With Cannabis growing in popularity and employing hundreds of thousands of people, any perceptive investor would notice that this industry is not going away anytime soon. For many people, the cannabis industry is the next “Dot Com” boom, and they wouldn’t be wrong. The industry currently is worth close to $7 Billion annually and expected to grow to $50 billion by 2026.
With figures like this, it is no surprise that many people want to get a “slice” of the proverbial pie. However, the cannabis industry is not like opening up a gym or even a bar. There are many regulations in place and banking is still a nightmare, irrespective of the state you are thinking of opening up a business.
However, not all states are equal. Some states have harsher rules on the books, making it infinitely more difficult to open up a business. Thus, for the sake of anyone thinking of getting into the cannabis marketplace, we have compiled a short list of the three most lenient places to open a cannabis-related business, and three of the harshest states where it’s significantly more difficult to do the same.
The Three Golden States
Firstly, let’s jump into where you should be considering to open up a cannabis-related business. Below you’ll find the top three locations where you can start a marijuana business with relative ease.
Colorado
Colorado was one of the first places in the United States that legalized cannabis in all forms. In fact, Denver is said to have more cannabis dispensaries than Starbucks which gives us an indication on just how lax their cannabis related laws are.
Obviously, there are certain areas in Colorado which are stricter than others however the basic procedure to follow is;
- Set up a business plan
- Determine location
- Apply for licenses
- Install business infrastructure
- Make business compliant with regulatory framework
This is the basic breakdown on how you can go about it. Of course, once you start the procedure you’ll realize there is quite a lot of paperwork to go through, however following the rules and checking whether you’re compliant in a specific zone, should be enough to start your business.
California
California recently legalized cannabis in all forms and as of yet do not have licenses available. It is speculated that by January 1st2018 they will have the framework in place. In California however, there will be many more “types” of cannabis businesses, whether you’re thinking of a dispensary, café or even a restaurant.
For now, while you can’t register for new businesses until next year, you can do the following steps to prepare yourself for when licensing becomes available.
- Brush up on the Regulations
- Make a Business Plan
- Make sure that you abide by the guidelines in the official regulations of the state
Washington/Oregon
We placed Washington and Oregon as our third spot as they too have very cannabis friendly environments. Oregon is more of a “Mom and Pop Shop” deal, whereas Washington has a more corporate feel to it.
The biggest issue with Washington is the high taxes in place. Despite all of this, the industry is thriving over there as well.
Worst Places to Start a Marijuana Business
Now that we have covered the best places to start, a cannabis related business, let’s take a closer look at the states that have more regulations in place and makes it harder for the individual to open up a business.
New York
While NY does have a legal medical marijuana program, they have some seriously harsh guidelines and it is incredibly difficult to get a license. Additionally, with a high level of competition, most people who want to get into the cannabis industry will have a difficult time ahead.
The major hurdle here is the political regulatory powers who simply don’t know how to set up the framework so it works for everyone. If you’re thinking of opening a marijuana business in New York, be prepared to be stonewalled time and time again.
Massachusetts
Another State that does have legal cannabis on the books however they have plenty of regulations and protocols to follow making it very difficult for anyone to open a cannabis business. It’s not impossible, however you’ll have to jump through endless hoops to gain access to their licensing protocols.
Minnesota
Another legal state and while the licensing isn’t too difficult…it’s limited. Only eight dispensaries were allowed to be placed within the state and unless they change the laws in the near future, you won’t be able to open up a cannabis business in this state any time soon.
There you have it, the best and the worst states to open up a cannabis related business. Wherever you decide to open your business, just be sure you properly research all related laws and regulations before you start investing.
credit:420intel.com
