With the rise of cannabis vape use and sales (especially amongst the growing Gen-Z and Millennial target markets), it’s no surprise aspiring cannapreneurs look to capitalize on the market. Of course, starting a high-quality cannabis vape brand is no simple feat.
The cannabis plant and market have their own complex nuances that vape brands must learn to master to gain success.
Luckily, it helps to learn from those with industry experience and use their expertise as a roadmap. So, if you’re here to learn how to start a vape brand, this guide will make the process that much more straightforward.
Keep reading to learn how to start a cart or disposable vape brand with our comprehensive guide.
Understand the Cannabis Vape Industry
In 2023 alone, the vape sector of the US cannabis industry was responsible for 4.3 billion in
Sales. But before you start chasing profits, it’s crucial to understand the vape industry as a whole to avoid costly mistakes.
Legal and Regulatory Considerations
Of course, like any business, legal and regulatory concerns are the first factors to consider when learning how to start a vape brand. For the cannabis industry, this is even more important as regulations vary from state to state, county to county, and city to city. In fact, some areas prohibit cannabis products entirely.
In locations where cannabis is legal, strict regulatory requirements apply to all industry parts – cultivation, processing, distribution, and retail sales. Lastly, review the tax regulations specific to cannabis products in the area where you plan to operate, as they can impact pricing strategies.
Getting Licensing and Permits
Again, for any business, securing proper licensing and permits is a critical step in establishing a cannabis vape brand. However, in the cannabis industry, this process is much more complicated and, again, varies from jurisdiction to jurisdiction.
For a vape brand, you’ll likely need a manufacturing license to produce vape products and, in some areas, a distribution license to transport them. Some areas have caps on the number of permits issued, making the application process highly competitive.
No matter where you’re applying to launch your vape brand, expect rigorous background checks, financial disclosures, and facility inspections as part of the licensing process. You may also need to obtain permits related to zoning, building safety, and environmental impact.
Additionally, some jurisdictions require approval from multiple agencies, such as the health department and cannabis control board. All in all, the application process can be lengthy and costly, often taking months or even years to complete. The best tip? Get a lawyer or expert consultant to help you navigate the process.
Compliance Requirements
After navigating the initial legal and regulatory maze and getting the necessary licensing and permits, remaining in compliance comes into play. Vape products often face additional scrutiny due to concerns over safety and youth appeal. So, compliance requirements will address factors such as:
- Packaging and labeling laws (including child-resistant packaging)
- THC content disclosure
- Health warnings
- Product testing for contaminants and potency
- And beyond
Additionally, advertising restrictions may limit marketing efforts, which should be considered when building your vape brand’s overall sales strategy.
Maneuver Through Taxation and Banking Issues
Although cannabis is legal, medically or recreationally, at the state level in the majority of US states, it’s still not legal at the federal level. Federal law classifies cannabis as a Schedule I substance, creating obstacles in financial operations. This complicates taxation and banking for brands, including vape brands.
Despite state-level legalization, Section 280E of the Internal Revenue Code prohibits deducting ordinary business expenses, leading to higher effective tax rates. Maximizing allowable deductions requires meticulous record-keeping and strategic financial planning.
Limited banking services complicate matters even more for new disposable vape brands. Many financial institutions avoid cannabis clients due to federal regulations. This often results in cash-heavy operations, increasing security risks and complicating financial management.
Some businesses turn to state-chartered banks or credit unions that are more willing to work with the industry. Alternative financial services, like cryptocurrency or cannabis-specific payment processors, are emerging but come with their own regulatory uncertainties.
Again, to navigate these issues, it pays to hire the experts. Many cannabis vape brands employ specialized accountants and legal advisors familiar with the industry’s unique challenges.
Get Production and Supply Chain Management Going
The next step when learning how to start a vape brand? Starting production and getting your supply chain going. Of course, it’s not just going—but going efficiently—that drives profits. To complete our guide, here are the final steps to take when building your high-quality cannabis vape brand.
Source from the Right Supplier
A common saying in the extract business is “quality in, quality out,” and for vape distillate, resin, or rosin, that means quality flower. Of course, to keep production flowing smoothly, your vape brand will require quality management and reliable partnerships, too.
A reliable supplier ensures consistent quality and potency of cannabis extracts, which directly impacts product efficacy and user experience.
The right supplier can also offer a diverse range of strains and formulations, allowing for product differentiation in a competitive market. They can even cultivate custom genetics designed to produce higher levels of terpenes for specific flavors, enhanced cannabinoid combinations for ideal effects, etc.
Additionally, a trustworthy supplier relationship can provide stability in pricing and supply chain, which is critical for maintaining inventory and meeting customer demand. Beyond manufacturing, ethical sourcing practices, including sustainable or organic cultivation methods, can also elevate your brand’s image and appeal to conscious consumers.
Set Up Manufacturing Process
Establishing a compliant and efficient manufacturing process is critical for a cannabis vape brand. To do so, here are some simple steps to follow:
- You’ll begin by securing a suitable facility that meets zoning requirements. This step, or having a physical location, is often required during the licensing process.
- Then, you’ll need the equipment to get rolling. Invest in high-quality extraction equipment, such as CO2 or ethanol systems, to produce pure, quality cannabis oil. If you plan to enter the solventless market instead, you’ll invest in rosin presses and equipment to ice-bathe flower.
- Before manufacturing, ensure proper ventilation and safety measures are in place to handle volatile compounds.
- Next, implement stringent quality control measures, including in-house and third-party lab testing for potency, purity, and contaminants.
- Develop standardized operating procedures (SOPs) for each step of the production process, from extraction to filling and packaging.
- Train staff thoroughly on both production techniques and compliance regulations.
Manage Inventory and Distribution
So, you’ve made the goods; now what? Post-manufacturing, the efficiency of your operations relies on the efficacy of your vape brand’s inventory and distribution processes. Most importantly, your precious extracts have specific storage requirements to retain their original quality and purity.
Be sure your facility is equipped with cool, dark rooms for inventory storage, and consider this during distribution and transportation to maintain a high-quality brand image, too. To finish, here are a few tips to keep in mind for the most effective inventory and distribution systems for your high quality cannabis vape brand:
- Establish relationships with licensed distributors who understand local regulations and can ensure compliant transportation.
- Develop clear protocols for receiving, storing, and handling products to maintain quality and prevent diversion.
- Regularly audit inventory to identify discrepancies and ensure accuracy.
- Create efficient routing plans and use secure, temperature-controlled vehicles to preserve product integrity.
- Maintain detailed records of all transactions and movements for regulatory compliance and business insights.
Stay Adaptable To The Changing Industry
If there’s one last thing to learn about the cannabis industry, it’s the fact that it’s ever-evolving. Since the legalization of cannabis began sweeping the nation, cannabis vapes have evolved from distillate .5 g carts to live resin, to 1 g carts to rosin, to varying hardware and styles, and now all-in-one or disposable devices, too.
So, if you’re learning how to start a vape brand, prioritizing adaptability is a must. That includes equipping your operation with equipment that doesn’t restrict your capabilities when it comes to filling vapes.
Ready to explore the leading vape-filling machine to power your operations? Vape-Jet is powered by leading technology and AI and was researched and developed in the field for intuitive and efficient filling processes.
Explore the Vape-Jet difference now to give your high-quality cannabis vape brand the competitive edge it needs to succeed.
