Nearly 60% of U.S states have legalized medical marijuana and recreational cannabis use in some form or another. These states, combined, are home to almost 200 million people—just over one-third of the population in the United States. But only recently has recreational use been legalized in several states.
Colorado and Washington legalized recreational cannabis in 2012. Oregon and Alaska did the same thing two years later. Twenty-four states have legalized marijuana, with 170 million residents living under such laws.
You may be thinking to yourself, “I don’t have a cannabis dispensary near me,” in which case you won’t have competition if you decide to start one. Opening a dispensary in some of these other states that already have dispensaries open seems like a good idea. But it’s not that simple.
The laws surrounding cannabis can be very complex. If you plan to open a dispensary, you’ll need to be familiar with them and follow them precisely. Here are the most crucial things to know about.
Obtain a License
A license is a critical component of opening a dispensary. Some states are a little bit more competitive and have multi-state operators than others. Colorado and Arizona are two such states. Despite the competition, you might still be interested in opening a dispensary. So, you need to get a license. To obtain a license, you need to visit the state’s marijuana related websites and licensing services.
Some states are very restrictive on licenses while others are a little bit more open. Even so, you need to get approval from the jurisdiction of the area in which you’re planning to open the dispensary, find and obtain a dispensary location, create a business plan, pay administrative fees, and secure plenty of capital ahead of time.
Comply With State Laws
Opening a dispensary in your state can be a great business plan. Some states make it easier than others. Oregon, Arizona, and Colorado, for instance, both offer recreational marijuana as well as the medical. That means a dispensary can serve both. Other states like Missouri and Florida only offer medicinal marijuana. That means you’d only be able to open a medical dispensary. Either way, you have quite a bit of planning and prep to do to comply with state laws.
Most states have an application process, a requirement to be 21 or older, and several fees to get started with administration. As long as the state’s legalities, market, and costs make sense to you (and work with your goals), you can start the process of opening a dispensary today.
Be Prepared To Invest Heavily
Setting up, opening and, and operating a dispensary is a costly endeavor. He should be prepared to invest heavily in the process. Upfront costs can’t get a little high. You need to find and lease a space. That’s a significant investment. And you need the proper equipment and inventory management.
Your license is going to come with a large price tag as well. Even after you’re up and running, you need to be able to pay your employees, manage inventory for your state guidelines, and keep things stocked up. Securing $300,000 to $500,000 of liquid Capital before setting up your dispensary is a practical way to get started investing in your new business depending on the state in which you reside.
Write A Business Plan
A great business plan and strict adherence to local regulations will help you become one of the best cannabis dispensaries in your area while helping to service the community. Set up your business plan by outlining what type of products are going to sell, how you’re going to manage your inventory, and what type of services you can bring to the community.
Find ways to make a positive impact while remaining compliant with the law. Then detail how you plan to execute your business and higher staff. You’re going to need to hire experienced people who can handle not just the business of running the dispensary but understand the legal aspects of it.
All employees also need to be registered and have IDs, which can cost upward of $500. Recordkeeping is also a vital part of running a dispensary, and you should have a detailed methodology to handle it.
Find A Location
Even with a robust business plan and complying with local laws, you’re going to need to find a good location. It should be accessible to foot traffic, completely cleared by the state, the zoning restrictions in the area.
It’s also essential that the business area fits your Target demographic and your landlord is okay with a dispensary being run in the location. This is going to be a long process and probably take some time to get right. But once you scout and find the perfect location, you’ll be able to open a dispensary that your community will love.
