With the relaxation of medicinal and recreational marijuana laws across the states, the cannabis industry is one which is growing and is expected to grow larger as more states relax their laws. A quick look at the number of cannabis jobs on offer on websites such as Cannabis.net shows how popular the industry is becoming. So, you may acknowledge that the industry is growing apace, but where should you invest your money?

Here are some points to take note of.

Avoid Publicly Traded Cannabis Companies

Publicly traded cannabis companies such as Medbox (OTC:NGBL) should be avoided in our opinion. It is safe to say that there are not many solid businesses to invest in which are publicly traded, and the chances of getting your money back are quite low. We would recommend investing in privately-held companies. This allows you to become an accredited investor, which meets the SEC guidelines.

Look at the Management Teams

We would recommend that you look for companies with a talented management team. This may seem quite obvious, but you’d be surprised to know that there are many “stoners” out there who are way above their capabilities and have got lucky with the “green rush” and their long term success may be limited.

Look for Companies That Don’t Directly Deal with Cannabis

This will avoid a lot of risk, as there are lots of rules that companies who deal with cannabis must follow and adhere to, and if they fail to take heed of these rules, they could be out of business. A  way to avoid this is to identify ancillary companies. Companies such as IoT technology firms, aswell as business intelligence solutions are safe bets. There are plenty of next generation marketing platforms out there to invest in, that provide the means for growers to take their crop to market. One of these companies is FlowHub, which is a cannabis software platform. If you follow the advice of investing in services and technology that help cannabis companies, this could become very lucrative.

Research the Different State Intricacies

Each state has different laws that govern the usage of medicinal and recreational marijuana, and the rules are often difficult to get your head around. This is why investing in solutions that make the life of the dispensary easier for helping to navigate the legal minefield, should be considered. In a recent survey, it was found many dispensaries are too scared to expand into other states because of the different rules, so there is a big part consultancy firms can play in navigating the path to expansion for these companies.

Who is Hiring?

Have a look at the cannabis jobs near me tool on Cannabis.net, and you will quickly see what companies are growing, simply by the number of staff they are hiring. This will give you an indication of the likely path of the company you are looking to invest in is taking.