As of this year, there are now 33 states that have legalized cannabis in some form, with 11 of those going so far as to allow adult recreational use. But not all legalization programs are created equal, nor do all markets share an equal potential. Every state has its own challenges as well as its own unique opportunities for your budding cannabusiness.
For many, this will read as the proverbial 20/20 of hindsight. They call it the “Green Rush” for a reason, and countless aspiring cannabusiness entrepreneurs are now struggling for survival as a result of their haste. Why? Because they failed to properly assess the risks and rewards of their chosen marketplace.
If that hit too close to home, the good news is there’s hope — and it lies within the HYC Pivot Program.
The HYC Pivot Program: What We Do for Your Cannabusiness
The Pivot Program was conceived to assist both new market entrants and struggling veterans alike in avoiding the pitfalls of overly competitive and unstable markets. The program also helps cannabusiness owners leverage their individual skills and experience to ease the barriers of entry into the cannabis marketplace.
If you fall under the “struggling veteran” category, know that your efforts haven’t been for naught. We’ll work with you to repurpose the structure you’ve already built and the investments you’ve already made to help you access the state regime most conducive to your individual success.
Understanding that there’s no “one size fits all” solution for such a diverse and unpredictable market, we cater our approach to your vision, your budget, and your needs to help you find the perfect pathway for your success, providing continual guidance as you grow.
Cannabusiness Is Complicated: The Devil Is in the Details
There are myriad factors that come into play when assessing the best regime in which to operate, and each unravels with even more intricacies upon closer inspection. For example, a tightly regulated state market with high barriers for entry can and often will be the wrong choice for industry initiates for self-evident reasons. Hence as a general rule, (though there are exceptions to every rule) restrictive states — like Florida, Arizona, Georgia, Illinois, New York, Missouri, and New Jersey — should be avoided.
But it’s not so cut-and-dried as to say that a more liberally regulated market is an automatic win. Otherwise, a state like Oregon would be a sure bet. Unfortunately, their market bottomed out from oversaturation years ago — a direct result of the lax standards and obscenely low barriers for entry.
Meanwhile, Oklahoma has also suffered from oversaturation caused by their similarly low bar for entry. However, the resulting high failure rate is helping to keep the market open to more experienced entrepreneurs with proper backing. It’s all about having a knowledge of the industry that’s both deep and wide, which is why it’s essential to work with a group like HYC who can provide the expertise necessary for lasting success.
The Process: How It Works
Though the program must calculate a seemingly infinite number of factors, we’ve managed to break the process down into three basic steps.
- Application Assessment. This is where we leverage what you’ve already built. We look at your experience, expectations, team, work completed, and more to determine your position and the best course of action.
- Business Profile. We create a custom profile of the cannabusiness that best matches your assets and criteria.
- Consultation. Based on your business profile, we’ll help steer you to the state marketplace that demonstrates the greatest potential for your individual success and continue to provide invaluable expertise and insight along the way to give you the edge over your competition.
The possibilities that can be derived from these steps are nearly as infinite as the factors we calculate to complete them. One option could be as simple as utilizing your momentum to shift to a state like Oklahoma where the barriers are low but the potential is high. Or perhaps you have the capital to buy a business outright. In such a case, we can help you find the ideal acquisition.
For others, though, direct handling of cannabis may not be the best option — and that’s just fine. There’s any number of ancillary businesses — payment processing, accessories, grow equipment, or security, just to name a few — many of which carry far lower risk. HYC can guide you through these choices and subsequent processes as well.
Whatever the roadblock, we can help you surmount it and move to the next challenge. If it’s an issue of residency, we can help connect you with locals in the state industry in need of investors. If it’s a budgetary concern, we’ll point you to the state with the lowest fees and highest potential. If your vertical is burdened by unnecessary regulations in one state, we’ll steer you to a state with more generous accommodations.
HYC is here for you, to empower you to make the changes to your cannabusiness that are essential to your growth. With our cumulative knowledge, expertise, and network at your disposal, you can move in confidence knowing that our success is your success.
If you’re one of the umpteen players in the cannabis industry who rushed in early and now feels trapped, pause, take a deep breath, and remind yourself that you can still pivot to higher ground.