With respect to the licensing, registration, and approval process involving marijuana and cannabis based business, it is important as an applicant or a venture business owner, to maintain a working knowledge of the various emerging trends that may affect both one’s short and long-term business interests. As a recent article describes, “in emerging marijuana businesses both the opportunities and the risks are, pardon the pun, high. The same could be said for the industry’s startup potential [and] even though traditional banks are not getting behind the industry just yet, there are investors in the marijuana industry [where] but even if you decide to take on a backer in your marijuana-related business, it doesn’t diminish the myriad risks.”
From an industry perspective, the legal use of marijuana and cannabis is changing everyday, where there is an emergence of specialized business development, use, and other ventures, that are focused on collective gardening, food based concentrates, industrial hemp, medical marijuana, medical devices and marijuana, pharmaceuticals and marijuana, infusion based marijuana manufacturers. There are dozens of other marijuana and cannabis based specialties that are emerging, where “there are countless opportunities in this industry for entrepreneurs, tourism, compliance, education, branding, software, hardware, biotech and more.”
In terms of financing, there has and continues to be a number of capitalist venture banks, lending organizations, and other financing based companies that are focused specifically on the development of marijuana and cannabis based business investments and other ventures. One financial group “ArcView Group is an investor network helps growth within the marijuana startup scene [and] according to Troy Dayton, ArcView’s CEO, the total legal cannabis market in 2014 grew to $2.7 billion, a 74 percent increase over the previous year.”
The biggest uncertainty and issue of concern for marijuana and cannabis based ventures, is the legislative, legal, and regulatory sphere, where “one big risk involved with any business in the marijuana industry is the fact that marijuana is still illegal in the eyes of the federal government [and] state laws and business licenses aside, marijuana is considered a Schedule 1 narcotic per the federal Controlled Substances Act. And there is no federal agency that will back its use for any medicinal purposes.” This poses a number of challenges and unknowns for marijuana and cannabis based ventures where the changing legal landscape can greatly and possibly adversely affect such business prospects, whether it be the approval process, marketing and compliance and other factors. As one article highlights “the legal landscape is fogged. It stands to reason that this area will remain a hot topic for the near future. Remember, use of marijuana for any purpose is still illegal in more than half of the U.S. So there are interstate commerce laws to consider on top of the federal.”
Los Angeles Cannabis LawyerThe Nassiri Law Group, Cannabis Law Group, in Orange County, Los Angeles, and Riverside California, are available to assist with the licensing, registration, and approval process to assist in your marijuana and cannabis based business. Call us today at 949-375-4734.