Potpreneurs in America are growing, packaging and selling the fabulous bud. A writer for Entrepreneur Magazine wrote that many peripheral businesses are opening. She shared nine ways to build a company on shirt-tails of the Cannabis trade. The main reason that these alternative cash cows are popping up is they are less risky. Secondly, due to Federal laws, marijuana producers and sellers cannot open an account with any bank in the United States.
The founder and CEO of Pinnacle Consultation, Kristopher Fowlkes, in Colorado Springs, Colo. explained that:
Small-business people are swooping in where the big guys won’t. They’re coming up with anything and everything at this point, even taking out grow-house garbage to in on the trend. It’s wild the type of entrepreneurship that the cannabis industry has created, and we’re only scratching the surface.
Medical Marijuana Delivery
On-demand Medical Marijuana delivery service is in great need. Many people cannot get to the bud store. The approximate startup costs are estimated to be between $400-600,000. Not much else is necessary before beginning this service. Reliable transportation is a must, computers, and office supplies are essential needs. One needs to create an app so consumers can quickly make contact.
Keith McCarty jumped into this business when he saw an opportunity that would not come along every day. The on-demand car services like Lyft and Uber were becoming mainstream in 2012’s central-California landscape. In 2014, he launched his business with the intent of becoming “the Uber of marijuana delivery.” Eaze is “an app-driven medical cannabis dispensary-to-door service.”
Since then he has supplied more than 100,000 medical marijuana patients from the San Francisco-based company now has approximately $20 million in capital.
In Portland, Ore., the Liquor Control Commission approved marijuana home delivery in October 2015. Many dispensaries offer this service. On the site, Where’s Weed a person can find:
- Dispensary Locations – 317 stores in the Portland Metro area.
- Types of stores – Dispensary/Co-ops, MMJ Doctors, Marijuana Seed Banks
- Features – Hours, Recreational, Delivery Service
- Amenities – Accepts CCS (Point of Sale Service), ATMs, Security, Wheelchair Accessible, Onsite Smoking, Discount for Veterans, Terminal Patient Discount
- Specials for Bud
- Store Menus – Indicas, Sativas, Hybrids, Concentrates, Edibles, Prerolls, Seeds
Cannabis Industry Consulting
Four years ago, Cory Hollister co-founded the American Cannabis Company. He is the CEO of this Denver-based consulting service. Hollister stated that he felt it was “the right time, the right place.” He certainly had the skill set before beginning the business; he had been in corporate advertising.
This potpreneur’s success is measurable, the company’s gross revenue in its second year was $1.2 million, and the third was $2.7 million, according to Entrepreneur magazine.
How does a company like this make so much money? Well, Hollister says his business provides the following services for commercial marijuana startups:
- Growth, development, and expansion
- Regulatory compliance
- And more
To be successful in this realm, you will need an in-demand skill set. The needs of the space are complex and diverse. People with backgrounds ranging from legal, security, horticulture, and other varied sciences have successfully entered the cannabis area. If you offer something most businesses need, cannabis businesses will most likely need it as well.
Entrepreneur magazine reports that a consulting business can begin from a home-based location. The initial investment for Hollister was about $5,000. While there is no business license required, this would pay for business cards, computer, telephone, and marketing, which includes a website.
Look for part two of Scoring Cash with Cannabis; the topics will be marijuana-accepted businesses and safe spaces.
By Cathy Milne
ProCon.org: 25 Legal Medical Marijuana States and DC; Laws, Fees, and Possession Limits
Where’s Weed: Recreational Portland Marijuana Deliveries
Entrepreneur: 9 Business Ideas for People Looking to Cash in on the Marijuana Boom
Image Courtesy of Keith Cooper’s Flick Page – Creative Commons License