Starting Cannabis Business

Cannabis (marijuana) has been a narcotic contraband for a long time around the world, and it still is in many territories. In nations under Federal systems of government like The USA, there are certain states that have legalised the medicinal and even recreational use of marijuana. Some countries have initiated the controlled use of the substance like The Netherlands, Chile e.t.c.

Being legalised means that upstanding citizens can finally get into the business. From information I have come across, it seems like a real business can get into the Cannabis Business. But it is fraught with challenges like most business and unlike most businesses, it is more involving to set up and sustain. More importantly, the evidence of listed companies who have Cannabis/marijuana as their primary business e.g. Medbox Inc. (who have fingerprint activated drug vendor machines) – goes on to encourage the regular individual that it is possible to set up a clean and legal marijuana business.

Licencing for such a business would be the greatest challenge for neither the state nor the federal government would allow for an individual with a questionable record to get into legit drug business let alone marijuana. Your financial partner then is the obvious obstacle. The federal government in the US has not quite recognised cannabis as a legal drug, entirely. This puts pressure on financial institutions like banks, on what they can do with financial proceeds from the marijuana business; since it can technically be considered ‘drug money’. ‘Drug money’ going through a bank is legally considered as money laundering and as such illegal.

Despite, such financial-solutions challenges, there are some banks that take on such risks and you can always find a financial advisor who can give innovative solutions on how to proceed with such tricky situations.

Cannabis is not all fire and smoke. Apart from the medicinal and recreation purposes for the plant; some niche companies e.g. CannaVest Corp., have found ingenious ways to use it in products like shampoo & hair conditioner, hair gel, toilette soap e.t.c. If you extrapolate its legalisation process, very soon cosmetic companies will have the wherewithal to pursue production of beauty products that boast of such ingredients that are found in Cannabis.

Ultimately, there is the opportunity for anyone who has the backbone to try the business in any form there is. One needs patience and a wealth of knowledge on the plant and its products and what it would take to get into business – considering not long ago, it was a banned and illegal substance; handled by uncouth and unsavoury characters.

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