Hydrolife Magazine December/January 2017 (USA Edition)

consultant's corner
The
to Starting a Successful
Commercial Cannabis Enterprise
brought to you by
Since 2013, the legal marijuana
industry has grown by an
extraordinary $5.2 billion. And as both
medical and adult recreational usage
clear hurdles with voters, increasing
competition for a stake in tomorrow’s
billions will require cannabis
entrepreneurs to optimize every facet
of their business from day one. Are you
ready to take the next step?
The legal marijuana industry has
come a long way in a very short time.
And savvy entrepreneurs, even venture
capital companies, see this emerging
market as their next big money maker.
Why? In a report published by ArcView
Market Research, the industry is
projected to generate a massive $21.8
billion in total annual sales by 2020.
THE CURRENT STATE
OF THE INDUSTRY
According to Gallup polls, backing for
full legalization has climbed from 12 per
cent in 1969 to 25 per cent in 1995, and
now it’s at 60 per cent, firmly crossing
into the majority. As for sales, ArcView
reported an increase of 17 per cent in 2015
over 2014, to $5.4 billion. And by the end
of 2016, sales will likely grow another 25
per cent to $6.7 billion. Calling it a “green
rush” is an understatement, and there’s
a lot of money to be made if a company
can navigate an industry fraught with
regulations and pitfalls. So, how do you
capitalize on this unprecedented market
opportunity? Many find that partnering
with a cannabis consultant is the surefire
way to succeed.
HOW IMPORTANT IS A
CANNABIS CONSULTANT?
Many entrepreneurs have gotten their
commercial cannabis enterprise off the
ground on their own. If you were to decide
to go this route, you’ll face licensing
and legal hurdles, ongoing scrutiny by
state regulators and the IRS, and delays
caused by a trial-and-error method of setting
up operations.
To streamline the start-up process, another
option is to partner with a cannabis
consultant. Their experience can help you
plan, launch, and operate a highly successful
medical or adult-use cultivation,
processing, or dispensary operation—all
without the headaches. While raising
enough capital and securing licenses are
well-known obstacles, that’s just the start.
Here are just a few other issues that commercial
cannabis enterprises face today:
• The industry is highly regulated
by local laws and all aspects of the
business are scrutinized.
• Because it’s illegal at the federal level,
dispensaries are cash-only, requiring
security logistics.
• Due diligence is required when
cultivating cannabis, hiring employees,
and bringing on investors.
76
grow. heal. live. enjoy.
myhydrolife.com