Economic indicators suggest that the U.S. cannabis market could reach up to $72 billion annually by 2030. It should be no surprise that many smart entrepreneurs are developing plans to enter the industry and access some of that market share. Many people have questions like how much money to start a dispensary or how to get a grant to open a dispensary? Let’s take a look at how some of the costs breakdown.
Location
For many people wondering how much money they need to start a dispensary, this factor can have the biggest impact. Obviously, you need a place to sell your product. There are many options from renting or leasing a building to buying one.
If you already own a suitable place, this cost can be nothing. But most people will need to secure a spot. Leasing is ideal for many because it requires less upfront money. However, buying a building can be more affordable in the long run. Thus, this is also the most difficult cost to benchmark.
Personnel
One thing that many people do not fully consider the scale of when determining how much money they need to start a dispensary is personnel. Dispensaries need to be staffed and even if you live in an area where you can have a lower hourly rate, the costs add up over the course of weeks, months, and years. You can estimate to pay between $1,000 and $2,000 per staff member for training and work prior to your store opens.
Legal Stuff
Opening a dispensary means jumping through quite a few legal loopholes such as city, county, and state application fees. These legal fees vary from place to place and can typically cost anywhere from $1,000 on the low end to $30,000 on the high end. If you hire professional services like attorneys to help you with the filings, you can add an additional $20-30,000 onto that figure.
Marketing
Opening a dispensary means you also need to get people to your store. Making people aware that you exist and promoting your brand requires an investment in marketing, which is particularly critical in the months prior to opening. Dispensaries typically spend $25,000 to $75,000 on marketing materials prior to their opening.
The Final Number
While these help provide a look into some of the major costs that go into opening a dispensary, there are also other considerations such as capital equipment, renovations, and other miscellaneous costs. If you are wondering how much money you need to start a dispensary, the average cost seems to be between $250,000 and $750,000.
If this has you frantically googling “how to get a grant to open a dispensary,” there is no need to worry. There are actually many ways to get the capital needed to enter this growing market. Applying for our cannabis business loans is a quick and easy process that can help you access necessary capital in a fairly short time.