An established marijuana dispensary business can bring many rewards. But opening one requires extensive research and planning in order to make sure it gets up and running quickly and smoothly.
Step one in starting a marijuana retail business in your jurisdiction should be to become acquainted with local laws and regulations pertaining to cannabis retail in that region. Most importantly, be familiar with state dispensary operations laws to ensure full compliance in operating your dispensary business. In addition, it’s also wise to get familiar with how your municipality manages medical versus recreational sales as this could have an effect on your business model, particularly if catering specifically to both markets.
Once you understand the regulatory landscape in your region, the next step should be creating a detailed business plan for your marijuana retail operation. This will enable you to map out every step necessary in order to launch as quickly as possible and get up and running as quickly as possible. Your plan should include details on locating and developing a dispensary location; how you intend to source and distribute products; financing arrangements for your venture; as well as operational processes outlined. Furthermore, make sure it addresses how you will comply with local and state laws such as Section 280E tax compliance as part of its details.
If you don’t have the funds available to open a dispensary on your own, seeking outside investment or loans from friends and family may be necessary. When seeking investors or loans from friends and family, be sure to discuss what will benefit them from being involved with your business and document this with each potential investor. Alternatively, partnership may provide more benefits by sharing ownership. In competitive markets this could reduce ownership stakes and offer other advantages than going it alone.
Finalizing the setup of your cannabis retail store means finding growers, manufacturers and distributors of quality cannabis products that meet your specifications for sale in your store. When making this selection process easier for yourself and securing retail licenses more easily. Take into consideration factors like pricing, quality, distribution capabilities and fulfillment processes as you evaluate potential suppliers. Establish relationships with high-quality suppliers who meet all these needs by building relationships based on trust.
Finally, it’s essential that you develop an effective marketing and advertising plan for your store. Cannabis businesses face special consideration when marketing due to stigmatism and federal illegality; make sure this aspect of your strategy is taken into account as you make plans.
Once your business is ready to open its doors, it’s time to hire staff. Be sure to hire employees with trained customer service skills who understand the products being sold as well as your sales strategy. It is also crucial that you consider how your store will be organized and merchandised – consumer psychology studies have demonstrated that well-organized stores with clear navigational paths can increase sales significantly.