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Marijuana entrepreneurship; industry discussion

Discussion in 'General Entrepreneur Discussion' started by Ryan Howard, Mar 12, 2015.

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  1. Brian C.
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    Brian C. Slingshot, Engage. Read The Millionaire Fastlane FASTLANE INSIDER 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 Platinum Contributor Read The Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER 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
  3. jon.a
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    jon.a Legendary Contributor Read The Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    "Torches of Freedom"
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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
  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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    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)
     
  8. Brian C.
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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
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  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 Platinum Contributor Read The Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER 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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    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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    miked_d Silver Contributor Read The Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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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).
     
  14. M'egga Wolf
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    Graduated this past year with my Chemical Engineering degree, I'm catching a lot of slack for diving into this industry. Currently putting together a proposal for investors, very exciting!
     
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  15. AgainstAllOdds
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    More glamour = more competition = harder to make money

    However, it is a new industry. So lots of upside.

    Personally though, I'd prefer to compete in industries where the competition is predictable and sucks.
     
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  16. GoodShakers
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    I have always wondered why more people don't follow this. Getting into the hottest markets, whether it is Marijuana, SaaS, or whatever else essentially guarantees that you're competing against the smartest people around with unknown market variability.

    I won't throw too many rocks from my glass house (currently made of web design and FBA), but my end game is doing HVAC for sea freighters or something.
     
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  17. Shades
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    Shades Bronze Contributor Speedway Pass

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    All those dot com era millionaires and billionaires are happy they didn't listen to this kind of advice. And yes, Marijuana is going to be about that big in the coming years.
     
  18. GoodShakers
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    GoodShakers Bronze Contributor Read The Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    If you want to talk about outliers, I could easily counter with the people who went bankrupt or committed suicide after the dot-com crash, but what's the point of that?

    The point I'm making is that there are a bunch of old industries out there that are potentially easier to succeed in than the aforementioned "hot" markets. Obviously, you can succeed in any market.

    Also, I'm not sure I see how the marijuana market will come close to the $3.5 trillion (and growing) worldwide annual spend on IT.
     
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  19. M'egga Wolf
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    [​IMG]

    My initial response is a Slowlane answer: it will allow me to be one of the few with a degree in Chemical Engineering with X amount of years experience in the Cannabis Industry.

    Fastlane answer: Ima let the vets handle that while I digest.
     
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  20. amp0193
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    amp0193 Platinum Contributor Read The Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    So your plan is to be Walter White?
     
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  21. miked_d
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    miked_d Silver Contributor Read The Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    I would give you neg if it was possible here.
     
  22. Shades
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    Shades Bronze Contributor Speedway Pass

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    The real money is in HVAC
     
  23. Shades
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    Do your thing. Never listen to the people who tell you to stay away from markets with competition. That is dumb advice that comes from Youtube "guru" videos made mostly by people who haven't done anything.
     
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  24. GoodShakers
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    By trying to mock me instead of responding to my comment, you're basically showing that you have nothing intelligent to share. I actually used that example because in the town I live in, there's a guy who owns a Marine & Offshore HVAC company worth mid-nine figures.

    Let's let this go back to being an industry discussion.
     
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  25. Shades
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    Im far from a intellectual. I simply found it funny that someone who wants to create himself a job in HVAC thinks someone shouldnt be trying to find their path in the countries next gold rush industry. But thats kind of the generation we are in. Competition = hard = no thanks.