California has been selling legal recreational marijuana in cannabis dispensaries and online marijuana services for just over two full months now and Canada is set to follow suit. Canada has said that her legal “national” recreational cannabis sales are set to begin in the latter months of this year.
According to Forbes, the predicted sales income for North America is at approximately $12 Billion. This means that for businesses, cannabis dispensaries, online marijuana services and entrepreneurs in the cannabis market; there are huge opportunities looming on the horizon.
Despite efforts from large-scale corporations, there are no reported business favourites so far. Small businesses such as cannabis dispensaries and online marijuana services have been left somewhat safe- for now.
The CEO of Dipstick Vapes, a successful vape business offers a reason to why this is so. The CEO, Mike Bologna, says that there isn’t an existing line of business- unlike many other businesses that have been around for generations, the marijuana industry comes free from generations of power. Additionally, the marijuana market is, for now, individually to each state. This makes an even playing field for businesses and entrepreneurs. For now, cannabis has to remain within the state boundaries, this means that with each different state will come differing opportunities. Each state has different rules and regulations for online marijuana businesses and cannabis dispensaries.
The fact that the federal government has given states such as California and Colorado a wide berth with their marijuana market is a huge contributor to their success. This very success is what is egging marijuana on in the debate on whether or not marijuana should be introduced fully mainstream or not.
2018 is set to be an important and benchmark year. With this year seeing the start of many states introducing the legal retail sale of recreational marijuana. With this initial jump, many business from different industries are making the move to join the emerging marijuana market, whether it is a business in online marijuana, pot paraphernalia or cannabis dispensaries.
The most important part for these new businesses and industries in this new market is to be squeaky clean and Colorado within the legal lines perfectly. This is important for a number of fairly obvious reasons. The marijuana market is emerging from a demonised shadow and still is held in disregard by some. Everything needs to be done by the book in order for a new and fresh reputation to be garnered. This reputation is important not only for the marijuana market but also for the fresh business that need to build up a reputation as well. The public have a significant say in voting how the marijuana market’s future will develop. Because there are still many sceptics among communities and the public, the marijuana market needs to show that it is a market and industry that is able to be implemented within rules and successful regulations.
An interesting point was made by the President of Single Point, Will Ralston. Ralston says that as the marijuana markets gain footing, a second wave of entrepreneurs is expended to join the scene. He expects that there will be entrepreneurs that will emerge from current marijuana businesses to begin their own companies.
Many more traditional investment and capitals have not yet been opened to the cannabis industry however this could change once Canada opens up her national marijuana market as well.the CEO of FINCANN, Nathaniel Gurien, has said that there is a possibility that once this happens we will see a boom in the industry. There will be new accessibilities to funds and financing. Gurien also said that it is likely that government could become involved in the banking and business of cannabis.
FINCANN is a company already involved in the finances of the cannabis market. Gurien and his company ensures that there is efficient and legal banking and payment options for the legalised retail marijuana market. He predicts that there will be a flurry of activity as the current existing marijuana business seek out a strong position as they ready themselves for what Gurien calls “eventual federal legalisation”.
However the looming legalisation in Canada is not all sunshine and roses for smaller businesses. The freshly opened Canadian market could lure large corporations, particularly investors from the the tobacco and alcohol industries. This was the same fear held in the United States however laws were seen in place to protect the small business man. If these laws change, it could spell trouble for what is promising to be a fair market.
Some reports have predicted that this change could be on the doorstep by 2021. This means that while large industries flex their financial muscles, small to medium sized business could struggle with the rising tide. Large corporations are capable of drowning out small-medium business and local entrepreneurs by flooding the market with lower priced marijuana. This low price is a reality for the large corporations because they would be able to cut costs by running on such a large platform. The current laws somewhat prohibit this from happening by limiting the amount of acres one licensed cannabis cultivation field is allowed to be. Under present regulations, the size cap is set at five acres. However there is no limit on how many licences for these five acre farms any one individual is allowed to have.
For the moment, the estimated $12 billion market is drawing in hoards of interested investors, from the small, local business entrepreneur to the large-scale corporate company. And for the present, there is no set favourite to win in the emerging marijuana market however once the regulationary kinks are ironed out and Canada has made hers known as well, the clarity will provide those eager to know with the answers.
