From Cannabis Seeds a Whole New Business Sector Grows
Once upon a time… If you asked a kid what they wanted to do when they grew up, they would tell you they wanted to be a footballer, a doctor, a teacher, a policewoman, or in the case of Ralph Wiggum from The Simpsons, a caterpillar.
However, never once did a kid turn round and say “Mommy, Daddy… I want to work in the cannabis business.” This is because, until recently, working in the cannabis business was often associated with long hours, product inconsistency and a substantial business risk. Sure, you could make lots of money, but you could also wind up in jail.
OK, so things haven’t changed that much yet! Little Jimmy is not going to be asking for a pack of cannabis seeds and a copy of Jorge Cervantes’ bestselling book Marijuana Horticulture this Christmas. However, in years to come, looking for a career in the cannabis business may not be such an alien concept as it is today.
It is often said that economic change drives political change. If this is true then we should expect big things in the USA.
It’s the Economy Stupid…
After many years of following a policy of prohibition, the USA is beginning to wake up to the fact that the marijuana business is actually a huge untapped resource for raising tax revenues.
Colorado began to tax recreational cannabis sales in January 2014. The American state (population 5 million) has subsequently had to revise its tax projections for the coming year for the legal marijuana business. It now estimates that tax revenues will be $98 million (40% more than originally estimated). The Marijuana Industry Group (MIG) believes that Colorado’s recreational marijuana industry already employs an estimated 10,000 people.
Other states in the USA are closely monitoring the situation. After all, $98 million in tax revenues - who wouldn’t want a piece of that? It’s the Marijuana Stupid…
As the legal cannabis business grows, it’s inevitable that big business is going to want to get involved. Even before Colorado and Washington voted to legalize recreational use, the business world was monitoring the situation for new opportunities.
In 2011, a report by See Change Strategy, which describes itself as “an independent financial news and information firm committed to finding opportunity and growth in unique new markets,” estimated that the value of the medical marijuana business alone in the USA would be $9 billion by 2016.
Cashing in on Cannabis – Big Business
Last year, the International Business Times identified some of the key business players looking to ‘Cash In On Cannabis’. These range from companies looking to develop the uses of industrial hemp and hemp fuels (Alternative Fuels America Inc.) and manage growers of legal crops (including oil and gas company, Petrotech). These companies are hoping to stake an early claim to what some are seeing as a major new market with huge commercial potential.
Meanwhile, Marketwatch, one of the most prominent financial information websites, and a Dow Jones subsidiary, has posted several cannabis related news alerts. A recent post identified the ‘rapid pace’ of the growth of the legal marijuana industry.
The post detailed a number of companies looking to develop worldwide brands, get involved in the acquisition process and offer solutions to this emerging industry. One such company is Cannabis Capital Corp a capital investment company seeking to use investors’ cash to finance companies with the potential to impact on the world medical and legal marijuana markets – from cannabis seed to sale.
Got a great idea as to how big business can make legal dollars from the marijuana market? On the Cannabis Capital Corp website you can ‘Present Your Project’ for scrutiny and, if the numbers add up, you could be on your way to becoming a legal Marijuana Millionaire.
Now, what were we saying about Little Jimmy? Where’s that Christmas present list!...