The amount of cannabis related start-ups will slowly start to increase considering the recent ruling from the Constitutional Court. Although selling weed isn’t legal yet, there are business opportunities out there for clever entrepreneurs. But, before you get going there are a few fundamental steps you’ll need to prepare, to ensure your cannabis business stays high above your competition.
How profitable could this venture be?
With Canada becoming the second country to fully legalise marijuana, as well as the growing number of American states ruling in favour of cannabis, the profits from the weed industry continue to grow.
In 2016, the cannabis stock index experienced 236% growth, according to Viridian Capital Advisors, a financial advisory firm specialising in the marijuana industry. In the same year, the legal marijuana industry was worth $7.2 billion, according to Forbes. It’s projected to increase by 17% year-on-year, growing the medical cannabis industry to $13.3 billion and the recreational weed sales to $11.2 billion by 2020.
When opening any business, you’ll need to consider these 6 fundamental steps. But, considering how little has been mapped out about the South African marijuana industry, these business building blocks and strategies will be vital in the sustainability of your new weed start-up.
Here are 6 fundamental steps to consider before venturing into the South African cannabis industry:
- What will your business idea be?
- Know your competitors
- Consult a lawyer
- Develop a business plan
- Cultivating a network
- What you need to know about funding a cannabis business
