The legalization of cannabis in different states across the US and Canada has seen a boom in the opening of marijuana dispensaries. This allows consumers to purchase their supplies from reputable outlets legally and peruse their options before buying.
The growth rate of the cannabis market from 2019 is 21%, and sales of legal marijuana are fast catching up to illicit sales with annual revenue of $23 billion. It makes sense to consider moving into this profitable market to capitalize on the boom in sales and the industry’s growth.
If this is something you want to do, ask yourself these questions before committing.
Are you well informed?
What exactly do you know about cannabis, its properties, and why users consume this product? If you are of the “all drugs are bad” mindset, then honestly, this isn’t the industry for you. But suppose you have done your research or are a user yourself, and you know some background on the plant and its properties enough to support your customers and make the right product choices. In that case, you will automatically be in a better position than someone in it to make a quick buck.
Where can you operate?
Legally, there are many different rules and regulations regarding who and where you can sell cannabis. You must check out your state’s policy on legal marijuana and their laws regarding this type of store. For example, while dispensaries have been operating legally in Canada, only recently did the law change to allow the stores to offer delivery. Previously it was a collection only. These nuances and limitations can affect your business and location, so make sure you know the laws before applying for your license and registration.
What business model should you choose?
When people think of the cannabis sector, they usually think of dispensaries. But a cannabis dispensary is just one of the many businesses in the market.
It’s crucial to assess your personal company experience before deciding on a business plan. Assume you have a solid supply chain background. If you have experience in agriculture, your talents may be best suited to cultivate the plant as a grower.
In addition to packaging, real estate and professional services such as insurance and litigation offer additional potential for innovation.
Do you have the funds you need?
Funding this venture requires a hefty financial outlay. From growing or purchasing your own stock, looking for premises and employees, and obtaining the relevant licenses, there is a big financial responsibility associated with setting up your own cannabis store.
Then you need to think about how you will run a profit and how quickly you can expect to start making money. Don’t forget, anything you borrow needs to be repaid as well as your operating costs and wages. Know your options regarding initiating Cannabis Debt Collection procedures, recovering from losses due to external sources, such as natural disasters, fires, thefts, etc., and what type of contingency fund you require to support you during low sales periods.