Marijuana Business Factbook 2019

266 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 6.13: How Profitable Are Ancillary Services Firms? Note: "Losing A Lot Of Money (expenses and taxes exceed revenue by more than 25%); "Losing Some Money" (expenses and taxes exceed revenue by up to 25%); "Moderately Profitable" (up to 25% of revenue left after expenses and taxes are paid); "Very Profitable" (more than 25% of all revenue left after expenses and taxes are paid). Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. How Profitable Are Ancillary Services Firms? 0% 20% 40% 60% 80% 100% Level Of Profitability 8% 22% 25% 25% 20% 5% 9% 21% 36% 29% Serve Cannabis Industry Only Serve Cannabis & Other Industries Very Profitable Moderately Profitable Break-Even Losing Some Money Losing A Lot Of Money Just under half ― 45% ― of surveyed ancillary services firms that serve only the cannabis industry are moderately or very profitable, as opposed to 65% of firms who serve cannabis and other industries. (Note: For ancillary services firms serving multiple industries, profitability here refers to the cannabis-related portion of the business.) Among companies that solely serve the cannabis industry, 70% operated at break-even or better, compared with 85% of companies that serve multiple industries. While there is money to be made in cannabis, this may be an indication that companies serving multiple industries are somewhat buffered from the risks currently associated with cannabis.