Then you have better deep pockets with lots of cash in them, says Pete Williams, co-founder and chief operating officer of Medicine Man, one of Colorado’s biggest, best known and most successful cannabis growers and sellers.
“The beginning was a true gold rush,” Williams said in a recent interview with SativaCOMM. “The gold rush is over. It’s almost to the point where the average person cannot do this anymore, especially in Colorado.”
The opportunity to get into the cannabis growing and selling business is past “unless you’ve got political connections and a decent bank account. And decent is multiple millions, maybe $10 million.”
Big money, Williams said. “The big money is going to get into the production and the selling of the product,” he said. “You’re going to be fighting the multi-multi millionaires. If you don’t have a lot of money, it’s going to be hard to compete.”
His advice: “Find a niche market . . . that the big money probably won’t move into as quickly.”
And if you have the resources to get into the business, he added, you’ll need to manage your company well to succeed.
“If you’re trying to use old techniques that have been used for the last 20 to 100 years, you’re not going to make it,” he said. “You need to maximize your output and have superior genetics and superior management to make it in this industry anymore.”
“It’s about making sure you do things right,” he said. “If you have the best intentions on trying to lower prices and turn out good product for your customers, maybe this is the industry for you. But if you’re looking to grab some quick cash, it’s not for you. The profit margins aren’t what they used to be.”
Pete Williams began growing cannabis in his basement in 2008 as a licensed caregiver for medical marijuana patients. He and his brother Andy, who is CEO of the company, created Medicine Man in 2009. Their sister, Sally, is the company’s president.
They’ve since created a separate consulting company, Medicine Man Technologies, to help other companies get into the business of growing and selling cannabis.
“Our process is an industrial process, not a guru process” dependent on one expert grower to drive the business, Williams said. “And that’s what sets us and our technology company apart from some of the other technical companies. They do a lot of talking and then stick their hand out and they want a lot of money. We don’t do that. We show (potential clients) what we can do, show them the results they can get, show five years of data behind that and our standard operating procedures.”
Medicine Man Technologies is scheduled to become a publicly owned company with stock trading on the OTC market later this year.
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