And she’s preaching to the choir. (Yeah. Captain Obvious isn’t always a dude.)

But opening a marijuana dispensary isn’t necessarily the answer to getting in on the action.

There is A LOT involved in doing so. And without knowing full-on the many risks, there’s even more to lose.

Opening a Marijuana Dispensary Is A Huge Undertaking

But among some starry-eyed entrepreneurs, there’s a notion that a cannabis business doesn’t face the same challenges. That the product simply sells itself.

They’d be partially right. But only about the first part. Because running a cannabis business doesn’t face the same challenges. It faces many more.

1. It Is EXPENSIVE to Get a License

Applying for a business license for a dispensary is complex, to say the least. You need to understand all the requirements on the state, city and county levels. And while costs vary to get a license, the final number can tally up to six figures.

Even if you do manage to pull together the funds, you may still not get a license.

The marijuana market is forecasted to be worth more than $31 billion by 2021. That means there are a lot of people wanted to get into the business.

Most states are concerned about over saturating the market, so licenses are handed out gradually. Very gradually.

2. Banks Will Not Rush to Help You

New bills such as the SAFE Banking Act are pushing toward allowing cannabis businesses to have access to bank services – including loans.

But this is still in its infancy.

As of now, there are fewer than 500 banks and 200 credit unions worldwide who offer services to marijuana businesses.

Because marijuana is still federally prohibited in the U.S., most banks are concerned they will be charged with money laundering.

You MAY be able to get an account, but forget about loans or checking. That means you’ll be doing a lot of transactions in cash. And that adds another layer of risk.

3. Taxes Are Sky-High

This isn’t just a run-of-the-mill complaint about high taxes either.

Working solely in cash is a hassle when it comes time to pay your taxes. The IRS doesn’t like it either.

They dislike it so much that federal Tax Code 280E has ensured that all plant-touching businesses — companies that deal directly with the plant, as opposed to those dealing only with accessories and ancillary services — cannot deduct business expenses or use tax credits.

That means that expenses incurred from things like advertising, rent and equipment cannot be deducted – bringing the average taxes paid by cannabis businesses to around a whopping 70 percent.

Ouch.

4. Good Employees Are Rare

Yeah. This is true across all businesses, right?

But what makes working in legal weed unique is that there are very few people with a formal education in cannabis. After all, it’s a young industry.

In many existing dispensaries, the staff are trained only in sales and don’t have enough knowledge to provide advice to patients.

This is huge drawback for patients who are seeking the products best suited for their needs. And if they can’t find it at your dispensary, they’ll go somewhere where they can.

5. Supply Chain Management Sucks

There. We said it.

Just like with opening a restaurant, starting a legal cannabis will require you to follow some pretty stringent laws and health and safety rules.

But unlike with the food and beverage industry, the cannabis industry doesn’t have much access to a workforce who knows how to handle this. (See #4 above).

Plus, protocol for health and safety will vary from state to state and is always changing. So you’ll need to stay out ahead of it.

Do You Have What It Takes?

If you’ve got the chutzpah (and the funding) required for opening a marijuana dispensary, there’s no time like the present.

There’s definitely a need for well-managed cannabis dispensaries that are able to comply with the laws and regulations.

And if you’ve already got a successful cannabis business, it never hurts to review your marketing strategy to ensure you remain competitive in this growing industry.

Reach out to us for a consultation today.

The post 5 Challenges to Opening a Marijuana Dispensary appeared first on GROW Cannabis Marketing.

At least, that’s what folks in Oakland County are saying. And especially those near the Greenhouse in Walled Lake – which has the distinction of being the first licensed dispensary in Oakland County.

Up until now, residents of Oakland County have had to go to provisioning centers in neighboring counties. And some of those dispensaries haven’t felt exactly welcoming.

Jerry Millen, one of the owners of the Greenhouse, has set out to change that.

Breaking the Stigma

Back in October when Millen was granted the first license in Oakland County, he was thrilled. And more than a little relieved.

Having decided eight years earlier that he wanted to open a dispensary, he bought the Walled Lake building that houses the Greenhouse four years ago.

And although he was granted the license three months ago, he was in no rush to get the Greenhouse open right away. After all, he’d already been working on the building for years – his objective being to create a dispensary that would feel more like a mom-and-pop corner store and less like a low security correctional facility.

When asked about the location, Millen said, “The area is safe and secure, and the neighboring businesses and residences are embracing the big green house that we have been renovating on the corner of Walled Lake Road and Pontiac Trail.”

Of course there were other reasons he didn’t open right away too. One of the key reasons being the lack of marijuana. He didn’t want to open until he was certain he’d have a sustainable supply of a variety of products, and that he’d be able to sell them at a fair price.

In other words, he wasn’t going to open until he knew he could “do it right.”

What Will This New Dispensary in Oakland County Offer?

One of cool things about the Greenhouse is its proximity to Over the Moon – the most recognized and respected medical marijuana certification clinic in the metro-Detroit area.

For several years, the clinic has been helping medical marijuana patients get their patient certifications. They specialize in helping patients recognize what type of marijuana is best suited for their specific needs.

Millen feels it’s really important that patients understand the benefits of marijuana and it many uses. So he’s planning to offer a series of seminars educating current marijuana users and prospective patients on the benefits of different kinds of marijuana and how to best utilize them.

There will be doctors and patients at the seminars who will be able to speak firsthand of the benefits of cannabis.

“Education is the most important issue we are facing as people don’t know where to go to get the answers or to find out if they could benefit from marijuana,” Millen continues. “We are going to offer free classes to educate the public on medical marijuana.”

This is unique approach, to be sure. But Millen is passionate.

And this passion carries over to understanding the benefits of medical marijuana for children suffering from debilitating diseases. The stigma around marijuana use for adults is still prevalent. So it makes sense that there’s so much resistance to using it for children.

But it sure beats opioid drug use – which is also not favored by parents. So through these free classes and seminars, Millen plans to help people understand how to continue to use marijuana safely with their children, while lifting the stigma around it.

Millen and the Greenhouse are setting to bring together the community of Walled Lake in a whole new way.

Not Every Community So Welcoming

As enlightened on the topic of cannabis as Millen and Walled Lake might be, don’t expect a slew of other dispensaries to open in Oakland County too soon.

We have to remember that statewide, voters approved Proposal 1 by a 56-to-44 margin. So that means even though 2,356,422 voted yes, there are 1,859,675 people who voted against it.

So it shouldn’t come as a major surprise that not every community is embracing the possibility of marijuana businesses in their communities. Even in Oakland County.

For example, the Rochester City Council members voted 6-1 to approve a measure that would prohibit marijuana businesses from being established within city limits.

On November 12th, the Birmingham City Commission voted 4-1 to ban establishments selling recreational marijuana within the city’s boundaries.

And even Royal Oak – a community riddled with bars – the city commission narrowly passed by a  4-3 vote to ban marijuana facilities while officials explore how they could potentially impact the city.

Seems there will always be push back. But the Greenhouse is proof positive that the cannabis industry is moving in the right direction. And that’s onward and forward.

Check out the Greenhouse!

If you’re all about supporting the cannabis industry, swing in and visit the first licensed dispensary in Oakland County this weekend and see what it’s all about.

And since it’s Super Bowl weekend, if you wear any NFL team jersey (and we mean ANY), you’ll get 20% off your purchase at the Greenhouse.

No judgment.

The post First Licensed Dispensary in Oakland County Opens appeared first on GROW Cannabis Marketing.