Investing in Marijuana dispensaries is one of our favorite methods of accumulating wealth in the marijuana business. There are a few main keys to look for when investing in a dispensary and we will break that down here. We want our readers to understand the importance of what we're talking about because so many people have lost millions of dollars by now following these core principles. We hope you take some notes here so you know exactly what you're looking for when it comes to investing in a MMJ dispensary.
First, we want to talk to you about a scenario that happend in Washington after it became the 4th state to legalize recreational marijuana. When Washington rolled out their marijuana laws, the timing of how everything would work out was never planned out very well so when everything was getting started a lot of growers went out of business. Washington gave out approximately 150 licenses to grow marijuana but only released a handful of retail licenses so there was a ton of marijuana being grown and only a few places to sell it. Growers quickly realized they had no one to sell their product to and Washington was slow to correct this imbalance so many growers ran out of money to fund their operations and lost everything they had worked for rather quickly. Growing marijuana comes with huge electric bills, expensive nutrients, and usually setting up the grow costs a couple hundred thousand to tens of millions of dollars. The growers that did their research and saw what was happening, scaled back operations until more retail locations were awarded so they were able to weather the storm and keep their operations up and running. We wanted to emphasize how important looking at every detail and accounting for any plausible scenario is when investing in any sort of marijuana business.