If you think the growing cannabis industry is a place where a lot of money is being made you are right. If you think it is going to be an easy path you are mistaken. There are dangers you need to be aware of during the current green rush that makes it look like a modern day Wild West.
2016 is shaping up to be the most progressive year in the legalization movement to date. It appears that multiple states are putting medical or recreational marijuana on the ballots. Many of these states have favorable poll numbers to pass the initiatives. By the end of the year, the Green Rush will go from a small blip to an all-out boom.
More people will try to become legitimate and enter the cannabis industry, and more corporations will see the opportunity to make money. There are several ancillary products and markets to enter as well. The “Green Rush” is an appropriate term for the cannabis industry, because like the time of the “Gold Rush” it’s the wild west out there. If you are thinking of entering the cannabis industry there are some things you need to know first.
When we say it’s the Wild West out here that is exactly what we mean. The cannabis industry is still a federally illegal industry. Yes, the states do have rights and yes the states let you grow, use, buy, and sell marijuana. But it creates a false sense of security and legitimacy. It does not change the lawless history it has or the lawlessness of some of the people involved in it.
The fact is the federal government’s law agencies don’t want to participate in legal marijuana. The government doesn’t recognize the cannabis Industry. It doesn’t have or make laws that they can enforce to protect us. Most states don’t either. The states are too busy taxing, collecting, and spending all the money. The green rush is set up to be just as lawless as the frontier territories of the 1800’s until things change.
The federal government controls the banks. The banks will not do business with you, or accept your money if you are a cannabis business. The courts will not hear any case involving cannabis outside of prosecuting you for it. The federal agencies will still come in and issue their own brand of law. Much like the small mining towns and independent peace officer groups in the wild west.
What does all of this mean? It means you can’t do any banking or borrow based on the success of your business. It means that you have no legal rights or recourse. There is no such thing as intellectual property on cannabis. Just about anything can be stolen from you by anyone. At any time, any federal agency can break your doors down and arrest you and end your business venture and life as you know it.
Just like the gold rush in the 1800’s people come into the cannabis industry with dreams of making millions. The reality of it is very few people make a fortune, some make a good life, some will only make a living, but 90% will lose everything and go back home. The people that made the most out of it was the corporations and the people that had something real to sell. Like in the wild west, this creates an environment that is perfect for the ethically challenged. The green rush will bring more people that have never seen a person they couldn’t take advantage of.
There is every type of unethical person in the industry, people that will attach themselves on to you, and use you for everything they can. People that will give you a job and never pay you. They will make a deal and the same person pull the rug out from underneath you. People that will promise you the whatever it is you want to hear, “I own a media company I’ll give you a show”, “I’ll pay you if you help me get a deal with this person”, “I can get us funding, I know a guy, just tell me your ideas”. We have heard all of these things since being in the industry and it doesn’t seem to be getting any better.
Until the federal government recognizes cannabis as an actual legal market, you need to protect yourself. Do not trust anyone and carefully investigate anyone that wants to help you. Learn about all the laws and licenses you need to operate a cannabis business and do it yourself. The reality is, most people are only looking to help themselves. Nobody is in the industry to help make you rich. We wish you the best but you need to be careful because it truly is the wild west out here.
For the people that want this to become a socially acceptable industry, the lawless nature that exists leaves a nasty underground feeling in the industry. For the good of all the people involved in cannabis business, it’s time we make the government recognize the cannabis industry and end prohibition.
Beware of the issue many people face when they enter the new wild west. What you need to know about the green rush before you enter a booming cannabis industry.
Let us know your idea of how to help end the problems that run rampant in the industry. Reach out to us on social media or leave a comment below.