Getting Into the Marijuana Business
The marijuana industry continues to grow rapidly across the United States and there are now 24 states that have legalized medical marijuana. Getting into the business, though, can be tricky and involves a draw-out process. To open a dispensary you first need to get through the meticulous application process which varies by state.
If approved, you will get a medical marijuana business license which is required before opening your dispensary. The cost of the license varies by state and can range from $150 up to $20,000.
It’s a smidge outdated but I can’t find a better guide online, here is a Cannabis Business Cost Startup Guide.
Getting started you will need the following:
- A solid business plan
- Start-up capital (average start-up cost is $250,000)
- Hire a Certified Public Accountant (CPA)
- Buy or rent a suitable location for your dispensary
The most important of those is getting the start-up capital. Most applicants fail to get approval for a medical marijuana business license because they’re unable to meet the startup capital requirements. As a prerequisite, you must meet the state’s minimum startup capital requirement in order to get approve for the license.
Each state’s minimum is different; for instance, Arizona requires $150,000 in liquid assets while Nevada requires $250,000
Opening Your Medical Marijuana Dispensary
Once you’ve been approved for a license and you have all your ducks in a row, you can get started. The marijuana business is projected to hit $7 billion this year and is rapidly growing. That being said, the market continues to become more and more saturated and it won’t be easy to make your business successful.
Here are the next steps to starting your marijuana business:
- Maintain a Respectable Image – Given the industry, you’ll want to shine the best possible light on your business.
- Learn How to Grow Marijuana – There are many different strains of marijuana and numerous ways to consume it. Make sure you’re well versed in the industry or have experts on hand to help you.
- Market Your Business – This one can be tricky as many online marketing avenues still do not allow advertisers to market marijuana-based businesses. You may likely need to take the approach of traditional marketing and word of mouth.
- Keep Meticulous Records – This will help you avoid any legal issues down the road.
- Price Competitively – Since no insurance company covers medical marijuana, your customers will have to pay out of pocket. This makes the industry very competitive when it comes to pricing. Research the pricing of other dispensaries and make sure you set your prices competitively
If you follow these steps, you should be on your way to opening your first medical marijuana dispensary.