A Few Things to Know Before Jumping into the Marijuana Industry

Business
A Few Things to Know Before Jumping Into the Marijuana Industry

(Photo: Yahoo Finance)

The marijuana industry is new and exciting and that’s why so many investors and entrepreneurs want to get in on the “ground floor.” But there are several things you should take into account before making that leap.

The most important thing to take into consideration is the legality of cannabis, something that really doesn’t come into play in most industries. Even heavily regulated products that are sold at the retail level basically have uniform regulations no matter where you are in the U.S. This is not the case with cannabis products.

In some states, cannabis can be easy to purchase and legal under state law. Yet in other states, it can be completely illegal to grow, sell or purchase. In some states, paraphernalia is legal; in others, possession of such devices will get you thrown in jail. From state to state and even county to county within a state, regulations can be different. Some towns in a legal cannabis state may ban the product you are selling or investing in; other towns may allow it to be sold openly.

Overriding all this of course is federal law, which says all manner of cannabis commerce and consumption is illegal. No matter what your state law says, as of now, there is still the possibility of federal agents coming in and shutting down your operation. That is a risk most investments don’t carry.

Bottom line: know the laws and regulations in the area you plan on operating or investing in, all the while knowing that the feds may not recognize those laws and regulations. You have to be an expert in all the rules you are going to have to follow while constantly keeping track of possible changes and amendments to those rules.

The rewards in the cannabis industry could end up being immense, but with immense rewards comes immense risk.