Full Scale
2021-01-06 /

What is Cannabusiness?

More and more entrepreneurs are looking at cannabusiness as a potential startup. However, despite its market boom in recent years, it’s still a tricky business to manage. Learn more about how to break into this unique industry.  

The more unconventional a business is, the more people will turn their heads towards it. As society becomes more curious, a lot of entrepreneurs have become bolder in exploring new products. 

This includes breaking stigmas that surround certain controversial fields, such as the cannabis industry. Over the last few years, the industry has dramatically grown, set to reach 97.35 billion by 2026. It’s safe to say, the landscape for this type of business has changed.  

What is Cannabusiness? 

If you’ve kept your ear to the ground, you may have heard of the term cannabusiness (or cannabiz) thrown around in the startup world. As you may have guessed, the term is a combination of the words cannabis and business. Along with the combined terms is the combined concept of adding market value to cannabis.

Now, you may already have a list of questions running through your mind about it. What is cannabusiness? Is it legal? Does it actually sell? Is there a real market for this?

A cannabusiness, just like any other startup, has the potential to succeed when done right. The answer to all that question is, “it depends.” There are plenty of factors you need to consider if you want to start a cannabusiness. So, if you’re curious about it, read on.

How to Start a Cannabusiness

The first thing you need to know is that its operation largely depends on where you’re from. Your area will determine if it’s legal to deal with the product and if there’s a viable market to sell it to. You need to look up, first, which states allow the use of cannabis

For example, Alaska’s legislation allows full use of cannabis for medicinal and recreational purposes. Since it has very loose restrictions on selling cannabis, there’s a larger market for it in their area. However, for places like Alabama, cannabis is fully illegal. You have to be mindful of your location and its legal boundaries to ensure you’re not breaking the law.

Since we’re discussing legalities for business, let’s break down the key requirements you’ll be dealing with for cannabusiness.

Cannabusiness Regulations

The rules and regulations of the cannabis business are based on which category you’re operating under. Be mindful of all the rules so you can successfully launch it. Here are examples of how each category is licensed.


If you plan on growing cannabis, you’ll have to go through a highly rigorous inspection. Most states heavily regulate this type of operation. You’ll need to provide significant initial investment, a complete and detailed site plan review, and proof of your horticultural knowledge. You have to tread lightly in the legalities since it’s a highly sensitive substance, and it’s easy to overstep boundaries when it comes to growing it.


As a retailer, there may be limitations in the amount of product you offer and its price. You might also be required to put in proper building security. To apply for a business license, it might also be a requirement to present a certain amount of liquid assets. If you’re applying for more than one retail license, each establishment should have the same amount of funds.   


Edibles and their ingredients are thoroughly checked and regulated. Whether you plan to sell baked goods or CBD mints, you’ll have to go through some stringent health protocols and prove that your products are safe to consume.  Some states will require you to cook and maintain your product in a commercial kitchen. You’ll be asked to do the manufacturing of the edibles on site.


Even if you’re only looking to invest in a cannabusiness, you’ll still need to follow specific regulatory and statutory provisions. States like Colorado share detailed requirements for legally investing in the marijuana business. Look up the provisions in your area before putting out the money.  

Marketing your Cannabis Business

Now that we know the regulations surrounding a cannabusiness, it’s time to move on to the next challenge—advertising it. Despite all its hype, marketers are still having a hard time promoting this type of business. 

Social media platforms, for example, restrict the use of words such as “CBD” and “hemp. Marketers have to be creative in vaguely phrasing their ads to ensure they don’t get taken down. But even with all the restrictions, there are plenty of ways you can promote your cannabusiness.

Create a website

Creating a website gives you more leeway in what type of content you’re posting. A website allows you to establish an online presence and introduce your brand to a wider demographic. As a business owner, you get the convenience of doing transactions online and the creative freedom to design your website’s ads.

Build a Mobile App

Consider building a mobile app as well. A mobile app will help you paint your name in the industry. The more people use it, the more likely they’ll patronize your brand. Make sure that all the core features of your mobile app are working, and regularly update it for your customers.

Market online

Lastly, employ digital marketing strategies that can make your ads surface on the right platforms. Marketing a cannabusiness is hard, but it’s not impossible. Sometimes it’s just a matter of getting seen. Since many cannabis-related words are censored online, your potential customers just need the hints to where they should be clicking.

For example, some marketers weave their cannabis products in fitness ads. Instead of mentioning the name, they emphasize its benefits and what it can do. People are usually quick to catch on.

Start with Full Scale

Starting a cannabusiness is no easy endeavor. You have to jump through a lot of hoops before you get the approval to kick things off. On top of that, you need to set up all the promotional materials and your business’s functional platforms. It can be overwhelming when you don’t have enough hands on deck to help you out.  

Why not get more help from an outsourcing company?  

Full Scale is a software development company that helps entrepreneurs run their businesses. We’ve helped out all kinds of startups improve their process by providing them with the resources they need. Whether you’re in need of software developers, marketers, or project managers, we’ve got all of them ready to deploy!  

With Full Scale, you won’t have to worry about all the tedious recruitment processes; we’ll take care of everything. You can focus on your main goal of taking your business to the next level. Interested? Get your FREE consultation today!

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