federal laws, you will have to rely on your family or friends for attaining the seed capital. If not, you will still have some alternatives to go with when looking for financing options to start your business:

• Cannabis specific funds (and a couple hedge funds)
• High net worth individuals
• Angel investors
• Business accelerators and incubators

Q. How Technology is Changing Marijuana Delivery?

There are many ways technology is getting involved in the marijuana industry to make it better. One of the most prevalent one being mobile applications which are making the order and delivery of cannabis instantaneous. Other technologies like AI and Blockchain are also helping in streamlining the farm to consumer life-cycle.

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