The greatest joy in life comes from the ability to make money while doing the thing that you love the most in life and for those who are fans of cannabis that could mean opening a cannabis dispensary. There is a lot of growth that is happening in the cannabis industry with very no sign of slowing down any time soon. Dispensaries are always filled with customers who need the product, which means that opening a dispensary will allow you to get a piece of the action. You get entertained doing what you love, but then you make a lot of money while doing it. If that is not happiness in life, then I don’t know what is.
In this article, I am going to talk about how much money you need to open up a cannabis dispensary so that you know how much money you need to set aside for when you ever decide to get into this business.
Here is the cost of opening a dispensary
Opening a marijuana dispensary is the same as opening any other small business in the United States. However, things are not the same when it comes to licensing. There are several state regulations and financial hurdles that make marijuana dispensaries extra difficult to open and operate. It is simply more expensive to run this kind of business. The total cost of opening this business ranges from 150K to 2 million and we are talking in terms of US Dollars. This amount includes the cost for staffing, annual rent, up-front renovations, and miscellaneous expenses. There is also cost for licensing among other costs. The cost may also vary from one jurisdiction to another depending on the jurisdiction.
Dispensary license application fees: charges just to get in the game
The fee for the license usually varies from state to another. There are states where the charges for the license are much higher than others. However, to be on the safe side, you should set aside some $5000 for the license alone. You should never risk selling the herb before you obtain a license because this could put you and your entire operation at risk. Selling marijuana without a license carries a steep fine if you get arrested and may lead to you being barred from obtaining the license for when you decide to go legit.
The amount you pay for your license is usually non-refundable so you should not expect to get it back the minute you pay it to the authorities. Besides that fee, there is another fee called the annual license fee, which is also very high depending on the state you intend to operate within. This fee varies between $1000 and $10000.
Real estate costs and challenges: Locating a brick-and-mortar
When it comes to business, location tends to be everything and it is one of the things that are always in short supply. There are also some rules regarding how close a marijuana dispensary can be to a school and to another dispensary that sells marijuana. You will also have a lot of problems finding a location that allows a marijuana dispensary to operate in it while allowing high foot traffic during the day.