There are now 39 states in the U.S.A that have some form of legalized marijuana, and the trend is looking favorable as more states add legalization legislation to their ballots. In fact, a recent Gallup polls showed that 64% of Americans support legalization. Legal marijuana sales were nearly $10 billion in 2017 and, according to some reports, the industry is expected to reach $40 billion and produced 400,000 jobs by 2021 (and this does not count the dollars collected by ancillary businesses). Marijuana is quickly becoming a high growth industry (no pun intended). So how can you get in on the action? Below are three ways to capitalize:
Invest In Marijuana Stocks
One of the easiest ways to get started in the cannabis business without really being involved or touching the plant is to invest in cannabis related stocks. While you can invest in individual companies an easier way to get started is to find a fund or basket of stocks that gives you a broad entry point. One such way is through an ETF (or exchange traded fund), such as Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) (TSE:HMMJ) or the ETFMG Alternative Harvest ETF (NYSE:MJ).
Start An Ancillary Business That Does Not Touch The Plant
While business that actually touch the plant, such as cultivators or dispensaries, are probably the most profitable, they also require a lot of start-up capital and are fraught with regulatory paperwork and licensing costs. But there businesses that are adjacent to the cannabis industry that are easier to start. For example businesses that supply growers with lights, fertilizer and other tools of their trade are booming right now. So are software services that provide “seed to sale” tracking. Another growth opportunity is to start an online headshop. As the demand for marijuana grows so to will the demand for the devices to consume it, whether it is in dry herb, concentrate or oil form Stores that specialize in selling vapes, bongs and smoke accessories are booming, especially those that convey trust and sophistication in terms of their offerings and design.
Tailor Your Professional Services To the Cannabis Industry
As the marijuana business matures and becomes are more legitimate industry the opportunities for professional services are growing. Lawyers who specialize in helping dispensaries navigate the regulatory landscape are in high demand, as are accountants who can deal with the fact that many cannabis businesses do not have access to traditional banking services. In terms of marketing and advertising, there is a tremendous need for all manner of services, including SEO and branded content. This is because most cannabis companies are barred from simply buying ads on Facebook or Google and instead must find alternative methods of marketing themselves.