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Marijuana entrepreneurship; industry discussion

Discussion in 'General Entrepreneurship and Startup' started by Ryan Howard, Mar 12, 2015.

  1. Elon's Musk
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    Elon's Musk Slingshot, Engage. FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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    It's not that easy.

    My state (MA) just legalized recreational marijuana, growing, etc.

    On October 1st, our state will begin accepting applications for cultivators, product manufacturers, etc. It costs $3k to apply. That's right, $3k to even be considered. Applicants are sorted based on experience (think medical marijuana) and if they're lucky, they receive one of the 75 licenses available. There will be a maximum of 75 manufacturers until October 2018, and a max of 75 cultivators until October 2019. Oh yeah, and the license itself costs $15k.

    Capital outlay is HUGE. Overhead, licensing, the property itself - it's a massive barrier to entry. So big in fact, that I've started to contact growers in Colorado, who might be able to offer advice as to the process and acquiring the necessary capital. Perhaps I'm wrong, but I don't think banks will be dishing out loans to commercial growers, especially with the federal position in limbo.

    In the back of my mind though, I think marijuana could follow a path similar to tobacco. Since marijuana is classified as a schedule 1 drug, government testing is inconclusive. Don't get me wrong, I enjoy marijuana from time to time, but lighting something on fire and ingesting it cannot have ONLY positive consequences. I'd hate myself if I produced something that had adverse health effects for the consumer. But that's beside the point.

    Bottom line, it's not that easy. But with big barriers to entry, come big opportunities for massive success.
     
    Last edited: Jan 11, 2017
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  2. MidwestLandlord
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    MidwestLandlord Gold Contributor FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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    I know a guy that sells weed in Colorado. He owes me money haha.

    He sells edible's like crazy, because of the unknown health effects of smoking weed AND because people want to be able to go back to work without smelling like weed.

    Edibles and liquids (THC ejuice) is where most of his sales growth comes from.

    Edit: Edibles are especially popular with women. Namely chocolate. A smart retailer would somehow get women to replace wine with weed for their evening routine. Huge market, much like when cig's were first made cool for women by that marketing genius who's name I can't remember back in the 1920's I think.
     
    Last edited: Jan 11, 2017
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  3. jon.a
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    jon.a Legendary Contributor LEGENDARY CONTRIBUTOR FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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  4. juan917
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    There's always a first step, which is learning how the process works.
     
    Last edited: Jan 14, 2017
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  5. Richie Arnold
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    This is definitely a growing business. Just this past decade a new way to smoke "dabbing" has started to become popular. Im sure plenty of businesses cashed in on the oil rigs you need to smoke the THC wax. There's so many trends and possibilities that could arise with the legalization.
     
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  6. Michael Burgess
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    Michael Burgess Bronze Contributor Speedway Pass

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    For what it's worth....
    (Someone who isn't me)'s first business was selling pot back in high school :rofl:. It started out as a way to just help friends get bud without having to go through sketchy and unreliable suppliers... and then he realized it was a really simple way to smoke for free.

    At some point, he had way more pot than he could smoke, which is when an entrepreneurial seed was planted.

    In a lot of ways, it actually was incredible business training; finding and negotiating with suppliers, managing customers, marketing, understanding profit margins, logistics, and so much more. Obviously selling drugs is disconnected from real world business in a lot of ways, but selling pot was a fundamental step in his business progression.

    It showed him that your income doesn't have to be related to your time, and that options existed beyond "just going to university and getting a job".

    Don't sell or use drugs kids :fistbump:
     
  7. JAJT
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    JAJT Ha Ha! Business LEGENDARY CONTRIBUTOR FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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    It's about to become legal here in Canada, federally and for recreation. This year.

    Dispensaries are already jockeying for position and selling their product loosey-goosey to anyone who walks in (and not just medical, like they are supposed to until the law goes through). They've been getting shut down and raided left and right every week but I'm assuming they all want to gain market share before the flood and are taking that risk.

    One thing I've seen people getting into are the extracts. Specifically stuff made with Butane. From my understanding you can make very similar products with CO2. I know for a fact they already do this with hops for beer (co2 hop extracts using basically the same method - hops are very closely related to cannabis). Personally I think if someone came in, advertised similar extract products made with harmless CO2 instead of a combustible and harmful gas as the solvent, and and sold it to the retail chains, you'd make a killing.

    (I have no idea if CO2 extracts are already popular, I've only ever heard about the butane ones. I'm not really into the "weed scene" so to speak)
     
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  8. Elon's Musk
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    It's mind-numbing thinking about the possibilities in regard to marijuana.

    I built and sold "stealth" grow boxes a couple years back. Essentially a regulated, silent, odorless environment where you could grow marijuana without anyone being the wiser. Yields in 4-5 month range. Sold a few on eBay, but ran into issues with shipping. Now that it's legal in MA, I'm thinking about operating again as a side business before it's too late (if not already).

    This industry is about to sweep the nation (regardless of federal/state administration). As @MJ DeMarco said
    It's funny @MJ DeMarco because I was thinking the same thing the other day. It's the self-pub boom "domestic brewery" type deal all over again.

    Surely, there will be members of this forum who'll become dominant forces in this industry (if not already).
     
    Last edited: Jan 11, 2017
  9. jkkkjkhk
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    FWIW I have a few friends who work at dispensaries, and I've been to a few myself. All that I know of accept card transactions as well. I'm not sure exactly how they process it but say you make a purchase of $46.xx they charge you for $50 and give you the change.
     
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  10. MidwestLandlord
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    MidwestLandlord Gold Contributor FASTLANE INSIDER Read The Millionaire Fastlane Speedway Pass

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    Really?

    Why on earth would they increase the credit card sales arbitrarily when you pay as a percentage of the sale? It's usually against their merchant agreement to do that as well.

    Weird. I've never seen this.
     
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  11. Ninjakid
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    Ninjakid Gold Contributor Speedway Pass

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    Come to BC, and you'll see what high demand in an industry looks like :D
     
  12. jkkkjkhk
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    Not a clue as to why. lol There's dozen here in the PHX Valley and of the 5 I know they all do this.
     
  13. miked_d
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    I have some experience in the industry. Butane extraction is dangerous and produces a lower quality product than Co2. I am pretty sure producing with butane is illegal in California although sales are not (yes, I know that makes no sense).

    I considered getting into it, but did not have the funds. Additionally LA County laws were a mess (still are).
     

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