If you’re wondering whether it’s the right time for starting a new cannabis business in Michigan, we can confirm there’s no better time. The gross revenue figures are healthy and growing, and these numbers will do nothing but increase as more growers, processors and retail outlets come online. While the number of municipalities opting in has not expanded as rapidly as we thought, there will be more this year.
We see indications that COVID-19 requirements for Zoom meetings have diminished municipal officials’ appetites and interests in lengthy discussions on non-essential topics. As Michigan begins to emerge from the pandemic, more municipalities will look at legalized commercial marijuana businesses as opportunities to create and sustain growth in their communities. New job creation opportunities abound, and every community needs that kind of change.
New Cannabis Businesses Are Growing in Michigan.
As an example of what we’re seeing, just the other day, we took three calls about potential marijuana licensed businesses and investments. The upcoming March 1 date for open licensing of adult use/recreational, commercial companies is leading people’s interest. No doubt, media coverage of legalized marijuana matters is increasing the business interest. People have been reading articles and reviewing the data about what is going on in Michigan and understand how well things have performed to date, and see this as an opportunity for their new cannabis business ventures.
Now is the time to start learning about the commercialized legal marijuana industry in Michigan, and we can help guide you and discuss the many options and municipalities available. There’s no better time to start business planning and formulating your business plans. There’s undoubtedly going to be the new microbusiness license category at 250-300 plants, making that business model more financially feasible. Start looking now—as people starting new cannabis businesses will gobbling up those locations.
Another obvious area for growth in the marijuana field is the consumables industry. All projections are for significant increases in the cannabis consumable products that go beyond candy and tinctures—infused drinks were just approved. For people seeking a processor license, opportunities abound! Can you visualize a sign for Sky High Subs? Maybe a particular brewer will make a new version of its High Life beer? How about some Chips and THC Dip?
If you’re interested in a restaurant business, no better time to plan than now. There is a growing number of municipalities that permit or will permit consumption locations. Will they have a drive-thru and take out? There’s curbside delivery for retail enterprises now, so it’s only a matter of time before the Marijuana Regulatory Agency authorizes drive-thru operations. Why not for consumption locations? Maybe retail enterprises will start selling pre-packaged cannabis-infused meals. It’s NOT part of what’s going on now—but consider where we were and how we’ve grown. Michigan is not following others when it comes to cannabis—we’re leading and innovating.
As COVID numbers start to decline, we think marijuana consumption events will become part of Michigan’s landscape. While there are just a few municipalities zoned for marijuana events now—we believe those villages, townships, and cities that happily co-exist with cannabis now will be more open to adding marijuana events to their zoning. It’s an easy entry point for someone with event management skills who wants to work in cannabis. The Marijuana Event Organizer is also one of the less expensive adult-use licenses available.
The legalized cannabis industry is booming in Michigan. It will continue. If we’re lucky, it will explode this summer as the COVID-19 pandemic begins to wane and tourists return. The market was great before, and the market will continue to grow. Jump in now while you still can.
Tax Credit For a New Cannabis Business? Check This Out.
On a separate note, the State of Michigan recently adopted a law allowing income tax credits for rehabilitating of historic properties. If you’re considering establishing a new cannabis business in Michigan, look into it with your tax people as you’re looking to acquire properties.
It might be an opportunity to get yourself a tax credit by rehabbing a building that somehow falls into that historical property category. Maybe it’s an old dime store building in downtown Niles or the first hospital in Grayling. It might require you to you ask specific municipalities to create historical districts so you can apply for income tax credits—not impossible! You’ll do double good by rehabbing old structures that are out of use. Also, check out the federal income tax opportunities for this too.