Tips on How to Open a Marijuana Dispensary

                                Tips on How to Open a Marijuana Dispensary

Starting a cannabis dispensary can be both a difficult and exciting endeavor. According to the current federal law in the United States, the use and possession of cannabis are still technically illegal on the federal level; therefore, a cannabis dispensary will face several at times tricky and unclear challenges. There are numerous things you have to remember if you want to successfully open a dispensary and while there’s no guarantee, there are many things you can do to give yourself the best chance possible at ensuring your business is a productive investment. 

• Learn the cannabis rules and regulations of your state
• Do not have a previous criminal offense based on the requirements of your state
• Understand the dangers related to running a dispensary, which can still be closed by state or federal government
• Submit the required paperwork and forms 
• Build up a banking relationship if possible ( Although most banks currently will not accept dispensary accounts) 
• Understand that you will probably not reap profits for a while. 

                                                              Inquire about Laws

Are you planning on opening a medical, recreational or both? The operation of dispensaries have been legalized in most US states, but the laws also range from one state to another and even one county to another. Begin with your state’s regulatory agency, and also work with the municipal offices of your state to be sure that you are permitted to run a dispensary in your region legally.  This is not the place you want to take shortcuts or slack on doing your homework.

                                                            Create a Business Plan

A business plan should always be the first step to a successful business. Learn what is needed to establish your business. A business plan is the primary foundation of your business: a simple, convincing, durable road map that will set up your enterprise and help in the securing of investors. Write a vivid description of your objectives, goals, projections, and assets. If you develop a solid business plan, then you will potentially be successful in discovering the financial capacities to finance your venture and prove that you are a compelling and qualified candidate.

                                                         Understand the principles of cultivation

Most cannabis dispensaries are responsible for growing their marijuana on site. There are extremely tight laws for the tracking of marijuana from seed to each step all the way to the sale of the bud.  This is to discourage and diminish illegal export to nonlegal states typically to the east coast and southern states.   If you don’t plan on growing your cannabis, it is still essential to know the principles of cultivation, the risks and the impacts of seasonal weather patterns and to develop a strong relationship with your grower to make sure they are following the laws and properly growing a product that will reflect well on your business.

                                                          Hire a Lawyer

It’s essential to have an experienced cannabis business lawyer to set up your business entity properly. Creating a strong bond with your attorney can save you cash and alleviate any setback during your business. An attorney will give you legal advice and help you safeguard the necessary licenses and permits to prevent raids from the authorities once your business commences. Lawyers will help create a cannabis dispensary which is under the state, city and county regulations.

                                                        Hire an Accountant

Professional accountants can handle the financial aspect of the business and acknowledge the effect of 280E. Accountants can appropriately regulate general finances and also effectively file tax forms. Since cannabis dispensaries are still illegal under the federal government, the probability of the cannabis dispensary being audited by the IRS is very high, especially since at the moment most dispensary establishments are forced into operating as cash businesses.  Hiring a certified public accountant will make sure that you are protected in the event of an audit and assist you in navigating the legal minefield that is currently the “legal” cannabis business.

                         Buy or Rent the Necessary Facility for your Dispensary

Location is an essential aspect when it comes to marketing your business, determining which products to sell, and establishing your prices.  Your site represents your company, your brand, and the customers you want to attract. Since dispensaries are a very risky investment, most individuals choose to rent a property before buying. There are some online tools like traffic pattern information, demographic data and traffic “generators” that will help in determining which location will gain optimal traffic for your dispensary.

                                                                Acquire Funds

Although costs range from one state to the other, based on your state, you will need a certain amount of money to open a dispensary. You will also need an application for a license, state, and mandatory city fees, cost of the facility, payroll, bills, and stationaries like furniture, security systems, computer systems, and software, not unlike any brick and mortar business the fees can add up QUICK so make sure to do your due diligence and research, you last thing you want is to be halfway through a project and find yourself strapped for cash with no more resources for funds.

                                   Obtain Licenses, Permits, and Insurance 

Obtaining licenses and permits are mandatory. If you plan to legally start selling cannabis or put a clone or seed in a pot, then it’s necessary to have a license and permits in place.  Although having so many hoops to jump through and red tape to navigate can seem overwhelming, the cannabis industry is currently like no other and worth it to those brave enough to venture.  Many have referred to the cannabis industry as the modern-day gold rush, with so many emerging opportunities and niches to be filled, millionaires are being forged what seems overnight as it’s not every day a new industry is born allowing so many open niches to be filled at once.  If you think you have what it takes to be a successful dispensary owner or start a business in the many different sectors of the cannabis industry we encourage you to do your research , plan , research some more and if you think your up to the challenge brave the new world of legal cannabis and claim your place in the exploding marijuana industry.