Executive Strategy



The Weed Business

Is the cannabis industry a good investment?

Dane Flanigan Weed Investments 2.JPG

Not to debate the medicinal and clinical attributes of cannabis or the differences of THC and CBD; marijuana is a drug. Alcohol is a drug, tobacco is a drug and yes coffee with the effects of caffeine is a drug. Do you know someone who is moody without their cup-of-joe in the morning? Too many aspirins can have some harmful effects both short term and long term; any drug can be good if used correctly or bad if not. In 2018, cannabis will become a legal, recreational drug in the state of California. As a business in the cultivation, retail or financial aspect, is it a good investment?

California’s move to make marijuana legal is different from Colorado or Las Vegas. Even countries like Holland, where recreational cannabis has been legal for years does not have the population of California. When making a good decision you can never ignore the science or the numbers.  This will be on the largest populations to enter the cannabis market legally, ever.

  1. 39.25 California
  2. 16.94 Holland 
  3. 5.541 Colorado
  4. 632,912 Las Vegas

The Golden State is a national and global a leader in business as well as culture. California leads with trade, tourism and entertainment, not to exclude technology. Imagine your favorite CEO enjoying a joint on lunch her break, we grow through our examples.  Will there ever be a cannabis store on Rodeo Drive – maybe you will just stop by one on Melrose on your next vacation.

There is a small barrier to entrance, there are licensing and permits needed but it is relatively minor compared to other industries. Marijuana is going from being illegal to legal. There are bad apples in every industry, but this business is ‘cash only’. It may be hard to monitor the investment and protect your assets in a business that may see a lot of entry from the criminal side.   

A sound investment has an upward moving industry, can withstand a recession and has a strong customer base. The market will have more access than ever before.  Is it recession proof – nothing is, and every business is affected by a recession but people like their vices during tough times. The laws of supply and demand are adherent to every industry, if people like it, they will buy it. Is cannabis a good investment for 2018? Let’s wait a bit and see how the market reacts along with the rest of the world.


What do you think?

By Dane Flanigan

Dane Flanigan is a business consultant who helps companies grow sales by building strategies.