Key Takeaways:
- Dinosaur, Colorado, with 315 residents, houses four marijuana dispensaries, making it a contender for the state’s cannabis capital.
- Its marijuana stores mainly serve out-of-state customers, becoming the town’s economic lifeblood.
- As the broader Colorado cannabis market faces rising interest rates, inflation, and increased competition, businesses need strategic planning to thrive.
- Dinosaur’s cannabis businesses are currently thriving despite the statewide market uncertainties.
Waking the Sleepy Town
Dinosaur, CO--Dinosaur, a town near the Utah border with only 315 residents, is experiencing an economic revival due to its four marijuana dispensaries.
With approximately one shop for every 79 residents, it's becoming a potential cannabis capital in Colorado.
Once struggling with its economy, the town now sees a financial influx from these dispensaries, drastically changing its economic fate.
A Border Town Boom
A CBS report notes that due to its proximity to Utah and Wyoming, where recreational marijuana is illegal, Dinosaur attracts many out-of-state customers, making cannabis its primary economic driver.
In the report, Town Treasurer Jim Evans remarks on the substantial money flow through the town, highlighting the significant change in its financial status.
Managing Economic Shifts
The broader cannabis industry in Colorado is under strain, with macroeconomic challenges and internal market issues reducing profits.
During these turbulent times, businesses, including those in Dinosaur, need to reevaluate their financial position, make essential cost-cutting decisions, and strengthen governance and controls to navigate the current market disruptions successfully.
A Community Transformed
Cannabis has brought financial prosperity to Dinosaur and allowed for community improvement projects, new housing lots, road paving, and the hiring of town marshals.
The CBS report noted that the revenue from cannabis sales, amounting to around $1.4 million in taxes and fees in 2021, significantly contributes to the town’s transformation and savings, with an expected $3.5 million in its coffers by year's end.
Critical Business Considerations
With the changing landscape of the cannabis industry in Colorado, businesses in Dinosaur and elsewhere need to navigate carefully.
Strategic planning, cost management, and investment reevaluation are crucial for both short-term endurance and long-term thriving in a market expected to be smaller and more concentrated in the coming years.
What Do We Think
Dinosaur's emergence as a potential cannabis capital amidst challenging times for the Colorado cannabis industry is noteworthy.
While it is crucial for businesses statewide to navigate through current market challenges strategically, the case of Dinosaur provides a glimpse of how localized cannabis markets can thrive.
The town’s experience offers valuable insights for other small communities and cannabis business operators in the state, showcasing the importance of location, strategic planning, and community engagement in achieving economic revitalization through the cannabis trade.
The little town's reliance on the cannabis industry is a double-edged sword, offering economic opportunities and challenges that need careful and continuous evaluation and management.
With thoughtful planning and community effort, Dinosaur, Colorado, may continue to grow as a significant player in the state's cannabis industry, shining an example for similar towns.
[Photo by Damian Barczak on Unsplash]