Marijuana Business Factbook 2019

264 Marijuana Business Factbook 2019 Chapter 6 | Cannabis Testing Labs and Ancillary Firms © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. CHART 6.11: Ancillary Services Firms That Serve Multiple Industries: Average Portion Of Revenue Derived From Cannabis Industry By Service Type Among the 65% of ancillary services firms that serve multiple industries, these firms earn on average a third of their revenue from the cannabis industry. This figure ranges from a low of 7% for firms that provide financial and banking services to a high of 54% among firms that offer real estate services. Companies specializing in financial and banking services are limited in their ability to provide services to the legal cannabis industry because of federal prohibition. While this has created a valuable and potentially lucrative niche to be filled, the low average percentage of business derived from cannabis is likely a reflection of this category’s current barriers to entry. On average, ancillary companies providing real estate services and information services earn roughly half their revenue from the marijuana industry. The nuance of marijuana-based real estate ― including identifying agricultural or commercial properties suitable for cultivation, processing or retail while adhering to state and local zoning regulations ― requires thorough knowledge of both real estate and marijuana laws and may command premium pricing. Likewise, information services such as education and training require companies to have a deep understanding of the regulations about which they are communicating.