Making money off marijuana is nothing new…but making it legally is somewhat of a novelty. With the recreational legalization of cannabis in the states of Washington and Colorado, investors and entrepreneurs are looking into ways of entering the business legally. The assumption is that sooner or later marijuana will be legalized in the United States and become a booming market. Those that latch on in the earliest stages are most likely to see the greatest profit from the industry as it grows.
According to estimated projections, the legal cannabis industry (currently at $1.3 billion in sales) will quadruple by the year 2018. It looks like the fruit is ripe for the picking…but how does one get into the industry? Is it safe? As in any industry, there are risks. Seeing as how producing and selling marijuana for non-medicinal purposes is illegal nationwide on the federal level, you must use extra caution before investing any time or money.
The most obvious way of getting into the business is direct sales. Opening a dispensary is currently only legal in two states (sorta): Washington and Colorado. You could of course do your best to enter the market there — but keep in mind that you are not the only one with that idea. You will be starting behind the rest and will find it difficult to go through all the paperwork required.
If this is your entry of choice, then your best bet would be to wait until weed is legalized in your state or in your neighboring states. Nevertheless, because marijuana is still illegal on a federal level, the Feds can come in and confiscate all of your merchandise whenever they see fit. This will destroy your initial investment as well as make the chances of any insurance company insuring you slim; you’d simply be too much of a risk.
With the marijuana market only in the earliest stages of budding, the possibilities of starting a successful company or banking it by investing in one are endless. But be careful where you put your money. This market stemmed from a black-market and for this reason many shady characters are looming about posing as trustful partners or entrepreneurs.
Before you invest any money, contact your lawyer to make sure that what you are doing and the venture you about to embark on are completely legal. You don’t want to get onto the radar of the Feds. Don’t get overly excited, but do the due diligence. The cannabis market will explode in the near future — best get a head start on doing your research.
