In 2017, the legal marijuana industry experienced a 37% increase in growth. This is just the beginning and it’s only expected to get bigger from here on out.
You might not be sure how you can make money from this growing industry. Should you go about investing in legal marijuana companies or should you start a marijuana company of your own?
Here are some tips that’ll teach you about how you can cash in. If you take action now, your fortunes will rise alongside the demand for marijuana.
Create a Marijuana Clothing Company
People love to wear clothes that highlight a particular passion of theirs. For instance, people who love snakes will wear clothes that contain snake-related quotes and pictures.
Following this, if you can design clothing that’s based on the topic of marijuana, you can cater to people passionate about marijuana.
If you’re not personally a big fan of marijuana, you’ll need to get some input from someone that understands this target market. They’ll provide you with some tips on how you should design your clothes, as well as the kinds of quotes you should use.
Once you have your designs, find a manufacturer and ask them how much it’ll cost to produce one item of clothing. Reach out to many different manufacturers, so that you can secure the best possible price.
It’s also vital that you ask a prospective manufacturer to produce a sample for you. This sample will show you if the manufacturer can produce items to a high standard.
Even if the sample seems reasonable, only place a small order to start with. You might think the design is impressive, but you can never be sure how the market will react to your products. By only placing a small initial order, you limit your downside.
Instagram influencers can be a great way to bring some attention to your clothing. Find profiles that use marijuana-related hashtags and ask if they’d be open to a sponsorship deal. You should also reach out to relevant YouTubers and provide them with a similar deal.
Marijuana-Related Gift Box
There’s pretty much a gift box for everything out there, so why not get in on the trend and create a marijuana-related gift box? The gift box can include everything a marijuana fan needs — except for actual marijuana.
If you’re not sure what you should put in this gift box, take a look at what’s currently selling. You can do this by reviewing the top-selling items on marijuana-related e-commerce stores.
Once you have a list of items that’d work well in a gift box, you then need to find some suppliers.
One way to do this is by using a website known as Alibaba. This website will put you in touch with Chinese manufacturers that’ll be able to produce your chosen items, at an affordable price. Keep in mind that you’ll need to make a minimum order and you’ll also need to pay for shipping.
The design of your box will have a significant impact on how people receive your brand. If you cheap out here, you’ll struggle to move units. As with clothing, working with a designer is the best way to ensure you have a great box design.
Once you have your design, you can ask a local company to help you create the box or you can reach out to someone via Alibaba.
When you finally have a gift box that’s ready to sell, you then need to generate some interest. Usually, you could use paid ads to help you promote an item like this.
But some ad networks are wary of dealing with marijuana-related items, so this isn’t always an option. That said, things will likely change in the future, as Facebook recently lifted its ban on marijuana-related pages. Either way, until ads are an option, you can use the influencer marketing strategies mentioned earlier.
Trade Stocks in Marijuana Companies
Different companies make money from marijuana in different ways. This can make it hard to predict how changes in the demand for marijuana will affect each of these companies.
For instance, you’ll find that some companies have a pharmaceutical focus.
These companies want to figure out how they can make medication using the unique properties of the marijuana plant. Such stocks can be quite cheap, but if the company makes a discovery, the price of the stock can shoot up dramatically.
You’ll also find that there are companies that focus on recreational use. These are the kinds of companies that cater to people who want to buy marijuana from a dispensary. Such companies will experience achieve a higher stock price if there’s a change in the law, that’ll lead to increased marijuana use.
Finally, there’s the option of buying stocks in companies that support the marijuana industry.
For example, to grow a marijuana plant, you need to use a particular kind of lighting. If there’s a sudden increase in marijuana demand, the need for such lighting also increases.
This is because businesses need to expand their growing facilities. Thus, those that produce this lighting, will experience greater profits due to changes in the marijuana industry.
Stock movements for these companies are generally less volatile than the other examples. That’s because it’s hard for the market to work out how changes in marijuana demand, will affect these companies.
Due to the volatile nature of the marijuana industry, you might want to mitigate risk by investing in all three of the options mentioned above. If you want to improve your odds of making a winning trade, be sure to read websites like NICI.
Investing in Legal Marijuana – There’s More Than One Way
The demand for legal marijuana is rising quickly and if you take action now, you’ll be able to generate profits in a short amount of time.
In this post, you’ve learned some of the ways you can earn money by investing in legal marijuana companies. Whether you take an active or passive approach that can produce huge dividends, one bad move can leave you with an empty bank account. So, be sure to conduct as much due diligence as you can, before you hand over your money to anyone.
Want to start a marijuana business, but find yourself short on cash? Here’s how you can secure a loan that’ll help you kick-start your company.