Marijuana has been a hot topic over the last few years as more and more U.S. states started to legalize it. Dispensaries are becoming more common and this is good news for anyone who is thinking about going into the marijuana business, but for the U.S. economy as well.
The total U.S. economic impact from cannabis sales is expected to reach $160 billion in 2025 and it’s expected that even more states will legalize the substance in the near future. So if you’re thinking about jumping on this trend and starting a marijuana dispensary, here are some of the things you need to consider first.
Write a business plan
No matter if you’re looking to start a new business from scratch or are thinking about growing an existing dispensary, you will need a business plan that will guide you to success. Every business needs to have a well-written plan to raise funding, plan out growth, and follow the progress it’s making.
Most marijuana dispensaries manage to get off the ground thanks to investors and personal savings because banks don’t give out loans to dispensaries. And unless you already have enough money saved, you will need a stellar business plan to bring in angel investors.
Angel investors are people who will give money to your business in exchange for equity or loan it to you with an interest, just like a bank would.
Well-written business plans require a lot of work and meticulous details. Some of the sections you should have in your plan include an executive summary, financial analysis, customer analysis, industry analysis, and that’s just the tip of the iceberg.
If you don’t have any experience in writing business plans, you can use a dispensary business plan template. This will help you write the perfect plan with very little effort.
Dispose of the waste properly
Every marijuana dispensary, regardless of how big or small it is, needs to comply with industry regulations as not to risk losing its license. And a big part of complying with those regulations is properly disposing of cannabis waste. The way you dispose of your waste will differ based on the state where your dispensary is located.
For example, if you’re working out of Los Angeles, California, here are three ways to ensure you’re keeping up with regulations:
- Self-haul the waste. Most dispensaries choose to self-haul their waste to a composting site, a solid waste disposal facility, or an in-vessel digestion facility. If you have the means to haul the waste yourself, you will need a cannabis waste management plan that will help you comply with guidelines.
- Hire a waste disposal company. There are multiple businesses in California that offer waste management solutions. If you want to save yourself some time and are willing to invest in waste disposal that complies with all regulations, this is a good choice.
- Compost onsite. This option requires a lot of work and compliance with the cannabis waste disposal techniques. Feel free to do it if you have the time and means to compost onsite, but bear in mind it’s going to take a lot of work.
Do research on your competitors
Marijuana dispensaries are getting more popular every year and if you want to make sure you have a chance for success, you need to know what kind of competition you’re dealing with.
You can find out who is selling in your desired area by looking for dispensary advertisements in your local publications and online. This way, you can find all of the licensed operators and see what their unique selling point is so you can figure out a way to make your business more attractive.
You should also try to find out if there are any unlicensed operators working in the area. Unlicensed competition can be a big problem, especially if law enforcement isn’t doing a lot to stop their businesses.
Having information on all of your competitors, both licensed and unlicensed will help you create a good business plan and marketing strategy.
Be aware of the legal risks
In the US, medical marijuana is legalized in 36 states. Fifteen of those 36 states allow the use of recreational marijuana and more states are expected to follow.
For example, 2022 is expected to be a big year for cannabis laws in Ohio. However, you do need to be aware that at a federal level, marijuana is still considered to be illegal.
When it comes to federal law, it can be a bit hard to determine the legality of marijuana dispensaries and this makes it hard for dispensary owners to be sure if they’re abiding by the law. But this shouldn’t put you off and scare you from opening a marijuana business.
The smart thing to do would be to hire a lawyer who is well-versed in the topic of marijuana dispensaries and the legality behind them and who will ensure you’re always abiding by the rules.
Final thoughts
Marijuana isn’t a taboo subject like it was just a few years ago. Owning and operating a marijuana dispensary is a good career path for people who have this passion. And as long as you know what rules to follow and what to keep an eye out for, you won’t have any issues getting your business off the ground.
