The legal cannabis and hemp industry is a class of pioneers, innovators, and passionate entrepreneurs. It’s a realm of business unlike any other and it is one of those unique opportunities we have to be a part of making history. Now, you ask, if this momentum is so strong and it is so inevitably going to be legalized, what is holding it back from reaching that first billion dollar mark? What are those growing pains that are hindering the industry from reaching the horizon its projected at surpassing?
If you’re a frequent reader of Cashinbis, you already know that we aren’t a publication who regurgitates information and news articles; rather, we are focused on learning from the leaders themselves, the people who are embedded in this industry and are looking at this from the ground floor up. With this in mind harnessed with our own due diligence, we have pinpointed the top 8 bottlenecks of our growing industry.
8. Consumer Perception
How cannabis and hemp are perceived is a relevant setback to our industry. Although the stigma has quickly been diminishing, there is definitely a long way to go in terms of educating our national and world culture about the plant, it’s purpose, and how it can make an impact in the medical, entertainment, and even the manufacturing spaces. What it all comes down to is education. We need to move forward from where we are with a united goal to educate and enlighten our population about what cannabis and hemp really is. Doing such will open doubters’ eyes to see past the false knowledge and stigma that’s been ingrained into us for years.
What it all comes down to is education.
7. Ability to Scale
As our industry grows, the demand for legal supply will explode! As we’ve seen with Colorado passing, they had higher demand than they had supply, and that was a problem. It is the hottest commodity in the market and more are interested in cannabis either medically or recreationally; therefore, we need to be able to fine-tune our processes and focus on sustainability as the green rush epidemic spreads nationwide.
You’ve seen it in the news and if you’re an entrepreneur in this space, you’ve experienced it first-hand with the teller at the bank. Banking institutions are not friendly towards cannabis-related businesses and often do not accept their application to apply for an account. Businesses are commerce, and commerce needs cash flow and traditional services that a bank may lend. Without having the financial security and support of a bank, our industry’s growth is limited.
Without having the financial security and support of a bank, our industry’s growth is limited.
As simple as it sounds, everyone knows this to be true. State laws, city laws, individual consumptions laws, laws dictating whether or not you can grow your own medical supply… It’s endless and ever-inhibiting! The growing process is not a collection of successful first tries, we need to experiment with what works and implement a lasting structure that will empower our industry to grow.
Distribution goes hand in hand with the need for laws that unite across state lines. With our current industry, manufacturers are not allowed to send their products out across state borders. What this means is that instead of the standard distribution model that we see in other industries, businesses in this particular realm are having to replicate their model, factory, and products in each legal state; which is by no means efficient to growth. We need a centralized system.
Our industry needs a standard of regulatory practices in order to maintain consumer safety, ensure proper and quality manufacturing practices, and gain the respect as a fully functioning respectable industry. Right now, we are still in the trail phases and as with any other industry, we are in need of a standard of doing business to ensure the success of a positive future for cannabis.
2. Medical Research
It hasn’t been since recently that the medical field began taking a curious notice in the cannabis plant. For years, institutions and research facilities have repeatedly denied doctors and researchers from looking into the medical benefits in cannabis and its hundreds of compounds. Although it is changing as more reputable facilities are doing their part in the research and development of the plant, we still have a stretch of land before us that we need to cover and delve into to really recognize the medical breakthroughs that the plant itself enables.
For years, institutions and research facilities have repeatedly denied doctors and researchers from looking into the medical benefits in cannabis and its hundreds of compounds.
1. Federal Legalization
And this is what it all boils down to: Getting our federal government to re-legalize cannabis and open the doors to the future of the cannabis industry. The prohibition needs to be lifted in order for our businesses to reach their full potential. When the federal government is onboard with us, it will allow our endeavors to live and breath without the fear of being shut down and reprimanded.
These points are the 8 bottlenecks that we have seen to be the ‘caps’ that are holding back the growth of our industry. So, as we see the above change and/or come into existence, expect to see a flourishing industry in our future.
Image source: Marco Piuri