With marijuana business opportunities eyeballing a potential $110 billion market, many aspiring entrepreneurs may be interested in growing (literally) a business out of their garage. But is creating a pot business limited to only the already rich?
In a related report by The Inquisitr, the head of the National Institute on Drug Abuse claims that marijuana legalization could be more dangerous than already legal tobacco and alcohol. The controversy does not end there, because the Florida Sheriff’s Association claims that marijuana is linked to violent crimes even though Denver’s crime rates have dropped since Colorado’s marijuana legalization bill went into effect.
With the Federal debt clock already past $17.6 trillion, some people also say marijuana business opportunities could help the government’s budget woes a little since a marijuana tax could bring in about $6.4 billion a year based upon a sales tax and a $50 levy. Out of the total marijuana tax, $4.3 billion would be for the government and the participating states would split the remaining $2.1 billion. This argument was given more teeth when it was shown that Colorado brought in several million dollars in taxes in the short time that marijuana has been legalized in the state. Just in 2014 alone it’s estimated that taxes and fees from cannabis will generate $134 million when alcohol taxes only bring in $40 million.
But in order for this to happen, marijuana legalization would have to be passed by Congress. This may seem unlikely but the DEA just recently asked the FDA to re-classify the status of cannabis as a controlled substance, which would be the first step.
Unfortunately, big business is already crowding in on the rush to make big marijuana the next big tobacco, with the biggest entrepreneur sharks going for the $110 billion of blood in the water. Years ago, it used to be possible to start a marijuana dispensary with a small cannabis plant and several thousand dollars. But now experts say the little guy would “find it difficult to impossible to go into the business today.”
Tripp Keber is one of the men who saw the marijuana business opportunities back in 2010. While he started in a “wood shed,” he admits: “I have said publicly that this is not a poor man’s business.” He claims he has invested “millions and millions” into his pot business although his revenues have grown 10 times what they were before marijuana legalization became the law in Colorado. Toni Fox, owner of business 3D, tells a similar story, saying it cost her $500,000 to get started in Denver although now her company is valued at $10 million.
Out of these success stories we really don’t see anyone with a few bucks and business plan succeeding. Worse, even for the already rich it’s difficult to secure financing in the growing marijuana industry, and it was widely reported how these new businesses faced the difficulties related to how Federal laws prevent banks from allowing accounts for cannabis businesses.
Still, there are multiple marijuana business opportunities besides growing the plants and operating marijuana dispensaries. Other related businesses include “security firms, cultivation-equipment suppliers, and smoking-accessories manufacturers.” In the long term it’s possible that low budget startups could include delivery services, creating software and mobile apps specific to marijuana, and various other ventures that do not require working directly with weed.
Are you surprised that marijuana business opportunities may be limited to the already rich?