In just the short time it’s been legal, marijuana has generated billions of dollars for the state of Colorado alone. Once it becomes legalized nationally or in your state, it’s going to be something worth investing in. If you’re wondering how to invest in marijuana while it’s yet to be legalized, there are some ways to get a piece of the market.

Here are five things to think about when you’re trying to invest in marijuana.

1. Do Your Research

Before you start investing in anything, you need to do your research. There are so many products and services in and around the marijuana industry that you could invest in more than just plants. You could be investing in farm equipment, products derived from the plant, or companies doing research.

You need to look at where marijuana legalization is happening and which industries are emerging as a result. If marijuana is about to be legalized in your state, check out which brands are starting to emerge as a result. If a major pharmaceutical or tech company just expanded suspiciously at around the same time.

Do some research to ensure you know what other products and services are going to emerge when marijuana makes its place in your world. Marijuana is going to change all kinds of markets beyond just the rolling paper, lighter, and snack food industries. Think broadly and think big about how the market could grow as a result.

If there are delivery services in your area, they could go legit, break out into apps, and start serving more people even more efficiently.

2. Look at Products

If you’re looking into places to invest, think about the kinds of products that people are going to consume when marijuana is legalized. If medical marijuana is on the horizon, medical industries, pharmacies, and other related companies are going to grow. If it’s becoming legal for recreational use, you’ll find everything from smoke shops to CBD distributors growing.

CBD has been a controversial product for a few years, with many people trying to figure out just what its impacts are. There have been people claiming that it can cure migraines, deal with the impacts of cancer, and even help with arthritis. If you haven’t considered CBD oil stocks, you might be surprised as to their growth potential.

See which types of products are most exciting in your market. There are people who are working in so many industries related to marijuana it’s going to have an impact all over the map.

Think about edibles and how many companies could end up creating marijuana-infused treats or products. If new snack product or ice cream companies have played around with CBD, they’re surely going to take advantage of the legality of marijuana.

For brands that are strictly regional, they’ll be able to test and grow their products in a region safe from scrutiny since they don’t ship across state lines.

3. What About Pharmaceutical Companies?

If you want to invest in something that’s sure to grow, pharmaceutical companies have never failed to turn a profit. So long as they operate consistently above board in every respect, marijuana is going to bring a boost to their tool kit. They’ll have the chance to create all kinds of exciting new products and to expand into new markets.

Pharmaceutical companies are already tapping into the research around marijuana, THC, and CBD. If you’re new to the industry, you should see where they’ve already had contact with marijuana or related products. If you’re interested in what you could get out of working in this industry, you might be surprised as to how companies have already started research.

Pharmaceutical companies have been doing as much research as they can when it comes to creating products related to marijuana. If they’ve made any of their results public, consider this a flag planted.

4. Who Is Running the Tests?

Beyond the pharmaceutical companies who are funding the tests, look at who is actually performing them. There are private companies that do research for a living who are managing the laboratories where hemp and marijuana are being put to the test.

Check out any labs that have opened in your region that are being publicly traded. If they’ve opened in a region where marijuana is legalized, they’re clearly following the industry. Those laboratories need to be publicly traded to generate capital to do their research, so buying into them is mutually beneficial.

With all of the ways that marijuana is claimed to be beneficial to health, there’s a lot of research still to be done. Funding the front line research means you get to reap the results.

5. Watch for Marijuana Futures

While they’re not on the stock market yet, marijuana futures are sure to be around the corner. Marijuana futures will be based on how much is going to be produced in the coming years. In a word, the amount is going to be “a ton.”

If marijuana futures end up in the stock market, you’re going to want to be the first person in line holding some. They’ll reach a serious fever pitch once other people start jumping on board. But if you’re able to be one of the first people invested in the market, you’re going to find that you’ll be generously rewarded for your foresight.

Figuring Out How to Invest in Marijuana Is Easy

When you’re figuring out how to invest in marijuana, all you have to do is look at all the things that go up when marijuana is legalized. There are enough statewide test cases now for you to make some smart decisions into what you should invest in next. Once you’re ready, you’re sure to make some serious bucks.

For more on how marijuana and CBD are impacting people in positive ways, check out our latest guide.