Investors are rarely presented with the opportunity to get in on the ground on floor of an industry poised to see incremental revenue growth for decades to come. The last time investors had this opportunity was during the tech boom, which created countless millionaires. Technical420 expects to see this happen again, but in the cannabis industry. The legal cannabis industry is already a multi-billion dollar business and it is not even in the first inning of what will be a multi decade growth cycle.
Cannabusiness Media, the publisher Factbook, estimates that in 2014 there was between $2.2 to $2.6 billion worth of medical and recreational marijuana sold legally in the United States. Factbook projects that legal marijuana sales will eclipse the $8 billion mark by 2018.
If you are looking to start up a marijuana business you are not late to the party. Factbook conducted a study and determined that marijuana business are extremely young.
- 4% started in 2012
- 21% launched in 2013
- 30% are 1 year old or less
Now you are asking yourself how much money it costs to start a marijuana company. Factbook has you covered on that and they reported some astonishing figures.
- 33% spent LESS than $50,000
- 14% spent roughly $50,000-$100,000
- 24% spent between $100,000-$500,000
- 29% spent more than $500,000 (only 10% of the 29% said they spent more than $1 million)
Okay, so you’re telling me this is a new industry with many new companies in this new industry and it doesn’t cost a lot to get started, there is no way this industry is profitable. Wrong again!
- 3% said they were experiencing significant losses
- 15% said they were losing some money
- 28% are operating at breakeven
- 38% are modestly profitable
- 16% are very profitable
Not only is profitability likely, 62% of businesses said they were profitable within 12 months; only 6% said it took more than 3 years.
Top sectors for marijuana investments
- Medical dispensary
- Legal recreational retailers
- Edibles/infused product makers
- Service firms (security, software, and setup consulting are big here)
- Ancillary products
- Legal hemp products
Operating in the cannabis industry has been and can be extraordinarily profitable. Whether you now want to start up a company in the space or are looking to invest, you can see the instant profit potential many companies are experiencing.
Technical420 is here to help you
Technical420 is an independent research firm focused on providing information and analysis on public and private cannabis companies. Our extensive due diligence gives us the ability to locate profitable businesses that are led by management teams with proven track records. This is an exciting time to invest, but it is not easy. Investors must do extensive research before getting involved with a company because many cannabis companies are scams.