The cannabis sector in the US is growing at an exponential rate, as the rules and laws which govern its usage become more relaxed with each passing year. The industry is expected to grow still further as more states relax their legislation. Have a quick browse on the various cannabis jobs websites and you will quickly realize the number of opportunities on offer. So, as an investor, where should you invest? Here are some quick rules of thumb to maximize the chances of a profitable decision.
Be Wary and Cautious with Publicly Traded Cannabis Companies
From our experience, we would recommend that you avoid publicly traded cannabis companies when investing your money. The chances of a return from such companies is low to say the least, and there will be better investments out there, such as privately held companies.
Research the Management Teams
Those privately held companies with talented management teams are those which will thrive and succeed long term. This may be quite hard to believe, but you’ll be surprised by the number of glorified stoners who are may above their experience level and capabilities who struck lucky in the green rush, and their long-term prospects are often not good.
Find Companies That Don’t Directly Deal with Cannabis
These companies often have a lot of risk attached to them, as one wrong move by breaching the stringent cannabis laws could lead to the company being closed down. By only investing in privately held companies who don’t deal directly with cannabis, you can avoid a lot of risk making your investment more secure.
Example companies to look at include ancillary companies and so called next generation marketing companies, that allow many growers to take their harvest to the market directly. An example of a marketing platform like this is Flowhub. This is a lucrative area to be invested in in our opinion.
What Companies are Hiring New Staff?
A good indicator of a growing business is to take a look at the companies who are seeking new employees for their business. Those who are maybe advertising for 5 new positions are companies that you should take a particular interest in, as rapidly expanding and successful cannabis companies often need a lot of new employees. In order to do this, take a look at the cannabis jobs near me tool on Cannabis.net, and you could uncover some interesting companies to invest in.