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While many industries experienced a setback in 2020, the cannabis industry is one that saw steady growth. Deemed as essential businesses, many cannabis companies stayed open during COVID-19 shutdowns. And while the top reason for medical marijuana usage still remains chronic pain, experts have found that the pandemic resulted in an increasing number of patients turning to cannabis for sleep issues, stress, and anxiety.
With new legalizations, the medical cannabis industry continues to grow. In fact, the American cannabis industry is now projected to be worth $100 billion by 2030. But despite new legalizations, the industry is still encountering obstacles. Read on for advice for how your cannabis business can overcome these common challenges:
Keeping Up with Regulations that Are Constantly Changing
In the cannabis industry, regulations are ever-changing. That means as a business owner, you need to be ready to pivot and adapt to new and emerging opportunities at the drop of a hat. Stay informed by following the latest industry news to give yourself a competitive edge. Consider retaining a lawyer who is familiar with the cannabis industry and can keep you in the know. If you need to make swift changes, having an attorney in your corner who understands the specifics of the legalities that come along with new regulations will be extremely beneficial.
Cash Only Operations Pose Major Risks
Since cannabis is still not legal on a federal level and banks will not service the industry, companies are forced to do their transactions in cash. Having a large amount of cash and not being able to store it in a bank poses a number of safety concerns for cannabis businesses. While business owners are hopeful that the proposed SAFE Banking Act will eliminate the bank restrictions, there are some measures you can take now while waiting for a federal solution. Here are a few important tips:
Combatting the Negative Stigma
Medical marijuana can now legally be sold in 36 states and in Washington DC. And while recent polls show that support for legal marijuana is at an all-time high of 68%, the medical cannabis industry still continues to encounter a negative stigma. As a business owner, you can help combat the stigma by sharing stories of how the product has helped patients, ensuring your messaging focuses on education, and encouraging an open dialogue with new customers who may feel anxious or reluctant.
Lack of Funding
Access to cannabis business funding has always been limited in the United States since traditional banks and credit unions can’t provide loans to the industry. This poses quite the challenge for businesses looking to grow or for newer businesses trying to get off the ground. At SBG Funding, we’ve developed proven cannabis financing solutions for new and established marijuana-related businesses that can help you purchase equipment, hire additional staff, cover legal fees, develop your dispensary, purchase farmland, expand your business, and more.
We Can Help You Grow Your Dreams
With access to fast and flexible cannabis business financing, we make sure you always have room to grow! For more information about how SBG Funding can help, click here or call us at (844) 284–2725.
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