All is fair in love and business so they say. Recently as of May 2016 Denver City Council lifted the moratorium and made it clear to the cannabis industry, "no more new licenses". Bet you didn't see that coming? So how does that affect the Denver market. Well challenges are the standard in the industry and current operators understand and know that these times are changing. We feel that it is a good thing for current operators and new comers to the market. We also believe that if you can brand, you can win. The small one storefront shops may soon become a thing of the past. Those who wanted more than the gold and stayed to try and find that "pot of gold" may find it challenging to turn strong margins and sell out for millions. So, your question ,is it time to get in the business? The answer is really quite simple; of course! The model has been proven, the business is strong and the risk takers have paved the way. The industry is moving quickly and those who are entrepreneurs and marketers who understand branding can easily prevail.
So how does one create a business and make it in such a competitive evolving industry? Simple, "get in the game". It has been our experience here at Business Brokers of Colorado for more than 7 years that even the mom and pop shops that sold out early realized a nice nest egg and timing is everything. Recently over the last few months we are seeing the second and third generation purchasers coming from in state and out of state making acquisitions. This is such a great model as these operators create a "roll up effect" and are able to then sell out larger multiple operators to the large market players. Recently BBC had the opportunity to meet several of these players. Perhaps not by accident, as they contacted our firm, we met with these players who are positioning themselves to acquire the larger performing business models. So what does this mean for you and our current clients? Now is the time and now is the place! Although the entry to the dance has now escalated from a half a million dollars to well over $2 million + for both a grow and a dispensary the acquisition still can be very fruitful. Of course the "side-liners", the "watch, wait, and see folks" who are still thinking may miss the boat. Your call.
Denver Caps Cannabis Licenses, Prices Rise.
All is fair in love and business so they say. Recently as of May 2016 Denver City Council lifted the moratorium and made it clear to the cannabis industry, "no more new licenses". Bet you didn't see that coming? So how does that affect the Denver market. Well challenges are the standard in the industry and current operators understand and know that these times are changing. We feel that it is a good thing for current operators and new comers to the market. We also believe that if you can brand, you can win. The small one storefront shops may soon become a thing of the past. Those who wanted more than the gold and stayed to try and find that "pot of gold" may find it challenging to turn strong margins and sell out for millions. So, your question ,is it time to get in the business? The answer is really quite simple; of course! The model has been proven, the business is strong and the risk takers have paved the way. The industry is moving quickly and those who are entrepreneurs and marketers who understand branding can easily prevail.
So how does one create a business and make it in such a competitive evolving industry? Simple, "get in the game". It has been our experience here at Business Brokers of Colorado for more than 7 years that even the mom and pop shops that sold out early realized a nice nest egg and timing is everything. Recently over the last few months we are seeing the second and third generation purchasers coming from in state and out of state making acquisitions. This is such a great model as these operators create a "roll up effect" and are able to then sell out larger multiple operators to the large market players. Recently BBC had the opportunity to meet several of these players. Perhaps not by accident, as they contacted our firm, we met with these players who are positioning themselves to acquire the larger performing business models. So what does this mean for you and our current clients? Now is the time and now is the place! Although the entry to the dance has now escalated from a half a million dollars to well over $2 million + for both a grow and a dispensary the acquisition still can be very fruitful. Of course the "side-liners", the "watch, wait, and see folks" who are still thinking may miss the boat. Your call.