All entrepreneurs want the same thing – to discover an untapped market that would require little investment capital but has the potential to explode. If you’re nodding in agreement, having just spent the past year looking for the next “big thing” to capitalize on, consider creating a business in the bourgeoning marijuana industry.
What was once an illegal pastime for old hippies and college kids, marijuana is now legal for medical use in 23 of 50 states, and will soon be legal for recreational use in four. And, as full legalization spreads from state to state, it’s only a matter of time before marijuana becomes federally legal.
Cashing in on a $7 Billion Industry
With the spread of legalization, new markets open, providing massive opportunities to startups ready to take advantage and cash in on the “Green Rush.” Think about it: entirely new industries don’t pop up every day in the U.S. economy. The marijuana industry is the biggest ground-floor opportunity we’ve seen since the early days of the Internet.
Just how big is the industry and where is it headed financially? Last year, Factbook publisher Cannabusiness Media estimated there were between $1.6 billion and $1.9 billion of legal pot sold for medical use in the U.S., and another $600 million to $700 million was sold for legal, recreational use.
The Factbook also projected that legal cannabis businesses will do roughly $8 billion in revenue by 2018. So, that’s more than $7 billion of upside earning potential in the near-term marketplace.
From growing crops to processing and distributing product, there are myriad businesses that can be started now to cash in on this budding industry. Here are 5 marijuana businesses entrepreneurs should consider starting.
Edible Creator
If you know little about marijuana, you may assume that people only smoke it. The truth is, marijuana can be infused into just about any kind of food you can imagine. A trip to any retail shop or medical dispensary will give you an idea of the kinds of edibles currently being created and sold.
From coffee to baked goods, oatmeal to candy, the edibles market is poised to be big. Depending on where you live and your skill level, making edibles can potentially be highly lucrative. Entrepreneurs interested in this segment will need to check in with their local law officials to determine any regulations.
Concentrates Processor
Concentrates like hash oil and Rick Simpson oil, known for their incredibly high concentrations of THC, are very valuable to medical cannabis patients. And, as vaporizers become more commonplace, the popularity of concentrates grows. A background in chemistry will definitely be helpful in creating this business, and also experience with chemicals and lab equipment.
Tourism
Think of the popularity of wine tours and apply it to cannabis and you instantly see the potential of a marijuana tourism business. Companies would earn revenues by taking people on fun and educational tours. From visiting marijuana farms to touring retail and dispensary locations, the tourism industry is set to take off.
Paraphernalia Merchants
If you live in a big city, you’ve no doubt walked past many a headshop that sold marijuana paraphernalia. But in years past, items such as pipes and bongs, and now vaporizers, could never officially be targeted at cannabis users. Whether you create your own items or decide to market handheld vaporizers, you will have a never-ending supply of customers needing items to help them partake.
Security
With the proliferation of retail shops and medical dispensaries comes a need for tight security. After all, the merchandise sold at these shops is highly-prized by many. Security companies specializing in this industry would be responsible for things like checking IDs and guarding privacy for customers, as well as ensuring money and product transfers go smoothly. While the need for security is focused currently on urban locations, as the industry kicks off, security will be important for storefronts in all environments.
If you always wished you were able to cash in on the dot-com boom, now is your chance to strike it rich in another industry. The marijuana industry is still very much in its infancy, and those entrepreneurs who get in on the ground floor now will set themselves up for big success.