The global spending on legal cannabis is projected to hit $57 billion by the year 2027. Medical marijuana will make up 33% of this whooping figure as more countries embrace its use in the health care setting. Based on these projections, there have been notable investments in the medical cannabis sub-sector in recent times.
With more medical marijuana clinics offering compliant access to this highly regulated substance, there are noticeable prospects for market expansion. Have you been contemplating starting a dispensary? Well, investing in a marijuana dispensary would be a wise venture considering the current market projections.
Read on for seven essential entrepreneurial tips for starting a dispensary.
1. Research Widely
Information is power in any venture. Before starting a dispensary, it would help to first focus on gathering as much information as possible. A dispensary is characterized by many legislation, which are made even more complicated by your resolve to venture into the marijuana sector.
If you’ll succeed in this venture, you ought to do comprehensive research on your strengths and your weaknesses. It would help if you then considered the opportunities and risks in the sector before deciding on how you’ll manage the investment. For starters, you may need to deal with a wide range of hurdles that include legal and financial complexities.
You do not want to venture out only to get frustrated along the way. With adequate research, you’ll get to understand the market dynamics and your target audience before diving into the business.
2. Get in Touch With a Legal Professional
Considering the extent of regulations in the marijuana industry, it is best if you enlisted the help of a lawyer from the start. The rules that govern the use of marijuana vary from state to state, which makes it hard for most budding entrepreneurs to carve a niche in the sector.
Don’t risk spending significant amounts of money on startup only to realize later that your medical marijuana dispensary is operating illegally. Such a situation may lead to substantial losses considering the possibility of your business being shut down. Having a lawyer by your side ensures that you follow the due legal process.
3. Find a Rental Property That Works for You
You need to find a complaint property for your marijuana business to be approved.
In most states, the rule on compliance mostly relate to proximity to schools and places of worship. Your preferred business location should be at least 1000 feet from either of these institutions. If you’re setting up your business anywhere close to a residential area, your business property should be 1000 feet from the residential homes.
Considering that the legal landscape for marijuana keeps changing, you also need to have a backup plan in case such laws are repealed in the future. The location of your marijuana clinic matters, so before deciding on what works for you, you should consider the legal complexities surrounding the area.
4. Cannabis Training
Once you understand the legal complexities that stand out when opening a marijuana dispensary, you are now ready to get your hands dirty. But not so fast, though. You first need to consider training. Understanding the product is a critical phase before opening a marijuana dispensary.
You may need to consider training to gain a grasp of the various types of cannabis and their usefulness in the medical context. You also need more training on the benefits your clients can derive from medical marijuana. Such information will be useful in the course of marketing your products.
Working in a marijuana dispensary means that your clients will often rely on your advice for a prescription. As such, you need to be well-versed with the specific diseases and disorders that you would recommend the use of cannabis to cure or manage.
5. Consider Finances
Financing is the other common issue that you may often overlook. Your first stop would ordinarily be with your bank. But when sourcing for capital to start your marijuana dispensary, banking institutions are not always responsive.
You may rely on your savings or opt to seek financing options from small financial institutions. If you choose to finance the project off the pocket, you may have to cough a considerable amount of cash. This is considering the legal and setup costs that are often salient.
But there has been speculation that over the next few years, banks will also embrace the funding of marijuana clinics. The turnaround will be due to the anticipated revision of current laws related to the use of cannabis.
6. Consider Reliable Insurance Before Starting a Dispensary
Having a reliable cover plan for your business is the best way to protect the clinic from possible future damages or theft. You need to pay particular attention to the needs within your business to decide what suits your clinic.
You may apply for general liability, which is required by landlords and most states. Your business products may also fall within the insurance coverage for product liability. The cover would ensure that your inventory and dispensary equipment are well-insured against any possible exposure to risks.
As you seek to expand your business, having insurance coverage will be a step in the right direction. This insurance will offer you the best cover for your growing cannabis business.
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7. Branding and Marketing
As noted, many dispensaries are coming up to address the current gaps in the market. As such, there may be more than one marijuana dispensary in your area. You may need to get your branding right and also find a way to promote your business to maximize on the market.
Being aggressive will ensure that you achieve the intended market penetration as your brand becomes a household name. But to get there, you need to define your target market and promote your brand aggressively.
The Medical Marijuana Industry Is The Next Big Thing; Are You Ready?
With the world quickly realizing the critical benefits of medical marijuana, most investors are now more than willing to put their money into the sector. But before you decide to go in full-throttle with your investment, you need to pause and reflect. Consider these seven tips as critical pointers before starting a dispensary.
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