There has been a lot of legalization around the use of and distribution of Cannabis laws in various states in America. This legislation has resulted in something known as the green rush which has seen investors from America and beyond hotly pursue investments in the Cannabis industry. However, this rapid rush to invest in the American Cannabis has also brought with it a number of challenges which every investor must navigate before investing in the industry.
As a cannabis investor from America or other parts of the world, it is essential for you to master the challenges that come with the Cannabis business industry. Having a mastery of these challenges will help you plan your investment strategy accordingly taking into consideration all the challenges that come with industry and how to navigate them, here are some of these challenges.
The Conflicts between Federal and State Laws
One of the biggest hurdles any investor seeking to invest in the Cannabis industry in America has to face is the ongoing conflict between federal and states laws in America governing the use and distribution of Cannabis products. As per federal laws, Cannabis remains illegal in America. However, there are some states in America which have legalized the use of Cannabis for varying reasons like recreation and medical use.
As an investor especially if you are not from America you might find yourself at crossroads regarding these laws. Â It can be a bit challenging to tell which laws to follow for your investment strategy. Â Also, considering that the Cannabis laws in America keep changing means it might be a bit hard to tell whether the use and sale of Cannabis or some of the products associated with it will remain legal in the state that you are in long enough to allow you get back something from your investment.
Difficulty in Accessing Banking Services
Due to the fact that Cannabis remains a contraband substance in America means that any business attached to it struggles to access traditional banking services. Â This leaves the investors in this industry having to rely solely on the cash based operations which are highly unreliable as they are prone to fraud and theft.
 Taxation
Taxation is one of the biggest challenges investors in the Cannabis business face. The industry attracts very rare and unique taxation policies which are much higher compared to taxes in other industries. Some states even impose tax restrictions to Cannabis business making running a business in this sector somehow challenging.
Relevant Licenses and Permits
The process of obtaining the relevant licenses and permits needed to run a Cannabis business is complex and lengthy. In fact, there are some investors that attempted to obtain these licences and permits for long without success. The process is lengthy, tedious and some cases it might result in failure. As an interested investor in this sector, you need to take note of this challenge and plan on how to deal with it as it is a door challenge to all challenges involved in investing in the Cannabis business.
Conclusion
Investing in the Cannabis business in America is not an easy thing as might seem. Â There are so many challenges that come with this business which range from high taxes to unstable laws governing the industry. Investing in this business successfully requires the investor to have a good mastery of these challenges and learn how to navigate them successfully.
