The cannabis industry has seen remarkable growth in recent years as all around the world, the stigma surrounding the plant has begun to fade. As the misconceptions around its usage are fixed, many have seen the incredible business opportunity that exists as a result. There is a huge amount of potential to make legal money with cannabis and in this article, we’ll look at a few of the ways you could do that today.
- Grow it Yourself
The first one is the most obvious. As cannabis is legalized, there arrives an opportunity to grow the plant yourself and harvest the product in order to sell on to willing buyers. This can be very lucrative if you do it right, but it really does require unique expertise, resources, and of course – patience. This is a long-term game.
There is also something to be said about economies of scale here – often it makes a lot more sense from a financial perspective to grow in larger quantities, which can be prohibitive for some people. But if you’re deep in the industry and can make this work – it can be a fantastic way to make money.
- Invest in Cannabis Companies
If you’re not looking to get your hands dirty, then the next option is to invest passively into companies that are in the cannabis industry. Some are already public traded companies, but a lot of them are still privately-owned which might make these deals hard to find. These could be growers, manufacturers, brands, suppliers, or a range of other stakeholders that all stand to benefit from the potential boom that the industry might see in the decades to come.
If you believe in the industry this is a great way to leverage your funds and hopefully get a good return on your investment as things grow. You’ll want to be sure you understand the company you’re investing in and make sure that you trust their leadership, strategy, and market positioning. But if all those boxes are ticked, then this could be a good option for you.
- Invest in Individual Cannabis Plants
There are also opportunities to be much more precise with your investment and invest in individual plants rather than companies. Operators will grow the plants on your behalf, using your investment as financing, and then paying you the returns on those individual plants when they are harvested and sold on. This is a really interesting model because you can cut out all the middlemen in a traditional company and take a much simpler bet on the supply and demand of Cannabis packaging as an industry.
It also gives you a more direct connection with your investment which encourages better accountability and involvement in what’s going on. You can use your own psychology to better yourself and your investments. It’s a business model that can be really powerful.
Those are just three examples of how you can make legal money with cannabis. Whatever your expertise level or interest in the industry – there’s something for you. And by jumping into this industry early on, you stand to reap all the benefits of being a first mover. There’s lots to get excited about here and there’s lots more to come. So, stay tuned.