What Are Some Ways To Save Money When Starting A Cannabis Company?

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

When most people think of starting a cannabis business, they envision growing marijuana plants to be sold in a retail store. 

It can be an expensive endeavor. From the cost of securing a license to finding the right location, starting a cultivation or retail operation is costly.

If you want to open a marijuana retail shop, for example, the cost can reportedly range from $500,000 to nearly $2 million depending on which state you’re in. Getting a license to start a farm can cost up to $80,000 alone.

Unless you’re a multistate operator like Curaleaf Holdings Inc. CURA CURLF or Green Thumb Industries GTBIF, you may not have the funding to open a new dispensary or launch a grow operation.

Cutting Costs In The Cannabis Industry?

Still, there are less expensive opportunities to create companies that serve plant-touching businesses. Also known as ancillary businesses, they can include everything from lighting and irrigation systems to marketing and branding. 

But if you’re hell-bent on starting a plant-touching business such as a retail store or cultivation operation, you can take a few measures to save money as you get your company up and running. 

If you’re just starting your cannabis foray, there are three things you should keep in mind as you’re looking for ways to save money:

Compliance

One of the best ways to save money — and not put your license at risk — is ensuring your company remains in compliance with all state regulations.

Because it can be expensive to maintain compliance, some cannabis companies cut corners. But when state compliance officers visit your establishment, whether it’s a retail store or a grow facility, if you’re not doing everything to the letter, it could be expensive to fix what’s wrong — and even cost you your license. 

One of the easiest ways to stay compliant is to hire someone to police your business. A compliance officer can help ensure your packaging and security systems adhere to state regulations so you’re not caught off guard if the state audits your business.

Packaging

Whether you’re making edibles or producing high-quality flower, packaging is a major cost, so knowing how to get the most bang for your buck is often helpful. 

You can buy packaging in bulk to get better pricing. That entails forecasting how much you’ll need to avoid ordering too much. 

Keeping an eye on the size and weight of what you put your products into can help reduce the cost of distribution and storage.

A simple design with fewer colors and graphics is another way to save on packaging.

Marketing

Regulations make marketing and advertising in the cannabis industry tricky, meaning that companies have to be creative. Marketing can also be expensive, so figuring out ways to get your message to consumers without breaking the bank helps lower costs. 

If marketing isn’t in your budget, you can forgo hiring a marketing firm and use tactics of sending knowledgeable employees to cannabis retailers to educate budtenders and setting up pop-up events to promote your products. Throw in a promotional deal the day you’re in the store and watch your sales soar.

If you don’t want to go it alone, Marijuana Company of America Inc. MCOA is one example of a company that says it can help. The company's core mission is to leverage its experience and access to capital to identify and invest in acquisitions with unique growth potential in the cannabis and CBD marketplace.

Marijuana Company of America owns and operates a business portfolio in various cannabis segments, including cultivation, distribution and consumer products.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

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