We are at the brink of the cannabis industry explosion. Long gone are the days of wondering if or when, now it’s a matter of creating actionable steps for change and growth in the industry. There are so many different sectors of the industry that play major roles in pushing the space further other than just plant-touching businesses.
For anyone looking to get into a different side of cannabis, look no further as I’ve compiled a breakdown of the top ancillary job sectors. Also, checkout the SMART Opportunities page to see a number of different ways to get involved in cannabis!
1. Accounting
Potential Roles: CPA, Accounting Clerk, Bookkeeper, Accounts Payable Specialist
With cannabis being deemed essential during the pandemic and the industry making well over $17.5 billion in US sales in 2020, there is a ton of money being pumped into the space. This means that cannabis businesses must do their due diligence in allocating and budgeting their funds accordingly.
However, due to industry pitfalls like lack of access to banking as well as the US Tax Code 280E, which prevents cannabis businesses from deducting key expenses from their income, this is a feat that’s easier said than done.
Using their skill sets, accountants are learning on the fly how to assist in managing issues like seed to sale tracking and running payroll in cash. This takes developing a deep knowledge on all facets of the industry in order to best serve and assess their clients’ or companies’ needs.
2. Compliance
Potential Roles: Quality Control Specialist, Compliance Manager, Regulatory Associate
When it comes to cannabis compliance rules everything. The cannabis industry has gone through so much trauma in its journey towards federal legalization. The lines of legality have been so blurred, it led to what I’ll refer to as the “island model”. Each state (and local) government is their own “island”, and has their own standardized rules and regulations when it comes to the cannabis and hemp industries. With complex and oftentimes confusing language and rules, one minor mistake can have huge repercussions like losing your business license.
Operators must work with lawyers, third-party compliance firms, and within their own organization to make sure that they mitigate risks like product safety laws and proper inventory management. Cannabis companies are under a constant microscope and because of that they must be adaptable and meticulous when it comes to planning for success.
3. Marketing and Social Media
Potential Roles: Brand Ambassador, Marketing Manager, Event Coordinator, Sales Representative
Cannabis marketing is all about trust. With any good or service, you’re putting your trust into what that brand or company is selling. As an industry that’s had to operate underground for so long, many potential consumers are being re-educated as the plant is being destigmatized. However it’s still difficult for cannabis businesses to take the same omnichannel approach like other CPG industry segments, because of its legal status. When you’re at risk of social media account deletion or can’t effectively use paid advertising because of the guidelines of marketing platforms you have to be innovative and think outside the box.
Companies are using brand ambassadors and content creators to drive authentic traffic to their brand with hopes of bringing more customers in their “family”. People want a product they can feel a connection to. This coupled with marketing agencies utilizing SEO strategies, ad displays on industry platforms like Leafly or Marijuana Business Daily, and email marketing, it requires a real hands-on approach in order to build a brand in cannabis.
4. Security
Potential Roles: Security Guard, Security Operations Manager, Security Transportation Specialist
Although legalization is spreading like wildfire, the issue of security is something that both legal and illicit markets share. Thieves see “the green in the ganja”, putting many cannabis businesses at risk, especially with these companies operating as cash-only businesses. Security related jobs are massively important as companies must protect both their earnings and the products.
By implementing security expert practices like cloud-storage surveillance, trained professionals, and a formal security plan, businesses are able to efficiently operate with less fear of being targeted. Whether it be through armed courier services, surveillance companies, or dispensary security guards there’s a need for proper security throughout various sectors of the industry.
5. Computer Science and Tech
Potential Roles: Fullstack Software Engineer, Data Analyst, UI/UX Product Manager
Technology has the ability to create limitless opportunities and improve how we live in this world everyday. As the cannabis industry continues to grow, we’re beginning to see massive intersections with tech. The rising demand for cannabis has inspired newer and more innovative technologies to cultivate the plant and create a wide variety of cannabis products. Businesses are competing to see who can push the boundaries more and provide cannabis experiences unique to their brand. 20 years ago the idea of personalized cannabis DNA tests or cannabis vaporization wasn’t even a thought.
Now we are seeing technology shape how the industry operates and people’s perception of the plant. We aren’t even capable of seeing the potential that this industry has to offer and those in positions like software engineers and operations analysts will thrive as long as innovation and consumers are the focal point.
6. Real Estate and Construction
Potential Roles: Legal Assistant, Real Estate Attorney, Project Managers, Construction Specialists
Real estate is one of the most important ancillary sectors of cannabis. There has to be a place where businesses can call home and operate successfully. With such a murky and complicated regulatory environment, it creates challenges in finding and securing real estate properties. Regulators have enforced strict zoning, use and distance restrictions that are rooted in the stigma of cannabis and its legal status. This causes the real estate market to be hyper-inflated and hard to navigate for operators who fail to have the capital or do the necessary research to ensure they have a fully compliant and cost efficient property.
Those in the real estate and construction spaces must be knowledgeable and must be extremely detail orientated in order to create a more stable cannabis ecosystem.
7. Finance and Banking
Potential Roles: M&A Analyst, Financial Planner, Portfolio Manager, Operations Analyst
In the industry’s current state, everyone is at a financial risk. Banks and credit unions are regulated by the federal government and therefore are not able to provide the financial backing to cannabis that’s provided to other industries. Some financial institutions are willing to consider financing options but many are steering clear of the green. As of June 2020, there are only 695 banks and credit unions servicing cannabis-related businesses. Cannabis businesses are backed primarily privately by venture capital firms, angel investors, and private equity funds.
However this is likely to change with bills like the SAFE Banking Act being passed in the House this year. This piece of legislation would create legal protections for financial institutions to provide services to these essential cannabis businesses. Investment bankers and financial analysts looking to pivot into the industry have to be willing to operate in a fast paced and demanding regulatory environment that needs all the help it can get.
8. Packaging
Potential Roles: Packaging Technician, Processing Manager, Graphic Designer
Though adult-use cannabis has been implemented in some states as early as 2011, the packaging sector of cannabis is only recently starting to come along. In the beginning days of legalization, there was a disconnect between the consumers and the products they were medicating with. There weren’t any brands in competition, you didn’t know who cultivated what, nor did you know the chemical compositions of your cannabis; you just bought weed in a bag. Now as the industry has grown, it has quickly adopted design concepts and marketing to define cannabis packaging.
Packaging distributors in the space must be mindful of the varying restrictions based on their client’s location and most important how their packaging affects consumers. This is a sector that is in dire need for more employees like production managers and packaging technicians to assist with the multitude of cannabis products that are processed with increasing legalization.
Are you interested having your voice heard by our College Cannabis community? Submit ideas for SMART blogs at hi@studentmmj.com
