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Marijuana entrepreneurship; industry discussion

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

  1. RahKnee
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    RahKnee Bronze Contributor Speedway Pass

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    I looked into several businesses for the cannabis industry, but I've passed on all of them. The reason being that you're almost always going to be one bad day at the Attorney General's office away from a life sentence for money laundering or drug trafficking.

    You have to weigh risk vs reward. I personally feel the risk is too high for the reward.

    Business ideas that got kicked around and had some potential that I have no problem sharing with you guys:

    Secure transport of products and cash. Not just some high school dropouts in an old brinks van. All military vets with convoy security experience, all heavily armed and armored, where legal of course, and discrete armored vehicles like 4Runners. I was looking at doing this in NV, but as I was lining up my ducks, the state laws changed and this was no longer an option.

    Cryptocurrencies. Not for payment though. The dispensary accepts cash that most banks won't touch, you take cash payments in exchange for cryptos of their choice minus your fee. The cash goes into your accounts, free of the stigma of the dispensary, and they get currency that can be used almost anywhere. This one came to a halt after consulting an attorney who thought an angry DA might come after you for money laundering. The case would likely have no merit, but it would still shut you down.

    There were others along the way, but alas, I don't have the stones some of you do.
     
    Paul Weese likes this.
  2. SquatchMan
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    SquatchMan Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    I agree.

    Marijuana also isn't an industry on the edge of technology (.com, apps, blockchain, AI, oil, etc.), so there likely won't be room for any business to make a 10x leap, which I think is required for a large amount of billion dollar business to exist.

    Recreational marijuana is basically just a plant grown for one specific use that has no other uses. Hemp is a different story, though I think the propaganda machine might be overselling the benefits of hemp.

    Apps, the Dot-com boom, oil, computers, automobiles, etc. permeated every single facet of life. My 85 year grandpa uses Facebook as does my 12 year old cousin and just about every business in the United States does too. The same can be said about computers, the Internet, automobiles, and oil. All these industries also connect to each other. Cars are now basically computers that can connect to the internet and are powered by oil. Oil is also used in probably 90% of the stuff on your desk.

    Marijuana.... I don't think IBM is going to be using marijuana for anything and I don't see how it intertwines into other businesses. Sure, it will be a big industry, but I don't think this will be creating the same amount of millionaires and billionaires that the other industries I listed created.

    I think the next big industry where we see all the in-vogue millionaires and billionaires will be the blockchain and AI over the next 10-15 years. I'd say 3-5, but I think we're still a little ways off.
     
    Last edited: May 16, 2018
  3. HelpAndProsper
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    HelpAndProsper Contributor I've Read UNSCRIPTED

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    AI for sure....It's already taking off. I feel IOT is related to the AI thingy too....
     
  4. Alex Nolte
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    Alex Nolte Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    Really like the idea as I think the people new to cannabis who don't smoke cigarettes or anything would rather start with edibles
     
  5. HugoMoreno
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    HugoMoreno Silver Contributor Read Millionaire Fastlane Speedway Pass

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    what about being an affiliate for marijuana products? dhgate gives you 10% of the sale price and you can sell bongs
     
  6. El_Johnson23
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    El_Johnson23 New Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    I work alongside many in the industry and even considered jumping in at some point. Here's my short assessment from an ag. manager's point of view:

    PRO
    -Present high market value for the produced commodity

    CONS
    -Regulatory nightmare (permitting and startup costs alone can run up to $1 million in some cases)
    -Pest control constraints (The majority of pesticides are not labeled for cannabis use, hence you cannot use them legally unless you get a Special Use Permit for the location and product you want to use, which costs a lot of money)
    -Puts you on the radar with law enforcement
    -Puts you on the radar with unlawful organizations (who do you think has enough money to pay the startup costs of a legal operation--- hint: it's not your hip uncle Joe)
    -Market over-saturation and price decrease in the following years

    I see the business model violating the commandment of Control by constantly being at the mercy of any given local or federal agency, injunction, code or regulation which could put you out of business within an hour (yes it happens). Other farming operations have to deal with a lot of regulatory constraints also, but with cannabis it's like steroids.

    For these reasons I didn't jump into the cannabis trade. However, there is a HUGE potential in terms of selling and/or producing the inputs the growers need for their operations (e.g. fertilizers, growing mediums, etc.) which are sold at an incredible markup and have to bereordered constantly.

    I've also being seeing a lot more 'grower consultants'; which are people who maintain themselves on the cutting edge regarding growing, management, regulatory affairs, etc. and offer the producers and distributors their services.
     
  7. 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
    IMO, I think we're halfway thru the rise on the lifecycle, so in my view, there is still time.
     
    Kak likes this.
  8. Ryan Howard
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    Ryan Howard New Contributor

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    It’s been a long time since I started this post. I lost focus for a while and just recently got back into the swing of things. I’ve decided to pack up everything and move to Las Vegas to go all in on the green rush. I got the final ok on my job transfer today. I just randomly decided to log into the forum after years of paying no attention to it. To my surprise my post about the marijuana industry is right there on the first page. If that’s not a sign to keep pushing I don’t know what is. I feel Las Vegas has the most underrated market in the states. I still plan to start out with edibles and with public consumption lounges looking to become a reality as soon as next year even though I fell off track everything is falling into place at the right time!
     

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