The cannabis industry is booming.
Opportunities are abundant in this emerging marketplace, and entrepreneurs are flocking to it at an increasing rate.
Many people have compared the rise of the cannabis industry to the gold rush, and for good reason.
But just as there were winners and losers during the gold rush, we are seeing the same in the cannabis industry.
A lot of cannabis entrepreneurs have thrived in this space, and many others have not.
Taking the leap to jump into this industry as an entrepreneur or consultant is a very serious decision.
If you are in that boat, don’t base your decisions on emotions.
Instead, do your homework.
Make sure you have plenty of guidance to help you navigate all the nuances of legal cannabis.
Below are 5 pros and 5 cons, essential factors to starting your own cannabis business and to help you further decide if it’s for you.
And really, the Green Flower team wants to make sure you’re prepared.
So, let’s start with the cons…
1. The cannabis industry is very competitive
Because the cannabis industry is so exciting and the industry is growing at such a fast rate, many people are scrambling to get in.
This has created a crowded market.
Entrepreneurs who are thinking about getting into the industry need to realize that it is going to take a lot of hard work, a little luck, and a never-ending desire to succeed in order to thrive in the cannabis industry.
In the end, all this competition will be a good thing, and the quality cannabis business will rise to the top.
2. A high barrier to entry is often involved
In states like Oregon, the barrier to entry into the cannabis industry is not that great.
But in states like New York or on the international level, just obtaining a license requires millions of dollars.
Understandably, putting up that type of capital is not something that is realistic for many people.
Whichever state or country you live in, make sure to calculate all of the numbers before you jump into the industry and avoid getting in over your head.
3. Lots of regulations
Many states have reformed their cannabis laws to allow the cannabis industry to legally operate, however, the change in legality has been coupled with many layers of regulations.
Even in legal states, cannabis stigma is still strong, and the regulations applied to the industry reflect that.
Between local, state, and other bureaucratic rules and regulations it can be very tough (and expensive) to successfully deal with them all and stay in compliance.
This is why having a team of legal experts – like with the How to Start a California Cannabis Business Digital Workshop – will save you a lot of time, money, and heartache.
4. A shifting legal landscape
If strict regulations weren’t a big enough deterrent for some would-be cannabis entrepreneurs, also take into account that the rules change with every passing legislative session.
Even in Colorado, which was the first state to legalize cannabis and allow adult-use sales, new rules are being proposed and/or enacted every year.
When that will change is anyone’s guess.
5. Entrepreneurs can be targets for federal prosecution
Cannabis is still illegal at the federal level. So far businesses that have been in compliance in adult-use states have not become targets, but that could change anytime.
Veterans of the medical cannabis industry are painfully familiar with federal cannabis enforcement, having been arrested, shut down, and/or been the target of asset forfeiture.
Because of that, the cannabis industry is not for the faint of heart, especially with Jeff Sessions serving as the United States Attorney General.
Naturally, the cannabis market comes with plenty of challenges, but what about the positives? What is it exactly that compels people into this industry?
Why is cannabis so exciting?
Here are the pros to starting your own cannabis business…
1. Starting a cannabis company can be very exciting
Imagine waking up every day and going to work at your very own cannabis company. How exciting would that be?
If you have always enjoyed cultivating cannabis, wouldn’t it be amazing to do it for a living?
If you love making edibles, think about how fantastic it would be to do it all day and supply edibles to top dispensaries?
A lot of people join this space because they’re so passionate about the cannabis plant and love to be around it.
2. Owning your own cannabis company is rewarding
Being a cannabis entrepreneur can be very rewarding, especially if you work with medical cannabis patients.
Cannabis literally has the power to heal and sharing that healing power with other people is a very powerful thing.
If you want to make a positive difference and have a meaningful impact, starting a cannabis business may be for you! Building a quality cannabis business will add value to the lives of countless people.
3. Being a cannabis entrepreneur can be lucrative
The cannabis industry is very profitable and becoming more so with every passing year. The stakes are high and the rewards can be massive.
We see many examples of people who’ve struck it rich in cannabis, and it’s not a secret that profit is a motivating factor for many.
Greed, however, is not an asset in the cannabis industry.
Having said that, there’s enormous potential for profit and for people looking for upward financial mobility, the cannabis industry is promising — if you’re prepared.
4. Being a part of history is invaluable
Once in a lifetime an industry comes along that is a real game-changer. Obviously for this generation that is the cannabis industry.
Decades from now the cannabis industry will be as mainstream as any other industry.
Those who jump into the industry now can carve out their own part of history. Those who sit on the fence will miss out on the opportunity.
5. The cannabis industry’s future is very bright
Ackrell Capital estimates that the cannabis market will be as big as $100 billion in 2029. Several other estimates exist for shorter timeframes.
Regardless of which projection you choose, they are all extremely favorable. Many industries are facing dramatic downsizing or even extinction.
Cannabis, however, is poised for record-shattering growth as more states continue to reform their cannabis laws and credible cannabis education continues to take root.