Marijuana is booming. The industry is still young, and the outlook looks as bright as the end of a freshly lit blunt. The cannabis market value is projected to triple by 2025 to over $30 billion. With CBD continuing to explode in popularity, this number is likely to keep increasing.
All of this bodes well for savvy business people looking for a new venture. It’s a great time to take the plunge and get in on the ground floor while you still can.
Here are six tips to help you get started if you’re looking to enter the cannabis market with your dispensary.
1. Make a business plan
Your business plan is your road map and an essential tool to help get you where you want to go. Do you want to be a small mom-and-pop shop? Do you want to start anonline cannabis store? Your business plan will be something you refer to often to monitor your progress and measure your success.
A good business plan will include:
- Executive summary
- Company description
- Market analysis
- Competitive analysis
- Organizational structure
- Products and services
- Finance strategy
- Marketing strategy
All business plans are unique and with the marijuana industry, you’ll also want to address things like sourcing your product, environmental factors, and regional laws.
2. Register your business and obtain all required permits
You’ll need to register your business name with your local government and choose an entity type. Your entity type will determine how it is taxed, asset transfers, ownership interests, and liability.
Dispensaries typically have four options (Sole Proprietorship, Partnership, LLC, Corporation) and you’ll need to do some research and decide what is best for your business.
You’ll also need to acquire all necessary permits. There are several laws involved in the production and sales of cannabis, and businesses must abide by these laws and attain the necessary permits. You can find an extensive list here.
3. Secure funding
Most people will require funding for their business. This is where it can get a little tricky with state and federal laws. Because marijuana is still illegal under federal law in the United States, big banks are usually not an option.
If you plan on opening in a state where marijuana is legal, you might be able to obtain a loan from a smaller bank or institution. But if that’s out of play you’ll likely need to deal with an investment firm or an angel investor.
4. Product and sourcing
Now you need to decide what products you’re going to sell. You’ll likely want to sell THC, CBD, and hybrid products in a variety of ways for consumption. Gone are the days when marijuana was just a plant to be smoked. Now the options are seemingly endless with candy, oils, topicals, cookies, chocolates, and more.
It’s important to partner with a reliable and licensed vendor that you trust and can grow with. This will require a significant amount of research to narrow down your options. A good place to start would be watching this video on finding and working with cannabis vendors.
 5. Find a great location
Location can make or break a business. Like with any retail business you’re going to want to look at factors like foot traffic, road traffic, demographics, competition, and available parking. It’s paramount to check your state’s zoning laws to make sure you’re in the clear before you sign a lease. Some states can have extremely tight restrictions that can make finding a desirable location a challenge.
 6. Online presence and marketing
Now that you’ve found your physical location it’s time to start building an online presence and marketing your business. A nice clean website is essential for any business and particularly true for dispensaries.
Having a well-organized site with a full menu of products and descriptions will go a long way in attracting customers, especially customers that know little or nothing about marijuana. This is your chance to educate them and hook them as a customer.
Depending on how savvy your marketing skills are, it might be a good idea to outsource a professional to help you with your online presence with things like:
- Web development
- Email lists
- Social media
- Paid advertising
- Content marketing
There are sites like Fiverr and Upwork where you can likely find someone to do this at an affordable rate.
Conclusion
It’s exciting to want to be part of a booming industry like marijuana in the early days, but there can also be many pitfalls along the way.
Spending ample time on research and learning the industry’s ins and outs will be essential in helping you make your decision. It will be a long and challenging process, but if you have the determination, starting a dispensary has the potential to be not only profitable but also extremely rewarding.
The iron is hot, so now is the time to strike if you’re looking for a career change or want to add another project to your entrepreneurial portfolio.
