With the advent of more and more states legalizing the production, delivery and dispensing of marijuana, one would think that it is a very profitable business in a free market. Sure, maybe the black market was to some degree taken out of the equation this does not remove the principles of supply and demand.
As more and more people are jumping in to grow the product and deliver it to the dispensary it will result in too much supply and not enough demand. This will force the price of the product down. So those who simply love the product and are not interested in profit, they can grow their own or enjoy the price benefits of an oversupply! This appears to be the case in Oregon and Washington State.
It should be noted that in the United States it is still a Federal Crime to grow and sell marijuana. This is true even if it is legal in your state for both recreational and medical purposes. So it would be well advised to follow the laws of your state before investing time and money in growing, delivering and dispensing marijuana.
All states that have legalized it have laws in place. Some even limit the number of licenses that will be issued every year. It is best to look at your states laws and get an attorney to help you in starting. It also includes the type of marijuana business – are you wholesaling to dispensaries or retailing?
If you take Colorado for example, if you grow more than 6 plants or produce more than 2 ounces, you have to get the license. It will require a separate city and state license with additional license depending on if it is recreational or medical operation.
As with any business, you need to do your research. Do not assume that you will get rich overnight or at all. It is still market forces. So what is the cost to open up a marijuana store? One source has it at a low end of about $43,000 to a high end of about $135,000. One has to consider the long-term return on investment.
This is similar to the gold rush in the 1800’s in America. There were a few that became wealthy by striking gold, and there were much more who became wealthy supplying picks and shovels to the want to be minors. Maybe it would be advisable to look at all aspects of this business, see what your niche is. Supplying the paraphernalia that goes with marijuana industry or even being an information source such as a marijuana membership website might be a good alternative. A good example is Medical Marijuana Business News. They have a handbook you can buy.
Whatever you decide, enjoy the product if that is your choice in life. We are just glad that governments are starting to realize it should be a choice.