Starting a marijuana business can be a bit hard but having the right information puts you on the right path.
Do you consider building a cannabis business empire? Let’s check the pros and cons of having a marijuana business.
Pros of Cannabis Business
Here are some of the reasons for you to go-ahead to set up a cannabis business.
New and Untapped Industry
The cannabis industry is large and new, with yet many undiscovered positive uses. However, its illegal status has reduced the number of scientific discoveries in the marijuana sector. If legalized and regulated, funds will be provided for studies, and scientists will discover more marijuana benefits. Of course, that sounds good to any entrepreneur looking to start a cannabis venture.
Marijuana sales are lucrative
This news sounds better than you already think. Remember, many top industry players and icons have supported the legalization of marijuana in many forms. Thus, the product is self-advertising and profitable, making it a good reason to have a marijuana business today.
Increased Government Revenue
The US cannabis industry has reached about 15 billion dollars in 2020, even as it is expected to rise with the legalization trend. After successful legalization, a sufficient cannabis supply will be needed to sustain the demand. Of course, that’s another significant reason to join the marijuana business.
Many people use it, and you can use it yourself
The public fears surrounding marijuana is gradually losing its grip. According to a recent study by Pew Research, 2 out of 3 Americans want the government to legalize marijuana. That means you already have a huge market for the business. Meanwhile, if you love taking marijuana, the business would be fun for you. Of course, doing what you love is no work at all.
Cons of Cannabis Business
These are the reasons to reconsider your resolve to have a cannabis business:
A Federal Crime
Many US states have taken positive steps to legalize cannabis, but the drug’s possession and use are still a crime at the federal level. However, the law’s implementation level is low because of the US Government’s limitations per workforce.
It’s worth mentioning that popular social media sites like Facebook, Google, and Twitter are against marijuana-related adverts.
Many studies support using cannabis to combat various ailments, but we can’t ignore the drug’s side effects. Evidence shows cannabis causes depression, anxiety, and schizophrenia. Again, the drug causes people to get high, making users prone to mental issues.
We still need more studies on cannabis effect on children and young adults, as evidence shows the drug could disrupt the infant’s brain structure. Besides, pregnant women and lactating mothers are warned against taking marijuana. Scientists say bronchitis is more common in people who frequently smoke cannabis.
What’s more, many rights groups believe legalizing marijuana will cause more young people to abuse drugs. With many uncertainties surrounding the effects of the drug’s long-term use, cannabis intake could lead to a severe health crisis.
High Starting Cost
Marijuana business takes high taxes, application, and license fees. But that’s little compared to equipment and production cost. Of course, legal cannabis also means huge health regulations that involve frequent inspections for compliance.
Banks may not want to work with you except a few companies that focus on cannabis business loans.
The US cannabis market is still limited because of its illegal status in some states and federal levels. Despite repeated calls for cannabis legalization, cannabis faces huge opposition. That means you should be cautious before parting with your money.
Now, you should be less confused than before, right? Cannabis already proves to be a big business, but the lack of social media advertising could be a challenge. Remember, a good product always stands out. What people want is a product that is effective against diseases, and cannabis is quite promising. Remember, you can’t rely on bank loans to get started. But, there are alternatives to get funds for your business.