New Mexico has been labeled a success by industry veterans and newcomers alike. Read more to find out why their program works, and how you can get involved.
Low Barriers to Entry
New Mexico has set up their program so that there’s no cap on the amount of licenses available. Additionally, applications are accepted on a rolling basis, and the license application fees are reasonable. These factors have allowed many newcomers access to the industry, and has prevented multi-state operators from coming in and beating the little guys before they’ve even gotten started.
Looser Regulations
Out of the states that are currently open, New Mexico has fewer regulations, and the ones that are in place generally favor business owners. Initially, their rules were more stringent, but as they received feedback from cannabis license applicants, they edited the rules to meet the needs of the majority. Local municipalities have also demonstrated that they are willing to work with prospective cannabis business owners to develop regulations that will work for their selected properties and business plans. Overall, New Mexico has shown a willingness to learn about the cannabis industry and adapt the rules based on expert advice.
The Catch
So the market is more accessible and costs are lower to enter, but that means you’ve got more competition! When you’ve got more of a free market, you’re competing against other businesses instead of the State’s licensure process. Essentially, instead of competing by who can lobby the most, spend the most money, etc. to win a license, you’re competing to be the better business for customers. The best way to secure a place in a new market is to be thoughtful about branding and scaling. Ensure that your brand is making solid choices with packaging/labeling, and that your branding isn’t geared towards a single demographic.
Contact Canna Business Services for assistance preparing an application for a cannabis business in New Mexico!
