It took quite a long while for lobbies to pass the state laws that now allow for legal use and sale of cannabis. Every year we are seeing more states adopt the legalization of weed, with some of them even going so far as to legalize the recreational use of marijuana. At the moment, there are thirty-three states and the District of Columbia that have passed laws broadly legalizing marijuana use in some form or fashion.
Opening a dispensary now would be an excellent opportunity for most entrepreneurs, with new states slowly allowing the sales and distribution of cannabis. Places that have already legalized it are seeing an economic upturn, with Colorado acquiring $35 million in positive net impact, and the number is expected to go even higher during the coming year.
Running your own profitable and legal cannabis dispensary is an excellent idea to do so in this current stage of the cannabis industry. While it won’t be easy to do so, you will potentially profit if you play your cards right. Opening one up now will cause you to deal with some regulatory mazes that can make it discouraging for most people, especially when you consider the startup costs, the taxes, and competition you are going to deal with
However, there is a lot to be excited about when it comes to starting a dispensary. Those who are ready to capitalize on this green rush need to adhere to strict regulations. Keep in mind that it is still not legal on a federal level yet.
For this article, we are going over the top reasons why you should start a dispensary.
The Market value
According to the research group News Frontier Data, the Market value for the cannabis industry in the United States has been projected to reach an annual $30 billion by 2025. At the moment, cannabis is still federally illegal, so the projection they have made is quite telling of the success of this industry. There has been the legalization of medical marijuana in 33 states and Washington, D.C., and the legalization of recreational use programs by 15 states and the district of Columbia.
With the cannabis legalization movement continuing to make its way into new states and some members of Congress even advocating for reform and federal legalization, the cannabis industry will soon explode into a whole new market.
IN short, the cannabis industry is setting itself up to become a multibillion-dollar business that is positioned to expand rapidly as new markets open and more states legalize the use of medical and recreational marijuana.
Competition is still somewhat low.
One of the primary issues with opening up a new business is the competition you are going to be dealing with in your chosen industry. Most industries these days are oversaturated with similar business openings and closing every day. As an entrepreneur, it can be challenging to enter those industries and strike it big, especially if you don’t have anything new to add to the industry.
However, the cannabis industry is still ripe for the taking and has less competition compared to other industries. Depending on the location you decide to open up your dispensary, you will have an opportunity to turn your dispensary into a highly successful and lucrative business.
With more and more states slowly legalizing the use of medical and recreational marijuana, these places are ripe for anyone willing to take the chance to open a dispensary. Entrepreneurs have the opportunity to take advantage of the recent legalization and start their business before anyone else gets the chance to open their own dispensary.
That allows you to market yourself as a well-known brand among the populace that is interested in cannabis. You can be one of the main authority figures in everything cannabis-related by being one of the first few to open up your dispensary in these recently legalized locations. Plus, some of these states make the procurement of licenses to run a dispensary easier to handle.
Some of the more popular states have temporarily halted the procurement of licenses to open a dispensary or other cannabis-related business. That is mainly due to the number of applicants they receive and the oversaturation that is occurring. Although, depending on the laws implemented by the legalized state, you have the opportunity to apply for your own license.
The cannabis industry has proven to be quite fierce in places that have already legalized it and have for some time. Taking advantage of these newly legalized states will provide you with less stress when it comes to dealing with competitors and allows you to become a sought-after brand in that location.
Assisting the community
The local community can take advantage of the fact that they have dispensaries in their neighborhood. Marijuana has proven to have some excellent health benefits that can support people to deal with various medical issues. Hence, with a dispensary opening near the, you will help these ill individuals in the community who require medical cannabis for their chronic illness.
Opening a dispensary in these locations allows you to furnish them with the medicine they desperately need to prevent them from suffering too much pain. While they may have to go through the process of acquiring a medical cannabis card, they at least have the chance to gain access to better methods to relieve themselves from discomfort. With that in mind, you are pretty much making their lives a bit better by providing them with access to marijuana.
As long as you manage to remain compliant and up to date with all of the regulations, there is going to be plenty of business for you. A dispensary can be a stable business if the person in charge runs things smoothly and makes themselves available to the customers. These dispensaries will not entirely go away unless some major cutbacks against marijuana are made, which is least likely to happen.
While dispensaries are not as stable as other cannabis businesses, receiving returning customers ensures you managed to continue promoting well. The money is also stable, with business owners making massive amounts of money from these dispensaries. If you managed to set everything up well enough and advertise yourself decently enough, you could become a very stable business.
The industry is still growing
As we’ve mentioned above, the cannabis industry is still growing. That means that working in the cannabis industry will allow you to become more professional. With more states legalize marijuana and setting up the infrastructure for cannabis sales, you receive the option to become more mobile. It means that you no longer have to remain in your current state and can potentially expand your business to other locations.
Once you acquire the necessary experience with starting your dispensary, you can use that to continue expanding your brand into other locations across the country. Furthermore, if there is a place you always wanted to live in, look into opening a dispensary there and see if it is a profitable move to make.
COVID-10 managed to force plenty of businesses to close down to prevent the spread of the virus. Fortunately, some places are allowed to remain open due to being labeled as essential services. Dispensaries were one of the many businesses that were labeled as such. Because of this, dispensaries are recession-proof and remain open even during the most challenging times.
Some people rely on marijuana for medical reasons, while others merely need something that will take the edge off during these stressful times. News like this shows how safe the dispensary business is for business owners. You will still have an operable business even when things become rough. A recession can cause devastation in a country, but you will be able to retain your position as a business owner.
Furthermore, social distance rules ensure that most people remain away from each other when out in public. That forced plenty of places to adapt the way businesses were conducted. It caused plenty of business owners to adapt to these changes.
One of the options was to introduce curbside pick up, while others expanded into the delivery service. Introducing delivery options for your dispensary will also ensure you continue to generate cash during these recessions.
Experience Isn’t necessary.
Since the cannabis industry is still new compared to others, you won’t need too much experience with running one. However, that does not mean that you can slack off when it comes to making a business plan and acquiring all the necessary paperwork. Plus, remaining compliant to operate your dispensary.
However, it does mean that you can try out different methods to improve your dispensary and increase your profit margins. You could attempt to try out varying methods that could ensure your dispensary stands out from the rest of the ones appearing in your locations. That ensures your brand becomes well known due to the uniqueness it offers to its customers.
The cannabis industry is still young and has tons of opportunities for entrepreneurs. If you are looking to open a dispensary, then now is the time to do so. The market will expand tremendously in the coming years, and if you don’t take advantage of it now, you will be losing out on a profitable opportunity.