Why to Be Cautious When Using a Cannabis Business Plan for your Immigration Entrepreneur Pathway

Why to Be Cautious When Using a Cannabis Business Plan for your Immigration Entrepreneur Pathway

Cannabis industry, a burgeoning billion-dollar industry with enormous potential to grow offers various Entrepreneur Pathways to pursue. It can be farming, processing/ manufacturing or retailing. Canada being one of the best places to launch a cannabis business does not even require citizenship or residence to start this business. However, you would need a well-crafted Cannabis Business Plan to make it happen.

Cannabis Industry in Canada The retail cannabis industry is growing multifold, with a record sale of CAD318.7M in June 2021. The recreational sales have grown by 58.5 per cent than the previous year. Nova Scotia is on top for the monthly sales growth, touching CAD8.2M with a 10.5 percent growth while Ontario grew 8 per cent to account for CAD120.2M in June 2021.

As the industry is maturing with each passing year, it is also witnessing a paradigm shift in Canadian in terms of usage and product choices. In the beginning, it was assumed that the cannabis products would majorly be used by younger demographics. However, the report by Brightfield Group says that the users under 30 years of age have come down from 33 per cent last year to 25 percent in the first quarter of 2021. Besides this, the industry is also seeing a gradual increase in demand for high-THC products with more than 35 mg of cannabinoids. These consumers use cannabinoid products at least once everyday.

Points to Consider in a Cannabis Business Plan So, if you are contemplating your options of entering the Cannabis industry as an entrepreneur pathway, thorough knowledge of the industry is a must. It’s not just the laws and legalities around the

industry, keeping a close watch on the changing demographics and usage patterns can also aid in choosing the right path & products to be successful.

Conduct Research – Despite being a budding industry, it does not ensure every business to be successful. Therefore, when taking the entrepreneur pathway, it is advisable to do your due diligence in terms of – - Thorough knowledge of federal cannabis laws.

- In-depth information about the provincial and local municipal regulations for starting a business as well as cannabis consumption.

- Determine the checklist to get a cannabis license.

- Find options to gain capital/ funds for your business such as online lenders, and investors.

Business Model – Articulating the right business model is of utmost importance for an Entrepreneur Pathway as it is going to generate money for you. For instance, if you are a skilled grower and planning to start cannabis farming in Canada, your profitability and long-term value will be based on – - The genetics of the cannabis bud, and - Its better taste & smell Whereas if you are going to retail the CBD products, it would be the quality, price, brand value and selling ability that makes or breaks the business for you. So, explaining all this in a detailed manner in the cannabis business plan can prove to be highly beneficial for you.

Location – Location plays a key role in retailing. So, the cannabis business plan must demonstrate how the location with a high footfall of your target consumers would benefit the business. But at the same time, the zoning laws of provinces and cities to open a cannabis business must be taken into notice as they can greatly affect the business. Rentals are another factor that can eat into your revenues. As a result, finding the right location with low rentals is crucial in this entrepreneur pathway.

An important point to consider when writing a cannabis business plan is that the most banks still don’t entertain entrepreneurs from Cannabis industry for loans. So, you should draft your cannabis business plan keeping investors in mind.

These investors look for detailed and thorough knowledge about your business, the industry as a whole and your modus operandi. In addition to this, the cannabis business plan should also shed some light on the operating principles that can sail the business through unforeseen challenges.

In other words, the cannabis entrepreneur pathway coupled with a winning Cannabis Business Plan is undoubtedly a lucrative option to get started with.