What is a Cannabusiness? Here’s the thing about the cannabis industry – the jargon grows faster than the profits. You’ll hear industry experts talk about cannabinoids and concentrates, trichomes and topicals. It’s all a little confusing. With the cannabis industry still in its infancy, you’ve likely not heard all the latest terms.
Indeed, you might hear business owners, cannabis consumers, and other industry professionals talking about “cannabusiness” or “cannabiz” for short.
“What is a cannabusiness?” you ask. It’s not as complicated as it sounds – and you might have already worked it out.
In this article, we will explain what a cannabusiness is and some of the primary types of cannabusiness you’re likely to come across. With the market constantly expanding, it’s essential to keep up-to-date with all the latest terminology and advances.
Let’s get started.
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You guessed it. Cannabusiness is a combination of two words: “cannabis” and “business“. (Known as a portmanteau if you want to sound extra smart.)
That’s essentially what it means. It’s any business related to the cannabis industry. Once upon a time, you’d think solely of those who grew and sold cannabis. But, as the industry has expanded exponentially, there’s a lot more to the term cannabusiness than ever before.
So, what is a cannabusiness? It’s far broader than you’d first imagine.
Dispensaries aren’t the only cannabis business anymore. The multi-billion-dollar industry is much more diverse than most people realize, from logistics to extraction.
Here are some of the primary cannabusiness you’ll come across.
Dispensaries remain the most numerous types of cannabis businesses. They’re also amongst the most profitable. There are two main types of dispensaries: retail dispensaries and online dispensaries.
In states where cannabis is legalized either medically or recreationally, dispensaries are how people purchase the product. However, these businesses differ wildly depending on the state – with some being significantly more commercial than others.
Aside from bricks-and-mortar dispensaries, online retailers ship directly to consumers. They’re far less numerous than their real-world kin, however.
All that cannabis has to come from somewhere. It’s where growing and cultivation businesses come in. With more and more people purchasing cannabis, there’s an army of horticulturalists meeting the demands; they’re farming cannabis on an industrial scale.
Some use indoor facilities; others rely upon greenhouses, while it’s also grown outside when the climate allows. It’s a complicated business, necessitating everything from automated hydroponics systems to CO2 extractors. It’s also a multi-billion-dollar business in its own right.
To expand, businesses need capital. Investors, financial institutions, and banks are springing up to supply a steady funding stream to fledgling cannabusinesses. If you’re planning on starting a cannabis company, you’ll need to turn to one of these sources. They have the expertise – and money – to help you grow your business.
CBD and other cannabinoids products are increasingly in-demand. Extraction companies take cannabis crops and use machinery to extract the different types of cannabinoids from cannabis. These are used to produce oils, ointments, and other medicinal products. It’s one of the fastest-growing sectors within the industry.
Cannabusinesses need to get the word out. That’s the job of marijuana marketing experts. Currently, no marketing agencies focus exclusively on cannabis products. But with comprehensive strategies needed for SEO, social media marketing, web design, and programmatic ads, there’s a willing group of businesses ready to sell their services.
They also need to design the various containers and packaging used for cannabis products. Some brands will handle these jobs in-house. But, as the industry expands, these roles will increasingly be outsourced to product design experts outside of cannabis companies.
Managing a cannabusiness is an intricate process. To ease the process, many companies turn to technology to automate and increase the efficiency of their business. You’ll find marijuana software used in the plant growing process or POS systems tracking dispensaries’ inventories.
In fact, increasingly, there are software developers dedicated to creating cutting-edge systems exclusively for the marijuana sector.
Cannabis accountants and bookkeepers
With all the money pouring in, cannabusinesses need someone to keep track of their finances. Enter the legion of cannabis accountants and bookkeepers. CPAs and bookkeepers need extensive experience with the industry’s complex tax laws.
Hiring a professional CPA, therefore, is critical to running a successful cannabusiness (and avoiding costly mistakes).
All businesses rely on a broad range of services to cover their risks. It’s the insurance industry’s job to serve the cannabis industry with the relevant insurance products. There’s an insurance policy for everything from damage to crops to customer accidents. Here are some examples:
If you think the cannabis industry is diverse, it will only get more complex. With new businesses focused on crafting delicious cannabis edibles, foods, and beverages and merch being manufactured en masse, entire industries are being born as we speak.
It’s a remarkable economic success story.
But there’s still room to start your own cannabusiness. If you’ve got a new product or service idea, now is the time to seek investment. Indeed, the next big cannabusinesses are being founded today. There’s an endless world of business possibilities waiting to be explored. Will you take the leap? Will you start a cannabusiness?
Do you own a hemp, CBD, dispensary, marijuana, or cannabis business and need a business bank account? We’ve validated over $8 billion dollars in cannabis-related funds since 2015. Bank with confidence. Bank with Safe Harbor Financial today.
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