Industry mistakes have caused many to throw in the towel. While the regulatory system is intended to embrace already existing businesses the reality is that constant changing regulations and unchartered territory have caused millions to be lost. And though the cannabis industry is expected to reach 50 billion dollars within our lifetime easily, millions have been lost in this time of great regulatory shift. A great amount of this loss comes from inexperienced money trying to enter the cannabis market. In loss of product, lack of security, or failure to plan properly, inexperience causes many to forget that at the end of the day we are dealing with a perishable product, one whose expiration date can change depending on packaging and storage. Much like improperly storing or curing wine, cannabis can also be spoiled and result in fortunes lost.
Top Industry Don't's
Navigating The Industry
Industry aficionados with nothing to learn often have the biggest risk and the smallest amount of experience in regulated markets. Fringe and grey regulations have allowed many operators to skim off the top, maintain two set of books and pay little to no taxes, while forbidding wealth accumulation. This formula has encouraged a false economy limiting banking coming in from an otherwise illegal market. This industry shift to regulatory market has not yet negatively affected the rate of cannabis in the ever-prolific black market.
Over burdensome taxes & regulations & law enforcements failure to recognize the industry as lawful has led black market cannabis to sell for a fraction of what the taxed & regulated market is able to bring the product to market. Regulators should embrace black market producers & aid these operators into compliance.
Make sure you are clear on the cost going into your endeavor as many cultivators easily get in over their head. Luckily, financing or partnership are possibilities to those looking to license their cultivation. I suggest starting off small, and ensure profitable numbers, before delving in so deep that you realize you have spent to much. Our experts can help you crunch those number and get to your bottom line.