With record-breaking month after record-breaking month recorded in 2016, it’s easy to assume that Colorado cannabis sales will continue to rise throughout 2017. According to Marijuana Business Daily, sales soared in the Centennial State from 588 million dollars in 2015 to 875 million dollars in 2016. So what does that mean for cannabis business owners, industry investors, and Colorado residents?
What Does the Boom Mean for Cannabis Business Owners?
Well, that’s mixed news for business owners. Demand is on the rise, as we just mentioned, but there is a caveat to that fact: Cannabis businesses are also opening, and fast. Where there’s demand, supply is sure to follow. So, what does that mean for business owners on the whole? First off, it lends extra value to business owners that are already established and successful. These businesses will earn even more sales and attract more clientele as long as they maintain a positive image, market their business, and keep clients coming back for more product. Over time, however, competition is likely to catch up; so existing businesses should stay savvy with their operations in order to stay ahead of the curve.
New businesses will have to try a little harder to get started. If you’re opening up a shop, consider your location and your local competition. Is the population growing in your area? Plan on dedicating plenty of effort and funds toward marketing your business. Be sure to develop a web presence to attract clients via the internet (we can help you with our cannabis digital marketing services!). Now is the time to start a business and earn yourself a slice of the pie.
What Does the Boom Mean for Cannabis Industry Investors?
That’s great news for investors in the industry. As sales nearly doubled in a year, so does the potential. Investors can take their pick of more and more booming and growing cannabis businesses. Plus, investors can invest with confidence. If this trend continues, investments are sure to pay off. Even if sales plateau, today’s investor will likely earn great returns over the lifetime of their investment.
What Does the Boom Mean for Coloradans?
Since the passing of amendment 64, Colorado has seen a population boom. Recreational marijuana sales have attracted both tourists and new residents to the state. The population has grown between one and two percent each year since the amendment passed. In the first twelve months after Coloradans gained this new freedom, 101,000 people poured into Colorado to build a life for themselves. That speaks to the popularity of recreational cannabis, and the vast potential and energy within the cannabis industry.
That’s good news for Coloradans for a variety of reasons… With the influx of new residents, we’ve seen a boom in the real estate market. Home values are on the rise across the state, which is great for those of us fortunate enough to own a home before the passing of amendment 64.
In addition, since recreational cannabis is taxed rather aggressively (recreational marijuana is taxed by over 21 percent throughout Denver due to local and state taxes), tax dollars are pouring in. Where are those tax dollars routed? Millions of marijuana tax dollars are directed to public schools (through a program entitled the B.E.S.T. Public School Capital Construction Assistance Fund, as well as a general program that provides funds to public, K-12 schools). In addition, millions of dollars are directed to a Marijuana Tax Cash Fund which supports a slew of government programs: The Department of Agriculture, the Department of Health Care Policy and Financing, the Department of Education, the Governor’s Office, the Department of Transportation, The Department of Public Health and Environment… the list goes on.
What’s more, cannabis tax dollars are actually rerouted to regulate the sales of cannabis itself. Tax dollars are utilized to regulate, enforce, and license recreational cannabis industry businesses. In this way, the cannabis industry is self-sufficient when it comes to governance – at least on an economic level.
All things considered, increasing marijuana sales are good news for Coloradans, great news for investors, and important news for cannabis industry businesses. If you’re looking to stay ahead of the curve with your business, partner with Evolutionz. We support cannabis industry entrepreneurs. Get a free consultation today!