Invest in Cannabis
The cannabis industry is one of the most challenging industries I have ever worked in. There is inconsistency in the laws, state by state. The rules and regulations in NY State make sense sometimes, and other times are inane. The taxation from the Federal Government is crippling. Brands are closing shop; dispensaries can’t figure out how to open due to a lack of capital, and only 24% of the business are profitable. Banks are wary and costly to do business with. Insurance prices are out of whack. The illegal market is burgeoning and brazen.
Yet everyone wants a legal dispensary in their area. Roughly 9 in 10 Americans believe in medical or recreational cannabis. Those numbers can be broken down, but here’s the reality, people like weed.
I have talked to people in upstate NY who understand that one dispensary can be game-changing for products, jobs, taxes, and economic development. I have spoken to frustrated brands because they have to run their businesses like they did decades ago. Invest your own capital and, if you are lucky, a few friends, build the brand, sell products, reinvest in new products, sell again, reinvest, and keep the company lean. There is no capital for growth; many owe millions of dollars to farmers who can’t afford to float those orders for over 30 days and, indeed not 90.
Some will blame the industry for failure or lack of interest, but there is only one organization to blame for this tumultuous industry, the government.
All these points add up to one thing; it is time to invest in cannabis. In time banking will pass, taxes will change, and if you are a savvy investor, this speaks volumes to the saying “buy low, sell high.”