Local credit unions may provide a better alternative than banks, and there are private marijuana banks in several states now, but these institutions may require payment of a monthly holding fee, which generally ranges from $1-2k/month. The Official Site of Philip T. Rivera. Likely to be your single largest expense. According to Marijuana Business Daily, the booming industry saw retail sales hit $9.7 billion in 2018 from $6.6 billion in 2017, and thats slated to double by 2022. Before applying for a loan to open your dispensary, it might be a good idea to calculate the approximate sum you will need for your startup costs. And that's just the initial costs! Though both Democrats and Republicans are hoping to . Unpredictable events can strike anytime, and its better to be prepared if they do. Many factors influence the overall cost of opening a cannabis dispensary. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Before joining the team, Kelly Main worked as an analyst at firms like Lincoln Financial Group. Even with a 15% excise tax, plus a sales tax on recreational use, this tax-heavy state remains rich with cannabis business opportunities. Application & Dispensary Licensing Costs: $5,000 - $30,000 In both Missouri and Michigan, you'll pay a non-refundable $6000. Lets start this guide by looking into some of the major costs associated with opening a dispensary before discussing the best options when picking the right location for your business. Easily $50k-$100k on an annual basis for the rental of an average sized facility in a moderately competitive market. As mentioned earlier, finding financial institutions willing to work with dispensaries can be difficult. in California that sell to crowds of customers already, so you can start profiting instantly. The information provided on this website does not constitute insurance advice. All Rights Reserved. You can expect to pay $12/hr. These rates are also below the national average, which is what allows retailers to maintain lower prices for their customers. Facebook Arizona dispensary licenses must be renewed and fees must be paid annually or biannually in order to remain compliant with the state's laws. It is illegal to consume medical marijuana in public. How much does it cost to open a weed dispensary in Oregon? If youre looking to start a marijuana business in the US, the time is now. . But, starting a cannabis business is not an easy task, so you might need some help when setting things up, especially if this is your first endeavor of that kind. Compared to many other businesses, the application and licensing fees are especially high. Whether you want to sell only the flower or also some edibles, oils, drinks, or other popular goods, you will need the initial capital to obtain all those items from a trusted supplier. These rates are also below the national average, which is what allows retailers to maintain lower prices for their customers. Fast forwarding to the present time, Oregon is still a good option and one of the cheapest states to open a dispensary. It is far more common for dispensaries to procure their flower from authorized suppliers, so thats the assumption well work with. If youre looking to start a marijuana business in the US, the time is now. 18. Previously considered the car capital of the world, Michigan is now going green as the nation's third-best state for opening a cannabis business. Its the highest of any US state, and the figures are set to grow exponentially. However, you should beware of the market oversaturation in Michigan, as there are currently, around 500 retail dispensaries in the state. Introduction: My name is Ms. Lucile Johns, I am a successful, friendly, friendly, homely, adventurous, handsome, delightful person who loves writing and wants to share my knowledge and understanding with you. What temperature can humans survive Celsius? Even though Colorado legalized marijuana for medicinal purposes in 2000, it wasnt before November 2012 that cannabis was legal for. for budtenders, $15-$17 for floor managers or supervisors, and $20-$25 for experienced store managers. Though the costs associated with starting a cannabis business are average with a $5,000 application fee, applications are not openat this time. Under the terms of the bill, processor license fees will be determined by volume and range from $2,500 to $40,000. For a retail location, the license application cost is $4,500 plus $2,500 due to the local government (due at the time of application). The fees alone are $5,000 for the initial application fee (non-refundable if denied), $30,000 initial licensure fee, and $5,000 annual license renewal fee. The LAX route begins June 30, offering daily flights with starting fares of $199 each way. Lets look at some of the major costs you can expect to encounter when opening a dispensary: If price is your primary concern when looking to open a dispensary, then youd probably like to know more about the cheapest state where you could start your business. How much will it cost to open a dispensary in Virginia? Select the newsletters youre interested in below. 13. Oregon legalized marijuana for medicinal use in 1998 and recreational use in 2014, with. 9. 16. How much does it cost to open a dispensary in NY? Do I need a license to sell CBD in Virginia? Application & Dispensary Licensing Costs: $5,000 - $30,000. A cannabis dispensary refers to a physical area where you can buy cannabis and its derivatives. California marijuana businesses have made $2.75 billion in legal and recreational cannabis sales. Studies have shown that up to 90% of dispensaries have reported having good to significant revenue in the past year, with an average 12% profit margin after tax and an average of 2 million in sales annually. Here is a great guide on the dos and donts of cannabis retail marketing. Next day delivery if you are in the United States. Arkansas Annual cultivation license fee: $100,000 Performance bond: $500,000 California Annual license application fees: Specialty Cottage Outdoor $135 Specialty Cottage Indoor $205 Specialty Cottage Mixed-Light Tier 1 $340 With low competition, high sales, and the potential for a colossal profit boost in the next few years, Arizona is a hidden gem for marijuana entrepreneurs. You could also consider buying an existing marijuana business- this is often the easiest way to get into the industry as youll have customers from the get-go. Knowing how risky it is to run a cannabis business while the legal environment is still so complex, you should strongly consider buying adequate cannabis dispensary insurance for your company. 2023 Embroker Insurance Services, LLC. for most strains of cannabis sometimes significantly more in the case of designer or low-yield strains. How do I open a recreational dispensary in Virginia? Legal sales started in January 2014 when the first retail stores opened their doors to customers. The government makes it easy to apply for a marijuana license in Colorado online. But when it comes to starting any business, location is key and you need to pick the best place to start a cannabusiness. If we were to approximate, opening a marijuana dispensary in the US can cost anywhere from $150,000 to $2 million. How much does it cost to open a small dispensary in Colorado? All content and materials are for general informational purposes only. Luckily, you can find plenty of marijuana businesses for sale in California that sell to crowds of customers already, so you can start profiting instantly. Massachusetts is another state you should consider when considering where to open your dispensary. How much is a dispensary license in Oklahoma? Starting a marijuana delivery service in Washington is also a lucrative option. . However, the industry is projected to grow even more if recreational marijuana is legalized. Ongoing expenses like salaries and lease or mortgage payments average around $30,000 to $50,000 per month. Paying six total employees an average wage of $20 works out to almost exactly $250k annually. Nevada also has a 15% excise tax on wholesale marijuana and a 10% excise tax on retail for both recreational and medical cannabis. Good staff is the lifeline of your business. The average cost of an ounce of marijuana for recreational use. Applicants reward the appliance course of as simple, and studies point out that you could obtain your license in 90 days. Theres always been a buzz around Oregon. What is the cheapest state to open a dispensary? There have been serious efforts to legalize recreational marijuana in Arizona. How much does it cost to open a dispensary in Nevada? Growing can also be profitable, although getting a cultivation license can be more difficult. As youd imagine, starting a business in the capital can be expensive. Its a more relaxed location than some of the top marijuana states, but its definitely one worth looking into. Higher Leaf is your one-stop cannabis store for . The state legalized recreational marijuana in 2016, and the market is still in its early stages. How much does it cost to open a dispensary in Ohio? Also get edibles . Its currently one of Americas fastest-growing industries, with statistics from The Cannabis Industry Annual Report estimating $10.2 billion in annual sales and up to $24 billion by 2025! The cost of opening a cannabis dispensary ranges from $150,000 to $2 million. How much does it cost to open a dispensary in Florida? In the state, dispensary license application fees are a non-refundable $25,000 per location or a $5,000 non-refundable fee for social equity applicants. With Maine already making $83.4 million in medical marijuana sales, its a state with a lot of potential for marijuana businesses. In addition, a dispensary can only be done in the areas approved by the local county and business community. In terms of total cost, while no two dispensaries are created equal, youre probably not going to be able to realistically make a go of things in any location with less than $150k, and in states with extensive capital requirements you could easily need upwards of $2m or more. Also, the real estate, construction, and overhead costs are less expensive than most other legal states. Theres a lot to consider in this ever-changing, young industry, but we built our list based on a few key metrics. Data was then analyzed and weighted based on each categorys importance. Fit Small Business content and reviews are editorially independent. Dispensary owners can also apply to cultivate and manufacture marijuana products. 17. But even with taxes, it still pays off to run a cannabis dispensary in California as the industry is flourishing because of the large market potential. Finding the best state to open a cannabis business will help you avoid getting caught in the weedsthat is, lost in a maze of taxes, regulations, and applications fees. No surprise, really; Colorado was the first state to legalize recreational marijuana in 2013. Location within Health Service Area. Be the first to rate this post. All of these places are worthwhile choices so look into them and choose whats right for your business.