Finance

Ways to make money in cannabis’ booming industry

A simple hemp plant can be turned into a valuable business. Hemp cultivation and sale can be a big business. Cannabis sales in the U.S. legal market exceeded $10 billion and the level of investment exceeded $13.8 billion. The possibilities are only limited by your creativity. The best ways are affiliate sales and marketing. Let's review the business opportunities offered by this industry.

Finding ways to make money in the cannabis industry will not be difficult if you assess your needs, knowledge, and skills.

You can find more information about this industry and other important news in the cannabis sector in the Hemp.im app.

This app collects the latest cannabis investing news in bite-sized chunks that are easy to digest. You can easily find out how to make money in the burgeoning cannabis industry and other information about cannabis businesses.

How to make money in cannabis

First of all, you need to decide whether the new company will be in contact with cannabis (raw materials) or not.

The main enterprises or growers (firms and farms) are engaged in cultivation, distribution, processing or sale of plants. You need to go through a complex licensing procedure before you start work.

You can also make money in cannabis in such areas as auxiliary enterprises. These are all companies that provide financial, technical and other support for the Grover business. Licenses are not required to run it.

Auxiliary companies offer:

  • Data platform
  • Fertilizers and plant protection products
  • Agrotechnical solutions
  • POS-terminals, payment systems, vending machines, and other equipment
  • Marketing strategies
  • The services of lawyers, accountants, and business consultants

Cannabis is a business for realists

It is important to remember that this business is for realists and pedants. In most countries, the authorities control it very strictly.

Grovers and other industry players need good seeds and new varieties. Moreover, in the wild, cannabis is represented by only one species with two subspecies: sativa and indica. Therefore, it is necessary to turn to the breeders for the seed.

Digital marketing is a profitable way to make money in cannabis. (Source)

Over the past 50 years, they have been very successful in breeding varieties with specific properties (yield, level of active ingredients, stability).

Grover cultivators are enterprises that grow the plant itself. As a rule, officials demand that medical cannabis should be grown indoors, in special conditions. In other words, it is necessary to rent or buy warehouses and equip them with lighting, climate control, and security systems.

Farmers who will cultivate cannabis outdoors should buy agricultural machinery, rent a warehouse and follow the flow chart. A hectare of technical cannabis can generate $1,000 in profit.

How to make money in cannabis by marketing

To open a point of sale, you must apply to the local authorities, pay for the license and equipment, hire sellers and collectors.

Auxiliary companies offer services to other enterprises in this field. Grovers are increasingly turning to lawyers and economists for help. Digital marketers are also really in demand.

Therefore, it makes sense to set up a marketing firm in one of the cannabis associations and collect data for reports, recommendations, and business strategies. With a small investment, this way of earning money on cannabis can turn out to be good income.

Production will “ask” for investment

Hemp and cannabis can be turned into a variety of products for sale and business. (Source)

Producers buy flowers and cannabis concentrates to turn them into different products. For example, cookies, cakes or cosmetics filled with cannabinoids. Don’t forget about fabrics, paper, flour, briquettes, and shoes.

In order to be able to start the production process, you need to “invest” in raw materials and equipment.

In Canada, the Netherlands, Uruguay and a number of U.S. states, the most attractive way to make money in cannabis is to open a store and set up a vending machine.

Their profitability can be judged by the excitement of investors around the cannabis lottery in Ontario in January 2019.

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(Featured image by Sharon McCutcheon via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in 365 Invest, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Valerie Harrison

Valerie Harrison is a mom of two who likes reporting about the world of finance. She learned about the value of investing at a young age upon taking over her family's textile business when she was just a teenager. Valerie's passion for writing can be traced back to working with an editorial team at her corporate job, where she spent significant time working on market analysis and stock market predictions. Her portfolio includes real estate funds, government bonds, and equities in emerging markets such as cannabis, artificial intelligence, and cryptocurrencies.

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