There is a lot of buzz about the marijuana industry at the moment and those who are in it for the long-term could seem some decent returns. If you are a cannabis enthusiast and thinking of getting involved in the industry, then there are many different ways to do so.
New jobs are opening up around the U.S. offering different people the chance to get in on the action. Some are taking advantage of the industry by selling their creativity (canna-artists), others are jumping on cannabis stocks, becoming pot stock traders. There are some that are even making career changes, becoming growers, bud-tenders, trimmers and even reviewers.
For those of you that have got the cash, then opening your own dispensary might be an option, but be warned, to establish a great collective requires time, patience and most of all – money.
The Costs Involved
This depends on the state where you wish to open your dispensary, but most of them require cannabis enthusiasts to go through a long, tedious application process. This is designed to filter the unserious applicants from those who are dedicated and ready to establish a proper business. In states where cannabis is medically legal, the upfront cost for an application can be anywhere around $5000.
It is important to note that it is not refundable, so make sure you certain about getting involved.
Licensing fees will depend on your location. For example, in Lousiana, it’s $150, while over in New Jersey it’s around $20,000. Seems unfair, right? Well, it is all a matter of supply and demand, and of course state rules.
Furthermore, when applying to the state to receive a marijuana certificate you have to show them that you have sufficient capital to run the business. In Nevada, you are required to show that you have $250,000 in liquid assets to get started.
Remember that there are tons of costs involved:
- Application fees
- Licensing fees
- Rent/lease/ purchase of space
- Costs of employment ( growers, customer service, security, etc…)
- Security system
- Logo/ Website /Design
- Interior design
- Professional fees (Attorneys, tax professionals, insurance agents, etc)
How Can You Reduce Costs?
There are a few different things you can do to reduce costs, but you will still be required to have enough capital behind you, to receive the state certificate (unless you intend to become a shady weed dealer).
If you are thinking of growing weed, then you could save a few bucks by growing the stuff, but take into consideration that particular states charge a yearly cultivator fee, which can range from $3000 to $25,000.
Related Article: How to Grow Rainbow Colorful Weed
If you are thinking of opening a dispensary, then make sure you’ve got the capital. It will cost anything around $250k-$300K to open a 1,500 sq. ft. house and those numbers really depend on the requirements of the state.
Sure you can go low-cost and open a much smaller place, selling only a few strains, but the process is the same; application, licensing and professional fees will be involved. For a small location, the initial setup would probably cost you anywhere between $60,000 and $100,000.
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