October 17, 2018, is the first day that you can open a legal cannabis dispensary in Canada. But, a strong business plan is a vital tool for anybody interested in applying for a federal license to sell cannabis on the national level. Consulting with a legal counsel can help you present a well-organized business idea to Health Canada, the government regulator of the cannabis industry. “Your business plan is the key to getting the funding and/or the credit line from Health Canada,” says CEO of Emerald Advisors, a Vancouver, BC, cannabis consultancy. “A well-crafted business plan can help you articulate your plans to investors or banks to demonstrate a viable opportunity that is backed by solid evidence and current market conditions.”
In Canada, the new laws regarding retail cannabis will likely drive much of the startup activity and attention to licensed producers and suppliers. Until then, the focus is being maintained on creating a presence in the existing black market for cannabis. In many provinces across the country, including Ontario, patients who are authorized to use medical marijuana have few legal options when it comes to purchasing cannabis.
Consequently, without a recognized legal outlet, they may be subject to arrest and criminal charges if they are caught buying or selling cannabis.
Health Canada announced a study that indicates Canadians are now the second-most consumers of cannabis outside of the United States. Although it is still illegal in most of the United States, consumption is now becoming more widely accepted by U.S. consumers, according to an analysis from the Drug Enforcement Administration. According to the same report, cannabis use has increased dramatically across the country, particularly in the Ontario region where it is legal. This recent research represents the first known evidence that indicates widespread cannabis use in Ontario and could indicate the prevalence of unlicensed commercial cannabis establishments within the province.
Even though it remains illegal to consume cannabis in most of the United States, Canadians are increasingly discovering that the substance has some unique benefits that make it desirable among some consumers in the countries. The most obvious benefit is of course the ability to purchase marijuana products from pharmacies that are authorized to sell them to Canadians. The previous restrictions limiting pharmacies to selling only dried cannabis have now been eased. Therefore, consumers can now purchase oils, capsules, and other forms of cannabis products from licensed establishments. While this has increased choice and competition for those who choose to purchase cannabis products, it has also increased costs as more companies enter the marketplace.
The introduction of legal marijuana stores in Canada offers an opportunity for licensed cannabis entrepreneurs to enter this business and make it their bread and butter. While storefront sales of cannabis products were expected to be negligible before legalization, studies have shown the industry to be growing at a rapid pace. The numbers have indicated that the industry is now worth billions of dollars annually in Canada. Therefore, the potential for business success is enormous. However, even with this recognition, there are still hurdles that entrepreneurs will need to overcome to become successful. This is where a business owner should consider investing in a grow room to cultivate cannabis plants in their residence.
A grow room allows an individual or company to cultivate their cannabis plants in their residence without worrying about the laws regarding distribution or possession in Canada. An individual can cultivate a limited amount of cannabis plants and can distribute them as they see fit. The Canadian government has yet to establish regulation standards, therefore entrepreneurs are left on their own to determine which type of distribution will work in their region. Many entrepreneurs choose to harvest and distribute their cannabis buds through social networks like Facebook. However, it should be noted that the production and sale of cannabis in Canada remain illegal under the Federal Controlled Substances Act, and Canadian provinces have implemented their own legislation regarding sales and distribution.