Marijuana has forever remained a subject of ethical and political debate in not just the United States but all across the globe. More than 60 percent of Americans spoke in the favor the full legalization of marijuana for adult consumption. Today, most of the states allow at least some kind of marijuana use, which is the use of medical or low-THC varieties and also for recreational use.
The logical conclusion is that marijuana will soon become one of the most massive industries. However, the question lies in the fact whether cannabis businesses are sustainable and scalable. Because, according to some expert minds, this is a short-term fad with limited profit margins.
Talking about entrepreneurial opportunities, many people are looking for cannabis growing business plan. In fact, a reputed study showed that the marijuana industry would grow to at least 330,000 jobs by 2022 and which is more than the US steel and iron mills. In fact, the Associated Press found that investors poured more than $10 billion into the North American marijuana industry in 2018, which is about twice the amount of the previous three years.
Another report, that broke down the revenue projections into ranges showed how sales are expected to progress over the next five years:
- 2018: $8.6 billion to $10 billion
- 2019: $11.2 billion to $13.7 billion
- 2020: $15.7 billion to $19 billion
- 2021: $19.4 billion to $23.5 billion
- 2022: $22.4 billion to $27.4 billion
- 2023: $25 billion to $30.4 billion
While the demand for cannabis cultivation business plan is ripening, entrepreneurs should also know about the “seed to sale” process, that is, the entire process from seedling to customer stage. In some states like California, it needs a trace-and-track database and provides transparency for and safety to customers.
A “microgrow” approach is seen amongst the modern growers where the general 120 days of growth needs only 10 days to have a harvest of 70 pounds of cannabis.
After the harvest, the nurseries keep track of “mother” plants so that the quality remains consistent. Sometimes, there are genetic clones created which are replanted in small, humid rooms for cultivation. With the right amount of light, temperature and nutrients, the plants start growing. Only after they are mature, the parts are dried and trimmed by hand.
The profits
According to Marijuana Business Daily’s facts, marijuana dispensary or recreational store brought about $974 in annual revenue per square foot, which is about at par with the Whole Foods store. When calculated, it showed the business can bring far more revenue than a department store (at $180 per square foot), but less than a luxury store (like an Apple store, at $4,799 per square foot). However, wholesale cultivators showed brighter outcome with higher profits legal marijuana sales are expected to hit more than $23 billion by end of 2020.
Challenges
That said, there is an important issue which should be addressed which is the possibility of shortages. The supply chain is new and limited because licenses and other restrictions are not spread all across. For the short term, this can form gaps in demand and profitability. But, if the shortages are prolonged, it can become difficult for the business to thrive.
the marijuana industry a lucrative business opportunity but it depends on a number of factors. Getting into the legal marijuana is a long term process and you need to be aware of all the nooks.
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