Article by Andre Bourque, Entrepreneur
Does it take much more than a match and a bowl to go into business? If you know your chronic from Colombian, isn’t that enough to sell the stuff? What does an entrepreneur need to do to open a green business and capitalize on the new cannabis laws?
Planting seeds in the cannabis economy is not for the amateur without the right guidance and information. That was one of my many takeaways from the recent Cannabis World Congress in Los Angeles.
What’s the attraction?
The possibility of big revenue has people rushing to the retail cannabis business in states where they have passed laws permitting marijuana sale for medical or recreational purposes, and in states where they expect that market to open soon.
CNBC estimated the potential market as high as $40 billion back in 2010. But, the Huffington Post bases its 2015 forecast on the ArcView Report, and predicts that “by 2019, all of the state-legal marijuana markets combined will make for a potential overall market worth almost $11 billion annually.” And, Forbes sees a 26 percent growth in 2016 to $7.1 billion.
Why such variations? For starters, it’s challenging to measure a market where there is a huge under-market in illegal sales and in sales to customers from outside the licensed jurisdiction. And, while it is probable that additional states will permit the market, it is by no means certain. Additionally, sales in population-dense centers like Los Angeles can skew any forecast.