As of the past few years, the cannabis dispensary industry has been thriving in Massachusetts. This is due to their somewhat hospitable laws towards marijuana, which makes the environment perfect for opening up a dispensary.
Some of the main factors which have led to this is the legalization of recreational marijuana in 2016, and massive nationwide demand that has brought cannabis sales to $1 billion annually.
With that in mind, let’s break down exactly how you’d open up a dispensary in Massachusetts and get your business off the ground.
One of the simplest “no-brainers” to work on before launching any distribution/dispensing business is to understand what your competition looks like, and figure out what they’re doing.
This falls back on the old adage of “if it ain’t broke, don’t fix it” - if there are certain trends of behaviors you can identify within the already-successful dispensaries in your area, it might be wise to consider them.
It’s also important that you’re able to figure out who your target audience actually is, and understand what kind of demand exists in your area.
Is there a certain type of strain that sells more than others?
A certain type of flavor perhaps?
Understanding these metrics will be important for you in building the foundations of your business.
When we start talking about the law, it’s important we figure out how to navigate the CCC, or the Cannabis Control Commission.
The CCC is essentially the main governing body that regulates everything to do with cannabis in the state of Massachusetts. They are the people who will be giving you your license, making sure you comply with the law, and are up-to-code with safety requirements.
You need to also make sure you figure out what licenses you seek/are able to acquire. The main ones in the state of Massachusetts are medical and recreational. The medical license lets you distribute cannabis to people with an active medical marijuana card. The recreational license lets you sell to adults the age of 21 and over.
Depending on what kind of business you’re looking to build, you can get one or both of them.
On top of that, there are also different types of licenses to choose from, including: Marijuana Retailer License, Craft Marijuana Cooperative, and the license to be a Delivery Operator. All of these are unique and niche in their own way, and it really depends on what type of business you’re looking to create.
Each license will also have some kind of application fee, with a general range of $1,500 - $30,000 depending on what you’re going for.
It’s important to at some point become familiar with your local zoning laws, as you’ll find those very useful in determining where you should open up your location. You’ll also ideally want to look for spots that are high-traffic and easily accessible for your customers. Make sure you’re looking at places where the demographics make sense, and your demographics include your target market.
From there, you’ll want to evaluate your financing options, as there are a lot of distinctions to be made regarding traditional loans vs. loans that are specific to cannabis dispensary development.
You’ll want to create an articulate and detailed financing plan that makes your business model look appealing to future investors.
The next key component of getting this business off the ground is going to be to build your team, and ensure you’re finding people who are qualified to take you to the next level. Ideally look to make a team of competent individuals that have strong product knowledge, business sense, and people-skills.
We’ll need a general manager of some kind (that could be you for a little while until you scale), as well as security and a team of budtenders. You’ll want to put the most social and outgoing people of the bunch as your budtenders for sure.
To finish things off, you’ll want to form a concrete business and marketing strategy that cements some of the most fundamental tenets behind good business in place - strong community, qualified staff, a smart location, and in-demand product.
Massachusetts is the perfect place to do this, as its market and laws are conducive to conducting phenomenal business in this industry.
It’s important to make a strategy that outlines how you’ll learn your area/demographic, how you’ll secure your funding, how you’ll create your team, and how you’ll get things off the ground.
We’re looking forward to what you create.
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