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The fact of the matter is that entering the legal cannabis industry can be incredibly profitable. With sales in 2018 nearing $10 billion, and projected to triple by 2023, cannabis is poised to soon pass the NFL in terms of revenue. Dispensaries do enjoy a healthy profit margin, and most new dispensaries are in the black within their first year of operation, with over 75% profitable or at least covering their operating costs.
With most U.S. states and the entirety of Canada now permitting the usage of cannabis, a new green rush is sweeping the nation.
Unfortunately, the grass isn’t entirely green when it comes to the landscape for starting a new dispensary; there are a number of significant challenges and risks that dispensaries must successfully navigate and overcome. Broadly speaking, these challenges can be categorized into four groups: legal, financial, social, and security- related.
Dispensaries face a much higher standard than the average business when it comes to legal compliance. The cannabis industry is highly regulated in all states and provinces, and you (and everyone associated with the dispensary, even investors!) are going to have to satisfy some stringent requirements when it comes to residency and criminal background checks, and will face an ongoing struggle to ensure you remain legally compliant at all times.
Finally, as a dispensary owner you have some significant security concerns to deal with. When thousands of dollars of your cash or product can easily be stuffed into a pocket you’ve got to be on the lookout for theft, both internal and external – as well as robbery. You’ll also have to spring for a pretty heavy duty security and surveillance system to stay compliant with the law.