Ancillary business

In the cannabis industry, an ancillary business is defined as any company or service provider that supports the industry and interacts with cannabis businesses but does not directly handle or grow cannabis themselves. Common examples of ancillary businesses include cultivation supplies and equipment, packaging and labeling, POS and tracking software, lighting and electrical systems, HVAC, consulting, legal services, accounting, marketing, government relations, and insurance. These businesses help provide the infrastructure legal cannabis operators need to run compliant, successful companies without ever touching the plant. Especially in states with newer cannabis programs, ancillary businesses greatly outnumber licensed cultivators. Ancillary companies typically have an easier time getting business loans and financial services compared to plant-touching businesses. Strong networks of skilled ancillary cannabis businesses will continue to develop and expand as legalization spreads.