The legal cannabis industry is currently exploding, offering entrepreneurs a wealth of opportunities for success. In fact, the value of the legal cannabis market has grown from $1.5 billion in 2013 to $2.7 billion in 2014– a 74% increase. With recreational marijuana already legal in four states and potentially legal soon in 11 other states, there is endless economic opportunity in this relatively new industry. If you plan on entering into this burgeoning field, there are several things you should consider before diving in.
Interested in starting a marijuana business? Here’s what you should know:
- Decide on your focus. Are you planning on cultivating marijuana, or selling it in a retail setting? Do you want to sell edible products? Determining exactly what your business will offer will allow you to begin creating a targeted marijuana business plan.
- Understand local and state regulations. Although marijuana may be legal in your state, there are still a number of local and state regulations that must be followed to the letter in order to protect your business from legal trouble. One of the biggest mistakes new entrepreneurs make is that they don’t understand the regulations and laws for marijuana businesses and lack the manpower to constantly comply. Entrepreneurs should involve an attorney in order to ensure that their business is operated within the law at all times.
- Choose the right location. It’s usually not easy to find the right location for a marijuana business due to local, state, and federal regulations. Many landlords cannot or will not rent to cannabis businesses for fear of losing their property. There are also strict square footage requirements for marijuana businesses. Furthermore, a marijuana business cannot be opened within 1,000 feet of places like schools, day cares, or parks.
- Marijuana is a cash-only business. Because marijuana is still illegal at the federal level, marijuana businesses that are legal at the state level can’t store their money in federal banks. Therefore, store owners are forced to deal with large amounts of cash. This is not only a huge inconvenience but a legitimate safety concern as well.
If you would like more information on starting a medical marijuana dispensary, how to get a license to sell marijuana, or other cannabis business topics, we encourage you to get in touch with an award-winning marijuana business attorney at Cantafio & Song PLLC. We can advise you on how to be successful while remaining compliant with all local, state, and federal laws. To request a consultation, please call us at (888) 458-0991.