The Market is Strong for Starting a Medical Marijuana Business
The legal marijuana industry is currently the fastest-growing business in the United States. If it continues to expand and reaches all 50 states, it could become even bigger than the organic foods market. According to The ArcView Group, a research company focused on cannabis industry investment, the U.S. market grew 74% in 2014, up from the prior year of $1.5 billion.
The stigma of this market is rapidly being replaced by legitimate research, medical breakthroughs, legislation supporting its sale and a growing market demand that has surpassed expectations. Ancillary businesses, governments and entrepreneurs are starting to see that the potential in this industry is just too vast to ignore.
The Cannabis Industry by the Numbers
- In 2015 alone, the market is expected to increase another 32%
- The value of retail sales in the U.S. from full legalization across all 50 states is $36.8 billion (an increase of 1,262% over 2014 total sales, wholesale and retail
- As of fall of 2015, 23 states (and D.C.) have already legalized medical marijuana
- A recent poll of clinicians by the New England Journal of Medicine showed 76% believe in the medical benefits of medical marijuana (source)
- Currently, 17 million people live in states that have already legalized recreational marijuana. It’s projected to increase to 86 million by 2017 – over 25% of the total U.S. population.
- 58% of Americans now support legalization, up from 17% since 2010
- Some estimate that the global market for hemp involves more than 25,000 products in 9 submarkets, including paper, personal care, textiles and agriculture and more
- Politicians from both parties currently support legal reform of marijuana laws
- In the next 5 years…. the earnings for legal cannabis are expected to exceed the film industry, organic foods and more than triple NFL revenues.*
*Clearly, a case can be made for starting a medical marijuana business.
Getting started on your own Medical Marijuana Business
How do you know where to start? Below are commonly asked questions:
Q: What skills and personality traits work best for your potential employees?
A: We have been in the industry since 2003 and can help you build a strong team. Seek out individuals with experience in other industries that complement the abilities you need in the cannabis industry.
Q: Who should run the grow operations?
A: You may think you want an experienced marijuana grower – surprisingly, you will be far better served by hiring someone who is a degreed horticulturist who already knows nursery operations and understands large scale production, not just a home grower.
Q: How will you get your license application completed so it’s successful the first time?
A: The application process is complex, lengthy, involves specific regulations and expertise….and must be submitted in a timely fashion. Being the first in your market to win a license can make all the difference. If you don’t win a license with the initial application process, you may have to wait years to apply again.
Q: How do you comply with regulations and operate in such a controlled business environment?
A: You will benefit from the processes, operation manuals, inventory and security controls we’ve already mastered in our businesses.
Canna Advisors is one of the most experienced and respected firms in the cannabis industry. We can assist you with your pro-forma financials, your cultivation requirements, regulated operational duties, hiring, etc. We have the answers you need and provide customized business plans with realistic projections.
You not only need to look great on paper, but you need to be able to perform efficiently from the beginning of the application process to the eventual day-to-day functions of your marijuana business start-up.