Getting into the cannabis business has never looked so tempting, with a 76% increase in jobs and $52 billion in sales throughout 2019. In such a booming industry, being a business owner is likely to be a lucrative entrepreneur choice – although of course there are never any guarantees. It might well be a smart choice to make, but there are also some key things to consider before you dive into the cannabis industry head first and open your own dispensary. Here are three things to consider before making your first foray into the cannabis business.
Identify the right areas
Not every area will make sense to open up a dispensary. It’s the type of business that you need the right neighborhood and the right clientele for. As new businesses go, a medical marijuana dispensary relies on strong foot traffic and not too much surrounding competition. Check around in the area you’re thinking about launching in and see what it’s like. Are there plenty of young people? Is there a lot of competition?
For example, using WeedMaps to look at Santa Rosa dispensaries will show up some prime opportunities to open up a dispensary of your own, close enough to other cannabis business locations that you know you’re in the right spot but not too close to make the competition too fierce. It’s all about balance for this kind of retail store.
Don’t forget the basics
Even a cannabis business still needs all the usual entrepreneur admin done. It’s a financial institution and small business that will likely need business insurance just like any other startup. Customer-facing businesses will often need small business insurance that will cover them for public liability and other potential dangers. Check on the applicable law in your state to see what the smartest choice of insurance from cannabis entrepreneurs.
Although the cannabis industry is now legal in many states, it’s still fairly new and you don’t want to leave yourself open to any potential lawsuits, legal fees, or issues on the federal level. Depending on the type of cannabis business, be sure to get specialized legal advice that reflects your purpose as a small business owner exactly.
Know the science behind it
Not all cannabis is made equal – and not all cannabis products can be used in the same oils, plants, and so on. Whether you’re opening a dispensary, going into cultivation, or any other area of the cannabis industry, make sure you know the ins and outs of the product you’re working with first. Do you know the difference between THC and CBD? Do you know what the influence of each can do for a consumer?
Within a successful cannabis business, there are hundreds of different strains, extraction and cultivation methods, side effects, and legality involved. Be sure you do your own legal research and dive into all the different areas of the marijuana business. Only when you truly understand what you’re selling can you expect customers to trust you with supplying their product and taking their personal information.
If you’re looking into how to launch a marijuana business, be sure to bear these three things in mind before you get started. Being such a new industry, all eyes are on the legal cannabis industry to see what happens. You don’t want to be the one letting the side down, and you also don’t want to be the one who runs into issues with United States federal law if you misstep.
You’ve got a hopeful customer base ready and waiting for you, so you’ve already got a strong foundation to build a thriving business on. Good luck in making your move into the cannabis space a successful one!