The cannabis economy in the state of Colorado keeps getting better and better and has seen vast improvement since cannabis was legalized in 2014. It was in 1917 that the state of Colorado restricted the use of cannabis and so 2014 was a tremendous milestone that many stoners welcomed.
Since its legalization, cannabis products have contributed to more than $1 billion in the first three quarters of the year 2017. That says a lot about the cannabis economy and whether there are investment opportunities to be open. People who want to invest in the Colorado landscape should be aware of the cannabis terrain as it can be confusing, even though cannabis has been legalized and yielding high profits.
The Area Restrictions
In the state of Colorado, there are separate legislation and regulations as it relates to medical cannabis, hemp and recreational cannabis. Each of these has various bylaws and restrictions in terms of investing. Under the individual bylaws and legislatures in the state of Colorado, each county is given the OK to set their specific restrictions and limitations. For this reason, you can be confused as to which county has which legislature and be careful not to assume that the entire state has the same rules and restrictions. For example, if you owned a dispensary in the city of Denver, you could be operating under a different set of rules and restrictions compared to a county like El Paso.
Other factors to take into consideration is the close proximity to parks, churches and schools as well as requirements for record keeping, tracking, varying compliance and financial details; just to name a few. This is if you are trying to operate a dispensary statewide. Investors who are just making an entrance in the cannabis industry might see this as a roadblock, especially coming from an industry that is regulated by the federal government.
The Federal Government
For new investors, there might be a lot of uncertainties and impediments resulting from the regulations and restrictions implemented. Other things that new investors might encounter as it relates to the cannabis economy are working with various banks, especially those that are not insured by the federal government. According to the federal government, making money through cannabis transaction is considered money laundering. And there are consequences related to this. Some of these consequences include confiscation and freezing of assets. One credit union in the city of Denver has been established as one of the major bankers for the cannabis industry in the state of Colorado. In fact, this bank, Partner Colorado has handled more than 900 million dollars for cannabis investors and those growing, buying and selling cannabis legally.
The cannabis economy is profitable, but investors enter the industry and market after securing funds to set themselves apart from the competition and to create a reputable and popular brand. In the event more company brands pop up, it means that the competition will get more robust and so it is significant to stand out so consumers can remember you. Investors would want to build a reputable history and a national brand that is able to navigate the legal guidelines and variations across the state of Colorado.
To stand out as a force to be reckoned with and to enjoy the benefits of the cannabis economy in the state of Colorado, investors should involve the community at large. Companies like BASE CAMP have done that by having company events and offering consulting in their community wellness center.