CannaCFO Magazine Issue 1 | Page 26

Here at Zena Financial Services, LLC, we are in the unique and exciting position to be able to speak with many entrepreneurs in the cannabis and Hemp industry every week. They speak passionately about their business, their growth, new products, and the revenues they have achieved in short periods of time. It is an incredible feeling to have the opportunity to help someone achieve their goals by assisting them with additional financing for their business, such as a short term cash advance or equipment financing. Let’s examine some of the trends we have seen and continue to watch as to the best time to attain financing for your cannabis business.

Explosive Growth

It is no secret that the cannabis industry has exploded before our eyes from 2017-present. According to Leafly.com, as of February 2020, 243,000 Americans are employed by cannabis companies, and an additional 33,700 jobs were added in the last year. We’ve yet to see statistics added for 2021 as of the writing of this article but considering that during the 2020 COVID-19 pandemic, the cannabis industry was deemed essential to remain open.It will be interesting to see how these numbers pan out in terms of growth or maintenance for the New Year. This is a young emerging industry, and we are all watching this fascinating explosive growth unfold together. Projections of the Cannabis Industry According to MJ Biz Daily, as of 2019, the cannabis retail sales for both medical and recreational adult retail sales were anywhere from $10-13 billion, with a growth trajectory of up to $37 billion by the end of 2024. According to Business Insider, as of January 2021, marijuana is legal for recreational use for adults in 11 states and Washington DC, and medical marijuana is legal in 34 states. In addition, there are five states that are looking promising to legalize recreational marijuana in 2021. According to Marijuana Moment, these states are Connecticut, New Mexico, New York, RhodeIsland, and Virginia. As you can see, the marijuana industry is on a positive track for continued growth, and more importantly, opportunity for expansion and increased sales for those involved in the cannabis companies.

If You Build It, They Will Come?

Anyone who has seen 1989’s “Field of Dreams” remembers the scene where the character Ray Kinsella, portrayed by Kevin Costner, hears a voice in his head tell him to build a baseball diamond in a corn field on his struggling farm in Iowa. While for a struggling corn farmer, this advice may seem like a leap of irrational faith,some in the cannabis industry willingly take that leap based on the exciting projections discussed in the last section.