Marijuana Business Daily – Marijuana Business Factbook 2016 Factbook2016.pdf Category: Misc: Written / E-Books This product can only be requested by members. To get this product, you must be a memberBECOME A MEMBER Description Reviews (0) Description **** This is the result of a Group Buy – bizigniter.com Exclusive!! **** Keep This In The Vault!! Help us keep bizigniter.com all the more special for its exclusivity. Out of respect for the original authors and publishers,please do not make this product available outside of our community. Thanks for keeping bizigniter.com awesome! This exclusive material brought to you bythe participants of the Marijuana Business Daily™ – Marijuana Business Factbook 2016. This GB is closed. Marijuana Business Daily™ – Marijuana Business Factbook 2016Exclusive Financial Data For Cannabusinesses & Major lnvestors Group Buy Page: Sales Page: https://mjbizdaily.com/factbook/Price: $249 Marijuana Business Factbook 2016- 5 Key Takeaways wrote: 5 Key Takeaways This report is meant to serve as a detailed point of reference with specific data points andfigures. However, there are larger trends and themes that emerge after sifting through the fulldata set of survey responses and performing the research for this book. Below is an overview ofthese key takeaways: #1 The investing floodgates are breaking Fundraising has traditionally been extremely difficult for cannabis companies given theimmense risks involved in the industry and the stigma attached to marijuana. The situation hasimproved markedly in recent years, however, and the dam finally appears to have burst in 2015.More outside capital than ever is now flowing to both plant-touching and ancillary businesses.The portion of new companies backed primarily with founders’ own savings and debt is at itslowest point ever, 72%, while nearly half of investors in privately held companies plan to invest at least $10 million each in 2016. The landscape is highly competitive, and investors still have their pick of the litter. But byseveral indicators, the fundraising environment has improved for both cannabis companies andinvestors. #2 Shakeouts are starting to play out in certain states and sectors As unbelievable as it may sound given how young the industry is overall, certain sectors insome states are already showing signs of approaching saturation, and winners and losers arebeing defined. Outdoor cultivators in particular are facing some major challenges, as only 57% ofthose businesses report operating at break-even or better, compared to over 80% of growers whocultivate indoors, in greenhouses or use a combination of methods. Elsewhere, headline-grabbing, multi-state expansions by some of the industry’s largest infusedproduct makers have set the stage for the emergence of leading brands that can easily gobbleup market share in new states. Twenty-four percent of infused product manufacturers alreadyoperate in at least two states. These companies will likely be the winners when the inevitablewaves of consolidation eventually arrive. In other markets, fierce competition is squeezingmargins and driving many businesses into loss territory, while the inevitable adoption oftechnology and the high cost of compliance have simply proven too much for some businesses tobear. To be sure, the industry is still filled with many opportunities. But in some of the more maturemarkets, many businesses have burned big and bright, only to have already faded away. #3 Demand for concentrates and edibles is reaching fever pitch Infused products haven’t surpassed flower/dried herb in terms of sales yet from a nationalperspective, but they are becoming a bigger piece of the pie. At the same time, some individualretailers have already seen concentrates and edibles sales eclipse flower/dried herb revenue. Onaverage, these products represent about 30% of total sales at present, and in some states they areposting large month-over-month increases. It remains to be seen what portion of total sales these products will ultimately represent, butthey are a critical part of the product mix for cannabis retailers, especially in recreational markets.By the same token, retailers in states that prohibit some or all of these types of products will mostcertainly be at a disadvantage as legalization spreads and introduces more consumers to theseforms of cannabis. #4 The costs to win licenses and establish operations continue to increase Gone are the days when plant-touching businesses could easily set up operations for $25,000or less. As legalization spreads to more states, the cost and complexity of doing business isincreasing rapidly and doesn’t show signs of letting up for now. Median total startup costs haverisen for every sector in recent years, particularly on a square footage basis for retailers andwholesale cultivators. In addition to a tendency for new states to levy increasingly large fees for operational licenses,fierce competition to win permits has also necessitated the involvement of consultants, lawyersand other expensive experts for a business to even have a shot at succeeding. But winning alicense is only the first hurdle, as state regulatory requirements and restrictive local ordinancesoften result in large investments in land, commercial real estate, renovations, security/surveillanceand other items before the business can even serve its first patient/customer. Add it all up, andyou have startup costs that can easily stretch into the seven figures. Cannabis is and will continueto be one of the most highly regulated industries in the world, and the price to play is hefty. #5 Existing medical/recreational states continue to tweak their programs,creating uncertainty for businesses and the industry as a whole Whether it’s temporary regulations, tweaks to the tax structure, new rules, changes toproduction caps/limits, or local bans and moratoriums, operational businesses in establishedmarkets still face a high degree of volatility and uncertainty. The reasons for these circumstances are largely a reflection of rapidly maturing markets thatstate and local governments are constantly trying to catch up with. In other cases, it’s due to somestates opting to treat medical/recreational marijuana as a “pilot” program or test case that needs tobe rolled out in a slow and controlled manner. The net result is that in many states, a clear pictureof what a fully functioning cannabis market looks like has not yet been able to emerge. 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