The legalization of marijuana in some parts of the world has seen it become one of the hottest businesses in the world. Everyone wants a slice of the pot ‘cake’! Now many people can partake in both medical and recreational use of cannabis. Thus, it has opened up a new business opportunity that entrepreneurs are rushing to meet.
In 2019 alone, weed dispensaries and stores were estimated to have generated close to $8 billion. There are certain considerations you will have to keep in mind as you set out to establish a weed dispensary. There is a lot of legal red tape that you will have to maneuver.
Factors to Consider Before Establishing a Weed Shop
1. Legal Concerns
You have first to find out if it is legal to set up a weed dispensary in your area. Many states in the U.S have legalized the establishment of these stores, but not all. There are also different laws to consider. Pay a visit to the Health Services Department in your area, and get to know what is required to set up a shop. Follow this with your local municipal office to find out the legality of opening a cannabis store and what is required before you can open.
2. Zoning Laws
Even when it is legal to establish such a store in your area, there are zoning laws that you have to learn first. Most states do not allow weed stores to operate near a school or a park frequented by children. Others go further to restrict such stores away from residential dwellings and public libraries.
3. Consider the Risk Factor
Pot is still technically viewed as a drug by many people, even though it is now legal to consume it. This can result in discrimination when you decide to open such an establishment. Some may go further and term you as a drug dealer. There is also a high risk of being targeted by illegal drug traders and thieves once you open. It can be challenging getting trustworthy employees to work in your shop too.
4. Get a Good Supplier
Since you are just starting, you may not yet have a steady supply of cannabis and its by-products. Do some research and get to pinpoint a trustworthy distributor. Their product has to be good quality if you are to build a loyal clientele. You can go further and get some training in growing high-grade cannabis. Learn what the law in your area says about cultivating it and then decide whether to build your own or deal with a supplier.
5. Seek Legal Advice
It is a wise business decision to seek legal counsel before you get started. A good lawyer will help you sift through all the legal concerns around establishing a weed store. They are also better placed at helping you know all the needed permits and other requirements you have to meet before you are in business.
6. Come Up with a Clear Business Plan
Just like any other business, a cannabis shop will require you to write down a business plan stating the goals, plans, and financial projections. This is important, especially if you want to attract investors.
7. Initial Capital
A business plan will help you narrow down the exact amount of money you will need to get started. The next step will be to secure the funds. Will you finance the business yourself, get a partner or an investor? It may be challenging to secure traditional funding options for a pot store, but you can decide to fund it with your savings.
8. Rent a Suitable Space
Once you have all your finances figured out, acquired all the necessary licenses and permits, and have a supplier, get a suitable space to rent. Again, this may also take some time due to the nature of your business. You must disclose to landlords the nature of business you intend to start to avoid any issues once you open it.
A cannabis store is a worthwhile investment with the popularity of both recreational and medical consumption. How it is still a challenging business to start. Take your time to gather all your information before getting started.