In Canada, more and more people are also looking to buy their first dispensary, thanks to the legalization. With many Canadians getting into the cannabis industry, are you considering buying a dispensary?
Considering how Canadians are buying their weed post legalization, the Canadian market is becoming more competitive every day, so before making any big investments in this industry, here are five things you need to consider.
1) The cost
2) Retail sales experience
3) What kind of land will it sit on?
4) Legal paperwork
5) Who will be a part of the team?
6) What are you offering to a first time customer?
1) The cost
Before even considering buying a dispensary, you have to calculate your budget and make sure that you have enough money for it. For example, if you’re looking to buy a retail store in Ontario, the average base rate is about $2.6 million. Based on that, if your budget is $2.6 million, the average cost of a dispensary is around $1.5 million.
Taking these factors into consideration, if you’re looking to buy a dispensary in Canada, make sure you have the cash on hand as well as the capital for other expenses. It is always a wise idea to budget your cash flow for other expenses like property taxes and utilities.
2) Retail sales experience
How many years have you worked in the retail store industry? Why do you want to work in a cannabis dispensary? There are many different types of dispensaries, and there’s no perfect answer. It depends on what type of experience you want. As a budtender, for example, your responsibilities might include maintaining inventory, ensuring quality products and helping customers find what they need. Also, depending on the kind of business you’re running, you might want to consider buying your own brand of products.
You need to know that the cannabis industry is very different from other businesses and requires specific skillsets. If you have experience in a cannabis retail store, this is a good start, but you will still need to hire skilled employees who can help you to run the business.
3) What kind of land will it sit on?
Before considering buying a dispensary, you have to take into account where the dispensary is located. Not only will this help you to attract customers but also open opportunities for partnerships and things that can be built around your business.
The location of your dispensary will not only determine your customer base but also your proximity to other cannabis businesses. If there are other cannabis businesses close by, you can partner up with them. This will give you the opportunity to expand your business faster while still making sure that you have everything under control. There are many zoning restrictions when it comes to opening a dispensary, so it is important that you check for the zoning regulations in your area.
4) Legal paperwork
There are a lot of legal things that you have to consider before buying a dispensary. Applications, licenses, licenses and permits are all things you need to get in order before buying your first cannabis dispensary. Having consultants or an expert on your team will make the process much easier so you don’t have to worry about anything and can focus on running the shop.
This step is probably the most important one, as running a cannabis dispensary comes with many legal obligations. One of these is to ensure the safety of marijuana products, and this includes using proper packaging, labelling and storing procedures. So you need to know if your business is compliant with all the regulations in your area before even considering buying a dispensary.
5) Who will be a part of the team?
You might want to have more than one person involved in your team if you want to own a successful cannabis dispensary. You might want to have a strong core team with a good business sense, but you will also need a consultant for all the legal paperwork and someone who knows the industry well.
Having someone you trust is also important because you want to make sure that everything is going well in the dispensary. You also want to make sure that if things aren’t going as planned every step of the way, you’ll have someone who can help you out.
6) What are you offering to a first time customer?
Once you’ve figured out your budget and how many employees you will need to run your dispensary, it’s time to focus on what you are offering first-time customers.
There are a few things you need to know about what you’re offering your first-time customers. You need to offer them the best quality marijuana for an affordable price at the best location. Another thing to note is that you need to make sure that your dispensary is stocked with the right products and concentrates in order to achieve this goal.
Conclusion
Operating a cannabis dispensary is a great way to start your own business. But before you even start thinking about it, you need to be aware of all the different factors that will affect the success of your dispensary. A dispensary is a retail business like any other and needs careful planning if you want to achieve financial success.
Hopefully, with this post, you can make a decision for yourself as to whether buying a cannabis dispensary is the right investment for you. There is so much to consider and it’s important that you know what steps need to be done in order to run a successful cannabis dispensary.
With these 5 tips in mind, I hope that you are ready for the future and feel confident when making your decisions. Just remember to be patient and go the extra mile to ensure that your business is a success!
