Hardly a week goes by without a major change occurring in the cannabis industry. New laws. New regulations. New strains. New cannabis millionaires. Little wonder so many entrepreneurs and investors are scratching their heads, wondering how to get into the weed business. Or, more pertinently, how to make money in the weed business.
After all, the marijuana industry is worth $61 billion in the US, with investors making significant profits on their investment. The question isn’t “how to make money in the weed business”, but how do you not?
Except: although the cannabis market continues to grow, it’s also maturing fast. In many cities, the number of dispensaries is maxed out, meaning further stores merely spread the profits rather than increasing them.
However, with new avenues always opening up – like cannabis foods, edibles, and more – there are always new ways to make money in America’s booming industry. If you are looking to gain information on opening a business account or more about the cannabis financial institutions, contact Safe Harbor Financial.
In this article, we’ll explain how to get into the weed business and how to make money in the weed business. If you’re looking to make it big, we’ll explain how.
Getting into the weed business is both simpler and more complex than ever. On the one hand, the legal hurdles are lessening by the day; on the other, the market is no longer solely about corner store dispensaries selling high-quality cannabis.
Here are three opportunities for how to get into the weed business:
The classic cannabis business – it’s the most obvious and most competitive sector. In states like Colorado and California, you’ll be able to open a dispensary with relative ease. Still, you’ll be competing with existing brands and stores.
You’ll need a unique USP or location to ensure you secure enough custom to be profitable. Opening a store near five other dispensaries isn’t a recipe for success.
There’s a booming demand for high-quality cannabis crops. It’s not just for dispensaries: hemp oil, CBD gummies, and even cannabis foods need cannabis to keep running.
The downside here is the significant initial capital investment. If you’re in a state where cannabis can be grown outdoors, it’ll eliminate much of the costs. However, indoor facilities will need to pay for water, electricity, and extensive equipment to maximize productivity.
You’re also vulnerable to fluctuations in the market price of the product. It’s another benefit of outdoor facilities; you can shift to growing another crop.
In Colorado, edibles have skyrocketed to become almost half the market. In fact, across the whole of the US, the cannabis flower market is on the decline, while edibles and other consumables are seeing colossal rises in demand.
Cannabis beverages, for example, saw their year-on-year basket penetration nearly double from 2% to 3.7% in the US.
The market for such products remains in the early days, and there’s ample room for innovation and development. New products and ideas can undergo overnight success, achieving rapid market penetration. Moreover, CBD and hemp oils are increasingly being considered for their medicinal properties. Hemp has less stringent regulations surrounding its production, reducing any legal hoops you need to jump through.
Like grow facilities, there are burdensome capital costs prohibiting many from breaking into the market. Extraction machines and R&D all require significant initial investment before you see a return.
Nevertheless, with the right idea, this is where the next cannabis millions will be made.
Read enough articles and insider tips, and you’d believe the only way to make money from cannabis was with a dispensary or cultivation center. It’s not true!
Alongside the core companies, a whole ancillary industry of services helps keep the cannabis sector running. There are endless opportunities to earn money in the weed business, from employees to freelancers to consultants.
Can you roll beautiful, handcrafted joints? – it’s never been more in demand. Though machine-rolled joints are available, hand-made joints using resins, kief, and other marijuana products can sell for far more. It’s a skill that craft dispensaries always look for.
Budtenders, meanwhile, are the baristas or bartenders of the dispensary world. With a deep knowledge of cannabis and a passion for the product, budtenders are perhaps the best way to earn money in the weed business.
Reporting on cannabis stories; writing for cannabis magazines; reviewing the latest products – a myriad of writing jobs are available in the cannabis industry. (You can even write articles about How to Make Money in the Weed Business!)
It’s unlikely to be all of your work. But, with the industry in dire need of content and copywriters, there’s never been a better time to get started.
Accountants, bookkeepers, bankers, and insurance salespeople all service the cannabis industry. You could join this lucrative sector if you’ve got the relevant skills.
All the products and adverts need to be designed by someone. Nor does cannabis merch make itself. Teaming up with a dispensary or cannabis brand can earn you a solid salary by producing high-quality art that appeals to cannabis consumers.
Cannabis stocks are one of the surest bets on the stock market. Although there are no mega-corporations to back, you’ll find many marijuana companies now listed.
There are always risks to investing, however. And for every Apple or Facebook, there are a dozen failed companies. Bet wisely.
Do you have experience starting and running a successful business? Advising dispensaries, grow facilities, and other cannabis-related companies on how to grow and navigate the complex industry is a much sought-after service.
Depending on your area of expertise, you could provide business, cultivation, or regulation advice. And consultants can command significant fees for their time.
Do you own a hemp, CBD, dispensary, marijuana, or cannabis business and need a business bank account? We’ve validated over $8 billion dollars in cannabis-related funds since 2015. Bank with confidence. Bank with Safe Harbor Financial today.Open Your Account