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Cannabis is now a commodity, but commercial realities are kicking in

Published 18-APR-2019 14:43 P.M.


3 minute read

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Colorado opened the world’s first regulated recreational marijuana marketin 2014. That’s some five years ago.

A lot has changed since then, with regulations now extending to global markets and businesses opening up, on what seems to be almost a weekly basis.

According to Mark Bernberg of the Greenfund, “the global cannabis market is thought to be worth US$150 billion today. Barclays, in their European Consumer Staples Report in September 2018, suggests that this figure could increase to US$272 billion by 2028.

Clearly, cannabis is now a growing legal commodity and that means proper business practices need to be put in place.

Payroll, taxes, HR, proper financial management, product advertisements and everything else that comes with running a business is now in play.

However, the business climate for weed companies is difficult as they are slugged with high taxes, constantly changing regulations and deals that continue to be done within the illicit market.

The majority of companies are still made up of either growers or product manufacturers, think your edibles, topicals etc...

However, a new subset is emerging: facilitators.

As you may have read on Finfeed recently, EN1 has moved into the cannabis advertiser space after launching a product specifically designed to provide cannabis brands and advertisers with a medium to access display, video and native inventory.

Jadeo is an online platform that has seen a gap in cannabis advertisements and sought out to create a space where professionals, community members and those seeking more knowledge, can share experiences and information on Cannabis. We will look more in depth at Jadeo in a later article where we more fully examine marketing and advertising within the industry.

Hypur Inc. has an electronic payment technology that will now be accepted statewide in California for marijuana-related businesses (MRBs) and consumers of cannabis products.

Marijuana-related businesses throughout California will be able to accept electronic payments with Hypur, as well as request payments from suppliers. Meanwhile, consumers of cannabis products can use Hypur to pay for cannabis securely.

Without access to credit and debit card processing, the cannabis industry is forced to rely on cash or unreliable work-around payment products that put consumers information at risk, so a service like this is highly welcome.

"Herbl is ecstatic about the addition of Hypur to the California cannabis ecosystem. Hypur will allow the cannabis industry to thrive in the state with accessibility to secure marijuana-related purchases,” said Mike Beaudry, CEO of Herbl.

The industry is rapidly growing and those who fail to adopt proper business practices or embrace technologies that can expand their reach, will thrive. Those, who don’t, will die.

Some fear the suits are taking over. Yet the suits provide necessary business acumen to ensure that the cannabis industry maintains its multi-billion dollar trajectory.

For those start-ups in the cannabis industry, it’s time to act like a business.

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