Maryland’s cannabis has come far since the Maryland weed legalization of adult use in 2023. There have been businesses seeking and building their cannabis company within the state after the first round of licensing took place.
Only a select few were given licenses from then on and many owners are looking to get a piece of the recreational use pie. Thriving in Maryland’s recreational cannabis market is about staying vigilant and organized to get your business off the ground.
Keep reading to learn more about the current licensing and how to thrive in the adult-use cannabis market in Maryland.
Maryland’s Current Recreational Market
Currently, the second round of licensing is underway with a few social equity businesses getting the first selection.
Maryland is set to give licenses to other businesses in 2024, but when this occurs is known. The state has grown economically to $400 million in sales for recreational and medical use. There’s about $67 million in sales with just adult use, providing a lot of opportunity for growth.
How can you get into the recreational market?
Follow industry regulations and keep updated with Maryland’s cannabis administration for any openings for licensing.
Those of you who have already received licensing through social equity means, need to get prepared to open your doors to the market by doing your due diligence. We’ll explore more of this now.
Identifying Market Opportunities
When getting started in your new cannabis business, you should start to think about market opportunities.
Here are some opportunities you can consider:
- Product Offerings: Look for areas where current offerings are lacking. This could include specialty products (e.g., organic, vegan, or gluten-free options) or unique strains.
- Niche Markets: Consider targeting specific demographics, such as seniors, women, or wellness-focused consumers, with tailored products and marketing strategies.
- Education and Information: Identify opportunities for educational initiatives, such as workshops or seminars, to help consumers understand cannabis benefits and safe consumption.
These are especially important for dispensaries in Maryland who are building out the business.
Building A Strong Brand
Building a strong brand is what can make your business stand out and attract customers to your business.
Identify the core values that will guide your brand. These could include sustainability, health and wellness, community engagement, or innovation. You should also develop a narrative that tells the story of your brand. Share the inspiration behind your brand, the challenges faced, and the impact you aim to make in the cannabis industry.
Ensuring Quality And Compliance
You must also have quality products that comply with Maryland’s regulations and standards. They must have gone through rigorous testing and procedures to deliver the final product to the market.
Establishing strict quality control procedures by incorporating manufacturing practices, packaging standards, and record-keeping and reporting of all finances in the business.
When you have a clear procedure in place, you can operate your business in compliance with regulations.
Prepare With Proper Financial Planning And Management
Not only do you need to ensure proper quality protocols to stay in compliance with regulatory standards, but you also need to establish proper financial planning and management. Getting a full understanding of cannabis financing can put your business in a secure spot.
This entails keeping financial records of all sales, inventory costs, expenses, and any money coming in and out of the business. By collecting receipts and bank statements, you can have an easier time during tax season as well.
Yearly taxes should also be followed in compliance to avoid any fines or fees that can accrue over time. Another factor to keep in mind is to follow the 280e IRS code to avoid deducting expenses that aren’t allowed.
There’s alot to consider when establishing your business which is why you need to work with cannabis accounting professionals to make your business’s finances easier to handle.
Engaging With The Community In Maryland
To build your business further, you need to network with the community in Maryland. The more you network with other people, the better you put your business in a positive light.
Start attending local cannabis events and join industry associations to connect with professionals and stay updated on regulations. Collaborate with dispensaries, host educational workshops, and partner with local charities to enhance your brand’s visibility and community impact.
Also, engage with local lawmakers and medical professionals to establish credibility, while leveraging social media to reach broader audiences. You can then participate in farmers markets, and wellness fairs, and collaborate with local businesses for cross-promotion to foster relationships and grow your customer base.
Participating In Social Equity Programs
Participating in social equity programs within the cannabis industry involves actively supporting initiatives that promote inclusivity and diversity, particularly for communities disproportionately affected by past cannabis laws.
Many states, including Maryland, offer social equity licenses or grants aimed at helping marginalized groups enter the cannabis market. Participating in these programs not only contributes to positive community impact but also positions your business as socially responsible and committed to fostering equitable growth within the industry.
Stay Adaptable And Innovative
Always stay updated with Maryland’s regulations as they are consistently changing. When keeping updated with new regulations, you must stay adaptable and be willing to change and develop innovative ideas to get more traction in your business.
Work With Accounting Experts To Get Business Ready
It’s more than growing and marketing your cannabis business, you must keep your financial records in order to keep your business afloat.
At Green Space Accounting we help accounting for dispensaries, cultivation facilities, and other business types with financial accounting and bookkeeping.
We understand the processes of maintaining proper record-keeping for businesses in the adult-use cannabis sector in Maryland.
