The Colorado marijuana industry changed in a significant way on November 1, 2019. The state government has enacted new rules about financing, and now public companies and investors from other states can own cannabis businesses in Colorado. It’s the business owners in Colorado’s Marijuana industry who will be first notice the effect. However, customers might start to see the impact of outside financing in time.
Is This Good or Bad for the Colorado Marijuana Industry?
How Only time will tell, but competition is almost always good for industries. Companies have to try harder to outdo each other, which ultimately means they have to do a better job serving customers or risk losing them. Margins are already tight for many companies in the Colorado cannabis industry, so it’s hard to tell how much lower prices can go. Even so, cannabis companies throughout the state should be looking for new and creative ways to delight their customers and create loyal fanbases.
Is This Good or Bad for Local Businesses?
The simple answer is, it isn’t that straightforward. Dozens of Colorado dispensaries and other cannabis businesses have already been sold to larger ownership groups in the months since the new rules took effect. Some of those businesses may have felt that they had no chance but to sell, but others may have viewed it as the perfect time to cash in. Local business owners looking for an exit strategy have options. One other thing to consider is that some of the public companies that are taking advantage of this new rule are also local to Colorado.
Some other business owners in Colorado have worked with outside investors in relationships that resemble partnerships more than anything else. They may sell their companies but stay on board, working with the investors as they try to expand their business. This type of partnership is an excellent way for smaller, local companies to get access to more funds that allow them to realize some of their more ambitious plans. It’s also an opportunity for people who have mastered the cannabis industry in Colorado but still struggle with some financial aspects of the business.
Finally, there are certainly business owners who want nothing to do with outside money. Some of those businesses may be feeling the pressure from external companies. However, others are incredibly confident that they’ll be able to stand up to the competition. After all, Colorado has one of the most influential and most developed cannabis industries in the world, and there are already a lot of competent brands competing for market share.
Many local business owners believe a lot of the outside investors are overly confident about their own ability to break into this market and be successful. Some businesses will experience hard times in the coming years, but it’s hard to say which ones. Ultimately, the customers will determine that based on which companies they choose to support.
Colorado Marijuana Sales
Here at Greenfields, we continue to put our customers first by offering an extensive dispensary menu, friendly service, and excellent deals. We’re proud of our place among the best dispensaries in Denver, and invite you to come to see what makes us so unique by visiting either of our locations.
Our budtenders will be happy to walk you through all of your options, and you can also start your search by exploring our latest deals.