While it is great to have aspirations for starting a business in Arkansas, entrepreneurs should have a solid idea of what it takes to operate a successful business in their chosen sector. Opening a marijuana dispensary is a unique business that requires unique knowledge.
Green Entrepreneur offers advice for those interested in opening a dispensary. The right knowledge helps owners remain on the right side of the law.
Business owners and those who partake in cannabis are not automatic dispensary pros
Those who have smoked weed or operated a business before should prepare themselves for the many hurdles involved with owning a dispensary. It is best to consult, work and communicate with professionals who have operated successful dispensaries and can provide insight. Asking professionals how to legally operate a dispensary is a good idea.
Starting a dispensary requires a lot of money
It is not unusual for it to cost anywhere between $250,000 and $750,000 to start a dispensary. What is more is that it can take a few years before the operation starts to turn a profit, so aspiring dispensary owners should not be in the business to make quick money.
Licenses are expensive and challenging to get
According to Cannabis Business Times, the annual cultivation license fee in Arkansas is $100,000. There is also a performance bond, which costs $500,000.
Finding vendors may prove challenging
Because of the legal implications and reputational impact, not all vendors are eager to do business with dispensaries. This is another area where working with experienced professionals and those with connections is a good idea; also, because experienced professionals can connect dispensary owners with law-abiding vendors.
Aspiring dispensary owners have to carefully time their business launch. Not all states accept marijuana cultivation business license applications on a year-round basis.