In 2020, 36 states allowed the sale of cannabis for medical purposes. Due to this, U.S. cannabis sales hit a record high of 17.5 billion dollars, approximately 46% higher than in 2019. Moreover, the market is emerging phenomenally in several parts of the country. Also, a study has shown that by 2017, the market is expected to grow to $73.6 billion.

Taking all this data into account, the idea of opening your own dispensary is indeed a great one. However, there are several other factors that one must consider before commencing any kind of business.

What are these factors? Let’s find out!

  • Every City Has Its Own Policy

First things first, every city or town has its own rules and regulations related to the dispensary. For instance, California is the weed capital of the country. Yet, only one-third of California's cities allow medical-use cannabis businesses. Shocking, isn’t it?

Therefore, before you begin your operation in any city, you must learn about its rules and regulations. Not only the city, but you should also try to learn about the state and local laws of different places. It will help you select the one that matches your requirements.

In addition to this, you should also try to engage with people of a selected location. It will help you get more information about the selected community and the market gap that your dispensary might be able to fill.  

  • Don’t Forget About The Finances.

Another crucial thing that you need to consider is the finances. Unlike other businesses, getting funding from financial institutions for opening dispensaries is a bit more challenging. So, you might need to have good savings to begin the operations or look for trustable private investors.

Besides that, you also need to think about measures to collect payments from your customers. One way to do so is using cards for dispensary payments as it will provide real-time transaction records. But, you need to look for point of sale merchants specialized in marijuana industry. It is because not every merchant processes credit or debit card transactions for dispensaries.

Also, the merchant specialized in the marijuana industry can also provide you several other services to manage your ordering options.

  • You Need To Get License

Last but not least, to operate your dispensary, you must get a license. However, it is not as easy as it might seem. The licensing laws vary from state to state. For instance, for you to operate your business in Massachusetts, getting approval from local municipalities is a must. After that, you can apply for a state license.

Likewise, some states also conduct town meetings in the area you might be interested in operating. Afterward, they might or might not give you the approval.

Besides that, there are usually multiple application forms. Also, the licensing fees range from a few hundred dollars to thousands of dollars. Therefore, you must have a well-structured business plan, funding, and well-written application. All these things will help in faster approval.

The Bottom Line,

Before creating your business plan or searching for a location, you must consider the factors mentioned above. All these things will help reduce the hassles that might occur while establishing a dispensary. Also, stay updated with the changing rules and regulations of your industry.