Getting started in the cannabis industry takes courage and commitment as well as access to the right information. If you’ve been toying with the idea of venturing out into the field of cannabis, now is definitely the time as industry forecasts are very promising. There are plenty of advantageous opportunities for entrepreneurs to jump at.
No matter which direction you decide to go in, you’ll need adequate support, such as streamlined dispensary and other cannabis banking services. Fortunately, there are now more and more possibilities when it comes to cannabis financial services, so you can find a reliable partner to maximize your operations.
To take a closer look at the different routes you could take in the cannabis industry, read on for a rundown of the paths you could explore.
What are the types of cannabis businesses?
While the lines may seem blurred to an industry novice, every cannabis operator has a clear role in the supply chain, which is reflected by each of their licenses. Firstly, there’s a broad distinction between two major categories of cannabis operators: plant-touching and ancillary. Here’s how they differ and what businesses fall under each category.
Plant-touching businesses handle the plant itself from its cultivation to its ultimate delivery to consumers. They also have to deal with multiple regulatory complexities and may have trouble finding funding and financial services. These operators are:
- Cultivators: These operators plant, grow, and harvest hemp plants, which are then either distributed to dispensaries to be sold raw or sent to manufacturers to be made into different products. They need to develop effective SOPs, strictly follow propagation schedules, implement stringent quality control, and take other measures for successful cannabis cultivation.
- Labs: They conduct testing and research to analyze the composition of hemp-based products. For example, they may test for the quantity of CBD and THC in a product. Also, they could evaluate the quality of a product to confirm that it’s safe for consumption. They need to adhere to strict protocols to get precise results.
- Manufacturers: Manufacturing facilities process hemp to create a wide range of products, including tinctures, topicals, edibles, vape pen cartridges, beverages, and more. This requires access to modern equipment as well as extensive knowledge of production processes and packaging guidelines.
- Distributors: Cannabis plants and products go through several checkpoints before they reach the consumer and this requires timely and streamlined transportation. Distributors cover this part of the supply chain by connecting cultivators, labs, and manufacturers.
- Dispensaries: These businesses sell the goods to consumers. They’re either run as stores or delivery services. They have to make sure that the consumer has a seamless customer experience as well as rigorously manage their inventories and stock up on top-quality cannabis products.
Ancillary businesses provide services and products that help products reach the consumer in an indirect way. Some of these are:
- Legal advice
- Accessories, like stash boxes, bongs, and pipes
Because they don’t handle the hemp plant directly, they don’t face the same legal hurdles as plant-touching businesses.
Who provides cutting-edge dispensary banking services?
Whether you go into cultivation, manufacturing, distribution, or retail, Confia offers a robust suite of financial services that cater to the specific needs of your business. Since plant-touching operators often have difficulty finding proper support, our comprehensive services can provide you with much needed relief.
Based on your requirements, you can choose between three targeted membership options. For example, if you run a dispensary, our POS payment system will help you make a favorable impression and allow your consumers to purchase products effortlessly. Enhance the efficiency of your business operations by contacting us today!