Pickaxes and Shovels – How to start an extra cannabis company that doesn’t actually sell cannabis

The cannabis industry is relatively new and some niches have not been tapped since the industry first established itself in some states a few months ago. Whether medical or recreational cannabis states, many areas in the industry are underutilized. Starting a cannabis company doesn’t mean selling weed by word. You can also start what is called a side business, a company that helps the cannabis industry but doesn’t actually sell or “touch the flower”. These companies do not require marijuana licenses and can operate like any regular retailer in the state for merchant processing and banking services.

In restricted license states and fully legal states, there are many open positions in various fields that you may not have heard of. The point is, the cannabis industry has not been fully excavated, it may take state legalization for the industry to see its full potential, but for now there is a place that you can replenish. At the moment, the cannabis industry in some states seems stifled and with no vacancies, the truth remains that several sectors of the industry are underserved.

In a state like California with a highly developed industry, the branding sector rests. Companies have little stress in building their business as there are no licensing restrictions, but very few of these companies are considering building their brand to reach more people. That’s an example of a track you can fill. On the other hand, there are states like Maryland and New Jersey where the industry is new and licenses are still limited. There is potential here in cultivation, supply, marketing, research and many other areas.

Untapped business opportunities in the cannabis industry

Here are some niche markets you can consider to make an impact in the cannabis industry.

Supply niche

States with high production and low demand are currently concentrating on supply between states. These Multi-State Operators (MSOs) will end up having the upper hand in the states in which they operate. Smaller brands need to improve their product quality and standards to stay relevant. By perfecting the standards of their operations, they can potentially grow their business and achieve long-term success.

These small operators or single-state operators (SSOs) lack the inflow of capital. The Senate has yet to approve the SAFE Banking Act, so these individuals must overcome the great challenge of raising cash to increase production or plan expansion. Regardless, they pay high taxes and have to make credit card payments at exorbitant prices. All of this is enough to hinder their growth.

The final bet for these SSOs is to have a targeted strategy that will guarantee demand for their product. You can consider selling to an MSO or partnering with other small brands for a better base. You could also choose to stay small and luxurious. It just takes a clear strategy and the will to hold on to it.

This is where you come in, you can reach out to these brands for strategies that would increase their offerings.

Trulieve is a perfect example of how SSOs can grow from fighting against competition with other SSOs to taking control of much of Florida’s cannabis industry. Trulieve is geared towards long-term success because it has trained its focus on fine-tuning supply chains with the state. Now they have expanded to California, Massachusetts, West Virginia, Pennsylvania, and Connecticut.

Branding niche

Branding has to be the best big thing in the cannabis industry. Cannabis brands have successfully made premium products at affordable prices for their customers. Next, these companies need to properly label the products to appeal to more customers. In mature markets, one brand differs from another through product labeling.

One niche that you can take advantage of is to focus heavily on improving product labels and descriptions for customer satisfaction. Customers want a smooth shopping experience, and that requires product labels to be checked. Brands can label their products based on their recommended use (increased creativity), the best time to use (at night to fall asleep), or their induced effects (for a better mood).

Extension niche

This is not a new sector. In the last pre-pandemic assessment, the global cannabis growing sector was valued at over $ 129.3 billion. That number is likely to be about double that right now, as the cannabis industry has seen a massive boom since the pandemic began. The increased number of approved laws is also an important factor. This particular business would require either a medical grow license or a recreational grow license from the state, a much easier license compared to a retail license.

Cannabis growing is one of the most lucrative markets in an industry, especially in newly legalized states with limited licenses. The downside is that there are several challenges to overcome before farmers can gain a foothold in the market. There are expensive license fees and applications to sort out. The market is also regulated by strict laws and rigid financial reports commissioned by the cannabis commissions.

You can penetrate this niche by introducing farmers to robotics and automated cannabis cultivation and processing. Automation of the processing stage, such as drying the buds with a machine, saves time and labor. It will also help in mass production of quality products.

Products niche

The number of products available on the market is limited and there are numerous other ways cannabis can be modified to create innovative products. Over time, consumers will get bored of flowers, pre-rolls, and even steam pens, they will be in search of something new and fun.

Two products that show prospects are edibles and concentrates. Currently both have the lowest market share, but beverages (edibles / beverages) containing cannabis will become mainstream in a few years.

You can immerse yourself in this sector by creating and perfecting a recipe for an edible or drinkable product. So far your product is of the highest quality, consumers will rush to your brand. The data available shows that teenagers are now less inclined to drink alcohol, cannabis drinks could be the next big thing of the younger generation in the future.

California brands are making major improvements to cannabis products to keep their customers happy. That niche would be better explored once cannabis delivery services and other consumer-centric innovations were given a free hand. Don’t be surprised to see cannabis pills, dissolvable and even liquid shots in a couple of years.

Bottom line

People who claim that the cannabis industry does not have a free opening are wrong. There is currently enough space for you, your friends and interested family members. Don’t hesitate to take a step.

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