The Real Cost Of Starting A Cannabis Business In California: Gone Are The $10,000 Startup Days

“You can’t start a cannabis business, particularly in California with (...) $10,000,” Caroline Yeh, co-founder and CEO at TSUMo Snacks told an auditorium brimming with potential investors, entrepreneurs and cannabis enthusiasts at the recent Benzinga Cannabis Capital Conference in Miami.

Her voice was tinged with earnestness, a reflection of her hard-won experience in the fast-evolving cannabis industry.

If you are a cannabis entrepreneur, don't miss the crucial panel discussion, ‘What institutions are looking for? How are investors evaluating startups and new opportunities?’ at the upcoming Benzinga Cannabis Capital Conference in Chicago on September 27-28. Be there to gain deep insights!

Related Content: EXCLUSIVE: What It Takes To Build A Successful Cannabis Edibles Brand, A Discussion With Industry Leaders

Diving Into The Realities Of Starting A Cannabis Business

Yeh's presence on the stage was more than just a formal address, it was a hard-hitting reality check for many in the audience. Drawing them in, Yeh said: “It’s not structured like that anymore. You can’t just approach a buyer who will take your product in and try it out. Absolutely not.”

Related Content: How to Invest in Cannabis Startups

With every word, Yeh painted a complex picture of the industry, illustrating not just its potential but also the sheer scale of the initial investment required.

“You need to budget in a sales team,” she continued, allowing the weight of each word to settle. “You need a budget in the distributor. You need a budget for your promos and the marketing allotments that you’re going to supply. You need a budget for all the samples you’re going to give out. You need a budget for all the swag you’re going to give to the budtenders. All of this adds up, and it’s a lot of money.”

Her words were more than just a cautionary tale, they were a window into the intricate web of strategies, investments and decisions that the cannabis industry in states like California demands. It was clear that for many in the audience, Yeh’s candid revelations had shattered preconceived notions.

Related Content: Best States to Expand a Cannabis Business

However, far from being a deterrent, her words were shaping up to be the guide many needed, a reality check that could save countless from naive misadventures.

For those thirsty for more such wisdom, the excitement didn't stop in Miami. The Benzinga Cannabis Capital Conference is set to make a grand return to Chicago on September 27 and 28. All information is available on bzcannabis.com

“You can't start a cannabis business in California with just $10,000; it’s not structured like that anymore,” warned Caroline Yeh of TSUMo Snacks at the @Benzinga #Cannabis Conference
Dive deeper with us. Join in Chicago, Sept 27-28 - https://t.co/CxznNV6BRx pic.twitter.com/29IaA9bnjL

— Javier Hasse (@JavierHasse) August 26, 2023

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