Every cannabis enthusiast is dreaming about opening a marijuana dispensary. Statistics in the field suggests that sales from retail shops in the marijuana industry may reach $21.8 billion by 2020.
Though one of the biggest ways to make money in the legal cannabis industry is to open a dispensary, you should take into account several important factors so to reach success. This article will help you get a better idea of the costs that come with the application and startup process.
- Dispensary Startup Fees
As you know, there are states where medical cannabis businesses are legal. Here, you should pay $5.000 as a general upfront cost for an application, which is non-refundable. Different areas require different licensing fees:
- Colorado: the initial licensing fee is $3.000
- Louisiana: the initial licensing fee is $150
- New Jersey: the initial licensing fee is $20.000
- Arizona:the initial licensing fee is$150.000
- Nevada: the initial licensing fee is $250.000
- Separate Startup Fees
Cannabis growerswill be charged an application fee and a license fee that is to be renewed annually. In Nevada and in other locations, cultivators will be required to pay a yearly growing fee, which for producers residing in the state is $3.000. In Connecticut, you’ll be obliged to pay $25.000 for the grower’s application fee and $75.000 annual license maintenance fee.
- Indirect Costs
Costs that aren’t directly related to opening a marijuana dispensary can sometimes be just as costly as the initial startup fees. Colorado and other states require applicants to be a local resident for at least 2 years. Also, they shouldn’t have any controlled substance felony convictions within 5 years prior to the application date.The party providing the funds shouldn’t have any criminal history either, based on the standards of the licensing authority.
You need to have enough funding to cover the inventory.To get an idea of the costs, take into account the fact that the wholesale price of cannabis fell in 2016, and at the beginning of 2017, cannabis ran around $1.000 per pound. Market prices are anticipated to undergo constant fluctuation.
If you don’t have enough resources to start your marijuana business, turn to a reputable alternative online lender that specializes in the high risk industry. With a business funding expert, you can get exceptional business financing opportunities, including merchant loans bad credit.
This is an outline of the basic costs and requirements associated with opening a marijuana dispensary. The primary start-up costsvary from location to location. Anyway, if you turn to a respectable business funding provider, there’ll be nothing impossible for you.
Author Bio: Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best merchant loans bad credit company, serving both traditional and high-risk Businesses.