But dispensary owners aren’t the only folks rocking it out in the industry. Even though they have a ton of visibility, there are plenty of people in the industry working behind the scenes.

And when you get right down to it, there would be no dispensaries without them. So we’ll take a look at the full spectrum (pun intended) of cannabis industry businesses.

Businesses That Deal With the Plant

There are essentially two sorts of cannabis businesses: those that handle the plant and those that don’t.

Businesses where there is direct contact with weed are referred to as plant-touching businesses. They require licensing and must be in compliance with the rules and regulations of their individual state.

They include the following:

1. Dispensary/Delivery Service Owners

Both dispensaries and delivery services require business-to-customer licenses. Each sells products to the end-user – be that from a brick and mortar location or through delivery. Inventory is sourced wholesale from cultivators, processors, and/or manufacturers.

2. Growers/Cultivators

A large-scale grow house is perfect for those who work better with plants than with people. Cultivators carefully and meticulously breed, grow, and harvest cannabis that is later supplied in the form of raw flower to either dispensaries or processors for THC/CBD extraction.

3. Processors

The days of smoking a doobie are far from over. But there are multiple other delivery methods now too. The popularity of edibles, tinctures, vape cartridges, beverages, topicals, etc. can’t be argued. And the wide array of products for end-user consumption has enabled the processors who extract THC and CBD to thrive.

4. Lab Researchers

Even the scientifically-minded can establish themselves in the world of cannabis. Cannabis research and testing labs are necessary to not only ensure that the product is safe, but to research chemical makeup of cannabis products in order to determine THC and CBD potency.

5. Distributors

Distributors are a crucial part of the supply chain. Without them, the plant (in its various forms) would get nowhere. They move it from the cultivator to the lab for testing and eventually to the processor or the dispensary.

6. Cannabis Lounge Owners

At the time of the publication of this post, there are precious few states that offer a license to businesses are entities that allow consumption of cannabis products on-premise. But they could be forthcoming.

Ancillary Businesses That Don’t Handle the Plant

Given the explosion of plant-touching businesses, there is a rapidly growing need for the ancillary, or non-plant touching, businesses that support them.

These businesses are vital for the survival of the industry. And as an added bonus, they don’t face nearly (if any of) the regulatory obstacles that plant-touching businesses do.

Ancillary businesses include those in:

1. Tech

Plant-touching businesses can easily fall prey to the headaches of maintaining compliance. Failure to do so can result in hefty fines, and the great potential of human error doesn’t help the process. Tech such as seed-to-sale software that tracks every step of the inventory is a lifesaver.

And given the specialized needs of the industry, tech is constantly coming up with new ways to manage everything from point-of-sales and employee training to CRM and product delivery specifically for cannabis businesses.

2. Packaging

Package designers for cannabis products are tasked with creating bags, wrappers and bottles that are aesthetically appealing and sustainably sourced. Yet, unlike other package designers, they have the additional challenge of ensuring the packaging is compliant with child-proof protections and disclosure labeling.

3. Construction

Those who work in construction are no strangers to building codes and regulations. Especially those who have been building out commercial developments for a long time.

When cannabis business owners need to build a facility, there are specific state regulations that come into play. For example, incorporating controlled entry and exit and location of product and cash vaults, to name a few.

These days, general contractors who take the time to learn their state’s cannabis-specific building codes and regulations and know how to incorporate them are in high demand.

4. Professional Services

Every business needs accountants and lawyers. Cannabis businesses are no different. And given the myriad rules and regulations, those that understand cannabis laws and tax strategies are even more in demand.

Other professionals include cannabis marketing experts who have the know-how to build a distinctive brand in a rapidly evolving industry.

5. Accessory Shops/Businesses

This is the ideal route for those who want the high visibility of being a shop owner (even if it’s an Etsy shop), but don’t wish to navigate all licensing and regulations.

Cannabis consumers will always want or need the perfect accessory to complement their experience. Fortunately, there’s a huge market for marijuana-related paraphernalia and artisan goods.

Interested in Getting Into the Cannabis Business?

The industry is booming. So now is the time for getting into the cannabis business.

By honing in on your expertise and working with your available resources, you can carve out a niche that will grow with the industry.

Understanding your target market is also critical. So don’t hesitate to contact us to help you with your marketing strategy. We’ll help you figure out how you fit into the industry.

The post Getting Into the Cannabis Business appeared first on GROW Cannabis Marketing.

Last week on August 7th, voters in three Michigan communities with marijuana proposals on the ballot voted against allowing marijuana businesses in their towns.

It’s no surprise that Vanderbilt was one of them. The village council banned marijuana businesses from their town earlier this year and voters just backed that decision.

And voters in Crystal Lake – a tiny town in Northwest Michigan – also approved a proposal to ban pot shops in town. Again, not a big shock.

But then there’s Highland Park.

Voter’s Decisions Must Be Respected

This was the sentiment of Marcelus Brice, a Detroit lobbyist who spearheaded the Highland Park proposal and was trying to make sense of the loss.

“But the residents of Highland Park won’t get to see the benefits of having marijuana facilities in their town,” he said in an interview with the Detroit Free Press.

And that’s too bad. Especially given the struggles the city has faced over the past 50 years.

Where cities like Vanderbilt and Crystal Lake could have also stood to benefit from dispensaries, they probably wouldn’t have gained nearly as much as Highland Park.

At least, that’s what the latest research shows.

How Dispensaries Improve Neighborhoods

Frustrated by the lack of data and statistics that show how dispensaries benefit communities, Leafly recently published a comprehensive report that backs this.

Their team of data analysts, researchers and editors reviewed 42 key studies. Here were some of their key findings:

• There was no increase in crime related to the location of medical marijuana dispensaries or adult-use retail stores. In some cases, crime decreased.
• Teen cannabis use in states where marijuana is legal decreases after legalization.
• Property values near cannabis outlets generally are not affected and in some cases, increase by 6-8%.

Leafly’s intention behind this literature review was to better inform civic debate at the city, state and national levels. And there’s a lot more where that came from.

Because every time a state legalizes cannabis, local municipal officials are put in the tough position of deciding whether to allow or prohibit cannabis stores from operating in their jurisdiction.

And they are ultimately at the mercy of the voters in the jurisdiction.

Old Myths Die Hard

This is where the problem lies. There is a lot of misinformation out there. And it spreads like wildfire.

Despite the information to the contrary, law enforcement leaders and real estate agents continue to (falsely) warn folks about increased crime in neighborhoods with dispensaries.

Meanwhile, parents envision (again falsely) their kids swinging into the neighborhood dispensary every day after school. Even presidential hopeful Vice President Joe Biden still believes it’s a gateway drug. (Pause for sigh.)

All of this fear and archaic thinking has lodged a 25 point gap between support for legalization (75%), and support for a neighborhood dispensary (50%).

So if this is the overriding belief in cities like Highland Park, then it makes perfect sense that voters wouldn’t be gung-ho about bringing in marijuana businesses. They’re trying to revive their city, not pull it back down.

Unfortunately, they haven’t been exposed to the information coming out of states like Colorado and Washington – where the data represents five years of adult-use cannabis sales.

Not only does research there find that cannabis stores improve public safety, health, and property values, but they make for good neighbors too.

In fact, many local officials have switched from reticence to confidence in having well-regulated stores – citing these companies as the most socially responsible members of the community.

Meanwhile, the result of banning cannabis stores and dispensaries from communities often has the unintentional effect of propping up the local black market.

So it’s a double whammy.

It Continues to Be a Slippery Slope

If you’re lucky enough to live in a community with a well-run cannabis business, you may already be seeing in action how dispensaries improve neighborhoods.

Even if it’s subtle.

Sometimes it’s just nice knowing that there’s someone in the neighborhood who’s helping. Maybe some day, every neighborhood will see it this way.

In the meantime, we applaud the efforts of every dispensary rising to the occasion and facing the challenges inherent in this business. If you feel like your marketing and public relations strategies could use a boost, then contact us.

We want nothing more than to see you succeed and help improve neighborhoods.

The post How Dispensaries Improve Neighborhoods appeared first on GROW Cannabis Marketing.

In spite of all the amazing benefits of legalizing recreational marijuana, working out all of the logistical and bureaucratic crap hasn’t gone well for Michigan.

To be fair, no state has been immune to a variety of problems that come with legalizing pot.

But the latest move by Whitmer’s new state Marijuana Regulatory Agency (MRA) last week has many wondering, will licensed dispensaries be able to survive?

What the MRA Decided

Opening a dispensary is tough enough.

But now, for some reason (i.e. money interests perhaps?), the MRA made the decision to “immediately” ban provisioning centers from buying marijuana from any of the over 41,000 state-approved caregivers.

The move feels, for lack of a more technical term, bone-headed.

Caregivers have been the primary source for medical cannabis. And their patients trust them. After all, knowing the source of one’s medicine is priceless.

And speaking of priceless, caregiver marijuana is far more affordable. This is especially pertinent to those who rely on medical marijuana to deal with serious conditions like MS and cancer.

But now, dispensaries must purchase all marijuana products from any of the roughly 20 state-licensed corporate growers and processors. And by all, they mean ALL. This includes everything from flower and hash to edibles and concentrates.

“It is now very difficult for provisioning centers to not only remain competitive but to give patients products at a competitive price,” says Evan Pilot, financial controller of The REEF. “I truly think some of these fully licensed businesses that have done everything right are going to shut down.”

And this from an employee at the The REEF – one of the largest and most highly respected dispensaries in Michigan.

So What Does This Mean?

Almost certainly a victory for the black market.

“Licensed dispensaries are going to go out of business,” says attorney Michelle Donovan says. Donovan is a lawyer for Butzel Long who sued Michigan over this issue. “They aren’t going to compete with the black market. The giant growers don’t have the products that patients want.”

This last point is especially poignant.

Rather than focusing on ointments, edibles, tinctures, cannabinoids and concentrates – the products of choice for many of the state’s 293,000 medical marijuana cardholders – corporate growers are all about the bud.

So what’s a caregiver to do?

Join all the others in flooding the black market. In fact, they’ll be in good company with the dozens of illegal delivery services that have popped up as a result of Lansing not enforcing a law that was supposed to create a safe, regulated system.

Yep.

State regulators seem to be discouraging cardholders from getting their cannabis from dispensaries. These are businesses which pay state sales tax, regulatory overhead costs for testing and labeling, and hefty licensing and attorney fees.

What the MRA Has to Say

In the spirit of viewing both sides of the coin, we’ll address what drove state regulators to this decision to switch to corporate growers. (Hint: the word “corporate” speaks volumes.)

They claim that their interest is to “protect the health and safety of the public” because cannabis products from growers are required to be tested for contaminants.

Okay. But contaminants have never been a problem with caregiver product.

They also insist that corporate growers and dispensaries have a veritable wealth of this tested cannabis available. Like a Scrooge McDuck room’s worth. But their insistence comes with no records to cake up such claims. So there’s that.

It all comes back down to this question:

Will Licensed Dispensaries Be Able to Survive?

As cannabis marketing and public relations specialists, we believe in the essential services that dispensaries provide.

At this point, we can only hope that the answer to the question of will licensed dispensaries be able to survive this mess is YES.

They’ve proven resilient in the past.

But it’s disappointing that the new The Marijuana Regulatory Agency is putting corporate interests before patient interests.

At least, that’s sure how it seems.

The post Will Licensed Dispensaries Be Able to Survive? appeared first on GROW Cannabis Marketing.

LARA came up with not 1, not 5, but 16 terms that medical marijuana businesses are prohibited to use in their business name and in their advertising such as: drug store, apothecary, medicine store, doctor of pharmacy and licensed pharmacy technician. Michigan is giving these business owners no leeway in what to call their business and how to go about marketing to their customers. LARA did, however, say that dispensaries will be allowed to be called “provisioning centers” which LARA claims will help with keeping up on Michigan’s health code.

Michigan’s reason for the list has absolutely nothing to do with how dispensaries use these terms, but rather the rules in the Michigan public Health code. Part 177 of the MPHC state that only people who have met certain qualifications can use the terms that are provided in the newly developed list. Many people who work in dispensaries, well, provisioning centers such as budtenders are very unlikely to meet these specific qualifications.

If dispensaries keep advertising themselves as dispensaries, then they are facing closure due to failing to comply with a state mandate, thus putting countless businesses in a tight spot because there are only so many names that businesses can call themselves before everything starts blurring together. All this does is inconvenience businesses, confuse customers, and make dispensaries scared about business closure over a name issue that is perfectly harmless.

The post The LARA List appeared first on GROW Cannabis Marketing.