Funding for my cannabis business

[Foxus]

What do you all suggest I do to get funding for my cannabis business, if effort not only to serve people, but also to get in on the "green rush?"

Looking at the fees, the application fee is a whopping $2500, the license fee being another $3000, so only to apply (and this isn't including any legal fees, or the cost of finding a facility to set up shop at) it is $5500.

To cultivate, it is a bit less expensive, totaling to a amount of $4700. With any waivers granted, it could be dropped to $4k. These are upfront fees.

Should I try applying for a loan, seek out potential investors, what do you suggest I should do?

 

[Brian D. Evans]

Give out as little equity as possible for that amount of cash.

You don't want to build a multi-million dollar business and then be giving up 50% because of a $9.5k investment.

Maybe you can bootstrap it for now. Possibly start a blog on the subject and generate some cash in the meantime. Or you can fund it through friends and family who may take a much lower percentage than a traditional investor.

 

[JanBall]

Bro, are you sure it's a good idea for starting a business of your life? Maybe, it's my own perception because I was smoking marijuana half of my life. And I would never start such kind of business. As for me, it's an unfair profit. Roughly saying, you are increasing your financial status through human miseries. Do you understand what I am talking about Foxus? So, you would better think about other businesses. It's not my advice, it's just my point of view. And I have a question as well...

 

[djbaxter]

JanBall this thread is 5 years old. My guess is the OP has either resolved the question or moved on to something else by now.

Bro, are you sure it's a good idea for starting a business of your life? Maybe, it's my own perception because I was smoking marijuana half of my life. And I would never start such kind of business.

Cannabis is legal or decriminalized in many countries now and in an increasing number of US states, which makes it a viable business for some people now.

As for me, it's an unfair profit. Roughly saying, you are increasing your financial status through human miseries. Do you understand what I am talking about Foxus?

I don't understand this. What is unfair about it? And what do you mean by "human miseries"?

It's not my advice, it's just my point of view. And I have a question as well...

What's your question?

 

[JanBall]

Why are you angry with me, Baxter? Does it have a difference is the thread old or no? If the question really worries me, why can't I discuss it here? And when saying about human miseries, I meant that such a kind of profit won't make you happy. Are you able to understand me now or no? And my question is next. What do you think about https://www.koalitymedicinals.com/is-cbd-legal-in-alabama/ CBD? Did you know it has a solid medical effect?

 

[djbaxter]

Why are you angry with me, Baxter?

What makes you think I am angry, with you or with anyone else? I'm not.

Does it have a difference is the thread old or no?

Only to the extent that you are addressing your remarks to someone who has not visited this forum in some time and who will probably never see your comments:

Last seen Apr 19, 2016

If the question really worries me, why can't I discuss it here?

You can.

And when saying about human miseries, I meant that such a kind of profit won't make you happy.

Why not? As long as it is a legal business and is not fraudulently exploiting its customers, why shouldn't he make a profit. Isn't the goal of any legal business to make a profit?

Are you able to understand me now or no?

No. I still have no idea what point you are trying to make.

And my question is next. What do you think about https://www.koalitymedicinals.com/is-cbd-legal-in-alabama/ CBD?

What relevance does whether or not CBD is legal in Alabama have to the discussion in this thread? Why would you assume that the OP is even a resident of Alabama?

Did you know it has a solid medical effect?

I'm aware that there is some research validating its use as a treatment for epilepsy and to a lesser extent (meaning there is less research and the findings are less certain) in the treatment of certain other health and mental health conditions, there is also some evidence that it makes some conditions worse, so overall the conclusions one can draw at this time are not entirely clear. That said, I am personally in favor of decriminalization and even legalization if only because I see cannabis and CBD as at least less destructive and dangerous to health than alcohol, and the vast majority of nations make no attempts to make the sale and use of alcohol illegal.

 

[Julia Sta Romana]

There's even a review that shows CBD can help with menstrual pain and symptoms. The drugs often prescribed to women with strong menstrual pain like opioids, are often addictive and can be dangerous. Hormone treatments for menstrual symptoms almost always have side effects. CBD is actually a milder option, non-addictive, and more convenient for women because it can used in a number of ways.
Is CBD A Viable Option for Menstrual Symptoms? (researchgate.net)
Cannabis Treatments in Obstetrics and Gynecology: A Historical Review: Journal of Cannabis Therapeutics: Vol 2, No 3-4 (tandfonline.com)
Cannabis and symptoms of PMS and PMDD: Addiction Research & Theory: Vol 25, No 5 (tandfonline.com)

 

[AmeliaBailey]

If it's legal in your state, then better talk to some local entrepreneurs about funding and sharing the ownership.

 

[AmeliaBailey]

By the way, I think if you want to get funding, you need to look for some young and open-minded entrepreneurs. Because not everybody would love to sponsor someone’s business related to cannabis and stuff like that. For instance, my current boss is very strict in terms of cannabis, alcohol, and cigarettes. I’m not even talking about chemical drugs. A few days ago, he forced everyone to take a weed addiction quiz. A lot of people lied in their answers, except for one guy. He answered honestly and got fired after that. So, a person like this wouldn’t give money for your ideas.

 

[JooShiu]

Alright, so I know a little bit about this space since I used to live in Northern California and like to hang out with hippies. Here is my two cents.

First, its NOT legal. If its ILLEGAL on the FEDERAL level, then its technically ILLEGAL at the STATE level regardless of what the states want. This is due to the nature of US Constitution which states federal laws are superior to state laws. See the Supremacy clause.

That being said, the Federal doesnt have not ENFORCE any laws or they choose which ones to enforce in this merry-go around game played in this country Immigration laws is a good example of the arbitrariness of this fact. As of now, it seems to be the federal government policy to just wait and see with the states about MJ. That means they are loath to enforce federal laws regarding MJ. However, this is just a rule of thumb. I was in Oakland in 2009 and I witnessed the feds raid and shutdown Oaksterdam University, which was started as means to assist entrepreneurs in this state. They had classes on everything from growing to licensing to selling. They had no MJ for sale but they were still shut down for whatever reason the feds deemed necessary. See Oaksterdam University - Wikipedia

Now, there are business both big but mostly small, betting that it will all be legal at a federal level so why not jump in the game and hope works out in the future. Canada recently made it legal on all levels there. Trend seems to be that US federal laws will change too eventually. Meanwhile, the states are playing their own games with MJ industry. This involves usually a means of taxing and regulating the industry to almost death. This would be a purposeful policy that is something like, well we cant stop people from doing drugs, so we are going to legalize it so we can tax the shit out of it like the tobacco industry. For this reason, the licensing hurdles and taxes in this space are astronomical. I met this guy once he said he was a botanist or chemist for the MJ industry and he made lot of money last year but basically spent it all on legal fees. He was moving his business to Oregon from California for legal reasons only.

So, I would talk to some experts before setting foot in this journey but because in my opinion, its not legal and too well-regulated.