It’s remarkable to think how far the marijuana business has expanded since it started. Just a couple of decades ago, the idea of legal, recreational, or even medical marijuana seemed inconceivable. But here we are in 2021, in a country where the luxury cannabis business is thriving and poised to expand in new markets.
That said, the road to a profitable cannabis business is not straightforward. It is plagued with complex rules and regulations, expensive taxes, and a slew of additional unexpected hurdles and hoops to jump through. While giant dispensaries can yield massive cash returns, the cannabis sector can be a risky venture to get into with the smallest profit margins. As the legalization of marijuana spreads across the United States, the price of marijuana will decline, leaving those who run grow-ops and dispensaries with decreased earnings over time.
Crucially, savvy entrepreneurs and business people throughout the country are capitalizing on what is a new and uncharted field. But how do they do it? How simple is it to establish a legitimate marijuana business? What are the legal gaps or potential drawbacks?
Here are some insights on what you should know before entering the cannabis industry.