This transcript was generated from the episode audio and may contain minor errors.
[Music]
Hey friends, what's up? Chris Guillebeau back with you again, another episode of Side Hustle School. What are the challenges and opportunities in the cannabis industry? That's what we're gonna talk about in this episode. Now, depending on where you live in the world, or if you live in the United States, it's different in different States, but in lots of places, both in the US and elsewhere, there has been a big shift in legalization of cannabis over the past decade or so, and lots of changes year by year.
Now, when this first started, everybody was like, oh, this is gonna be a huge, huge industry profit-wise. Lots of people are gonna make lots of money. And of course some people are, but because of how the rollout has happened, different regulations in different areas, different taxation rates, just a lot of variance, basically from place to place, some people are not making a lot of money. Like some people have opened dispensaries or providers or otherwise something in the industry, and they've actually really struggled a bit. A lot of businesses have closed.
So in this episode, we're gonna have a question from Jeff. He wants to know a bit more about the challenges and opportunities. Where are we at with this? And how might this affect a side hustler who's going into this space, or at least has some interest in it? So let's talk it out.
Detailed question coming up in just 30 seconds. [Music]
Hey Chris, I'm Jeff. A long-time listener who came to your event in Phoenix. I've been following the legalization of cannabis and expected it to be a goldmine, but I've seen many states struggle with the business side of things. It seems the industry has been disappointing in terms of opportunities and profits.
What are the main challenges facing the legalized cannabis industry and how can entrepreneurs navigate these challenges to find success? Are there specific niches within the cannabis market that might offer better prospects for a side hustle? By the way, I love your podcasts and the practical advice you share. [Music]
Jeff, great question and no question at all that this industry has had a lot of challenges. I don't think it's a goldmine for most people going into it.
In fact, that's pretty clear. A lot of people have lost a lot of money going into it. A lot of people have lost a lot of time as well, just kind of waiting for legislation to advance or they're able to move forward and they have to kind of move back a bit. Or they run into some other problem with running a cash only business or a largely cash dependent, especially with the lack of access to a lot of banks and financial services and such. So, we could talk about all those different challenges, the regulatory hurdles, the costs, the threat of litigation, the threat of being shut down for whatever reason, but it's not only that, it's also market saturation.
In some states, the cannabis market is super, super crowded. It makes it hard to stand out. The price of the product is really low. And then of course, there's a lot of taxes on top of that. So, customers feel like the price is high and then the black market or the non-legal market continues to thrive even as legalization is enacted and such.
So, these are all the challenges. Obviously, some people are doing really well just to be clear. But I think the best approach here, like if you want to go into this world, it's find something that's a little bit related or don't necessarily be the dispensary. But like I think of a couple of years ago, we had a story of a guy who created like the Denver guide to weed, for all the tourists coming to purchase cannabis products, especially in the early days of like legislation. And that guy did really well and he was taking no risk as well.
Like he's just producing the guide and he was really careful to put in the right disclaimers and such so that he could still open a bank account and process transactions for it and all that. So, what can you do to serve people interested in the market without putting yourself at risk? I think that's the way you think about something like this. Like, yes, people are really interested in purchasing these products, but the people who are selling the products are not always making a ton of money, if they're doing everything the way they're supposed to be doing, which is a whole other conversation. So, what can you do that is supplemental to that or aligned with that?
CBD perhaps, CBD is legal in more places and has less regulation attached to it as well as maybe a better reputation for health and wellness benefits. So, that's something to consider as well. But again, the point is, what can you do that is adjacent or connected to this industry or to whatever the industry might be if you're thinking of something different while best positioning yourself to succeed and thrive in a difficult market? Jeff, thank you for the question. I hope that's helpful.
Listeners, thank you for being out there. If you have a question, idea, comment, sidehustleschool.com. Of course, much more is coming up. Tomorrow, we're gonna talk about YouTube. We're gonna talk about blog monetization.
We're gonna talk about publishing a book, membership sites, all coming up in the next week, and of course, much more. My name's Chris Guillebeau. This is Side Hustle School. [Music]
- From the Onward Project.
