The marijuana business is becoming more and more popular these days. Not too long ago, the marijuana business had been frowned upon and was only carried out through illegal cultivation and distribution. But now that most states have legalized marijuana for medical and recreational use, many business owners invest in California Marijuana Dispensary.
Even though this still remains illegal under federal law in many states, there are now a growing number of states that allow marijuana for medical use while some states allowed it for recreational use. Some allow some form of legal marijuana for consumption, but they have their own regulations.
The Legalization of Medical Marijuana
The legal marijuana industry for medical use in California started in 1996. Since then, the industry has been growing without seizing to grow. In fact, marijuana retail and wholesale sales in 2014 reached $2.7 billion. Many entrepreneurs have found numerous opportunities after they invested in the marijuana business.
When It comes to the cannabis industry, many are still willing to take the risk. So, if you are interested in entering this industry, you need all the information that’s necessary to become a successful business owner of a marijuana dispensary.
Different Types of Marijuana Business
There are different types of marijuana businesses that you can choose from. They are broken down into three categories – cultivation, production of infused-products, and retail sales. The other marijuana businesses also include delivery services, testing facilities, devices, and tools for cannabis consumption, as well as software and online services.
- Business owners that grow marijuana are usually heavily regulated. These operations also require a huge initial capital as well as the know-how as to how this business works.
- Cannabis-Infused Products. There are many patients and recreational users who prefer to use edible marijuana. Some also opt tinctures, salves, as well as other infused cannabis products. So, you can as well choose to produce such products.
- Retail Sales. This is also referred to as “dispensaries” or “collectives.” But in general, they are stores that sell cannabis-based products to physician-authorized customers. This is the most complicated among these three options and is also the most expensive to start with.
Each of these types will depend on whether they are going to be used as recreational marijuana or for medical purposes.
Factors to Consider When Starting A Marijuana Business
Before you can start a marijuana business, it is important that you understand how to start one. You have to remember that opening a legal cannabis dispensary or maybe a grow house is more complicated compared to other kinds of businesses. This is because of the regulatory environment and the uncertainties that come with this business. State laws vary. So, here are the most important factors that you have to consider.
- Startup Cost. If you are planning to open a marijuana dispensary in California, the cost will vary depending on the location, the state laws, as well as the type of business. Also, this type of business needs a larger amount for a start-up compared to other businesses. You will also have to consider the cost of licensing, utilities, rental, equipment and supplies, marketing, employees, as well as your security systems.
- Location. The location of your dispensary should also be considered. In California, dispensaries should be at least 600 meters away from schools, parks, and other public places. Also, marijuana business licenses are only given to state residents.
- Risks. Of course, like any other business, there are risks that come with opening a marijuana dispensary in California. This industry is very risky; there is no doubt about that. This is because of its public status and its regulatory environment that changes so quickly and constantly. However, despite the risks, the rewards are very high, as well.
- Partners and Investors. Like other startup businesses, you will need a good capital to be able to start a marijuana dispensary. Most beginners in this industry choose to find investors or partners that they can trust. This is because most of the funding for this type of business is not from banks, but from private investors.
Marijuana Business Is A Serious Undertaking
Starting a marijuana business is a serious decision to make. You need to have lots of patience, dedication to this business, and also a keen understanding not only of the complex regulations and the ever-changing shifts in the legality but also on how to maintain a successful business. Always remember that cultivation, distribution, as well as possession of marijuana, is still illegal under federal law. You have to be prepared for the changes regarding federal policies when it comes to state marijuana laws.
