The growth of any business faces a lot of challenges. There are a lot of entrepreneurs that face challenges on daily basis growing their business ahead. Talking about cannabis business, one has to face a lot of hindrances to enter this business and continue it. Entry to a legal cannabis business is a challenge as there are many regions which have not yet legalized cannabis cultivation. Further speaking about the types of hindrances cannabis cultivation practice faces we can classify it as follows:
FINANCIAL CONSTRAINTS
Banks critically scrutinize the transactions they need to process through loans or anything. There is no organized form financial system that can be of aid to the cannabis entrepreneurs. Generally, even in some areas where cultivation of cannabis is legal, we have found that there are no laws/rules that can provide the creditors and loan takers with a structured form of financial arrangement.
Cannabis entrepreneurs and businessmen are seldom benefitted with the loan facilities. It gets at times very tough to even think about the expansion of businesses and even if it happens, the loans that they receive on a private basis from other private money lending agencies have their interest rates reaching heights.
Although if you need to cultivate at higher scale, some advancement in technology is necessary which in turns become difficult to achieve due to financial crunch.
EMPLOYMENT CONSTRAINTS
The growth of any business requires acquiring more skilled manpower, and infrastructure. Since there are legal constraints acting in some areas business owners need to train and get their manpower certified which means if an individual is into growing cannabis then he/she is a licensed with it and it’s the business owner who bears the cost. Also one has to keep a tough check if there is any illegal business going out under him as there are people who think that they have trouble-free ingress to use the weed growing in the realm of legal cannabis.
MYTH OF CANNABIS BEING EQUIVALENT TO MARIJUANA
Marijuana is a derivative of Cannabis, a weed which is grown in its realm. Cannabis Sativa is particularly developed for indicated modern use of its determined items that are additionally refined into materials, creature bolster, fiber and so forth. Cannabis Sativa contains THC (tetra-hydro-cannabinol) which has its furthest impacts in psychotropic and mind-adjusting effects. Many of the people think that cannabis cultivation can lead to Marijuana business causing a threat to youth and nation which is not always true, at least not for the people who are intentional only about cannabis cultivation and its legalized usage.
LEGAL CONSTRAINTS
Special licenses and permissions need to be taken from the responsible authority in different areas. Also, areas where cultivation is legal there are possibilities of changing laws hence there is less possibility of long-term planning in cannabis business. Also, there are no such laws where there is protection if marijuana is grown. Legalization is a big issue in Marijuana business hence policy making attributes is also hindered.
MARKETING CONSTRAINTS
There is very less aid to marketing solutions of cannabis due to lack of help and assistance from media. Lack of advertisement, sponsorship and marketing promotion is the biggest obstacles to the growth of the marijuana business
- The world’s experience with the historical trends of alcohol and drug usage has affected marijuana business as consumers tend to be influenced treating marijuana as an addictive substance.
- Following up with such information, social media marketing which is considered as the most profitable platform for marketing and promotions there has to be a no. of warnings issued when you promote anything as if they feel that the content is unfit for their webpage they may delete your promotional campaigns.
- Such businesses can’t end up spending more than permitted value for marketing.
- Violations of marketing rules end up in suspension of licensed marijuana manufacturing.
- Daily studies and research that are published worldwide keep on challenging its benefits instead raising voice about negative impacts on teens and youth hence hindering its promotion.
Ongoing awareness and development in the world may tend to increase and help cannabis business growth. Understanding the advantages of cannabis and then creating a good marketing plan may help in the perpetual growth of Cannabis Business.
