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Marijuana entrepreneurship; industry discussion

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

  1. AgainstAllOdds
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    AgainstAllOdds Legendary Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    This.

    Apologies for my comment on how it's easier to make money in a less glamorous industry.

    Obviously someone's going to make money in cannabis - it's just likely harder than choosing another emerging market.
     
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  2. HighestVantage
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    I am about to start working my third year in California in the industry. There is obviously an emerging billion dollar market here. The question I have is how much can one really make being a producer? I don't know. I can see a lot of competition driving the price down in a major way. Before legalization product would cross borders and naturally experienced an inflated black market price.
    Like many of you said, with all the hoops you need to jump through it has gotten very capital intensive. So the challenge is to raise money to actually get into the game.
    Otherwise, there are the fast lane options to start building. Or if you're in the position to sell shovels you could make boat loads.
    All this knowledge and these skills will be valuable increasingly nationally as more states open up their economies... (if it's happening why not tax it directly) and will be transferable into other Huge emerging industries. Say... indoor farming of fresh veggies. I hear people are already making big money doing that in certain locations.

    I'd like to know what people think are some Fastlane perspectives on harnessing this industry.
    Selling shovels are going to be big for a long time still in the right states, and if you could move with the demand you could probably retire off of it.
    Getting over the wall to be part of the larger production/distribution of the product is also going to be big but there are big obstacles.
    I see lots of opportunity for business services for dispensaries. There has got to be a solution to the cash problem these places are facing. Maybe placing Bitcoin conversion machines in dispensaries and installing a Bitcoin payment system in stores? Thoughts?
     
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  3. 458
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    458 Gold Contributor Read Millionaire Fastlane Speedway Pass

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    Best bet in this industry is to design or redesign tools that producers use/need that can be patented. Weed is a commodity, you're at the mercy of a price setting market which has a tendency to go lower.
     
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  4. bringitnow28329
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    bringitnow28329 Bronze Contributor

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    Anyone know if bitcoin for payments has been adopted at all in the Cannabis related market?
     
  5. Sanj Modha
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    Sanj Modha Gold Contributor Speedway Pass

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    I read an interesting forecast today. Marijuana revenue will overtake NFL revenue by 2020. Watch this space.
     
  6. miked_d
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    miked_d Silver Contributor Read Millionaire Fastlane Speedway Pass

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    Only on the darknet markets. In real life, cash is easier for customer.
     
  7. RahKnee
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    Any thoughts on how Sessions as AG might affect this industry? I've got my finger on the trigger to fund a service project, but I don't want my employees or myself getting arrested by the DEA and charged with trafficking.
     
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  8. Scot
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    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    The biggest problem for this market is obtaining licensure. Here in Florida each county is trying to put a moratorium on medial dispensaries.

    For most aspects in this industry, you'll need to obtain a very costly license from the govt. These licenses will be limited in their number and therefore extremely costly.

    If you're going to make money in this business it won't be through the obvious grower or dispensary business model, but in the ancillary industries. Remember, gold rush, sell shovels.
     
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  9. MidwestLandlord
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    MidwestLandlord Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    Yep.

    I sell a commoditized product (not weed, although I am somewhat in that space as well), and really the only way to make money is to sell to the people selling the commodity, and not sell the commodity itself.

    With a commodity, retailers will come and go as the race to the bottom for pricing pushes out the weakest link. The chances of being a retailer, and not being on the list of "weakest links" is low, unless you have really deep pockets and don't mind losing tons of money while the market sorts itself out.

    But if you sell to the retailers, sell to the businesses on the frontlines so to speak, they can come and go all they want, and you just keep selling to them. (just watch your account receivable's closely)

    There's actually benefit to selling to retailers that have a high rate of bankruptcy and failure. That benefit is that turnover of new retailers drives sales.

    Say there are 1000 retailers you can sell to. Once they bought everything they need, you're done selling. Bummer. But if half of them go out of business, and 500 new retailers pop up to take their place... that is 500 new retailers to sell to, even though the size of the market itself didn't change. If you sell equipment for instance, you could also get into the used equipment biz and keep the bankrupt retailers from competing with you there too...

    So,

    1) Sell the shovels
    2) Buy back the used shovels and sell those too
    3) Sell new and used shovels as gold miners come and go
     
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  10. AgainstAllOdds
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  11. The-J
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    The real money is likely in lobbying your state to pass laws that stifle competition and allow you to operate freely, whether as a retailer chain, a supplier, a supplier of tools, whatever.

    If you can somehow nab yourself a government-enabled monopoly in this industry, then you're gold. You only need one state, too.
     
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  12. Shades
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    Nonsense from a guy who starts fires everyday. The opposite of what that job should be. I dont think he will be there much longer. Trump has said the opposite of that. Think this is more just Spicer inserting his own ideas into the answer, as usual.

    Not an easy industry. Which is why it will be making a ton of millionaires over the next 5-10 years.
     
  13. MonezMagnet
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    Someone mentioned some time ago about an opportunity for cannabis business owners to accept payment other than cash.
    Why don't you just use 3rd party payment services?
    I mean our company helps business by charging a nominal fee so they can bypass any financial hurdles.
    Just sayin
     
  14. biophase
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    biophase Legendary Contributor I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    You can use high risk payment processors to accept payments.
     
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  15. Tom.V
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    Tom.V Tom Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    Yup. I've been working on a prospect who manufactures his own CBD oil and hemp products. His issue was Paypal and Stripe cut him out which cut his sales in more than half for the past 3 months when he came to me. Immediately I was like guy, why aren't you just using a couple different high risk processors? Fees are a little higher, the process is a little more of a pain, but someone out there will always take your money.

    The industry as a whole is a goldmine, it's just a shame that the major traffic sources make it difficult to get in front of your audience. But, that doesn't mean there isn't a plethora of different ways to get high quality traffic. Instagram influencers, related Facebook posts via comments, FB groups, banner ads, forums, Twitter comments, the list goes on. You could even go the route of printed flyers with discount codes in highly trafficked areas like subways, college campuses, etc. Take it a step further and start spamming windshields in health parks.
     
  16. powderhound100
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    If anyone is looking into getting into this business. My cousin is selling his farms and has trademarks, logo's and a bunch of stuff setup for the legal market. Could probably come up with some creative financing options as well. Contact me for info.

    I have not seen Bitcoin used at dispensaries. More difficult when dealing with taxes etc.
    On the silk road type sites though, it is the common payment method.
     
  17. powderhound100
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    and @MidwestLandlord

    The reason is they are running your debit card as an ATM transaction, they do not accept credit cards, cash only.

    So instead of you going to the ATM, taking out $50 and then you buying it. They just run your debit card as an ATM transaction and give you the change.
     
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  18. MJ DeMarco
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    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Admin Post
    In 3-5 years, the new multi-millionaires and billionaires will be coming from two industries: Blockchain and Cannibis. Where there is change, there is big money to be made. And change is always happening.
     
  19. Paul Weese
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    Paul Weese Life is about living Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    Having watched the Colorado market in comparison to the national market now for a handful of years, I'm convinced my favorite way to invest in the cannabis industry is through the OTC. Control of your funds for the long term is difficult until the Feds release their designation.

    In the meantime, there are companies with great opportunity in swing trading. These companies transport and store cash, purchase real estate for leasing, produce cleaners for extraction machines, testing facilities for flower, and more. Also, brands like Incredibles are making markets in multiple states. Soon, local, homegrown brands will be purchased by larger names.
     
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  20. HelpAndProsper
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    HelpAndProsper Contributor I've Read UNSCRIPTED

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    Green Powered Solutions #1 The only approved card processor in the cannabis industry! Details & Reviews | Leafly
     
  21. biophase
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    When I learned my dad was using CBD oil this past weekend for his arthritis, my ears perked up. Even though I'm in a state where medical marijuana is illegal, Hemp CBD would seem to be a great place to get started in anticipation of legalization in the future. Time for a deep dive in education.
     
  23. Kak
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    Kak Capitalist Swine Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    The contrarian in me thinks weed is already baked in (pun intended) and the market will be over served. There are 6000 people in every state ready to pounce when it's leagalized.

    Example:
    If I had a dollar for every time someone told me nursing homes for baby boomers is a hit business right now and acting like it was something groundbreaking that I wouldn't have already heard, I could have a fun night at the horse track.

    Thoughts?
     
    Last edited: May 16, 2018
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  24. IGP
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    There is a big difference between CBD and medical marijuana.

    CBD is not legal in all 50 states like many suggest, but it is readily available and if it's made from industrial hemp, you can buy it and sell it pretty easily. There are hundreds of sellers on AMZ for example.

    I agree with @Kak, it is already very saturated and this business is very political as well because of the massive amounts of money that are going to be made.

    Just because it becomes legal doesnt mean you can actually get a license.

    My brother applied for a dispensary license and had a very impressive team put together with serious investment capital behind them. There were several candidates, including family members of the governor. I'll give u one guess who got the deal.
     
  25. Kak
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    Kak Capitalist Swine Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    Agreed. All of this said... I'd apply for the license and open a store anyway. Still wouldn't be my main effort. More like a cashflow centric investment.
     
    Last edited: May 16, 2018

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