CRF Blog

Marijuana boom spawns ancillary businesses

by Bill Hayes

In Marijuana boom spawns ancillary businesses, the Los Angeles Times reports on companies moving into the opening marijuana market.

In addition to product suppliers, marijuana retailers and dispensaries are also increasingly seeking lawyers, accountants and security consultants, said Troy Dayton, CEO and co-founder of ArcView [a San Francisco investment firm that focuses on marijuana]. But many of those professional firms still avoid the pot business.

“The reason there’s so much opportunity in ancillary businesses is because the industry is being underserved by traditional players,” Dayton said. “In part, it’s because they fear the reputational risk and they fear the market is too small. But it’s growing fast.”

Growers and dispensaries offer some of the quickest returns on investments and fattest profit margins. But they also are exposed to risks that don’t affect supply chain companies. [more]