Beyond The Hype: What It Takes To Win In Cannabis This Year

Forbes

4 days ago

cannabis, marijuana in America has just slowly been legalized and used for medicinal and medical ... More purposes
Despite continuing federal roadblocks, 2025 is still an exciting time to be a cannabis entrepreneur. Half of all U.S. states now allow recreational cannabis use and nearly all states allow medical cannabis use. But the industry is complicated, with each state rolling out different rules, regulations, and tax structures. Greg James, publisher of Marijuana Venture, a business magazine dedicated to the industry, and founder of the Interchange business to business cannabis trade show, has advice for those ready to dive in.
1. Examine how the market in your state is being created. Know how many licenses are being awarded. 'If your state awards 1200 grower's licenses to supply 450 licensed stores, for example, you'll inevitably have a big oversupply of cannabis,' said James. Testing, tracking and packaging rules vary from state to state and require a detail-oriented focus for compliance. Know the tax structures to help determine your profitability, and understand that due to federal law, you cannot write off business expenses like other industries can said James.
A farmer holds a low-THC hemp plant .Thursday, Sept. 5, 2024. A Photographer: Valeria ... More Mongelli/Bloomberg
2. Visit growers or store owners in states like Washington, Oregon and Colorado that have had legal cannabis sales for years to see the realities of day-to-day operations and challenges owners face. 'Too many people just rush headlong into the business without talking to people who have been through it,' James said. The unanticipated problems and lessons learned in the early legal states, often crop up again in states that legalize cannabis later.
3. If you plan to grow cannabis, decide if you'll grow it indoors or outdoors said James. Indoor grows are more expensive to run, but offer better control when it comes to wind, water, light and pests. 'Indoor buds turn out prettier,' said James, 'so they command a premium price.' Outdoors, 'the sun is free,' he said, and other costs can be lower, but you are at the mercy of nature. Typically, outdoor grows produce a higher volume of cannabis, but the market for it will likely be wholesalers and processors who will pay a bit less and use it to process into oil for edibles said James. The strains and potency of the plants can be the same indoors or out.
Cannabis strains (Photo by Bob Riha, Jr./Getty Images)
4. Hire professional, experienced staff. 'Hire a real CFO and accountant, know your cost of goods,' said James. Don't go into business with your friends because you think it will be an easy way to make money, he said. You will need agricultural, retail, financial, logistics or packaging experts – don't skimp here. 'They have these things called Ag Universities for a reason, and they're pretty good at turning out folks with degrees that are focused on how to make horticulture more productive and profitable,' he said.
5. Use the latest technology. That includes modern growing techniques like LED lighting and aeroponics. Climate control systems can monitor and regulate all the inputs in modern greenhouses and hoop houses. Decades of research and studies in agriculture have increased production across all crops in the U.S., said James, and cannabis can adopt those same technologies.
farmer using tablet to monitor control cannabis plantation in greenhouse.
6. If you are selling cannabis products into stores or dispensaries, put your salespeople in front of buyers often. 'Once you've gotten your goods into a store, that's the beginning of your relationship, not the end,' James said. Your sales force has to follow up and see how the products are moving, maintain relationships, and brainstorm what other products the stores' customers might like. Just because they stock you once, does not meant they will automatically reorder forever, he said. James said he has seen growers and processors who were successful initially, but found themselves failing once their competitors spent more time refining their offerings with new ideas and price points. Cannabis is a constantly evolving business so keep evolving your offerings.
Cannabis shop (Photo by Bob Riha, Jr./Getty Images)
7. Retailers, your store may be an exciting destination when it opens, said James, but as soon as a more convenient shop appears, "no one will drive out of their way, so choose a location with good foot traffic and lots of parking.' It may seem basic, but parking can make or break a store's success he said. Hire friendly, approachable budtenders who can make people feel comfortable, whether they are a frat bro or a soccer mom. And like any retail store, good lighting, attractive displays and a good selection of products that are easy to find are key.