LOS ANGELES, Jan. 14, 2021 /PRNewswire/ -- Pakaloh has rolled out a new national platform, Pakaloh's Marketplace, to empower cannabis professionals and businesses. Now, they can buy and sell used equipment online to help defray the high start-up costs involved in starting a cannabis business.
For many first-time, women or minority entrepreneurs aspiring to open their first dispensary, retail or manufacturing operation, the capital intensive requirements can prove anathema. It takes at least $300,000 to open a cannabis store, and up to millions of dollars for other enterprises, according to the 2019 Marijuana Business Factbook.
Most cannabis professionals finance their businesses through family wealth or personal contacts; 84% of U.S. cannabis businesses are self-funded by founders and 22% capture additional funding through a Family and Friends Round, cited by that same report. However, entrepreneurs' access to personal funding turns on racial lines: American median household net worth piques at $171,000 for white families, but plummets to $17,600 for African American, $20,700 for Latinx, and $64,800 for "Other," based on a 2016 Federal Reserve Board survey.
To fight the economic inequality in the cannabis industry, Pakaloh is rolling out its Marketplace at www.pakaloh.com/marketplace/. Through this platform, members can advertise their used equipment and accessories to sell to other members. Given the ability to buy used equipment, members will be able to access what they need at a reduced cost. Similarly, members will be able to liquidate what they no longer need by selling and supporting other entrepreneurs.
Pakaloh's Marketplace is one of the many resources available to its members. Pakaloh is the first free business resource for an inclusive marijuana, CBD, and hemp industry. A woman of color-owned company based in Los Angeles, Pakaloh provides its national members a suite of services, including: 1. Exclusive benefits and special discounts from financial institutions and other vendors. 2. Networking by accessing directories and directly messaging members, rating and reviewing other businesses and posting and searching for jobs. 3. Engagement through Pakaloh's curated information on activist organizations, and members promote events on Pakaloh's live Calendar.
"The travesty of our industry is that it augments the same injustices that we are now coming to terms with in the U.S. We're a country where three families alone control more wealth than 50% of Americans, and the wealth gap is worse than it's been in 50 years," shared Pakaloh President Rebecca Lee Katz. "Pakaloh imagines an industry where grit and skill alone determine your success. We are investing in individual and collective futures to engineer a diverse and inclusive industry. We are pledged to every community, by promoting sustainable businesses, generational wealth, unionized jobs, and a level playing field for every American."
Graphic from Pakaloh website for use with press release