Opening a full service marijuana dispensary is risky, and it is very exciting. The introduction of marijuana dispensaries has been deemed the “green rush”, and many people are wondering how to cash in on the industry.
At the moment the marijuana industry is a very lucrative. You will need attorneys, permits, consultants and so forth as well as a sizable investment to even get started. Let’s explore just how to open a marijuana dispensary.
Where to Start: Challenges
Since the federal government still considers the sale of marijuana illegal opening a dispensary will require a lot of hard work. There are many obstacles that one may face while going through the process.
Since a marijuana dispensary is in fact an
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illegal enterprise entrepreneurs will deal with issues raising money for their new business. They will most likely face difficulties
with the banks while trying to set up merchant accounts as well. The number one challenge reported has
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been regulatory compliance followed by securing financing.
Where to open a
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Marijuana Dispensary and What to Do
You must first check with your state officials for the local ordinances and laws you will have to adhere to. The Department of Health is a great place to begin. You will then begin the licensing process. This can vary from state to state. You will need a solid business plan as the competition in this industry is high. Also, find out if your business must be run as nonprofit or as a cooperation.
Am I a Good Candidate for having a Marijuana Dispensary?
If you have a clean record and you are committed to not only the challenges but to running a successful business the right way then you are a good candidate. One must remember that this will require time, monitoring and ongoing marketing. You really have to commit to being able to running this business hands on and monitoring everything all of the time, because if something goes wrong it will be solely your problem.
Revenues and Costs for a Marijuana Dispensary
Financially the risk and obligation is not something for the faint of heart. It can cost upwards of $100,000 just in application fees alone. There are also consulting fees, and licensing fees to be considered.
If you are in fact one of the lucky ones who is approved and licensed a build out fee will run up to another $300,000.
Your store is built, then what? You have to get the product. If you are in a state allowing cultivation you could be looking at another $400,000. At the end of the day
it is going to be around a quarter of a million dollars in total costs to open a marijuana dispensary. However, dispensaries that are run well can bring in more than $100,000 a month in revenue. So, the risk, commitment and time can be well worth it for serious, business minded entrepreneurs.
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