Starting A Cannabis Business: Funding, Challenges, And Solutions

Cannabis business are unique. Not just because they operate in one of the most successful industries in America, but because they have grit.

What many entrepreneurs don’t realize is the stark difference between launching a regular retail business vs. a cannabis business. It’s not as simple as having a great idea and some startup cash.

The biggest challenge?

Most banks won’t touch cannabis money with a ten-foot pole. No business loans, no credit cards—not even a basic checking account. Still, solutions exist. Read on to learn more about starting and funding a cannabis business.

Banking Restrictions: Since cannabis is still illegal under federal law, cannabis entrepreneurs have limited access to bank accounts. That means no standard business loans and challenges with credit card processing and cash management.

Changing Regulations: One of the most challenging aspects of operating in the US cannabis industry is the ever-changing laws from state to state. What’s legal in California might be banned entirely in another state. For cannabis entrepreneurs, running a business requires staying up to date with policy updates and compliance in each state in which you operate (and at a federal level).

Operational Hurdles: Again, since cannabis isn’t federally legal, companies might have limited access to insurance. Another difficulty is marketing, as different platforms and mediums have different rules regarding the promotion of weed. Cannabis businesses must also meet strict security protocols and have detailed inventory tracking systems—way tighter than those of normal retail stores.

Although banking restrictions make it seem tough to launch a cannabis business, many funding options exist. Some include:

Private Investors:

• Venture capital
• Angel investors
• Private equity firms

Alternative Financing:

• Working capital loans
• Equipment financing
• Inventory funding
• Real estate loans

Here’s where most cannapreneurs go wrong—they try to handle everything alone. While bootstrapping can work initially, having the right financial partners and resources can make scaling a breeze.

That’s where Canntella comes in. This team specializes in providing financial solutions specifically designed for the unique (and dynamic) cannabis industry. Their aim? To give you the financial means to succeed, even when traditional banks can’t help.

With a focus on small and mid-sized businesses, Canntella deeply understands the challenges that eager cannabis entrepreneurs face. Here’s how they help:

Funding: Whenever your business is hit with unexpected costs, Canntella provides working capital to help ease operations. Use capital to invest in inventory, scale your business, and keep operations running smoothly.

Knowledge: As mentioned, running a cannabis business requires deep knowledge of the space and its ever-changing laws. With Canntella, you’ll get the latest news and information about the business side of the industry through guides, whitepapers, and other helpful resources.

Growing a cannabis company shouldn’t be a challenge. Canntella’s simple financial solutions and expert advice are exceptional resources that any cannapreneur should leverage to grow and scale. Visit their site at canntella.com for more information.

If there’s one industry that’s changing faster than any other, it’s cannabis. Between shifting state laws and federal restrictions, staying ahead isn’t easy. But it’s possible.

If you’re just getting started, don’t go at it alone. Reach out to Canntella and see how their simple financing solutions can take your cannabis business to the next level.