Just last year, it was estimated that cannabis sales came to $6.7 billion dollars (USD). As the financial worth of the industry continues to rise, it’s not surprising that job opportunities are expected to increase and growth potential will remain extremely high in what is now one of the fastest growing markets in the world. Investors are taking note of these observations and looking to cash in while simultaneously supporting companies they believe will succeed. Here are some tips for new investors to keep in mind when investing in this ever-growing industry.
The people have spoken – and they support the legalization of cannabis.
Public support for full cannabis legalization isn’t stagnant and it definitely isn’t declining. Various studies have found that general consumers and healthcare professionals are in support of using ganja for medicinal purposes, recreational use, and spiritual reasons. This is ideal for investors because it is a testament to the capacity of cannabis companies to reach out to a welcoming market looking to make purchases and keep businesses afloat.
Know in advance how money is handled by the company you are investing in.
Banking options are limited for cannabis businesses. Legality treads a fine regulatory line in this industry, one that many banks are not equipped to interact with or understand. Cash transactions are typically the result of such limitations, which is less secure for investors and can prevent companies from reaching their full financial potential.
Consider a company’s abilities to remain relevant.
The industry’s rapid growth is undoubtedly something to celebrate. And yet, the drawback to this isn’t always acknowledged by new investors. More growth in a market means there will be more competition. A company that is holding steady in the beginning may not always be able to keep up with the changing times as laws evolve and more competitors surface with similar products.
Come discuss cannabis investment opportunities at the CanEx Jamaica Business Conference and Expo on September 1, 2017 in Montego Bay. Get your tickets today!