There are many reasons California cannabis industry entrepreneurs these days might feel their situation a bit bleak. The ever-present threat of black market sales are encroaching on their profits. Excessive regulations and taxation have left many companies stretched incredibly thin. A patchwork of confusing local laws have proven difficult to navigate. Some large cannabis companies have been enacting mass layoffs to help cope with the fact that revenue has fallen far short of initial projections. All the while, the drug remains an illegal Schedule I narcotic at the federal level.
And yet, there is a fair bit of good news on the horizon for new pot shop owners.
The marijuana legalization movement continues to gain significant ground both in the U.S. and abroad. Investors, manufacturers and researchers are paying close attention, with more than a few continuing to take on the potential risks. The legal marijuana industry was estimated to be worth some $10.4 billion last year, employing more than 250,000 workers nationally. There are now 33 states that have moved to legalize the plant for medicinal purposes and 10 states – including California – have legalized the drug for recreational sales and use. Continue reading