Written by Melvin Magadia | October 1, 2019
With most US states moving towards legalizing cannabis, there’s no perfect time to put up your dispensary than now. Revenue generated by dispensaries and retail stores is expected to reach between $6.5 and $6.8 billion by 2019. It could be a good idea to contribute your own share of the pie.
But opening one will not be an easy task. It requires careful compliance with laws and regulations and a large amount of starting capital. But if you are still up to the task and want to start your own dispensary, here are some tips to get you started.
When opening a dispensary, due diligence should be practiced. You should first know your state’s laws. Currently, there are 30 states that have legalized medical cannabis but it is still your responsibility to understand what the law allows and does not allow.
So you already know that medical cannabis is allowed in your state but are you up to it? What is your motivation for jumping in to the growing industry? Maybe it’s your compassion but what about the challenges? Can you handle them? Setting up a dispensary may require some background check. Are you ready for that?
A business background or experience may not be enough to start your own dispensary. It may be a new arena for you. Get to know the industry, get advice from those with experience, or take some seminars. Right now, there are many schools that specialize in the cannabis industry and they offer marijuana-related training.
Before you get started, you might need the help of some professionals such as a lawyer. You would want to make sure that your dispensary is set up in accordance with the law. Just make sure to get a lawyer who specializes in marijuana laws.
Also, you will need an accountant. Dispensaries may be audited from time to time. Just the same, make sure that the accountant is knowledgeable about the cannabis industry.
In order to become the best dispensary in Eugene, you need to have a business plan. If you are someone who is not an expert with creating a business plan, you can hire an expert. The Small Business Administration also has a business plan tool as well as some cannabis-related schools.
Money is the biggest obstacle that you may encounter when setting up a cannabis business. Aside from capital, you may also have to pay the application fee, pay for licenses, pay for employees, and other expenses. If you have the cash, that’s good. However, if none, you may have to look for possible options for getting money.
Although banks won’t deal with businesses that are technically illegal, the good news is that some banks are loosening up on this issue. An article in Forbes revealed that there has been a 20% increase in the number of banks working with marijuana businesses since 2017.
Aside from banks, you may also consider getting an investor. Dispensaries are a budding industry and a lot of people would likely put their money on a thriving industry like medical cannabis.
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