No matter what type of industry you will be entering, the startup is the most difficult part. It requires a combination of investment, differentiation, and good management. When setting up a cannabis business, the fundamentals of setting up are also the same. However, the regulations constantly change. Even though the laws and regulations shift quickly, these matters are very important.
So, when starting your marijuana business, follow these basic steps.
The Importance of a Business Plan
For startups, a business plan will outline what your company goals are, your startup cost, tour timelines, and also your milestones. This will also include your finances and other important information that can help you in staying organized and on the right track. The business plan will also serve as your ‘resume’ when you are looking for potential partners and investors to keep your business going.
Finding A Location
The location of your marijuana dispensary is a very important factor to consider. The state licensing requirements, the local and county regulations, and laws, as well as the real estate costs, will determine where you should set up your cannabis-oriented business. California Marijuana Dispensary should be at least 600 feet away from public places like schools and parks.
Forming Your Business Structure
Once you have the business plan and have already determined what your dispensary location would be, the next thing to do is to form your business structure. Usually, this should be formed depending on the applicable legal and regulatory constraints. You should also identify your company’s partners before you apply for a license.
Getting A Business License
In California, there are two types of marijuana retailer licenses to choose from –Type 9 and Type 10. Type 9 is a non-storefront retailer. This means that with this license, you would be able to sell and deliver cannabis products to your customers. Type 9 business is also licensed to have a facility but should not be open to the public. Type 10 cannabis retailer business, on the other hand, is a business that sells cannabis to customers at its physical store or by delivery. Type 10 retailers have a licensed facility where commercial cannabis activities happen.
Getting a license is not going to be easy. There will be documents to prepare. Before you can get a license, you should be able to prove that you will be a good operator. In most states like California, here are the documents that you need to comply with when getting a license for your marijuana dispensary.
- Business/Operations Plan
- Dispensary Security Plan
- Financial Plan
- Inventory Control Plan
- Patient Education Plan
- Patient Recordkeeping Plan
- Staffing Plan
Other than the mentioned requirements above, there are other considerations to take note of. When applying for a license, this should also be done within your local city, and also within the state of California. You will also have to prepare a $5,000 bond that will be payable to the state of California. You should also make sure that your facility is located at least 600 feet away from schools. Furthermore, for selling and delivering cannabis products, your business can only cater to these services from 6:00 o’clock in the morning until 10:00 o’clock at night PST.
Up And Running Marijuana Dispensary in California
Once you have the above requirements submitted and you already have the necessary licenses, you will then need to implement these regulatory measures in your cannabis business. You should ensure that you comply with the terms of your license application.
Prepare Contract With Partners
Usually, the type of partners who will need to have a contractual relationship will depend on the type of cannabis business. For dispensary owners, the contract for the cultivators, as well as infused product wholesalers should be prepared.
Start Promoting Your Business!
Having a dispensary where people can visit and get their cannabis product needs is not enough. You should also make sure that you continuously promote your business. There are different advertising forums online as well as directories that are made available for retailers. Use the internet to your advantage because nowadays, modern technology is the easiest and the most efficient way to promote your business.
Again, starting a marijuana business is a serious path to take. Yes, it is risky, but with the growing industry, this is a promising business. Still, do not rely on its popularity. You need to exert more effort and have more patience and dedication in order to make your marijuana dispensary in California a success.