But it turns out that trying to make a profit in this business is harder than expected. When grown and sold legally, marijuana can be an expensive proposition, with high startup costs, a host of operational headaches and state regulations that a beet farmer could never imagine. In Colorado, for example, managers must submit to background checks that include revealing tattoos. The state also requires cameras in every room that has plants; Mr. Klug relies on 48 of them....When grown and sold legally?! Why is the Wall Street Journal writing that? You can't grow and sell marijuana legally. This is all a crime under federal law.
Prices for pot, meanwhile, have plummeted, in large part because of growing competition. And bank financing is out of the question: Federal law doesn't allow these businesses, and agents sometimes raid growers even in states where it is legal.Doesn't allow? You mean: Makes it a felony. Growing marijuana is a criminal enterprise. And there are no "states where it is legal." It is illegal in all of the states under federal law. The states are in the United States — haven't you heard?!
... Pink House Blooms is a $3 million-a-year business, with 2,000 plants in a converted warehouse in an industrial part of Denver... To get started on this scale, [Elliott] Klug says he sank more than $3 million — some of it borrowed from family — into the operation. He says Pink House Blooms is profitable, with demand up 30% some months....Shouldn't that be: Start by not worrying about what "legally" means? This man is attracting attention, getting his name and these big numbers in print in the WSJ, which presumably loves to profile the risk-takers of business.
His advice for anyone who wants to become rich by legally dealing pot: "Start with lots of money."
Last December, President Barack Obama said his administration had "bigger fish to fry" than going after recreational users.Nice for the recreational users to know they aren't big enough, but what solace is that for the man trying to become rich by dealing pot? He is trying to be the big fish. He's trying to get rich in a market that anyone who refuses to commit crimes cannot enter. What a terrible situation! And yet the prices are already plummeting, we're told, because of all the competition. Klug's hope of getting rich is premised on the illegality.