The cannabis industry is currently one of the most promising sectors in terms of growth and job creation. Legalization efforts at the state level have paved the way for the cannabis boom we’re seeing, and the marijuana industry could be worth $30 billion by 2025.
The following resources will help you navigate and market to an industry where things can change rapidly and where federal regulations can limit access to crucial business services.
So far, cannabis has been legalized in a total of 34 states. It’s important to keep up with the latest regulations to make sure compliance requirements are met.
DabConnection.com has a page dedicated to sharing licensing information for each state. You’ll also find relevant links to government websites that you can use to educate yourself and suggest resources to your prospects.
The cannabis industry is legal at a state level. However, federal law still criminalizes the sale of marijuana products.
The federal government also regulates banks. This means that banks can’t offer business accounts to this industry without facing criminal charges. The SAFE Act introduced in 2019 could address this challenge. However, it could be years before marijuana businesses have access to traditional banking products.
For now, state-chartered credit unions are the best alternative to recommend to your leads. The Department of Financial Protection & Innovation has a database where cannabis companies can browse state-chartered credit unions.
In 2020, cash payments represented 12% of all transactions. Indeed, customers would rather use a credit or debit card. There is also a growing interest in mobile payments.
It’s not possible for cannabis businesses to offer these payment options (see above).
However, with a point of banking (POB) or cashless ATM solution, clients can make a withdrawal in-store with a card. The business will get a voucher for that amount. You can learn more about POB solutions here so you can be well-informed and well-equipped to provide value to your leads.
Marijuana businesses often have complex insurance needs. Coverage for things like crop insurance and product liability should be customized to the industry.
There are companies like S2S Insurance that work with cannabis businesses. Our North American Cannabis Industry Business Database has more options to explore as well.
Some states and cities require marijuana businesses to post a surety bond. This bond guarantees that they’ll follow the rules. If the business breaks the rules, the state or city will collect on the bond.
Surety bonds can be expensive. However, the business isn’t responsible for the total amount. They can pay premiums to a surety bond company that will cover the full amount of the bond if the need arises.
There are different companies to consider, including the ProSure Group or Surety One Inc. There are more options listed in our database too, so you can give your prospects a vast array of options and resources.
Pay-per-click ads can be a great way to increase awareness for a cannabis business. However, options are limited for this industry since Google Ads bans ads for marijuana products.
There are alternative options to amplify ads. Networks like Mantis Ads or Traffic Roots specialize in monetizing cannabis-related websites. Companies can use these networks to target users in a specific area and bring more foot traffic to their dispensary.
A good marketing campaign shouldn’t stop at PPC ads though. Check out this comprehensive guide to local SEO for other strategies you can suggest to boost your prospect’s foot traffic.
The right tech stack creates a modern operation. The main obstacle cannabis businesses face when choosing tech products is that few developers offer the unique features that they need in this industry.
Here are some of the products to suggest so your leads can build a performing tech stack:
- A POS system with features like ID verification and purchase limits tracking is a must-have tool. Green Bits and Cova Software are popular options.
- Platforms like Dutchie or Weedmaps allow companies to offer deliveries and curbside pickup for a COVID-19-friendly experience. These tools also offer inventory syncing features.
- Greenhouse and Gusto are popular HR products.
- Canix is the go-to enterprise resource planning solution for cultivators and manufacturers. This platform has unique features like Bluetooth scale integration and seed-to-sale tracking with RFID tags.
We created the North American Cannabis Industry Business Database to help cannabis businesses find resources tailored to their industry. As you market and appeal to these businesses, knowing the complexity of the industry and being able to offer relevant resources will show your prospects that you have the knowledge and capacity to help them. A subscription will give you access to detailed business profiles with contact information. You can browse for a wide range of business categories, including suppliers, labs, financial services and more.