As popularity for THCA flower rises, so does the number of entrepreneurs seeking to start a THCA business. For such a fresh industry, there are only so many places to turn to get an expert strategy for success.
If you’re one of these current or aspiring THCA business owners, you’re in the right place. In this guide, you’ll learn how to start a THCA business with ultimate success.
Table of Contents
- How is THCA legal in the US?
- The Current THCA Industry
- How to Create a THCA Business Plan
- Sourcing THCA: How to and Best Practices
- How to Start a THCA Business Seamlessly
How is THCA legal in the US?
Before you start a THCA business, it’s important to know the ins and outs of hemp, cannabis, and US laws. The 2018 Farm Bill federally legalized the cultivation and sale of hemp with less than 0.3% of delta-9 THC in all 50 states.
On a state level, cannabis with more than 0.3% delta-9 THC is legalized for –
- Medical use in 33 states
- Recreational or adult-use in 11 states
So, is THCA flower federally legal?
Technically, yes. The Farm Bill only prohibits delta-9 THC at percents over 0.3%. That means flower material can have 20% THCA, and as long as it has under 0.3% THC, it’s classified as hemp.
Because state and local laws can vary from region to region, to start a THCA business, it’s crucial to conduct thorough research for your individual area. To do so, search your state’s passed bills on cannabinoids, or THCA specifically, and verify the same with your local jurisdiction, too.
The Current THCA Industry
While the THCA industry is fairly new, it’s experiencing rapid growth in sales and scale. Currently, the US cannabinoids market (hemp and cannabis) was estimated at $18.14 billion in 2022 and was expected to reach $22.23 billion in 2023.
When it comes to fulfilling the market’s demand, the complex plant has a somewhat complex supply chain to ensure the quality and safety of its consumers.
- Cultivation or suppliers – The cultivation of hemp requires attention and expertise to achieve success and high levels of cannabinoids.
- Testing –. All consumables should undergo testing to verify they meet potency and safety standards.
- Packaging – Pay close attention to the type of packaging for THCA products to retain their quality and meet compliance requirements. In addition to meeting regulations, packaging is a key place to display your THCA company’s branding.
- Transporting and distribution – A strong network of distributors or retailers can boost the success of your THCA business and ensure you stay within regulations for legal purposes.
- Retail – Whether setting up an online store or a brick-and-mortar storefront, the final step in the supply chain is direct retail sales to consumers.
One thing to keep in mind when vetting suppliers or cultivators is how to read Certificates of Analysis, or COAs, from testing and catch any red flags for misleading or inaccurate information. A few key pieces to review to trust the legitimacy of the test include –
- A reputable testing lab and its credentials
- The report date
- Cross-referencing the product brand and packaging
- Ensure the batch number and description match
- Confirm the action levels of harmful contaminants such as residual solvents, heavy metals, mycotoxins, and pesticides, whether noted as passing or not.
How to Create a THCA Business Plan
Like any other business, a crucial step for success is creating a THCA business plan. To start a THCA business, your plan should define a business model that maximizes ROI and includes:
- Company objectives
- Identifying your target market
- Supply chain partners
- Operational planning
- Pricing strategies
- Marketing and sales
- Future financial projections
A blueprint for your business helps lay a sound foundation for scalability and can also help secure investments. Meaning, to start a THCA business, you should pay close attention to creating and revising your business plan as needed.
Sourcing THCA: How to and Best Practices
As you’re developing a business plan to start a THCA business, your source of raw materials will be a pivotal component to your success. To source hemp flower, you can either –
- Cultivate the raw material yourself
- Find a trusted cultivation partner or supplier
Due to the new nature of the market, vetting potential suppliers is of utmost importance. A few areas you should pay close attention to while selecting a THCA supplier are:
- Processes and purity
- Compliance to regulations
- Material free of contamination
- Experience and references
- Pricing and bulk pricing
- Delivery times and processes
- Product variation
Another key point to consider is sourcing various products from one single supplier or multiple. Not every THCA wholesale supplier will offer other cannabinoids like CBD, delta-9 THC, or delta-8 THC, which are all in high-demand by consumers, too.
It’s important to weigh out the cost differences of using multiple suppliers versus one single supplier and to ensure you thoroughly vet all those you’re considering. To help in your vetting and supplier search, here are some helpful questions to ask –
- Where do you source, cultivate, or manufacture your products from?
- How is the hemp source cultivated?
- Do you accept all wholesale orders, or are you selective about who you work with?
- What are the common processing and shipping times for orders?
- Is your operation equipped to scale brand and market growth?
- What processes have you implemented to maintain food-grade quality, safety and quality retention?
- How is the packaging process, and does supply ever affect shipping or delivery?
How to Start a THCA Business Seamlessly
Now that you know more about the THCA market, are you ready to be a part of its growth? Elevated Trading offers a seamless path into the industry as a supplier you can trust.
Our founders launched Elevated Trading after frustrations with other suppliers, providing intuitive service to our retailers with quality, reliability, and integrity. From unparalleled strain selection to all-natural products and a 100% satisfaction guarantee, we aim to support your THCA business unlike any other supplier.
Start a THCA business with the leading THCA supplier by contacting our team now.