A bit of a controversial topic? Maybe. Something we need to discuss? Definitely. Not too many people are saying it so I guess I will stick my neck out there. After all, you will have more success in business by putting your neck in the guillotine than by sticking your head in the sand.
The marijuana industry is booming. For years it was taboo to talk about the subject, but it’s now clear that the United States is starting to embrace its legalization. From medical to recreational use, marijuana is something that we must look at carefully as every business stands to make a profit if done correctly. Keep in mind that you don’t need to sell marijuana in order to make money from the industry.
Is the industry large enough for you to take the leap?
Do you want a few reasons why we need to take up this conversation? How about 6.7 billion of them? How about the fact that legal marijuana is the fastest-growing industry in the U.S.?
Legal marijuana sales are expected to hit $6.7 billion in 2016, according to ArcView Market Research. This from an industry that is only two years into its full legalization (using legalized dispensaries in Colorado as the timeline). Something else that is staggering about this figure is that this is ONLY sales of the product and does not include support services.
Compare it to the automobile industry. Let's say the auto industry were to make $6.7 billion this year from car sales alone. Now think of the amount of money made by everyone else with their hat in the game--auto repair facilities, parts makers, and even car washes are all going to make money thanks to people buying cars.
Numbers don’t lie–the legal marijuana industry is going to explode
So, if we are looking at $6.7 billion in 2016, what will this number be in the future? Well, let’s look at the figures.
Currently, there are 23 states that have some form of legalization that legalizes marijuana use--this can include a combination of medical and/or recreational use. I am also including states that have decriminalized it (meaning it is still against the law, but there are no criminal penalties associated with its use, within limits). Out of the 23 states, only 4 have officially legalized marijuana for recreational use.
In 2016, there are at least 9 states that will be considering legalization measures. Some of these include states that are moving to expand their current laws from medical use into full rights of recreational use.
Some states have already placed measures on this year’s election ballot while others are still gathering the required signatures to do so. Surveys have also shown overwhelming support from people within these states, making the likelihood of these measures passing very strong.
So, where is the industry going? You do the math. As more states not only legalize the use of marijuana, but allow full rights of personal use, the $6.7 billion figure multiplies. The following infographic, courtesy of Go Banking Rates, (from 2010 mind you) has some staggering numbers about potential revenue from legalization.
Numbers don’t lie. The industry is like a 10-ton boulder rolling down the hill, and it is just starting to pick up steam. Time to jump on or move out of the way.
How to make money without being part of it
One of my favorite movies of all time is Half Baked. I’ll save you all the drama of reliving the film in its entirety, but it’s basically a comedy (often referred to as a “stoner film”) about the business of selling marijuana. Once you get a break from laughing at Dave Chappelle’s character, you will see the various ways to sell marijuana (for both recreational and medical purposes).
That was 1998, now its 2016. Take away the comedy and the “illegal” angle shown in the movie, and you now have a thriving (and legal) business. No more hiding what you do (as the characters did in the movie). You have the opportunity to showcase your products publicly, which opens a new market for those associated with it. After all, you don’t have to sell weed to make money from it.
So if you don’t want to get your hands dirty with the cultivation and selling, there are plenty of other ways to profit. Take a look at a few ways people are already making money from the industry.
First, there are websites out there already making a profit. For medical purposes, there are sites to help you find a marijuana doctor, a service that you must use if your state requires a prescription. There is also "High Times" which has become one of the go-to news blogs for the industry (and the oldest publication dedicated to the industry). Websites such as these can make money from referral fees as well as advertising--all this without selling an ounce of the product itself.
Moving on to the real estate market, people need facilities to not only grow but distribute the product. No longer do you need to slide a $20 under the door and wait for the occupants to hand you a bag through the window. With legalization, cultivation and distribution centers have moved to locations more publicly accessible than your neighbor’s house. Have a location you think would be perfect for someone else to run their marijuana business? Consider leasing it out. It will also help the local housing market as it did in Denver a few years back.
Are you a gardener? There may be opportunities for you as well. Gardening instructors now offer classes on marijuana cultivation. Which leads me to the next step, cultivation tools. Even if you are not doing the farming on your own, you can still make money by supplying the tools to those that do.
There are also many investment opportunities in the industry without having to lift a finger. Many publicly-traded companies offer you a chance to be a shareholder through public exchanges, all of which are directly related to the industry. If you are a venture capitalist, then you have an opportunity to invest even more of your money.
Summing it up
I could go on forever about the various opportunities in the industry. However, I am sure you are smart enough to adapt your business to it. In fact, I have already started adapting mine by targeting those in the industry that need content marketing. So, I’m able to make money and never have to be around it.
Like it or hate it, it’s time to embrace it. Many entrepreneurs are already taking advantage of it. Hell, even Martha Stewart “know[s] how to roll a joint.”
