The cannabis industry is not exactly new. It borrows a little from the alcohol, tobacco, advertising, pharmaceutical, and food industries. As new models emerge that relate to one or more of these industries, business opportunities for the everyday person keep popping up. Today, legal Cannabis represents a $50 Billion Dollar a year industry! Big Cannabis is coming. The race is on. Whoever can get there first should have the best chance at winning. Legal Cannabis represents a $50 Billion Dollar a year industry. The market will eventually be dominated by a handful of brands and they will occupy the large advertising spaces and employ glossy spokespeople -- they will be hard to ignore. So where does the ambitious enthusiast belong in this industry? If you have enough money to market your products to major-brand status, you probably do not need this book, however, successfully tapping into a multi billion-dollar industry is possible. A well-organized, moderately-funded husband-wife or two-person team should be able to start something small that can grow into something big - hopefully just like your favorite plant! Preface xiii Introduction xvii Part 1: The Many Opportunities to Do Business in the Cannabis Industry 1 1 Niche Cannabis and Trends to Consider As You Begin 3 2 Micro-Production Licenses 7 3 Doctors, Pharmacists, and Nurse-Practitioners 11 4 Clones, Tissue Cultures, and Seeds 15 1. Clones 16 2. Tissue Cultures 17 3. Seeds 18 5 Control Standards When Growing 21 1. Analyses 21 2. Batch Sampling Your Analyses 24 6 Beneficial Insects and Natural Pest Control 25 7 Edibles, Topicals, Extracts, Capsules, Concentrates 27 1. Edibles, Topicals, and Extracts 27 2. Tinctures 28 3. Balms 29 4. Extracts 30 5. Baked Goods 33 6. Capsules 34 iv CannaBiz 8 Retail: Vapor Lounges; Hemp, Hydroponics, and Online-only Stores; Compassion Clubs and Dispensaries 35 1. Vapor Lounges 36 2. Hemp Stores 40 3. Hydroponics Stores 41 4. Online-Only Stores 42 5. Compassion Clubs and Dispensaries 44 9 Importing and Exporting 47 10 Outdoor Growing and Greenhouses 51 Part 2: Business Considerations Specific to the Cannabis Industry 53 11 Finance: Taxes, Banks, Credit Cards, Payment Services 55 1. Taxes 55 2. Banks, Credit Cards, Payment Services 56 12 Intellectual Property 57 13 Insurance and Licenses 59 1. Insurance 59 2. Licenses 60 14 Getting an Audit, an Inspection, or a Recall 61 15 Drug Identification Numbers/National Drug Code 65 16 Growing Your Own and Strain/Symptom Correlation 67 1. Cost of Production 70 2. You Can Always Be a Canadian Licensed Producer (or US Equivalent) That Does Not Grow 70 3. Growing and Wholesaling versus Growing and Retailing 71 4. Understanding Federal Secure Storage Levels and Maximum Storage 71 5. Security-Storage Breakdown 72 6. Education and Certifications for Growers 75 Contents v 17 Software and Hardware 79 18 Personal Possession and Transporting 83 1. Secure Transport and Courier Services 84 19 Flying 87 20 Marketing and Branding 89 1. Name and Logo 91 2. Social Networking 91 3. Search Engines 93 4. Blogging 94 5. Web Conversions 95 6. Advertising 95 7. Packaging 96 21 Special Events, Trade Shows, and Conferences 99 22 Networking and Neighborhood Marketing 103 23 Your Team (HR) and Your Security (Cyber and Physical) 105 1. Your Team (HR) 105 2. Your Security (Cyber and Physical) 106 24 Writing a Business Plan 109 Part 3: Canada-Specific Cannabis Business 117 25 Canada-Specific Cannabis 119 1. The Emerging Industry in Canada 122 2. How to Approach Health Canada Regulations 124 3. Health Canada-Related Documents 126 26 Medical Cannabis in Canada 129 1. Becoming a Medical Cannabis User in Canada 131 2. Provincial Health-Plan Coverage 133 3. The ACMPR’s Closed Matrix 135 4. Applying to Be a Licensed Producer 136 5. Health Canada: The Organization 138 vi CannaBiz 27 Recreational Cannabis in Canada 141 1. Recreational Users 141 2. Collectibles and High-Value Items 143 3. Tourists and Non-Canadian Residents and Concierge Services 145 Part 4: US-Specific Cannabis Business 147 28 US-Specific Cannabis 149 1. A Brief History of Legalization in the USA 149 2. Important Advice for Americans Who Already Have a Cannabis-Related Business 152 29 Medical and Recreational Cannabis in the US 155 Part 5: Going Forward 159 30 Summary 161 Download Kit 163 Questionnaires 1 Insurance 60 2 Should You Grow Your Own? 68 Samples 1 Flyer 97 2 Business Plan 112 Tables 1 Terpene Chart 31 2 Hydrocarbons 32 3 Workshops or Certifications 77 4 Growth in Canadian Cannabis Industry 134 5 Cannabis Equivalency According to the Cannabis Act 144