Our mission here will be to inform, educate and even inspire those who have taken a bold step into the booming hemp and cannabis industry. Be sure to stop back regularly as we explore current topics on business trends and best practices among hemp and cannabis growers, producers and retailers.
SOME CURRENT FACTS
It’s no secret that legal marijuana sales have emerged as one of America’s top growth industries. According to a recent March 2019 article on FitSmallBusiness.com, 43 of the 50 states in the U.S. allow some form of marijuana use. The majority of that number currently restrict use to the medical marijuana side, but the across-the-board legalization states club has now grown to 10: Maine, Vermont, Massachusetts, Colorado, Nevada, California, Washington, Oregon, Alaska and our own Michigan.
Regulated dispensaries continue to open throughout this group of states, and reveal this article’s most compelling statistics: at an average startup cost of around $800,000, these facilities generate a profit of nearly $1.1 million on revenues of around $3 million. At a projected 2018 growth rate quoted on The Motley Fool’s fool.com website of 42%, those figures will only continue to make the business community take notice.
With Gallup reporting that 66% of Americans now favor some type of cannabis legalization, efforts to reverse the Fed’s listing of marijuana as a dangerous Schedule 1 drug are continuing. An April 2019 article on theverve.com highlights two of the most promising initiatives being debated: the Ending Federal Marijuana Prohibition Act and the SAFE Banking Act. The former would remove marijuana from the Controlled Substances Act, while the latter would allow banks and credit unions to conduct normal business with cannabis companies without Federal intervention. These will both be hot topics as the 2020 presidential election cycle approaches.
SUCCESS IN THE CANNABIS INDUSTRY
As cannabis businesses emerge from the unregulated black market into a top worldwide growth industry, there are many compelling success stories to be found. An excellent April 2018 article on forbes.com highlighted best practices from cannabis industry entrepreneurs, including these that apply to every successful operation:
- Stay focused on your original course
- Hire great people
- Legal and regulation compliance is mandatory. No shortcuts!
- Build your personal financial capacity or get with a team of investors
- Be a good neighbor as part of your community
SSF’s mission is to provide professional and creative financing solutions for individuals and companies at all stages of experience and expertise in the cannabis business. email us at firstname.lastname@example.org to discuss a variety of issues, including small business startup loans, business acquisition loans, lab equipment leasing, real estate project funding, and full range of term loans for cannabis extraction machines, hemp farming equipment, greenhouse financing and marijuana packaging machines.