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Opening a medical dispensary is a great opportunity for entrepreneurs who aren’t afraid to roll up their sleeves, cut through a decent chunk of bureaucratic tape, and hand over some cash upfront.<\/span><\/p>\n A dispensary will allow you to be a pioneer in what is soon to be a massive national industry.\u00a0<\/span><\/p>\n When considering how to start a business in the cannabis market, you will have many questions. People often ask:<\/p>\n Our team has helped hundreds of businesses in the cannabis industry, including medical dispensaries. We’ve mentored and helped thousands of entrepreneurs to start, operate, and grow their businesses. And because we work with many clients in regulated industries, we’ve developed expertise in helping clients build strong brands without violating regulatory frameworks. This guide shares our expertise, insights, actionable tips, and best practices.<\/p>\n <\/div> Let’s look at what you need to know to get started.<\/p>\n First, some important industry metrics. The industry has been rapidly growing. According to Gallup, the percentage of young adults who smoke cannabis has increased.<\/p>\n Fourteen percent of U.S. adults use CBD. This figure grows to over 20% of those between 18 and 29.<\/p>\n The U.S. cannabis market is projected to reach $100+ billion by 2030. With states increasingly legalizing recreational use, dispensaries will likely have opportunities to expand their customer base. Despite the increasing number of states that have legalized medical (and recreational) marijuana use, there are risks. Marijuana is still considered illegal at the federal level<\/em>.<\/p>\n Medical cannabis is classified as a Schedule 1 drug under the federal Controlled Substance Act.\u00a0 This means that it’s classified as a potential drug use product and can only be suggested, not prescribed.<\/p>\n There’s not much case law on this topic, so dispensaries’ true legal status (when it comes to federal law) is cloudy.<\/p>\n This can make it difficult for a dispensary to know how to stay within legal parameters, exposing your business to legal risks.<\/p>\n (This is one reason we suggest including a lawyer well-versed in this type of venture when building your team.)<\/p>\n Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> It’s not news that opening a business takes a substantial financial investment. When considering cannabis retail, there are some additional challenges to obtaining the financial backing needed.<\/p>\n Securing funding in the cannabis industry has proven to be very difficult through traditional methods, and due to risks, most banks won’t even allow you to transact your cannabis business through them.<\/p>\n This can mean operating your business on a cash basis, making you more susceptible to theft.<\/p>\n It will take some creativity, and perhaps the entire contents of your savings, to get the ball rolling.\u00a0 The capital required to open a dispensary can be over $250,000 – $750,000.<\/p>\n Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.<\/p> Are you qualified?\u00a0 Local governments have a series of “must-haves” to apply to be a dispensary owner and red flags that will disqualify you immediately.<\/p>\n NORML<\/a> has a good resource to look up marijuana laws and license requirements by state to get a full understanding of whether you are eligible and what you\u2019ll need. In general, a few standard requirements include:<\/p>\n So you are pretty convinced this is for you, but you have more questions.<\/p>\n This is the time to jump into research and answer those burning questions.<\/p>\n State laws<\/a> for cannabis use and dispensing vary.\u00a0 According to the NCSL<\/a> (National Conference of State legislators) as of June 24, 2019:<\/p>\n A total of 34\u00a0states, District of Columbia,\u00a0Guam,\u00a0Puerto Rico and US Virgin Islands\u00a0have approved a\u00a0comprehensive, publicly available medical marijuana\/cannabis programs.\u00a0\u00a0(See Table 1 below for more info.)<\/strong>\u00a0Approved efforts in 12\u00a0states allow use of “low THC, high cannabidiol (CBD)” products for\u00a0medical reasons\u00a0in limited situations or as a legal defense.\u00a0See Table 2 below for more information about those programs. Low-THC\u00a0programs are not counted as comprehensive medical marijuana programs. NCSL uses criteria similar to other organizations tracking this issue to determine if a program is “comprehensive”:<\/p>\n Paperwork. It’s probably the least exciting part of starting a new business- but often the most important.<\/p>\n When starting a dispensary, you want that paper trail of protection.<\/p>\n So, what exactly is required?\u00a0 That depends on where you live.<\/p>\n Let’s take a look at California’s requirements:<\/p>\n To be approved for a dispensary license in Florida<\/a>, you must have the following plans in order:<\/p>\n The license rates and tax fees vary state by state. Drastically.<\/p>\n For example, the licensing fee in Louisiana is $150, while New Jersey applicants must fork out a staggering $20,000<\/a>.<\/p>\n You can see a full comparison of each state here<\/a>.<\/p>\n Also, remember that most states require you to register your business if the trade name under which you operate your business differs from the legal name of your business.<\/p>\n For example, if your registered company is an LLC<\/a> named Three Brothers, LLC, you cannot operate that business lawfully in most states if you\u2019re selling products under the trade name Three Tigers. That\u2019s because the registered name, and your trade name, are different.<\/p>\n Fortunately, this is not a difficult problem to overcome. You can simply register your actual trade name with your state (and or local government) by filing a \u201cdoing business as\u201d (DBA) certificate. DBAs are also commonly called \u201cassumed name,\u201d \u201cfictitious business name,\u201d or \u201ctrade name.\u201d Here\u2019s a terrific resource that explains what a DBA is, the DBA state requirements, and how to file a DBA<\/span><\/a>\u00a0for your business in all 50 states and U.S. territories.<\/p>\n And remember to register your business.<\/p>\n <\/i> Hire an expert to form your company and save time.<\/span> Our trusted partners can help: Northwest ($39 + state fee)<\/b><\/a> or Bizee ($199 + state fee)<\/b><\/a>. Business insurance is the best way to protect your hard work against fire, damage, and theft.<\/p>\n You’ll want to protect your investment with the proper insurance:<\/p>\n As this fantastic industry grows, so do the insurance companies willing to protect your business assets.<\/p>\n Medicinal but not a prescription.<\/p>\n Because medical cannabis can only be suggested and not prescribed, it is not protected by FDA tax exemptions.<\/p>\n This means that the product must be issued a state tax. Check out a sampling of state tax requirements below, or check out a full list here<\/a>.<\/p>\n You now have a strong understanding of the risks and requirements of starting a dispensary.<\/p>\n You are eager and willing to jump in and get your hands dirty.<\/p>\n Before signing those application checks over — make sure you understand your product.<\/p>\n Educating yourself on various forms of cannabis, your customer base, and how your product will benefit them is essential.<\/p>\n Hemp Staff<\/a> shares,<\/p>\n When customers come in, they may be anxious or nervous about trying medical marijuana. This is especially true if they have never used cannabis before. Your job is to both reassure and show them which products work the best for their problem.<\/p>\n Working at a dispensary means your clients need to learn to trust you and your knowledge. They gain that trust by purchasing products that you recommend that work. Therefore, you need to come to interviews prepared to give excellent advice and demonstrate your knowledge of the plant.<\/p><\/blockquote>\n Consider taking a dispensary training course<\/a>\u00a0to grasp a firm understanding of the products you will be selling.\u00a0 Doing so will educate yourself and your employees on cannabinoids and which specifically to recommend based on clients’ needs.<\/p>\n CannLabs Cannabinoid Guide<\/p><\/div>\n Founded in 2007, Oaksterdam University<\/a> was the first cannabis college with educational roots in 1995. OU boasts over 40,000 Alumni worldwide. The primary focus of their programs is a full-spectrum look at the cannabis industry from business to botany.\u00a0 Oaksterdam prides itself on being a leader in training in the canna industry, emphasizing that this new emerging world of cannabis dispensaries can be both transformational and transactional<\/em>.<\/p>\n Studies show<\/a>\u00a0that entrepreneurs who take the time to write a business plan are 2.5 times more likely to follow through and get their business off the ground.<\/p>\n As we previously mentioned in how to start a business<\/a>:<\/p>\n Traditional business plans have the following sections:<\/p>\n A good business plan guides you through each stage of starting and managing your business. Check out Legally Rooted’s<\/a> comprehensive business plan for medical marijuana dispensaries.<\/p>\n And for additional actionable insights and free downloadable business plan templates, read this definitive guide on how to write a business plan<\/a>.<\/p>\n Ensure that your business plan assesses your \n
How to start a cannabis dispensary business:<\/h2>
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<\/p>\n![\"Projected](\"https:\/\/images.crowdspring.com\/blog\/wp-content\/uploads\/2020\/01\/21183938\/u.s.-cannabis-market.jpeg\")
<\/p>\n1. Research the risks and eligibility factors<\/h2>\n
Understanding the legal risks<\/h3>\n
Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div>Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div>Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div><\/p>\nFinancial risks<\/span><\/h3>\n
Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div>Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div>Free Business Startup Kit<\/h2>
Get your free startup kit<\/i><\/a><\/div><\/div><\/div><\/p>\nEligibility<\/h3>\n
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2. Research policies, legalities, licensing, cost, and location<\/h2>\n
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State Laws<\/h3>\n
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<\/p><\/blockquote>\nLicenses, insurance, and taxes<\/h3>\n
Licenses<\/h4>\n
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Pay just $39 + state fees and you'll get a free year of registered agent service, articles of organization, privacy, and client support from local experts.<\/p><\/div><\/p>\nInsurance<\/h4>\n
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Taxes<\/h4>\n
![\"\"](\"https:\/\/images.crowdspring.com\/blog\/wp-content\/uploads\/2019\/07\/27130035\/medical-marijuana-state-taxation-e1563593532530.png\" "\\"State")
<\/p>\n3. Cannabis training<\/h2>\n
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4. Write a business plan<\/h2>\n
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