Cannabis is a psychoactive drug derived from Cannabis indica plant or Cannabis sativa intended for recreational or medical use. This plant contains various chemical compounds such as THC and CBD. It is legalized by creating a room for new business opportunities. Here is what you should know to start a CBD business in 2020.
Reasons why you should open a Cannabis Dispensary
- It is legal to sell cannabis, and there is no need of hiding yourself or pretending to sell medicinal drugs.
- Experts believe that cannabis industry will grow rapidly overthrowing recreational cannabis stores in Washington State.
- Within the first five years, small business will have a chance to sell cannabis, as large outlets will not be allowed to sell cannabis. With no competitions from large cannabis outlets nationwide, you will have an opportunity to start and succeed in your cannabis dispensary.
- Opening a dispensary now, you will not have to deal with the problem most industries are facing of being saturated with people.
- Creating a dispensary will create new employment for others thus freeing people from state aid programs.
Steps to take when starting a cannabis dispensary
To start a CBD business in 2020, you need to have the required licenses to sell cannabis, have knowledge on how to grow it commercially, and how to produce cannabis-infused products and test them. Bureau of Cannabis Control operating within the Department of Consumer Affairs will help you with the whole process including application, approval, and compliance processes.
To sell cannabis, you will need to
- Choose your business type whether a sole proprietorship, general partnership, or a corporation company and its name.
- Register your business with the secretary of state.
- If you are to operate your dispensary under a business name, you should get a fictitious business name statement from your county clerk.
- Get a permit or other written authorization from the local government to operate your business.
- Get a seller’s permit and a cannabis tax permit.
- Get a state license from the Bureau of Cannabis Control.
- Consider tax obligations and employer obligations.
- Lastly, you can register trademarks and service marks according to your desire.
The cannabis industry is at its infancy stage; therefore, the early you get started with a cannabis dispensary the better for this industry, as you will help shape its future. By getting into the ground floor, you will have room to establish your business and grow with the industry.
You might not have adequate information about cannabis, but there are plenty of resources available that can help you learn and familiarize yourself with it. You can also partner with an expert to help with marketing cannabis products and educating customers who have less information about cannabis.
Just like most of the businesses, it is essential to understand that you will not gain profit immediately after starting a cannabis dispensary. You have to be patient as it might take several months for you to acquire actual profit. Also, as time goes, there might be changes that you should be prepared to change with the changes as the cannabis industry is growing.