One of the most commonly asked questions we get here at Pinnacle Consultation is, “How much does it cost to open a dispensary?” Well, it depends – on your intended focus, location, size, etc. The answer though is not clear-cut, but below we’ll delve into it and help you get exactly the info you need to stake your claim in the industry.

As many know all too well, opening a cannabusiness, regardless of where you desire to be, (cultivation, manufacturing, investment, retail, medical, or recreational), it takes more than just some cash action. You need patience, advice and expertise, and an ample amount of time to learn (and understand) how to navigate the regulations, compliance, as well as everything else that comes with general business operations.

Show Me the Money

Do you already have your funding secured for your venture? Unfortunately, swinging by the bank might not be an option, as many financial institutions are unwilling to lend to an industry that is still federally illegal. But don’t fret none. There are individuals willing to invest in such an endeavor. And there are firms that specifically loan to cannabusinesses.

Entering the industry means application and licensing fees, background checks, property acquisition, inventory, staff, and more. Let’s start with licensing because without it, your cannabusiness won’t even get off the ground.

Costs Vary by State to Open a Dispensary

Take Arizona costs. State fees start at $5,000 for an initial dispensary registration certification, and then $1000 to renew. If you change your mind and need to change your dispensary or cultivation facility, it will cost you $2,500.

Nevada’s fees are bit steeper. After the initial $5,000 application fee, you will have to hand over $20,000 to license your retail store; $30,000 for a cultivation facility; $10,000 for production; and $15,000 for a testing lab.

Colorado’s fees start at $4,500 for a new retail store, plus a separate $2,500 local fee. Then, it costs $1,800 to renew. For a medical marijuana facility or center, fees depend on the number of patients being served (e.g. (1-300) – $9,000; (301-500 patients) – $16,000; (501 or more patients) $22,000.

In Louisiana, to open a marijuana pharmacy, the state charges a $5,000 license fee. And then there is Connecticut. You’re going to need to shell out an initial $25,000 for your application fee to open a dispensary. Then, $75,000 for a registration fee. And then when you renew, it will cost you another $75,000.

Everything Else Costs Money Too

After specific licensing and registration fees, a cannabusiness is just like any other business when it comes to expenses. You must consider buying or leasing the property, security, Point-of-Sale systems, inventory, décor and display cases, advertising, and more. According to Marijuana Business News, these costs could run you anywhere from $40,000 to $135,000 for a 1,000 square foot store with two employees. And consider that one of the most expensive aspects of owning a business is wages. And it can be difficult to successfully run your business with too few as well as too many employees.

Am I Done Spending Money Yet?

It is important to realize that opening a business (any business) is a serious endeavor. Costs may arise at any time – and some might catch you off guard. But it is important to plan and prepare so that the unexpected does not stall your business. And the best way to plan is to consult with experts who have worked through the cannabusiness process, the cultivation process, set up grows, and know their way around everything cannabis. Not to scare you or anything, but as any currently successful cannabusiness owner can tell you, it’s just plain hard.

So, whether you are creating, establishing or growing your cannabusiness, Pinnacle Consultation is your source for expertise in license applications, legal compliance, investor relations, human resources, accounting, retail operations and more. Call us at (719) 330-5301 or schedule a sit- down and get started today.