The continued legalization of recreational and medical marijuana in different states has been an unprecedented process, creating a hotbed for investment that has people clamoring. According to Marijuana Business Daily, income generated from dispensaries and recreational shops is expected to range between $6.5 and $8 billion by 2019. In 2017, the industry generated more than $5 billion through sales. Here are the steps you can take to open a dispensary.
Step 1: Evaluate Your Commitment and Eligibility
Evaluating your commitment should be made a priority because the venture is likely to consume significant amounts of time before seeing any substantial profit.
If you’ re in it just to make money, then prepare for a potentially long and bumpy ride. It’s also worth noting that background checks are obligatory and those with a criminal history are unlikely to be eligible to open a dispensary.
Step 2: Conduct Intensive Research
Owning a dispensary isn’t just all about possessing the knowledge and skills needed to grow marijuana correctly. The marijuana dispensary business has extensive legislation and regulation.
Understanding the fundamental laws and the impact of proposed laws is critical for future success. Aside from legislation, understanding tax implication and reporting practices, as well as the license application process, is essential.
Step 3: Identify the Right Property and Location
Finding a property that meets compliance is vital. Generally, the property must be located at least a 1,000 feet from the nearest residential zones, schools, churches and other licensed facilities.
Your rental compliance must be in line with the ever-changing laws in the marijuana industry. Identify your target market and find out if the location is convenient for potential customers.
Step 4: Develop a Strong Business Plan
Creating a functional business plan is essential in attracting investors and showcasing your commitment to the business. Your business plan should indicate how you’ll access capital and budget. It’s important to also demonstrate your knowledge of product cost as well as demographic and psychographic.
Step 5: Get Licensed
Obtaining a dispensary license can be a difficult and expensive process. For instance, the application fee in some states can cost as much as $15,000. Be prepared to have a lot of resources and spend a lot of time on compliance.
Opening and operating a dispensary is a tremendous economic opportunity, but also full of complexities and pitfalls. At America Cannabis Company, we’re a cannabis consulting group dedicated to helping individuals navigate the murky waters of the dispensary license application process.
We can help you develop your business plan, put your documents and finances in order, navigate the regulations and laws, and much more.
Contact us to learn more.