The recent legalization and increasing popularity of marijuana have given an all-time boost to the industry. People have now opened to the idea of using marijuana, for both recreational and medicinal purposes.
The industry recorded sales of $9 billion in 2017, and it is expected to grow to a $21 billion market by 2021. In this time, opening a marijuana dispensary can be a lucrative opportunity.
Do you plan to start a dispensary? Are you wondering how you can do it?
If yes, then read on to find out the steps to start a dispensary in 2020.
What Steps Should You Follow While Starting a Marijuana Dispensary?
A marijuana dispensary is a licensed store that has the authorization to sell cannabis (marijuana or hemp) and its byproducts to recreational and medicinal users. It is a safe place to buy different marijuana strains as well as CBD products like oil, capsules, edibles, topicals, and much more. CBD capsules Canada is the most popular product today among people who want to take regulated doses of the cannabinoid for pain, anxiety, and even sleeplessness.
Some Steps to Follow While Starting a Marijuana Dispensary
1. Conduct Thorough Market Research
Before you venture into a business, the first step must be to conduct preliminary research, and the marijuana business is no different. You must get familiar with the recent cannabis laws and legislations that will govern your operations. Find out the license or permits that you may require for a dispensary.
You may also want to research about the taxation laws and finances required for your marijuana dispensary. Search for banks that offer loans to a cannabis business or even let you open an account. Market research will ensure you have smooth sailing in the later stages.
2. Create a Business Plan
When venturing into the marijuana industry, which is already close to saturation, it is best to have a solid plan. Determine the capital required to set up a marijuana dispensary, and check if you can invest that much. Determine a budget for the business, considering the rent, license fee, salary, inventory, and utility bills to keep your business running. You can then decide if you are going to invest or take a loan. Lastly, consider the competitors and devise a business plan that will help you ascertain the feasibility of the venture.
3. Choose the Right Location
While you might not consider it, the location can play a pivotal role when it comes to opening a marijuana dispensary. There are rules that can affect your choice of location, and they may vary from State to State. Ideally, a dispensary must be away from a church, residential area, schools, and other dispensaries.
For instance, in San Diego, a dispensary must not be within a radius of 1,000 feet from these places, as mentioned above. While choosing a location for your dispensary, ensure it doesn’t flout any rules, but should be in the right area to get enough traffic.
4. Get a License
The most challenging yet important step in the process is getting a license. Every cannabis business owner must have a license from the local government by sending in an application with the appropriate paperwork. The authorities will judge your ability and position to operate a marijuana dispensary.
The selection depends entirely on your merit, which is your experience and knowledge of the industry. Make sure you brush up all the knowledge before going for a license, as you might have to answer some questions about your plans and the industry.
5. Market your Dispensary
Once you get the license, you can fulfill your dream of opening a cannabis business. You can rope in vendors, other retailers, and partners to smooth out your operations. Get your hands on the best marijuana products and then focus on selling it.
You might have to go out of your way to reach the target audience. Plan a strategy to market your marijuana dispensary by using both online and offline means. You can offer discounts or conduct events in your store to interact with the consumers.
For a wider reach, you can use digital marketing methods like social media marketing, search engine optimization, or even website development. It will help you increase your target audience, convert them into sales, and grow your business.
Marijuana dispensaries are expanding exponentially, both in terms of numbers and popularity. Experts believe them to be the future of legalized cannabis. You can jump into the market, but make sure you have the proper knowledge and business plan. Follow the detailed steps above to ensure you give your marijuana dispensary the kick-start it needs.