'Growing Weed Is Not Easy, Cultivation Is Science,' Say Experts At NJ Benzinga Cannabis Market Spotlight, Share Tips On Making It Without Breaking The Bank

"We're starting to see price compression," said Giovanni Paul, co-founder of Noiré Dispensary in the heart of Maplewood, New Jersey. "We’re seeing more and more competition coming online." The growth is starting to bring down the price, which "keeps a healthy market."  

Paul talked about the cannabis market in the Garden State, at the Benzinga Cannabis Market Spotlight on Monday in New Jersey, along with Scheril Murray Powell, founder of Cannabis HR Council and Joseph Lustberg, CEO at Upwise Capital. The panel that focused on sharing cost-effective ways to make it was moderated by Tenisha Victor of Tier 9 Collective.

"Right now, we do see great opportunity. It’s just starting," said Paul.

Powell, a top cannabis attorney and former director of Federal Affairs for the Florida Department of Agriculture, agreed that the NJ market is hot. "There's a lot of ancillary opportunities related to this growth that we're seeing." New Jersey is a great place to invest as it is showing a lot of stability for investors. It is, however important to find the right partners to get into relationships with, added Powell, a Rastafari pushing for faith-based cannabis use.

Start Small, Mistakes Cost

Powell said it’s important to realize that not everyone has big bucks to get started. “Take your time in selecting your partner. Take your time in reviewing contracts. Take your time to get legal counsel. Don't rush to become a vertically integrated organization."

She also pointed out that it is important to start the business as close to your core competency as possible, meaning if someone has retail experience it should start with retail, if someone has cultivation experience they can start with growing. Compliance is another huge factor, so everyone should do their own due diligence and surround themselves with experts.

"Have a phased approach to success," Powell said."It doesn’t have to all happen at once. You start small, and then you scale in a way that makes sense financially, in a way that makes sense to your investors."

See Also: Too Many Cannabis Shops, Too Small Profit: How To Play The Municipal Game In The Legal Weed Era

Cultivation Is Science

A fintech leader, who finances cannabis businesses, Lustberg, agreed on the importance of putting the "right team together and making sure that you're in the right market and that you're in the right part of the industry." He’s seen people make a lot of mistakes, especially on the cultivation side. "Cultivation is science. Growing weed is not easy. One little bit of mold or bugs or anything growing a crop and there goes a lot of money. So we see it happen all the time, and you really need to have the right team and not make those mistakes. And if you do make a mistake, learn from it."

Lustberg, who has been a medical marijuana patient since High School, shares that Upwise Capital is very involved with its growers and cultivators, recommending genetics and helping companies who need insurance attorneys or accountants. "We bring value as well. We're very involved in both sides of cannabis." Family and friends investment for startups are really important in this space, he says.

Powell followed up. In addition to funding from family and friends, which connects you to the community, she mentioned New Jersey’s grant program for legacy operators. "I think the grant program is something that we’d love to see across the country to address the access to capital issues."

Paul wrapped up by noting that there are many solutions and even more opportunities in addition to being involved in the plant-touching sector of the industry.

Powell also concluded by highlighting the importance of exclusivity "Exclusivity is not a given. Exclusivity is something that you chose."

Photo credit: Corynn Egreczky