- January 21, 2023
- Posted by: How To Open A Dispensary
- Category: Uncategorized
There are many paths to becoming a cannabis investor that don’t involve buying marijuana stocks or even investing in plant-touching businesses, such as a dispensary, cultivation, or manufacturing/ processing facility. One investment approach is to look into non-plant-touching companies or ancillary businesses. These entities make their market profits by supporting the growing cannabis sector through industry-targeted technologies, services, hardware, and other necessary materials.
Cannabis investment groups connect industry investors with startup, early stage, and companies already in the market that are raising capital. These firms offer an opportunity for investors to gain equity in emerging companies and offer compatible options to align with the investor’s unique goals, values, and risk profile.
Since marijuana is still federally illegal the Nasdaq, NYSE, and other stock exchanges overseen by federal agencies can only list public ancillary companies. Plant-touching cannabis stocks are currently only available on Canadian exchanges
The first step to investing in cannabis is deciding how much you are willing to invest. If your available capital is below $50,000, you may want to start by diversifying your stock portfolio with publicly traded cannabis businesses. If your capabilities extend further, then it is advised to work with an investment firm that specializes in cannabis to see what opportunities are available that meet your capital requirements.
If you’re ready to make a significant investment into the cannabis space, you must first decide whether or not you want to pursue plant-touching opportunities, such as investing in a licensed cannabis dispensary, manufacturing, cultivation, or distribution operation. Due to federal prohibition, these investments can be more of a risk and you may opt to look into ancillary businesses. These organizations do not work directly with the cannabis plant or plant by products and instead offer services or supplies to support the industry.
What makes the cannabis industry so attractive is it touches a variety of sectors, from financial technology and biotech to commercial agriculture and brick and mortar retail. Take the time to research what market categories are on the rise or may offer the most potential. If you are considering investing in a plant-touching operation, you will want to consider what type of market, is it medical-only or adult-use? What types of license opportunities are available and to whom? Unlimited markets don’t have a cap on licenses, which might make them less competitive but also less valuable. Limited markets with a license cap will often require more capital investment.
How to Open a Dispensary is powered by The Cannabis Business Advisors, a national cannabis business consulting firm with over 30 years combined industry experience across 17 state markets. We created How to Open a Dispensary to help new cannabis entrepreneurs break into the industry through innovative DIY tools and courses.
The CB Advisors can connect potential investors with investment groups, partners, and seed, early-stage, and high-growth cannabis companies looking to expand. Their team of industry experts can offer potential cannabis business entrepreneurs a comprehensive overview of the business landscape, identify how to effectively evaluate prospective opportunities, and help you understand how you to make money on this emerging industry.
Want to learn more? Visit our Cannabis Investments page.