Ancillary Cannabis Businesses:
Exploring organizational-based businesses in the cannabis industry
The cannabis industry is one of the fastest-growing industries since the industrial boom of the early 17th Century. Moreover, the market continues to expand with every new political season. Economic-savvy publications such as Forbes have predicted that the cannabis industry surpasses $100 billion within the next 5-7 years. This not only grants more markets access to cannabis, but it also allows the rise of canna-centric companies. More specifically, ancillary businesses can rise within the cannabis industry. Let’s take a look at understanding the role and types of ancillary cannabis businesses.
Understanding Ancillary Cannabis Businesses
The term ‘ancillary’ refers to businesses that are directly involved in providing the necessary support for the advancement of a business. This can include things such as investments, construction, equipment, security, and packaging. This can also include overall business consulting for cannabis startups and tenured businesses. The other side of the cannabis industry is more physical. These are the businesses that focus on things such as cultivating and directly providing cannabis.
Cannabis Packaging Companies
One of the more common types of ancillary cannabis businesses is those directly involved in the support of other cannabis entities with the help of packaging. These are the companies that are directly responsible for understanding the legality and the marketing appeal for cannabic products. These companies are quintessential in advancing the cannabis industry as it is often the first thing consumers and patients seeking cannabis see. Moreover, these companies work closely with marketing specialists to ensure the product is as appealing as possible.
Cannabis Investment Firms
Similar to any business, there exist ancillary firms that focus solely on investing. These companies are tantamount to the success of cannabis businesses. The latter can be gravely expensive and is not very ‘loan-friendly.’ In most legalized states, the application fee itself is approximately $15K. This does not include any of the brick-and-mortar storefronts that are ultimately necessary to provide recreational and medical-grade cannabis. These firms act similar to other types of investment firms but are canna-centric.
Security Firms in the Cannabis Industry
As aforementioned, cannabis is a lucrative product. This means that loss prevention must be taken as seriously as quality control. With this in mind, security firms that specialize in the cannabis business exist to assist cannabis companies. These are the firms that evaluate and protect physical and virtual assets for your business. In this case, these are the firms responsible for installing necessary deterrents, IT protection, and more. There is no way the cannabis industry will surpass the $200 billion milestone without properly protecting the buds.
Cannabis Construction Companies
There also are companies that specialize in the construction of cannabis companies. These are the businesses that are responsible for laying the physical foundation for cannabis businesses. These companies specialize in understanding the marketing and bureaucratic red tape surrounding cannabis storefronts. Moreover, these brick-and-mortar establishments are designed and constructed in such a way that is cost-effective and consumer-friendly.
Equipment-based Businesses in Cannabis
Once the cannabis storefront foundation has been laid, the company must be properly furnished. No, this does not mean chairs and sofas. This refers to the equipment necessary to keep in house for dispensaries, cultivators, and other touchy-feely cannabis businesses. These companies provide the necessary equipment to pack, cultivate, and distribute cannabis to consumers and patients. They are responsible for providing companies with lights, fixtures, tumblers, rollers, and much more.
Exploring Businesses in Cannabis Technology
Another prominent piece to the foundation of the cannabis industry are ancillary businesses that focus on technology. Cannabis technology, sometimes referred to as ‘CannaTech,’ is virtually self-explanatory (pun intended.) These businesses focus on using technology to improve logistics, information technology, digital marketing, and the overall digital customer experience tailored for their clients. One example of a business that focuses directly on improving and providing cannabis technology is Stickyleaf. Click here for more information on how an ancillary business like Stickyleaf utilizes CannaTech to improve operations and customer relations.
The Future of Ancillary Businesses in the Cannabis Industry
As aforementioned, the cannabis industry is not showing any signs of coming to a halt anytime soon. Moreover, the market continues to expand approximately every 18-24 months. This not only allows the physical cannabis businesses but the ancillary weed companies to prosper as well. As the economy becomes more cannabis-friendly, ancillary cannabis businesses can help them continue to grow (pun intended.)