Skip to main content

As it relates to the cannabis industry, many individuals first think about marijuana companies that run dispensaries. They also think about marijuana companies that sell edibles and other products. However, these types of businesses take up only a small segment of the industry.

Most of cannabis businesses fall in the “ancillary” category, which means that these are essential in supporting the consumers and industry in a huge way. And the support is offered without having to touch the actual marijuana plant. This will usually involve manufacturers, banking institutions, information sources, media, attorneys at law and technical support. Let us look at why there is an importance of ancillary cannabis companies.

The Reason

Regardless of the legal status of cannabis being grown in several states across the United States, marijuana companies are not respected by banking institutions and so funding is always an issue. The basic marketing practices that other companies enjoy is also a problem for marijuana companies and this is due to the fact that the federal government still has marijuana listed as a ‘dangerous substance.

However, the federal government does not have the jurisdiction to stop other companies from offering support to marijuana companies as long as they follow the state laws. These marijuana companies are ancillary because of being created to navigate around the red tape that cannot be avoided when running your cannabis business.

With ancillary staff, concentrate companies are able to meet compliance regulations, edible manufacturers are able to package new products and dispensaries are able to operate their retail shops without chasing their tails for it to happen.

Relinquishing Control

In so doing, the efficiency of running a cannabis business directly is improved. Why? Well, marijuana companies can pass along their ancillary requirements to companies that specialize in the cannabis industry and not risk a loss of obtaining funding or a dent to their reputation. For instance, marijuana companies that struggle with being shut down by social media networks for using cannabis language in their marketing ad strategy will pass those marketing needs to the ancillary company that specializes in advertising. This allows the marijuana companies to focus on operating the business.


Learn how to cash in on the Green Rush!

In other words, it helps for them to stay in their lane and allow the marketing experts to take over. In the same way, marijuana attorneys are ancillary supporters because they know the cannabis laws and are equipped to keep abreast of new changes to the law. Some of those laws including space and zoning requirements that marijuana companies are mandated to follow.

Obtaining Funding

An ancillary company might have a better chance at securing funding for marijuana companies. If you want to get into the cannabis industry, you should be aware that because of the laws governing the feds, many banking institution are not ready to accommodate funding for fear of getting in trouble. However, a CPA, investor or other accounting professional might be able to assist you to obtain funding elsewhere.

Reduced Liability

When you own an ancillary marijuana business, your liability is reduced, which means that you will attract more investors. Some companies that specialize in funding good investments could offer you thousands of dollars in investment funds. Most investors know that the cannabis industry has taken off and growing in leaps and bounds and so as long as you have a good business objective and it looks promising, investors will pay attention. If you are looking to be one of those marijuana companies that have low liability, then you will be noticed by some strong investors.

There are over 300,000 jobs in the cannabis industry. CTU trained me for one of them!

marijuana extraction course - Johanna Rose
Makes $24.50 @ THC +

Want to learn how to start your own ancillary marijuana company? Go to the Cannabis Training University.

Enroll Now