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Entrepreneurs Looking for Business Opportunities in Marijuana Industry

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Entrepreneurs are moving forward with new business strategies as legal sales of recreational marijuana get underway in Colorado, CNBC reports. Washington state will begin selling marijuana later this year.

The legal marijuana industry could develop like the beer industry, with both small and large brands, the article notes. Some small business owners are working within state guidelines to develop business strategies, because they believe there is the potential for large profits.

Currently, banks and credit card companies cannot process marijuana business transactions, because marijuana remains illegal under federal law.

A marijuana-focused private equity firm, Privateer Holdings, says their investors are from all over the political spectrum. “Our investors are from the far left and the far right,” said Chief Executive Brendan Kennedy. “There’s old money and new money. You put them in a room and they wouldn’t agree on anything else but this issue.”

San Francisco angel investor network ArcView Group forecasts a 64 percent increase in the legal marijuana market, to $2.34 billion this year. The five-year national market could grow to $10.2 billion, the company predicts.

Products that have growth potential include marijuana concentrates, nonsmoking technologies such as vaporization, edibles and capsules, and oil extracted from raw cannabis. Ancillary businesses are emerging to support the legal marijuana supply chain, such as insurance, security and e-commerce companies.

6 Responses to this article

  1. Avatar of Easy ABN
    Easy ABN / February 13, 2014 at 7:26 am

    Legalizing marijuana in Colorado has been detrimentalto so many sectors. Criminals, gangs, and shady groups are taking advantage ofthis and selling marijuana. This does not make for a good environment for the (non-marijuana)business sector.

  2. Adam / January 18, 2014 at 5:04 pm

    Decriminalizing is essentially what Washington was doing before their “Legalization” process began.

    As a result gangs, and thugs were capitalizing on it big time. The music and Media industries continue to target our youth grand-scale via marijuana NORMLization, and the concentration of the drug is the highest in history (30%+) with common reports THC overdose among users (known as “green sickness”).

    I believe it’s time to step in and regulate or do something… but decriminalization was absolutely not working.

    Hopefully the greed mongers will see the value in using earnings to treat addiction as a result of use, and absolutely we should have more community support (coalitions or otherwise) for families and schools that are dealing with the consequences of more availability. The public health consequences of legalization of alcohol showed increase historically as crime decreased. When this stronger drug is legalized we will need stronger public health support systems.

  3. Ken Wolski / January 17, 2014 at 5:51 pm

    Marijuana has an addiction rate about equal to caffeine with similar withdrawal symptoms. Far more harm is done to our society by criminalizing marijuana use than is done by the drug itself. Marijuana, or cannabis, was included in the U.S. Pharmacopeia for about 100 years until it was outlawed in 1937. It was legal in the U.S. longer than it was illegal. The bad joke about medical marijuana is how it has been implemented in New Jersey. Four years after NJ’s medical marijuana law passed only a couple hundred patients have actually gotten it, while countless thousands continue to suffer needlessly, including over 25,000 hospice patients. I’m ready for marijuana legalization throughout the country.

  4. Jean / January 17, 2014 at 11:45 am

    I may agree with somewhat but the parameters are different. Alcohol was legal for a very long time and then illegal. Tobacco has always been legal. But to take a drug that has serious consequences for many individuals and for the good of the community that seems to hinge on the dollar won’t bring good things to our society. Smoking something seems to be a quicker habit than using alcohol. You not only have the brain chemistry changes but also the “habits” of physically smoking. Why not decriminalize rather than legalize? Why not invest in making prevention a real effort in our structure rather than throwing pennies at it and treatment? There are so many other choices….

  5. Joe Miller / January 16, 2014 at 2:06 pm

    Look at what the prohibition of alcohol circa 1920 to 1933 got us Jean. Alcohol prohibition was a bad idea then as cannabis prohibition is a bad idea today. Drug use and/or abuse is not a problem we can arrest our way out of.

  6. Jean / January 15, 2014 at 12:36 pm

    Wow… aren’t we such a progressive society. Anything for the dollar — medical marijuana was such a joke — the money men who backed it got just what they wanted — finally after 25 yrs the legalization of MJ. And how well it will serve us I am sure.

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