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As Cannabis Becomes More Accessible, is it Still Profitable?

most profitable cannabis business

Profitability should be the first question any new business owner considers. Cash flow is the number one concern when it comes to cannabis business profits; any business owner looking to stay in the black needs to either be a very strong financial manager or hire one. How cannabis is profitable, though, is a deeper dive which new entrepreneurs, as well as seasoned industry professionals, must weigh regularly. As evident in other industries which experienced bubbles of growth, the public’s accessibility to cannabis products does not always equal profitability. As cannabis becomes more accessible across the United States, those new to the industry, as well as those aiming to stay relevant, must review the environment.

Here are a few potential obstacles to robust cannabis business profits:

  • Business deductions are often the best way to elevate profits, however, cannabis companies cannot reap the same beneficial deductions as other businesses, such as rent, office supplies, inventory and advertising because marijuana remains illegal at the federal level. Therefore, IRS deductions do not apply.
  •  In the same vein, taxes paid for cannabis businesses are under extra scrutiny and must be completed very carefully, which costs both time and resources. In 2020, the U.S. Treasury released a report saying the IRS should step up its capacity to audit these businesses. Further, ignorance of Section 280e in the tax code could cause additional expense.
  • The federal status also often leads to inadequate banking options, which can result in theft, as well as difficulty obtaining proper insurance. Incorrect coverage after damage can mean a devastating blow to profitability or the end of the business itself.
  • Tough regulations on growth, distribution, packaging and retailers can be expensive to maintain compliance and habitually vary from state to state. Differences can also exist between medical and recreational products, incurring additional expenses for those in both markets.

Although once an area ripe for solopreneurs and entrepreneurs, multiple major corporations have pushed out small businesses, as well as local farms and distributors, in many areas. Name recognition may have to be battled with bigger marketing budgets.

Despite the potential impediments, good news is available for those determined to have the most profitable cannabis business around. First, is the accelerated growth of the market brought on by COVID-19, as homebound consumption became more in demand. Cannabis sales jumped by over 40% in 2020 compared to 2019. Further, as more states legalize, more markets are opening up for new businesses and some state legislators have become aware when crafting legalization bills that small businesses need protection within the marketplace.

As options for consumption expand, more people than ever are trying cannabis, especially those hesitant to smoke. Products include wax vaporizers, infused beverages and sublingual drops. Additionally helpful are goods containing CBD, Delta-8 and Delta-9 as a part of the industry, which appeals to an even wider audience who may be fearful of trying cannabis or are in a state where it remains illegal.

Profitability has other ways of manifesting itself within the industry. According to economists, investing in human health is the best thing an entrepreneur can do in 2021, as an investment in a world emerging from a pandemic can improve both the domestic and world economy. A simple query on Google search for “cannabis stocks” will result in about 27,000,000 results, meaning many interested parties exist; this aspect of the cannabis business is perfect for both consumers and non-consumers.

Cannabis Business Profits Continue Increasing

A final point for consideration is that as domestic suppliers grow, dependence on international markets, such as Mexico, declines and along with it the associated costs and dangers. Reporting shows marijuana seizures along the southwest US-Mexico border have declined by more than 81 percent between 2013 and 2020, suggesting Mexican cartels have considerably scaled-down their marijuana trafficking operations. A high-ranking Sinaloa Cartel operative in Sonora state told InSight Crime the marijuana business is “barely profitable now.” He said “I only traffic marijuana to pay some of my people in the organization. I’m paying them with kilograms [of marijuana] that they manage to smuggle and get paid for, but it’s really coming to a point where it’s no longer a viable business.”

Along with these tips about how cannabis is profitable, establishing a loyal customer base is the best way to maintain cash flow and enjoy true profitability. Offering a variety of top-notch products via a solid compliance culture and informed budtenders will earn the trust needed for a successful business. From the cannabis itself to the best storage solutions, a one-stop-shop is always preferred. Consider stocking FreshStor created and manufactured CVaults and EVaults, made from stainless steel and designed to keep out excessive light and moisture. Even the best product can be made better through thoughtful storage!

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Day 2! LFG!!! Looking forward to another great day at MJBizCon. Swing by booth C6635!
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#tradeshow #lasvegas #whatsinyourcvault #cannabis #cannabisculture @bovedacannabis
If you’re at @mjbizdaily MJBizCon this week, make sure to come say “high” to the CVault team!
We are booth C6635
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#tradeshow #lasvegas #whatsinyourcvault #cannabistradeshow #mjbizcon
@happydaddyproducts has this #tropicanacookiesf2 dialed in! What a sweet sight to behold, check out that color!
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#cannabis #cannabisculture #cannabissociety #cannabiscures #cannabisindustry #cannabislife #cannabisgrowers #w33d #weedsmokers
Shout out to @weed420memes for the laughs. Check out their profile for some really funny hilarious humor! 😂 
Happy Friday!
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#cannabis #cannabisculture #cannabissociety #comedy #whatsinyourcvault #weedsmokers #twist
Talk about epic smoke spot!!! @skunksystems using the small CVault "twist" as its meant to be used! Its the perfect 
on-the-go container. Going for a hike? Throw some nugs in the "twist"! Heading our for a night on the town? Make sure you got buds in the "twist" for you and your buds!
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#cannabis #cannabisculture #cannabissociety #cannabiscures #cannabisindustry #cannabislife #cannabisgrowers #w33d #weedsmokers #grandcanyon #desert #hiking #epicsmokespot
Peep this #grapegasoline over at @givingtreeaz 
Be sure to check them out and you already know they keep errething CVault FRESH!!!
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 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop #weedstorage
Swing by booth 57 if you’re at the @extractionexpo @cbdexpotour in LA today! Let’s go!!!!
Harvest season is quickly approaching! Do you have your storage solution in place for your flower and extract? If not, give us a try! Check out this amazing shot from @christinalakecannabis 
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#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason
Check out how they do it over at @happydaddyproducts 
This is a 50L full of #portlanddiesel 
Hats off to the team over there CRUSHING!
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#420 #smoke #highsociety #cannabiscommunity  #weedstagram  #ganja #whatsinyourcvault #topshelflife #littycommittee #staylit #onlysmokethefinest420  #420friendly #blazeup #cannabisculture #faded #curing #trychomes #cannabisstorage #genetics #CVaultFresh #harvestseason
Globs on dec! @christinalakecannabis is an awesome company, led by awesome people! 

Also wanted to let all our other friends in Canada know;
We will be in TORONTO Nov 18th-21st for LIFT!!!!!

Lets links up and BLAZE!!!
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#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #harvestseason #smokeshop #extractstorage #extract
Shout out to the homie @carldenali always with the fire content! Make sure to check him out! Also swing by @skyhighsmokeshop if you're in AZ for all your blaze up needs!
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#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #cannabisculture #faded #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #harvestseason #smokeshop
Honored to be a part of the process over at @christinalakecannabis 
They utilize our 316 surgcal grade stainless in the lab as well as for packaging
Dont gamble putting so much value in a glass jar! 
As they say at Christina Lake; "Tagged, Bagged, Zipped, and Shipped!"
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#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #cannabisculture #faded #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #harvestseason #distillatestorage #extractstorage #extractpackaging
1kg being stored by @guerrilla_solventless in an EVault, ready to be pressed into rosin goodness. 
EVaults are much safer than storing such valuable product in glass. Made of surgical grade 316 stainless, if you're looking for secure extract storage, look no further!
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#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop #extractstorage #distillatestorage
@frolicexton has the xsmall and small CVault "twist" in-stock!
It is the perfect on-the-go stash container, and works with a @bovedacannabis pack to keep your buds fresh! Easily stowable into a pocket, bag, or purse. They make the perfect gift! 

We will be doing a giveaway this FRIDAY, so be sure to stay tuned!
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#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
Check out this sick shot of our new CVault "twist". Available in xsmall and small, they are the perfect On-The-Go stash container. 

We are going to be doing a giveaway soon so stay tuned for details!

📸; @contractor.mmj 
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#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop #CBD
Have you tried out one of our new “twist” models? Available in xsmall (featured here) and small, it is THE PERFECT ON-THE-GO CONTAINER!!!

Should we fuck around and do a giveaway? 😉
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#cannabis #420friendly #cvault #thecvault #freshstor #whatsinyourcvault #cannabisstorage #stashcontainer #cvaultlife #cvaultstorage #blazeup #instaweed #cannabisculture #littycommittee
Always trying to keep us down. IG removed our hashtags #thecvault & #cvault from the platform. Make sure to tag our actual account @thecvault in your cvault pics as we won’t be able to find them using hashtags any more.
This is a sick shot by @cannabisoncamera x @bovedacannabis 
Hope everyone is having a great weekend. Anyone going to CHAMPS in Vegas at the end of the month? SQUAD!!!
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#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
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