Opening a medical marijuana dispensary might seem like your roadmap to wealth, but there are a lot of things to consider. First off, you must follow every applicable state and city regulation. Despite the fact that medical marijuana infuses a large amount of cash into the local economy, you may still run into issues with your chosen location. Therefore, it’s wise to do research into at least two separate cities if not more. Once you’ve found a spot where you can receive a business license and some local support, it’ll be time to move on to the next hurdle.
1. Secure Financing
Unlike opening another type of business, you won’t be eligible for a bank loan. Plus, the Small Business Administration (SBA) is also a dead end. You’ll need to either have a lot of cash saved up or be able to find individual investors.
2. Be Mindful of Hidden Expenses
The absolute smallest amount of money that can open a dispensary is approximately $150,000. However, many places require an initial investment of up to $2 million. Don’t forget that you’ll be responsible for paying professional fees and financial services, which can run you around $75,000 per year.
3. Write Your Dispensary Plan
Your dispensary plan must be filled with cold, hard facts. It’s absolutely critical that you address every aspect of your plan, including the business opportunity and execution. Essentially, your dispensary plan should show realistic figures that back up your vision.
4. Apply for Your License
Follow every single guideline listed for your state and city. Get rid of any existing red flags so that your license request isn’t denied. Furthermore, complete the necessary paperwork, along with pulling together all supporting documents. The information you will need to have ready should be listed online, providing you with easy access.
5. Choose Your Physical Location Carefully
Did you know that even if medical marijuana is legal in your state, that it still might be illegal to open a dispensary in certain cities? Aside from dealing with this issue, you’ll also need to look closely at any specific laws for your chosen spot. For instance, in Michigan, you can’t open a marijuana dispensary within 1,000 feet of a K-12 school.
6. Hire a Proven Staff
Succeeding with a marijuana dispensary should be easy, right? Not so fast. Unless you hire the right people, your dispensary dreams can go up in smoke. There are four main employee categories that you’ll need to get right:
Budtenders
Security Officers
Store Management
Inventory Manager
Store management may seem like a role you can take on. However, unless you’ve got a lot of experience running a retail store, we suggest hiring a separate store manager.
Other things you’ll need to accomplish include picking the right technology to help your staff succeed, putting together a viable security plan and finding high-quality cannabis flower. Always ensure you source your products from a reliable company as this can tank a company if done so incorrectly. After all, unless you’ve got an array of products from proven manufacturers, you might have a difficult time staying in business.
