California has the largest medical marijuana industry in the world. It is evolving from a grey area niche business into the mainstream. The specific regulations are still being ironed out on how licensing is going to happen and include recreational set to start January 1, 2018.
State officials and various municipalities are currently crafting the framework for cultivation and retail sales. Public hearings on the new regulations take place throughout the state this summer, which will replace and update the MRCSA California system. The first batch of licenses is expected to be handed out in January.
There are potential revenue opportunities in learning how to open a medical marijuana dispensary.
- Learn the environment. Find out how to get from “a good idea” to opening your doors, including where you want to locate, what paperwork is required, and what funding you’ll have available.
- Create your business plan. This road map requires a more thorough look at your planned adventure, including detailed estimated costs and revenue, security plans, potential product info and other specific details.
- Figure out how much money is required. Create a budget of actual expenditures and when they will be needed. This includes any state and local license fees, any costs to secure a location, estimated payroll/labor costs, furnishings and building your actual inventory.
- Secure financial arrangements. This could be a formal presentation for an investor or something more informal with friends and family. Weigh the options of taking loan(s) vs. taking on equity partners. This will come down to how much cashflow is required risk can you personally handle.
- Create your team. Don’t hire people simply because they seem to enjoy cannabis. Instead look for professionals with extensive experiences in business, customer service, and retail skills. Employees can also focus on duties like security, state compliance, operations and administrative tasks.
- Finalize location. While you may have already discovered a general area that appeals to you as a possible location, you’ll need more paperwork to select one lot or unit, including any needed permits or fees, any zoning considerations or requirements, and the local customer market. Also, keep in mind that the landlord will need to sign-off on the marijuana-related activities that will be taking place on the property.
- Plan your store’s look. Discover design strategies that are unlike other shops in your community but nothing too distracting or hard to find.
- Security/compliance. Your team will gain a lot of on-the-job experience once the doors open, but it’s critical that everyone has knowledge about these particular areas, such as checking IDs, handling cash, and keeping everything safe.
- Finding your product. Get to know area growers and see what you like, the form it takes, and the price. Some growers may approach you as well. Employees can share their opinions as well.
- Apply for a license. This paperwork will ask you specific details about your plans, your operations, and your expectations. It also will ask for thorough info about you and your background, and any owners/partners.