Yes, the cannabis industry is booming. In the US, the cannabis industry is approximately 10 billion dollars, and it is expected to hit 50 billion in the next ten years.
While these numbers are exciting for many, the growing industry is a new “wild west” with some areas that cause concern.
For the most part, people seem pretty comfortable making assumptions about the new cannabis businesses that are cropping up across the nation. Most of those assumptions just aren’t true—and the real picture of the new cannabis industry is one that is filled with myths.
Wondering what the real face of canna-business looks like? Here are ten facts you probably should know about this growing sector.
It’s not just about selling pot.
There’s a common misconception that the cannabis industry is just about cannabis, and it’s really not. There are tons of different businesses focused on catering to those who do vend cannabis to people.
Law firms exist that are solely dedicated to helping cannabis distributors stay legally compliant. Cannabis marketing firms exist that help companies establish a brand legally. Cannabis testing firms also exist to help determine the potency of a new strain.
Even doctors who offer “green cards” are part of this industry.
Not all the people who are in the cannabis industry are hippies or rappers.
There’s a pervasive belief that anyone who’s involved in the new cannabis trade is either a hippie, a rapper, or some Instagram model looking to be edgy. This is just not true. Doctors, lawyers, and even conservative politicians have dipped their toes in the boom.
Companies that sell cannabis have no access to traditional banking—and that’s pretty bad.
Though it’s hard to imagine, most cannabis companies that exist have no access to banking services. Since cannabis remains illegal on the federal level, and banks are federally insured, most financial institutions will not service cannabis businesses. In states where medical or recreational marijuana is legal, dispensary owners, manufacturers, and anybody who “touches the plant”, continue to face a host of operational hurdles, including a reluctance by banks to do business with them. Aside from a huge inconvenience and the need to find creative ways to manage financial flow, payroll logistics, and payment of taxes, this also poses the tremendous personal safety risk of operating a lucrative business in cash. This lack of access to traditional banking is certainly inhibiting industry growth. On the extreme end of the spectrum, if banking services are not soon extended to the legal cannabis industry, many companies are likely to be forced out of business.
Until it’s federally legalized, cannabis companies won’t have banking.
Advertising is difficult because of the laws, too.
Most social media sites have a ban of advertising illegal goods, and sadly, that also means that they won’t allow companies to advertise cannabis easily. This is true, even if the companies in question are legal on a local level.
Due to the red tape involved, most people who are in the cannabis industry have to be very well-read on the ever-evolving laws regarding advertising the green stuff.
The cannabis industry gives millions in tax revenue every year.
You might already know this, but it’s worth pointing out again. Uncle Sam has gotten quite a bit of benefit from legalizing cannabis. Colorado once was running a deficit in tax revenue. Thanks to the green boom, it’s now running a surplus.
Despite all the proof of positivity, the future of cannabis’ legalization still remains uncertain due to the stigma and false claims let out by conservative politicians. The United States will eventually catch on, hopefully, once the guys in Washington DC realize how much money is in the marijuana business.
The cannabis industry is still not totally established, which means entrepreneurs are the ones to write the rules.
There’s something really epic about being able to be part of a new industry. It allows you the full reigns to be a trailblazer, and since there’s no major history involving the industry as a whole, people are more willing to try it out.
It’s pretty awesome, don’t you think?
It’s a very feminist industry, too.
Many industry sectors are known for having a “boy’s club” atmosphere, with far more men being members than women. This is not the case with the cannabis industry.
This is one of the few industries where men and women are equally represented, even when it comes to the demographics of CEOs. The industry also eliminated sexually suggestive advertising because they are awesome like that.
There is some concern about glamorizing cannabis to minors.
Much like the tobacco industry had Joe Camel, and the alcohol industry had every teen movie in existence, a lot of people are getting worried that the cannabis industry could be giving minors the wrong impression about weed. Also scary is edibles and kids and them not knowing that “cookie” has THC in it.
I mean, do we really need to market weed to kids? Do cannabis companies even want to market weed to kids? No, and probably not. Even so, some concern has been raised on the subject and rightfully so.
Some groups are actually working to create a commercial weed strain that offers all the perks without the pitfalls.
We all enjoy the benefits of smoking (or eating, or vaping) bud, but let’s face it, there are side effects. If you are sensitive to weed, you could get paranoid, anxious, even hear things that aren’t really there.
A number of firms in the cannabis industry are joining together to create weed strains that give you all the perks, minus the pitfalls. This could lead to a number of major breakthroughs for people who want to use cannabis as a cure, but can’t due to sensitivities.
Old Stigmas and Unproven Claims
Unfortunately we are still battling against old stigmas and people should realize that this industry is moving forward with or without you.
Product Claims — We see many of our competitors listing medical claims regarding their products, CBD and cannabis do not currently have any FDA approved drug applications.
Finally, you should also know that there are a lot of cannabis stocks entering the market.
Love investing in the stock market? You’ll be happy to know that the cannabis industry has already touched the stock market in a number of ways.