Understanding the Marijuana Business Industry
As the legalization of cannabis grows, many entrepreneurs are now turning their attention to the cannabis business industry.
This growing industry uses automation, blockchain, machine learning, and other modern technologies to help them run their business.
However, banks are still apprehensive about lending money to businesses related to marijuana. The female population of North America is also increasing at an unprecedented rate. As a result, entrepreneurs must consider several factors before beginning a cannabis business.
Cannabis dispensaries have lavish facilities
Like many successful businesses, cannabis dispensaries have elaborate facilities. While federal law prohibits operating a marijuana dispensary, many banks are reluctant to work with them, especially if they plan to sell drugs for recreational use.
However, entrepreneurs have found creative ways around this problem. A private cannabis bank or credit union can serve as an alternative financial institution for dispensary owners.
While the latter may charge a monthly holding fee, it will give dispensary owners a tax break and a business credit.
The costs associated with operating a cannabis dispensary can range anywhere from $150,000 to $2 million.
This does not include the $250,000 annual salary of staff and rent. It also includes the $50,000-$100,000 up-front cost for renovations.
The capital needed to start a cannabis dispensary varies depending on location and size. Despite the huge start-up costs, cannabis dispensaries are an excellent investment.
Machine learning, automation, and blockchain are used in marijuana business industry
Using machine learning, AI, and automation in the marijuana business industry is a great way to streamline operations and improve customer service.
By analyzing data and using predictive analytics, cannabis companies can determine which license holders will fail and prevent them from doing so.
Moreover, technology companies can automate various processes and improve revenue. An example of such technology is the motorleaf software, which uses artificial intelligence to track the growth rate of cannabis plants. Especially the new breeds like black demon strain and other potent strains.
The rise of automation and AI has come at the right time for the marijuana business industry. During the era of COVID-19, safety and efficiency of production have become the top priorities for marijuana companies.
With the help of technology, companies are able to meet state social distancing benchmarks and improve their compliance with regulatory bodies.
Moreover, automated harvesting and crop monitoring eliminate human interactions, which further minimizes the risk of COVID-19 infections.
Banks are skittish about lending to cannabis businesses
Marijuana businesses are a new phenomenon, but that doesn’t mean banks are avoiding them. Although federal prohibition of cannabis is an ongoing problem, banks are less worried about money laundering than they are about the risk of getting their clients’ assets confiscated.
Because they use cannabis businesses’ assets as collateral, banks fear that the federal government will seize them.
While the federal government has maintained that it will leave these businesses alone, a cannabis business’s assets could be seized, thus undermining the loan’s viability.
There are 207 institutions that are friendly to the cannabis industry, and they are becoming a popular source of working capital for marijuana-related businesses.
While traditional financial institutions have historically been wary of cannabis-related businesses, recent public support for marijuana businesses is changing the lending landscape and changing the attitude of banks towards cannabis businesses. However, cannabis businesses are unlikely to find it easy to obtain loans from traditional banks.
Females consume cannabis at higher rates than ever before
Females consume cannabis at higher rates than ever, with a recent study showing an association between use and adverse birth outcomes.
Although this research looked at only women who had used cannabis in the past, its findings are still significant.
For example, not using cannabis during pregnancy could prevent 2.5% of low birth weight, 1.5% of preterm delivery, and 2.7% of admissions to the neonatal intensive care unit.
The study found that women with certain medical conditions are more likely to report using marijuana today than their non-daily counterparts. Females were more likely to report using marijuana if they have a history of asthma or COPD than those without these illnesses.
Those who had experienced depression were more likely to report using marijuana than those without such problems.
Even if a person has no medical condition, the chances of using cannabis are much higher in women than in men.
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