Are you interested in opening a business where people can safely consume cannabis in a public, social environment? Cannabis consumption lounges can follow several existing models depending on local regulations, client preferences, and your own entrepreneurial vision. GreenWrap Insurance Solutions offers insurance protection for cannabis-related businesses in North America, the Caribbean, Europe, and sectors of Latin America. Here, we offer tips on starting your own cannabis consumption lounge.
Research Local Regulations
This first tip is key. Be sure to research all the local regulations in your desired location. Cannabis businesses are highly regulated, and laws may vary throughout the country, province, or territory. Small communities may have specific guidelines as well related to zoning, pollution, and licensing.
In addition to regulations, you will likely have to apply for licenses and pay licensing fees. As with any new business, do your homework to determine whether the planned location is feasible and determine upfront expenses.
Discover Client Preferences
Once you’ve decided on a location for a new marijuana consumption lounge, the next step is to determine what kind of lounge your future clients may prefer. To do this, you can visit with community leaders, ask questions, gather insights from your target demographic, become leaders and be a positive addition to local infrastructure and operations in your area.
Another option is to hire a marketing team to poll the local population for you. If there are other cannabis businesses in the area, request to share information amongst each other to find out customer preferences, buying habits, and products.
Outline Your Entrepreneurial Vision
Another helpful tip is to honor your vision for a cannabis consumption lounge. Research into customer needs is important, but so are fresh ideas. There is no doubt you bring many skills and strengths to this endeavor. Whether you look forward to playing host to a new cannabis community, booking live music in the space, or plan to stay in the background, consider the desires you have for the structure and atmosphere of your consumption lounge.
Create a Business Plan
A formal business plan is the cornerstone of a new venture. Acting on this tip is easier if you’ve researched regulations and licensing costs and have clear ideas about who your customers will be and their needs. After checking in with your own visions for a vibrant new cannabis consumption lounge, you likely already have an outline for the business plan in place. Additional requirements may include the following:
- Estimating expenses and sales for the next two years
- Determining whether you will need to raise capital or find private investors
- Planning the initial marketing to attract customers
- Analyzing competitors
At this time, you may wish to consult with accountants, insurance, investors and lawyers for assistance with your cannabis lounge’s business plan. We are happy to recommend some.
Find Insurance Protection
Businesses require insurance coverage and licensing divisions. This final piece of the puzzle should also be included with your business plan. Ensure you have enough insurance protection and that it is purchased from an industry-appropriate company. The modern marijuana and hemp industry faces new challenges to business models due to ever-changing regulations and laws.
Seek professionals who know the cannabis industry well and who will support your business opportunities and growth. For more information about insurance coverage in North America, the Caribbean, Europe, and sectors of Latin America, contact GreenWrap Insurance Solutions today.