As the legalization of Marijuana has swept across the country, many people have romanticized the idea of opening their own dispensary. And while this business can be profitable, it’s not always an easy journey.
Figuring out how to start a weed business can be tough. And due to strict regulatory rules, high taxes, and fierce competition you want to be aware of what you’re getting into. But this journey can turn into a successful business if you know what you’re doing and take the time to learn the proper steps.
Thinking about opening your own dispensary and want to learn more? Start here with these 5 facts.
Understand Your Industry
Your normal business considerations are going to look a lot different when you’re thinking about joining the weed industry. Things like taxes and laws are going to vary drastically depending on what state you’re in.
Not to mention your marketing strategy has to be unique since you won’t be allowed to market on many mainstream platforms. But this industry is currently booming, with investments growing over 600% in 2018.
Meaning the idea of opening this type of business is more appealing than it ever has been.
Competitive and Costly License
Before you begin setting up your business, you’ll need to apply for a business license. This process is very specific to the state you are looking to open your dispensary in and can end up being costly.
Also, keep in mind that applying for a license doesn’t guarantee you’ll get one. There is often a limited number available per state on a gradual roll-out basis.
Understand Who to Market to
For any business to be successful, you’ll need to properly understand your market and clientele.
Marijuana tends to have a lot of negative stereotypes surrounding it, so think about ways you can market your business that breaks away from these and helps cultivate a positive outlook on the use of weed.
Look at this Broadway Dispensary as an example, they cater to a wide range of individuals who don’t fit your typical stoner stereotypes.
Hire Well Trained Employees
Unfortunately, not a lot of people working in legal weed are well trained in the medical side of cannabis. For many new cannabis users, they are gravitating towards this product for medical benefits.
So if you can find employees who are not only good at sales but can also answer their questions about which weed is best for a specific effect then you’ll have a leg up on your competition.
Be Aware of Taxes
Taxes in this industry are high for consumers and even worse for dispensaries. If you decide to open a bank account for your business, the taxes will be higher than those found in any other industry.
Now you can choose to keep all your revenue in cash but this can be a headache come tax season.
Learning How to Start a Weed Business
These 5 facts about how to start a weed business are just the tip of the iceberg for all that you need to know. It’s important with this industry to do your research and be thorough in order for your business to be successful.
For more business tips, keep browsing our blog.