This article originally appeared in the July/August print edition of Cannabis Business Times. To subscribe, click here.
New states continue to come online with medical cannabis programs. As a by-product, teams of potential and current cannabis entrepreneurs flock to each location to secure licenses. Is the new state-by-state cannabis licensing game a true gold rush? Is it even profitable?
Currently Washington, Colorado and California receive much of the attention pertaining to the cannabis market. This article, however, will focus attention on many of the new states with medical cannabis programs that are either in their infancies or still in licensing phases. Looking at the challenges and potential benefits of being in these emerging, but more restrictive markets, should provide a more realistic view of the business landscape and provide guidance on how to avoid some of the pitfalls to which many fall prey.
To read the full article in our July/August edition, click here.
New states continue to come online with medical cannabis programs. As a by-product, teams of potential and current cannabis entrepreneurs flock to each location to secure licenses. Is the new state-by-state cannabis licensing game a true gold rush? Is it even profitable?
Currently Washington, Colorado and California receive much of the attention pertaining to the cannabis market. This article, however, will focus attention on many of the new states with medical cannabis programs that are either in their infancies or still in licensing phases. Looking at the challenges and potential benefits of being in these emerging, but more restrictive markets, should provide a more realistic view of the business landscape and provide guidance on how to avoid some of the pitfalls to which many fall prey.
A Basic Overview of Business Challenges
Cannabis businesses are unique and challenging. Any new cannabis cultivation enterprise is going to be particularly unique due to the nature of the product being produced (unless, of course, you have been cultivating indoor cannabis on an industrial scale for the last X decades … but few fall in that category). But beyond that, these businesses also are challenged with a variety of hurdles that “normal” businesses simply do not have to accommodate for: limited banking/no financing, few insurance providers, obscene tax implications, no interstate commerce, evolving controls, prohibitive legislative changes and vendors hesitant to engage the industry.To read the full article in our July/August edition, click here.
