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How To Start a Marijuana Business In Oregon

By George Mouratidis

Oregon has an extremely favorable climate—both politically and environmentally—for marijuana. Not only is Oregon one of the first states to legalize medical marijuana, but recent statistics also suggest the 33rd state has a high percentage of pot smokers. Plus, Oregon routinely produces a large portion of the nation’s annual marijuana and hemp supply.

With the legalization of recreational weed in 2015, it has never been a better time to set up a dispensary in Oregon. Whether you’re interested in starting a medical or recreational marijuana business, you’ll feel right at home in this famously pot-friendly state.

If you’re confused about how to navigate Oregon’s dispensary application process, then you’ve come to the right place.

In this post, we’re going to share the info you need to know when applying for a dispensary license.

In addition to going over important rules and documentation, we’ll share dozens of authoritative links you should add to your Favorites. As long as you follow the guidelines outlined below, you shouldn’t have any issues opening your dream dispensary.

OLCC or The Oregon Health Authority: Who Should You Work With?

Whether you’re applying for a medical or a recreational dispensary, the best first step you could take is to create an online account. What kind of dispensary you want to open, however, will determine what agency you have to deal with.

First off, those who are interested in recreational marijuana have to work with the Oregon Liquor Control Commission (OLCC). You can find a ton of helpful information on recreational marijuana in Oregon by visiting the OLCC’s official page here.

Medical marijuana dispensaries, on the other hand, must go through the Oregon Health Authority. Be sure to click this webpage to find more info on the proper protocols for a medical dispensary.

If you’re ready to sign up for an online account, feel free to click this OLCC link for recreational marijuana or this link for medical dispensaries.

An Overview Of Oregon’s Dispensary Application

Now that you know who to work with, let’s examine what a typical dispensary application looks like. Although we’ll be focusing on the OLCC’s requirements in this piece, there are many similarities with Oregon’s medical dispensary application. Anyone who wants more specific information on the state’s medical marijuana program, however, should visit this website

A Quick Look At The OLCC’s “Eight Sections”

When you first review OLCC’s Marijuana Retailer Application, you’ll notice there are eight sections you need to fill out. To help you better prepare for your application, check out this brief overview of each section.

Section One: List your full name, contact information, and your dispensary’s location.

Section Two: Detail your store’s hours of operation. If you’re planning to keep your store open between 10 PM – 7 AM—which is illegal under state law—then you must explain why.

Section Three: In this section, the OLCC asks “yes or no” questions to ensure your dispensary is in a legal zone.

Section Four: List every person who has a financial interest in your dispensary. 

Section Five: Here you will note whether you’re sending through optional applications for Medical Purposes Registration and Home Delivery Registration. We’ll examine these registrations in greater detail below. 

Section Six: In this section, you’ll have to answer a series of “yes or no” questions on various aspects of your business. This includes how you will train your employees, your security system, and your marijuana transportation responsibilities.

Section Seven: Here you will find the state’s official protocols on how to screen for minors at your dispensary. If you choose not to accept the OLCC’s guidelines, then you must provide an acceptable alternative strategy.

Section Eight: Lastly, you must acknowledge that all of the statements made in the other seven sections are true.

If you want to see all of these eight sections in full detail, be sure to click on this PDF file.

Are Any Other Documents Required?

Yes, everyone who applies for a Marijuana Retailer Application must submit a few secondary documents. Here are the essential files you need to send with your application:

  • To verify your dispensary is in a legal zone, you’ll have to submit a Land Use Compatibility Statement (LUCS). You can find a LUCS PDF file here.
  • Include a formal document that shows you have the legal right to operate in your dispensary’s location (e.g., a lease or a deed).
  • OLCC also requires a map of your dispensary’s floor plan drawn to scale. You can see what a successful premises map looks like on this handy PDF.

If you have other people or corporations who are financially involved in your dispensary, then you may also have to fill out a few other forms. Here are links to the four questionnaires OLCC now offers:

Depending on how much of a stake each person has in your dispensary, OLCC may ask for Individual History Reports. You can find the official Individual History Form on this link.

What’s A Medical Purposes Registration?

OLCC’s optional Medical Purposes Registration allows recreational dispensaries to sell medical-grade marijuana to patients and caretakers on Oregon’s Medical Marijuana Program. If you are going to add medical-grade marijuana to your store’s catalog, then please be careful to keep medical and recreational products separate.

You can read through the full Medical Purposes Registration by clicking on this link

Ganja Home Deliveries—Yes, It’s A Real Thing!

The second optional registration in OLCC’s dispensary application is listed as Home Delivery Services. Just as the name suggests, this registration will allow you to deliver a legal amount of ganja goodies to a customer’s home.

Unsurprisingly, there are many stipulations attached to this service. For starters, you cannot bring your product outside of your dispensary’s district. Here are a few other rules you must keep in mind:

  • Only deliver marijuana between 8 AM – 9 PM.
  • Never bring marijuana goods to businesses, hotels, or dormitories.
  • Marijuana deliveries must not exceed $3,000.
  • Place marijuana goods in a secure lock-box.
  • Keep detailed receipts of every at-home delivery.
  • Only drive in an insured car registered in Oregon.
  • Delivery cars must have lock and alarm systems.

For more details on applying for Home Delivery Services, please click on this official link.

What’s Oregon’s Cannabis Tracking System?

Everyone involved in Oregon’s marijuana industry must agree to use the state’s online Cannabis Tracking System (CTS). Also known as “Metrc,” the CTS helps dispensary owners keep tabs on their marijuana inventory and share information with respective government authorities.

Since CTS is a significant part of Oregon’s marijuana industry, we encourage you to visit this online CTS guide put together by the OLCC. You could also learn a great deal about the CTS on this helpful link

Don’t Forget Your Background Check!

Lastly, you must submit a thorough background check request and a set of professional fingerprints to the following address:

DHS/OHA Background Check Unit

P.O. Box 14870

Salem, OR 97309-5066

According to the Oregon Health Authority, government officials are primarily interested in any previous convictions for illegally manufacturing or delivering Schedule I or II drugs. Please keep in mind prior convictions do not necessarily bar you from receiving a dispensary license.

By the way, you could submit your fingerprints electronically if it’s more convenient for you. Here’s more information on Oregon’s fingerprinting services

For a full list of Oregon’s background check request forms, take a look at this official webpage. You can find background check requests specifically for medical marijuana dispensaries on this link.

Oregon’s Marijuana Taxes & Application Fees

OK, we know fees & taxes aren’t the cheeriest subjects, but they are realities every prospective dispensary owner must be prepared to handle. 

People who are filling out the OLCC’s recreational dispensary application must pay $5,000, which includes a non-refundable $250 application fee. Those trying to set up a medical marijuana dispensary, however, will have to pay the Oregon Health Authority a $3,500 registration fee and a $500 non-refundable application fee.

On top of these application fees, expect to pay $35 for your background check. Successful applicants must also pay $480 per year to take part in Oregon’s Cannabis Tracking System. Please consult this FAQ page if you have further questions about licensing payments.

In terms of taxes, there’s now a 17 percent tax on all marijuana goods sold throughout Oregon. According to the Oregon Department of Revenue, municipalities could add up to a three percent local tax on top of this 17 percent rate.

You can find out more information on Oregon’s marijuana taxation policy on this Department of Revenue page

Where You Can’t Build A Dispensary In Oregon

In Oregon, it’s illegal to build a dispensary within 1,000 miles of a school or another recreational dispensary. Most districts also don’t permit dispensaries in residential areas.

To help you find a safe and legal dispensary location, the state government recently put together this interactive School Locator Map. While this online map is helpful, it’s no replacement for physically surveying the area where you want to set up a shop.

Also, keep mind that not every district in Oregon allows the sale of recreational marijuana. As a prospective dispensary owner, it’s your job to contact local legislators and figure out where they stand on recreational dispensaries.

Please be sure you know the laws governing dispensaries in your proposed location before sending out your application. Also, if you want to open a dispensary on federally-protected Tribal Grounds, then you must gain approval from the respective Native American tribes.

You can find out more about Oregon’s opt-out program by clicking this FAQ page put together by OLCC.

What Are Oregon’s Consumer Limits?

Like every other state, Oregon has a set of daily marijuana limits for customers. As a dispensary owner, it’s your responsibility to teach all of your employees how much marijuana they can legally sell to customers each day.

Most importantly, you must ensure everyone who buys recreational marijuana from your shop is at least 21-years-old. All of your employees must also be over 21.

As long as you’re working with a legal-age customer, here are the daily limitations to keep in mind:

  • No more than one ounce of marijuana buds per day.
  • A max of five ounces of cannabinoid extracts or concentrates.
  • 16 ounces or less of solid marijuana edibles.
  • 72 fluid ounces of marijuana-infused liquid products.
  • No more than ten marijuana seeds. 
  • Four immature marijuana plants.

The OLCC put together this colorful PDF file detailing the state’s legal cannabis limits. Feel free to print this out and hang it in your dispensary for quick reference.

Required Signage For Oregon Dispensaries

While we’re on the subject of colorful PDFs, it’s worth pointing out that Oregon has strict signage policies. You must display the following signs in your store where everyone could see them:

  • “No Minors Permitted Anywhere On This Premises.”
  • “No On-Site Consumption Of Marijuana.”

You should also place a “Do Not Enter” sign by areas that are only for employees. Each of these signs must be 12’’ x 12’’ and have letters that measure at least one half-inch each. You also must print these signs in both English and Spanish.

The State of Oregon also requires dispensaries to hang three 17’’ x 22’’ public health bulletins in their store. The first poster is on smoking while pregnant, the second details potential marijuana poisoning, and the third promotes the state’s “What’s Legal Oregon” program.

You can find these signs on this Oregon Health Agency website. You could also learn more about proper dispensary signage on this OLCC link.

Good Luck With Your Oregon Dispensary Application!

Applying for a dispensary license can be exhilarating at times, but it could also be extremely confusing.

We hope the info above gives you a rough outline of what to expect during the application process. If you have any further questions, then you should reach out directly to either the OLCC or the Oregon Health Authority. Click on this link for contact details related to the state’s Medical Marijuana Program and this link for OLCC’s contact information.

Growing Medicinal Cannabis: Advice from the 5 Best Professional Growers in Colorado

By Cecelia May Thorn

If you’re interested in growing medicinal cannabis, you need to read this article. We spoke to five of Colorado’s best marijuana growers — and their advice might surprise you.

We interviewed owners of the state’s leading cannabis brands (14er Holistics and Veritas Fine Cannabis), as well as producers of boutique healing cannabis products (Mountain Orchid and FreeWorld Genetics).

Their advice might help you view your own garden differently. Or, if you’re in Colorado, it might restore your faith in the marijuana industry — and convince you to skip growing entirely (and just buy your medicine at a dispensary).

Growing Medical Cannabis Is Challenging

Because growing medicinal cannabis isn’t easy. Doing it well requires a nearly all-consuming focus — and a lot of time.

“People make the reference that cannabis ‘grows like a weed,’” says Lesley Davis, owner of The Mountain Orchid, a marijuana grow facility in Montezuma, Colorado, “but that couldn’t be more misleading. Cannabis is an extremely sensitive plant.”

A wide variety of factors — like temperature, humidity, moisture, air flow and pests — can cause near-instantaneous damage, she explains. Plus, if the plants have been stressed during their life cycle, the finished product won’t retain its full medicinal potential.

“If you’re going to be any good at it, you have to think about it all the time,” says Mike Leibowitz, the owner of Veritas Fine Cannabis, a luxury cannabis brand available at dispensaries across Colorado. “And the only way to learn about it is to do it every day.”

Basically, growing high-quality cannabis will take up all your time. 

And if you want to do it commercially, it will also require a lot of money.

“You have to either have an investor, or be rich,” Leibowitz says.

If you do want to grow commercially, you’ll also need to get a marijuana business license. (You can learn more about this wildly complicated process in our guide to how to start a marijuana business.)

So hopefully, you just want to grow some medicinal cannabis for your own personal use. (Because, unless you know some very wealthy people, you probably won’t be starting a licensed cannabis grow facility anytime soon.)

But it won’t be easy. People will tell you not to do it.

“Don’t grow weed in your house” says Evan Anderson, the owner of 14er Holistics, a leading cannabis brand whose signature pre-packed tins of herb are sold in dispensaries across Colorado. “It’s hot, it’s dangerous.”

Of course, if you live somewhere without dispensaries, you can’t exactly leave it to the professionals. So you may want to set up a home grow.

And if you live somewhere with a less-than-ideal growing climate, or in a state where cannabis is illegal, you may want to set up an indoor home grow.

(Obviously, we don’t recommend you grow cannabis illegally.)

So, while commercial and outdoor growers may find this article helpful, it’s mostly designed to help indoor growers, who face several challenges.

“Indoors, you have more control over the environment, but you lose all of nature’s help and wisdom,” says Sam Epstein, co-owner of FreeWorld Genetics, a cannabis seed company and grow facility in Boulder, Colorado.

The 6 Key Components to Growing Medical Cannabis

So in order to mimic a natural environment, you have several factors to consider. These include:

  1. your growing medium (like soil, hydro, coco fiber, or rock wool);
  2. the size and buildout of your grow room (with special considerations for temperature, air flow, and your grower-to-plant ratio);
  3. plant genetics (either seeds or clones);
  4. grow lights (like LED, ceramic metal halide, or high pressure sodium);
  5. nutrients; and
  6. watering method.

But that’s not all. Keep reading to the end of the article for other, more subtle factors critical to growing medicinal cannabis — ones you probably won’t find in a traditional marijuana grow book.

1. Growing Medium: Where to Grow Medical Cannabis

When considering which growing medium to use in your indoor grow room, your best options are soil, hydroponic, or coco fiber. 

A hydroponic garden is generally considered the cheaper option. But most organic growers prefer soil.

At The Mountain Orchid, Lesley Davis grows all her plants in soil.

“Plants are more stable and stronger when they’re cultivated in soil,” she explains. (Roots can grow more established, encouraging buds to grow denser.) “The soil provides essential nutrients and minerals that cannot be replaced with irrigation or hydroponic set-ups.”

Other growers are partial to growing their plants in water or other materials.

“We grow in amended coco fiber,” says Leibowitz. (Coco fiber is derived from coconut husks.)

“Coco fiber is very similar to a hydro setup, but you still get the aspect of having an enhanced medium for the plants to live in. It’s porous, it drains well, and it allows the plant to uptake food in the cleanest way possible.”

But it has its downsides: Plants in coco fiber must be watered daily, Leibowitz says.

“It requires more daily attention, like hydro,” he explains. “It’s not like soil, where you can water once or twice a week and be okay.”

Of course, many soil growers, like Lesley Davis, still give their plants daily attention.

“Obviously, growing in water eliminates soil waste, soil costs, time and energy,” she says, “but I think those shortcuts become apparent in the final product.”

The soil vs. hydro debate has been raging ever since people started growing marijuana indoors. But one fact is hard to dispute.

“Cannabis plants have evolved over thousands of years to grow in soil,” says Davis. “So why would we try to change evolution?”

2. The Size, Location, and Buildout of Your Grow Operation

If you’re building out your grow room, you’re probably excited. But don’t go too big too fast. That’s a classic mistake.

“I believe a small grow facility has a better chance of producing superior flowers, compared to a larger scale operation,” says Davis.

The smaller your grow room, the more attention you can devote to each individual plant. And the more attention you can devote to each plant, the better your results will be.

“We love to grow small-batch organic,” says Austin Larner, co-owner of FreeWorld Genetics, “because we think fewer bottled nutrients give you the best flavor of herb.”

In your buildout, you’ll also want to consider airflow and temperature. Too much moisture can cause serious problems, like mold. 

And because grow lights produce heat, your grow room will need air conditioning and exhaust vents. (You’ll probably need a good HVAC professional.)

Using higher-efficiency lights can reduce the need for air conditioning, but still, you’re going to need it — unless you’re located in an unusually cold climate.

The Mountain Orchid doesn’t have any AC. But they’re also located over 10,400 feet above sea level. (It’s the highest cannabis facility in the country, located in the highest incorporated town in the country.)

This is uncommon. You’re going to need to think about controlling the temperature in your grow room.

3. Medical Cannabis Genetics

High-end cannabis growers pour endless research, time, pride, and money into sourcing their plants’ genetics. Why? Because a plant’s genetics help determine its characteristics.

“I think it’s similar to trying to cook a delicious and healthy meal,” says Epstein. “It’s imperative to start with quality inputs, or you can only achieve a certain level in your final product.”

You can acquire your garden’s genetics either by purchasing either cannabis seeds or clones. Each choice has its own risks and benefits.

Clones are tiny plants which have been snipped off an existing female cannabis plant. They retain the exact genetic profile of the mother plant, so you know exactly what you’re getting.

But, by the time they’re rooted and ready for transport, they may have picked up some pests or diseases from their initial grow environment. That may not be a risk you’re willing to take — especially if you’ve just invested in building out your pristine new grow room.

If you choose to purchase seeds instead, you won’t have to worry about contaminating your new grow.

But with seeds, the genetic profile may be less precise than clones. (Seeds are produced by crossing a male and female cannabis plant, so their genetic material is not an exact replica of either parent.)

And if the seeds aren’t properly “feminized,” you run the risk of ending up with a male plant. (A male cannabis plant will not only fail to produce buds, but it may also pollinate the rest of your garden, causing them to become hermaphroditic — resulting in seedy buds.)

What else should you look for? If you’re growing medicinal cannabis, you may want to look for more indica strains, or a certain CBD:THC ratio. (A cannabis strain with around 4% CBD or more is generally considered a high-CBD strain.)

But it’s not all about THC and CBD content. Several leading growers believe that this reductionist view of cannabis genetics needs to die.

“Higher potency and terpene percentages dictate the majority of sales,” says Larner, “although often the most terpene laden plants are not always highest in potency.” (Terpenes are the scent and flavor molecules found in many plants, including cannabis, which causes each strains signature aroma.)

“Finding the inspired combination of terpenes and potency is our goal [as breeders].”

Epstein, his business partner, sees this shift as a boon for new growers today, who “will be able to jump in right at the forefront of where we’ve seen the genetics evolve.”

Forty miles away, over in Denver, Leibowitz’s cannabis companies are also trying to expand consumers’ awareness of the complexity behind cannabis strains. (His companies include Veritas Fine Cannabis, the Higher Grade dispensaries, and Olio concentrates.)

“We’re trying to shift the conversation in the industry,” Leibowitz says, “away from the obsession with potency to terpene testing, and towards the value of terpene testing.”

That would be a big change, in an industry obsessed with THC content. (Today, in Colorado, if your cannabis tests below 20% THC, it can be difficult to sell.)

“You can get a lot more information about how cannabis can heal you, its healing properties, from the terpene profile,” Leibowitz says. “You can dissect that analysis much more in-depth than you can with THC and CBD ratios.”

4. Grow Lights

Grow lights are critical. You need the right spectrum of light that will help with both vegetative growth and flowering.

Many home growers prefer LED lights, which run cooler than traditional high pressure sodium (HPS) grow lights. This helps you save on energy costs.

“You want the light that will make your plants the happiest with the lowest heat loading,” explains Evan Anderson. “The biggest concern in a home grow is heat.”

But here, too, the experts are divided. Anderson does not use LED lights himself. He prefers Ceramic Metal Halide (CMH) bulbs. These are actually more affordable than LED bulbs, he says. (But they’re more expensive than traditional HPS grow lights.)

And in a study of productivity per square foot in commercial grows, his facility (14er Holistics) ranked among the top five percent in the country.

“Ceramic metal halide lights are best for everyone, including home growers,” Anderson says.

“The energy savings on LEDs are not as much as people think. Because it’s easy to do vegetative growth with LEDs — but not finish the plant. The LEDs that will finish the plant will not be as efficient past week five, due to the intensity required of the spectrum necessary to finish the plant.”

But if you do opt for LED lights, Anderson recommends double-ended (DE) lights, which have two points of illumination, helping the light further penetrate your leafy canopy.

One thing he does not recommend is high pressure sodium (HPS) lights.

“Old-school HPS lights are basically a thing of the past,” he said. “They’re hot, they’re dangerous.”

But that doesn’t mean that some growers don’t still use them. Some growers say they’re necessary to successfully finish the plants (ie. to complete the flowering cycle).

“We use both ceramic metal halide and HPS,” says Leibowitz. “CMH for veg, HPS lights for flowering.”

Leibowitz loves that ceramic lights produce a little less heat, but believes you still need HPS to finish the plant.

“The technology keeps getting better with LEDS,” he says, “but I haven’t seen anything yet that’s affordable.”

5. Medical Cannabis Nutrients

All plants need a mixture of nitrogen, phosphorous, and potassium. Growers can endlessly debate how to achieve the perfect N-P-K ratio.

Will you mix your own nutrients, or buy bottled nutrients? Will you choose organic? These are all things to think about as you set up your indoor grow room.

One of the most important things to consider is the pH of your nutrient solution. 

“Different nutrients have different pH values,” Davis explains, “so when you mix multiple nutrients together, it affects the overall pH of the solution.”

If the pH of the final nutrient solution is too far from 6.0, the plants will refuse to absorb the nutrients, she explains. This can stress the plant. So you want to adjust the final pH of your nutrient solution, to get it as close to 6.0 as possible.

6. Watering Method

To save time, you could automate your watering schedule.

But in a small or medium-sized home grow operation, you may be able to hand-water all your plants. And your plants would appreciate it.

“I think hand watering is extremely important,” says Lesley Davis, “mostly because it keeps the grower around the plants.”

When she walks around The Mountain Orchid’s facility to hand-water the plants, she also provides each plant with individualized attention.

“I visually inspect it for deficiencies, pests, overgrowth, and to ensure that it has access to all of the necessary elements needed to succeed,” she says. “This allows me to share the necessary love and attention that each plant requires and appreciates.”

A drip system, she explains, would be unable to notice plant variations.

“Hand watering gives the master gardener the ability to cater to each plant’s needs,” she says. “Each plant is unique.”

Bonus: Time, Patience, Love, and Good Vibes:

Even if you buy all the right equipment, and get the best genetics available, you’ll still struggle to grow medicinal cannabis — if you don’t invest the proper time and care.

Although everyone interviewed for this article runs a marijuana business (which must turn a profit), they all agreed on one thing.

“Time, love, and care go a long way in the garden,” says Davis.

You can’t rush your plants. 

“The best advice I can give is to really slow down and be patient,” says Leibowitz. “Good weed isn’t grown overnight. Show up everyday. Don’t just automate everything.”

And it’s not just about showing up. It’s about how you show up. Most growers believe their plants respond to human energy.

“You’re growing something that can have a powerful impact on someone’s psyche,” says Epstein, “and it’s influenced by the energy of the people cultivating it.”

Could your own energy be a deciding factor in growing medicinal cannabis?

Lesley Davis believes subtle factors play a pivotal role.

“I give our plants endless love and attention so they can feel my presence,” she explains.

She coordinates her growing processes with the lunar cycle, and places various energetic crystals in strategic places throughout her grow facility, where Sanskrit chants are played on loudspeakers for the plants.

“We meditate and practice yoga around the plants to create a positive, intentional, relaxed atmosphere for them,” she says. “This extra attention to detail causes our plants to live happy, stress-free lives, which allows the plant’s healing properties to be maximized.”

Growers agree — whether you meditate with your plants or not — that energy matters. Even if your marijuana grow is a profit-driven business.

“There must always be someone involved in the cultivation management that has a deep love and understanding for the cannabis plant,” says Epstein.

“Think about who will be using your product,” advises his business partner Larner, “and how that affects society as a whole.”

In short, there’s a lot more to growing medicinal cannabis than just planting a weed.

“It’s not easy money,” says Leibowitz. “It never was.”

How To Open A Marijuana Dispensary In Michigan: An In-Depth Guide

By George Mouratidis

With the passage of Proposal 18-1 in 2018, Michigan became the first state in the Midwest to decriminalize recreational marijuana use.

Although Illinois recently joined the “Midwest MJ club,” Michigan still has phenomenal potential in this budding industry.

Interestingly, statistics suggest at least 12 percent of Michigan’s residents already smoke pot regularly. What better way to capitalize on this growing market than by opening a legal cannabis dispensary?

OK, we won’t lie: applying for a marijuana dispensary license can be confusing at times.

Like every other state, Michigan has unique laws regarding the legal sale and use of recreational cannabis. To make matters even more complicated, various districts have different regulations Michigan dispensaries must follow.

In this post, we’ll try our best to simplify the essential features of Michigan’s marijuana dispensary program.

You’ll also find dozens of links to government-approved websites sure to help you stay up-to-date on Michigan’s marijuana laws. Armed with the info in this piece, you should feel confident starting your dispensary application process.

Don’t Know Where To Begin? Look To LARA!

First and foremost, you need to get familiar with Michigan’s Department of Licensing and Regulatory Affairs (LARA). All of your application paperwork will be filed through LARA’s Marijuana Regulatory Agency (MRA), so you should feel comfortable navigating this organization’s website.

If you haven’t already, we suggest visiting Michigan’s MRA home page and adding it to your Favorites. You’ll find easy access to online applications and renewals for dispensary licenses on this page.

By the way, if you don’t already have an online profile with LARA, then you could register a new account by visiting this portal.

Michigan’s Two-Part Process: Pre-Qualification & License Qualification

Now that you know who you have to work with let’s go over what you should expect during the application process.

There are two parts to a marijuana facility license application: pre-qualification and license qualification. During pre-qualification, LARA will ask for background information like criminal records and tax history to see if you’re a viable candidate. The license qualification, however, will focus on your proposed business.

Note: you don’t have to submit both of these qualifications at the same time. LARA designed this program to help applicants who are still searching for a suitable business area.

Even if you haven’t secured a location for your dispensary, you can legally send through all of your pre-qualification documents. In the license qualification stage, however, you must have your dispensary’s location settled.

Let’s take a closer look at the documents you’ll have to submit at different application stages.

The Pre-Qualification Background Check

Basically, the pre-qualification stage is a lengthy background check. LARA wants info on your financial, taxation, and criminal background to determine whether you’d be a good candidate for a marijuana facility license.

Everyone who goes through pre-qualification must supply LARA with fingerprints for a full review. Other documents that LARA might ask for include:

  • W2 forms
  • Any previous or current regulatory licenses
  • Company bylaws
  • Statements from relevant financial institutions

Please keep in mind that anyone who has a stake in your marijuana dispensary must submit documents in the pre-qualification stage. You must give LARA the names and contact details of any people or businesses invested in your dispensary venture.

For more details on this stage of the application process, LARA strongly recommends reading section 404 of the Medical Marihuana Facilities Licensing Act.

License Qualification: Details On Your Dispensary

After you’ve submitted all of those pre-qualification documents, it’s time to move on to the license qualification section. This second part of the application process is most concerned with your dispensary’s business operations and location.

Before going any further, it’s worth repeating that you must secure a location for your dispensary before filling out the license qualification. Also, you must have approval from your chosen municipality to operate in that region.

Although the state government approved recreational marijuana in 2018, not every city allows dispensaries at this time. Get in touch with your municipal authorities and figure out the area’s current policy.

If your zone allows dispensaries to operate, then you need to get a formal attestation signed by a local clerk and include it in your documentation. 

In addition to the municipal attestation, here are a few other documents required in a license qualification.

  • A detailed floor plan for your proposed dispensary.
  • Insurance forms for your facility.
  • The technology you’ll use to keep track of inventory, lab results, and sales.
  • Security system details.
  • Staffing information. 

If you want more information on both of these application phases, then you might want to check out this 2017 LARA Advisory Bulletin.

Although this document focuses on medical marijuana facilities, it has useful info for those interested in recreational dispensaries.

Show Me The Money: Taxes & Fees

By now, you’re probably wondering how much this application process will cost you.

Well, at the very least, you will need to pay a $6,000 pre-qualification fee. Regarding licensing fees, these could range from between $10,000 – $66,000 per year, depending on your business.

As far as taxes go, Michigan currently charges a six percent sales tax and a ten percent excise tax on recreational marijuana. Medical marijuana, on the other hand, is only subject to six percent sales tax.

For those interested in reading more about Michigan’s marijuana taxation policy, be sure to browse this document put together by the state’s Department of Treasury.

Where Can You Build A Dispensary In Michigan?

One of the trickiest parts of establishing a marijuana dispensary in Michigan is finding the right location.

On top of considering the competition in your region, you have to avoid drug-free zones and municipalities that have opted out of the recreational marijuana market.

In this section, we’ll detail Michigan’s dispensary zoning restrictions to help you find the perfect spot for your business.

Where You Need To Avoid Opening A Dispensary

No matter what municipality you choose to open a dispensary in, there are a few areas you can never set up shop.

Most importantly, you cannot open a dispensary that’s within 1,000 feet of a school or daycare facility. Marijuana dispensaries should also be at least 1,000 feet away from liquor vendors and other recreational dispensaries.

In most cases, Michigan doesn’t allow dispensaries to operate in residential areas, but this could vary by municipality.

Always check with local authorities to figure out more specific zoning regulations. 

What’s Michigan’s Opt-Out Program?

Speaking of local laws, every community in Michigan has the right to opt-out of the state’s marijuana dispensary program. Indeed, shortly after Proposal 18-1 passed, dozens of districts banned dispensaries in their territories.

In most cases, however, local lawmakers only put these restrictions in place as a temporary measure. Some municipal authorities want more precise guidelines from the state, while others want to put together zoning laws that work best for their constituents.

The only way to figure out your county’s legal status is to get in touch with municipal leaders. You could also check out this spreadsheet on LARA’s website for data on where each district stands. Although LARA continuously updates this document, please be sure to check the latest revision date.

FYI: you can also see all of the legal dispensaries in Michigan by using this interactive map.

Michigan’s Social Equity Program: Helping Those In Need

When researching different areas to set up a dispensary in Michigan, you’ll probably run across the state’s Social Equity Program. Set up by the MRA, the Social Equity Program helps communities adversely impacted by Michigan’s previous prohibition laws.

According to the MRA, all of the districts included in the Social Equity Program had significantly higher rates of marijuana-related convictions in the past. Anyone who lives in or wants to open a dispensary in these districts could receive financial assistance from the state.

Currently, there are over 40 zones that meet Michigan’s standards for the Social Equity Program. You can find a map of these communities on this website

In addition to offering fee reductions for applicants, the MRA frequently sponsors educational seminars to help people in target zones apply for this program. You could also find numerous online resources related to the Social Equity Program on this LARA link.

Anyone interested in learning more about the Social Equity Program should visit this LARA webpage.

Be Sure You Know Michigan’s Customer Limits

As a dispensary owner, you must be familiar with the caps Michigan placed on daily weed sales.

You should also put together a comprehensive training course to ensure all of your employees know these state-mandated amounts. Disobeying Michigan’s legal marijuana limits could result in hefty fines and even jail time.

Most importantly, you need to verify that all of your customers are 21-years-old. Also, everyone working at your dispensary should be at least 21. 

Another useful number to memorize is 2.5 ounces. Under Michigan’s current marijuana laws, customers can only purchase 2.5 ounces (or about 70 grams) of marijuana buds per day. Users can, however, legally store up to 10 ounces at their home. 

If you’re selling concentrates, then you can only sell seven grams to one customer in one day. This category includes popular vape extract cartridges and e-liquids.

Dispensary owners who are selling marijuana edibles should know they can only sell 16 ounces of solid goods to each customer each day. For liquid marijuana infusions, however, you can sell up to 36 ounces per day.

Please note that there are no restrictions currently placed on THC percentages in marijuana products. Although you must put accurate cannabinoid counts on your products, Michigan does not place different daily limits on goods with higher-than-average THC counts.

Be sure to invest in a high-quality software to help track how much each of your customers buys every day.

Can People Smoke In My Dispensary?

If you want to create a smoker-friendly area for customers, then you have to mention this in your license application. Although they are rare nowadays, the state does offer consumption establishment licenses that allow dispensary owners to let legal age customers smoke in a designated room.

Anyone who is applying for this exclusive license must point out their smoking room in their dispensary’s floor plan. Remember, Michigan only allows marijuana consumption in private, so this area needs to be far from public view.

Regardless of whether you want a smoking zone or not, you cannot sell any alcohol, tobacco, or food products in your dispensary.

A Side Note On Michigan’s Spelling & Semantics

As you’re filling out your paperwork for your dispensary, you will notice the term “provisioning center” all over the place. Even more curious, the word “marijuana” is listed as “marihuana” in legal texts.

Interestingly, Michigan lawmakers have to use these outdated terms unless Congress decides to change them. The most important thing for you to know is that “provisioning center” refers to “cannabis dispensary.” 

Michigan’s Marijuana Laws – A Few Quick References

If you don’t mind reading long legal texts, then you’ll find a ton of information in Michigan’s Medical Marihuana Facilities Licensing Act, 2016 PA 281. As you’d expect from its title, this law details proper licensing and taxation procedures for legal marijuana dispensaries. Even if you don’t read the entire piece, it’s worth putting this official webpage in your Favorites for quick reference.

For those who are interested in reading the full text of Michigan’s Proposal 18-1, you can find a link on this website. You could also see the MRA’s formal list of “Adult-Use Marihuana Establishments Emergency Rules” on this website

Good Luck With Your Michigan Dispensary Application

Please don’t feel intimidated by all of the complex regulations governing cannabis dispensaries in Michigan. Yes, there are loads of laws to consider, but there are also plenty of resources that can help you through the application process. We encourage you to look at LARA’s FAQ page and click on any questions you have. If you have a few queries that aren’t on this page, then you could always contact the MRA directly using this helpful “Contact Us” link.

How to Start a Cannabis Bakery (Ultimate Step-by-Step Guide)

By Laura Newcomer

If you’re reading this, you know that cannabis is big business. And you might have an inkling that cannabis-infused edible products, such as baked goods, are growing in popularity. 

In fact, the edibles market is becoming a major money maker. The Specialty Food Association ranked marijuana edibles at #8 on its list of Food Trends for 2018, and edibles’ popularity has been growing by leaps and bounds ever since. A Colorado-based research firm, BDS Analytics, predicts the U.S. and Canadian edibles market is on track to hit $4.1 billion in sales by 2022. 

Why the growing interest in cannabis food products? There are several theories

  • A major factor is that more and more people who are interested in cannabis prefer not to smoke it. Edibles provide a discrete way to enjoy cannabis without smoke inhalation.
  • Edibles can be a less intimidating entry point for people who are trying legal cannabis for the first time. 
  • Many people like the fact that commercially manufactured edibles can make it easier to control THC dosage. 
  • Consumers are drawn to the creative flavors and products coming out of the edibles space. 

The growing popularity of cannabis edibles is a double-edged sword: It means there’s tremendous opportunity for cannapreneurs looking to enter this space, but it also means there’s tremendous competition. 

If you’re looking to open a cannabis bakery, it’s important to emphasize quality at every stage of the process so you stand out from the pack. No matter where you’re located, here are some important guidelines for how to start a cannabis bakery and run your business successfully. 

How to Start a Cannabis Bakery

Ready to embark on the arduous yet rewarding journey of starting a cannabis bakery? Then read on for some critical guidelines that will ease your passage on the way to a successful business. 

Know the local laws. 

Cannabis-related laws don’t just vary from state to state; cities and municipalities can also enact their own regulations. So before you open up shop, it’s essential to know the local laws.

This research will also help you clarify your business processes.

Do you want to grow the cannabis that you’ll use in your baked goods? Then you’ll probably need a cultivation license.

Do you want to extract oils to use in your products? Many localities will require an extraction license.

Do you want to start a dispensary and sell directly to consumers? You’ll need a dispensary license for that. And you’ll almost definitely need an infusion license to legally infuse cannabis into your baked goods. 

Before starting your cannabis bakery, think through how you plan to craft your products. Then research whether the laws in your area will permit you to follow through on those plans. If not, it’s time to modify your business plan (for instance, you could purchase commercial cannabis instead of growing it yourself) or consider opening up in a different municipality with more permissive regulations. 

It’s also important to inform yourself about the licensing process in your area. Every state and locality has a slightly different process, but most places will require you to be a resident of the state, have a clean criminal background, present a thorough business plan, and so on. 

If you’re planning to open a cannabis bakery in California, check out our detailed guide to starting an edibles business in Cali

Develop a business plan & consider how you want to sell. 

Any company needs a business plan, and it’s no different in the cannabis space. Because the cannabis industry is so complex, it’s a good idea to consult a lawyer or industry expert at this stage in the process. 

A solid business plan should outline a company’s general description, goals, financial backing and projections, organization, leadership team, marketing and advertising, milestones, and so on. If you’re not sure where to start, check out this sample cannabis edibles business plan

As you craft your plan, be diligent about market research. Make sure there’s consumer demand in the area where you intend to set up shop, investigate competitors in your area, confirm that zoning laws will allow you to operate effectively, and identify opportunities for standing out in your desired market. 

Also be sure to think about financials and expenditures. The many costs that go into starting a cannabis bakery include material sourcing (not just cannabis but also flour, sugar, and other conventional baking ingredients), kitchen infrastructure and equipment, property rent and utilities, staffing, brand development, testing, packaging, marketing, insurance, tracking software, and so on.

If necessary, consider seeking venture funding or applying for a cannabis incubator or accelerator

Finally, an important part of this process will be deciding whether you want to sell directly to consumers through a retail shop or if you’d prefer to sell to consumers through dispensaries. There are pros and cons to either choice: 

  • Running your own shop means you can cut out the middlemen, build direct relationships with your consumers, and control every aspect of your products’ presentation. The downsides are that up-front costs and licensing requirements will be a lot more cumbersome, and your company won’t be as nimble if it’s tied to a physical storefront. 
  • Selling through dispensaries means you don’t have to deal with the cost or bureaucratic headaches involved in getting a dispensary license. It also means your product can be distributed virtually anywhere that cannabis is legal and dispensaries exist. This can provide great growth potential. 

Work toward obtaining your license. 

Once you’ve put together a preliminary business plan, it’s time to pursue licensing in your state and from the local municipality in which you intend to operate. 

This process varies depending on locale, but you can rest assured that it will be expensive and time-consuming. It’s a good idea to consult a lawyer or industry expert at this stage to increase your chances of getting your license approved. 

Know your audience. 

Edibles have come a long way from the days when anyone with access to weed would just whip up some brownies with melted butter and a few stems. Today’s consumers expect a lot more from the edibles they pay for, and anyone looking to start a cannabis bakery will need to be aware of the modern audience for these products. 

While cannabis consumers are constantly evolving, here’s an overview of some of the current trends

  • People aren’t just interested in getting blazed out of their minds. Today’s consumers are looking for a more nuanced high, whether that comes down to indica versus sativa strains, 1:1 or other THC:CBD ratios, or the option to microdose with smaller serving sizes, such as 2.5 or 5 mg of THC. 
  • Because today’s consumers are looking for more than a quick high from their edibles, people are placing more of a premium on things like taste and flavor, quality ingredients, presentation, and so on. 
  • On the whole, U.S. society is getting more health-conscious. This means consumers are looking for cannabis baked goods that have a “better-for-you” component. This could mean using antioxidant-rich dark chocolate in lieu of milk chocolate, avoiding the use of preservatives, producing a protein-rich line of baked goods, using organic ingredients, minimizing sugars, and so on.

As you begin experimenting with different baked goods, keep these consumer preferences in mind. 

Experiment until you’ve crafted a great product. 

The edibles space in the cannabis market is increasingly competitive, and that means your product(s) will need to stand out amidst a sea of competitors. Translation? Mediocre baked goods aren’t going to cut it. 

Experiment with different suppliers, ingredients, recipes, and so on until you’ve landed on something truly exceptional. Emphasize quality over quantity — it’s probably better to start with one or two praiseworthy products than it is to offer a whole line of so-so edibles. There’s no need to spend money on a commercial kitchen during this phase; go ahead and experiment at home until you feel like you’ve created a product worth selling. 

During this experimentation, be sure to keep relevant laws in mind. For instance, most states with legal cannabis have laws around the shapes, colors, and packaging that cannabis edibles can use, because they don’t want products to look appealing to kids. As another example, Colorado law requires homogeneous distribution of THC throughout a product, which means that large mix-ins (e.g. granola or puffed rice) can make it difficult to meet state requirements. 

Identify your cultivation source.

You have two options when it comes to procuring the cannabis flower and/or extracts that you’ll use in your products: Depending on your preferences and the laws in your area, you can grow your own cannabis or purchase cannabis from legal cultivation businesses.

If you’re planning to purchase from a professional cultivator, make sure you thoroughly vet their business.

  • What’s their growing process?
  • Do they use organic growing methods or make an effort to reduce their carbon footprint?
  • Do they specialize in a particular strain(s)?
  • Do they use third-party lab testing?

Your customers will want to know the answers to these questions, so it’s important to inform yourself up front. 

You’ll also want to confirm that the cultivator’s cannabis works well in the products you plan to sell. Test a variety of strains and brands before settling on the cultivator(s) with whom you want to do business. Once you’re ready to sign a contract, consult a lawyer to guide you through the process. 

Locate a commercial kitchen for lease or purchase

In general, there are strict requirements for the spaces in which commercial edibles can be produced. 

If you aren’t cultivating your own cannabis, some municipalities will allow you to create edibles in your home kitchen — though you might need to undergo some renovations. Retail marijuana business applications require a diagram of the business, and you’ll need to prove that your kitchen space has an entrance and exits, partitions/walls, limited-access areas, security equipment, and more. (Consult the regulations in your locality for more details.) 

Many localities require edible companies to cook their products in a commercial kitchen, which means (you guessed it!) you’ll need to find a commercial kitchen that is zoned for cannabis-related use.

If you’re planning to dispense your products directly to consumers, it’s also a good idea to look for a kitchen that’s connected to (or at least nearby) a dispensary space that’s approved for cannabis-related companies. 

As you select your kitchen space, keep state and local laws in mind. For instance, Colorado requires four stages of potency testing for edibles: Edibles manufacturers must lab-test the flower, decarbed flower, butter infusion, and the final product.

Colorado also requires strict inventory counts, and every product that doesn’t pass quality control has to be tagged and destroyed. Laws such as this will have an impact on your kitchen space and processes, so make sure you’re in compliance. 

Consider product consistency. 

In order for consumers to enjoy your product and rave about it to others, you need to provide a consistent user experience.

Edibles are notoriously tricky in this regard; virtually every cannabis user has stories of an edible that didn’t affect them at all one week only to leave them high as a kite the next. That’s not the kind of experience people will rave about — especially if they’re paying a premium for your product. 

This means it’s essential to think about how you’ll deliver a consistent product. Some states will mandate this consideration; as an example, per above, Colorado requires four potency tests at different stages of production.

Delivering a consistent product starts with the cannabis you source, which is why identifying a cultivation source is such a crucial part of this process. It might also be helpful to recruit software or testing resources that keep track of THC levels at every stage of processing. 

Choose a business management software. 

Because compliance with cannabis laws is so complex, you’ll want to select a software platform that’s up to the task of helping you manage your business in this particular industry. Each business’s needs will vary, but it’s generally a good idea to look for a software product that helps you automate and manage: 

  • Orders
  • Inventory
  • Testing
  • Tasks
  • Accounting and payroll
  • Customer relationships

Don’t be afraid to experiment with a variety of software products before selecting the one that best suits your company’s needs. 

Invest in packaging and label design. 

As a manufacturer of cannabis edibles, packaging will be a critical element of your marketing efforts. Quality packaging can help your products fly off the shelves, while low-quality labels… won’t. (Which are you more likely to trust: A cookie in a plastic bag with a label written on it in Sharpie, or a professional graphic design?) 

Beyond quality, here are a few other things to keep in mind when it comes to packaging and labeling

  • Make sure your packaging is compliant with local and state laws. For instance, many states’ laws mandate that edibles packaging must be both childproof and resealable. 
  • Counterfeit labels are becoming more commonplace in the cannabis industry, so you can help shore up consumers’ trust by investing in counterfeit-proof labels. 
  • To maintain professionalism, it’s essential that your packaging is consistent. You can maintain quality control by investing in an automated packaging solution. 

Identify distribution partners. 

Unless you’re planning to sell your cannabis baked goods out of your own retail dispensary, then you’ll need to partner with local and state dispensaries to distribute your product. 

To do that, start researching dispensaries online.

Make a list of dispensaries that seem like they could be a good fit for your product(s), and then call or visit in person to start building a relationship and further vet the company. Ask questions about the dispensary’s customer demographics, offerings, financial policies, and so on.

Once you’ve identified some potential good fits, ask the dispensary to sell a small amount of your product or maybe even offer free product samples so they can get feedback from their customers.

This information will help determine if there’s a demand for your product in that area. It will also provide you with valuable feedback that can be used to improve your products. 

Once your products are present in a few dispensaries, keep track of sales so you can identify what’s working, what could be improved, and what’s not worth your time.

Make sure to maintain friendly and positive relationships with the people who work at the dispensaries, so they’ll be more inclined to keep working with you moving forward. And check in at the dispensaries on a regular basis to make sure you’re happy with how your products are being presented. 

Pursue ongoing marketing efforts. 

When you’re just starting out, word of mouth will be crucial to getting your cannabis bakery off the ground.

But just because you’re relying on satisfied customers to spread the word about your product, that doesn’t mean you can just sit back and do nothing when it comes to marketing. 

Your budget will determine what’s possible when it comes to advertising your business, but here are a few ideas

  • Create a well-designed website that’s targeted toward your ideal customer demographic and provides transparency about how your products are made. 
  • Advertise in local newspapers and on relevant online forums, websites, and directories. 
  • Invest in banner ads on sites that are likely to attract your target demo.  
  • Attend cannabis-related events (and other events where cannabis products are allowed) and hand out free samples. 
  • Send samples to dispensaries, cannabis product reviewers, and other businesses in the cannabis space. (Just make sure you’re following the relevant laws when it comes to shipping products with THC in them!) 
  • Invest in relationships with your customers by asking for feedback, sharing giveaways, and maybe creating a loyalty and/or referral program. 
  • Continue to improve your products’ presentation, packaging, and labeling. 

As your business grows, make sure you incorporate customer data and feedback into your future marketing efforts. 

Starting a Cannabis Bakery: The Bottom Line

If your goal is to start a cannabis bakery, then ongoing planning and preparation is key. 

If you take the time to develop a thoughtful business plan, square away your financials, think about compliance at every step of the process, and obtain appropriate licensing, every other stage of the process will be that much easier. 

Above all else, the key is to focus on product quality. The edibles market can be highly lucrative, but it’s also highly competitive. By understanding today’s consumer preferences and crafting high-quality cannabis baked goods in accordance with those demands, you’ll increase your chances of developing a loyal following and earning a slot on dispensary shelves. 

Happy baking! 

Top Weed-Friendly Cities in the US To Start A Business

By Laura Newcomer

Legal cannabis is spreading across the U.S. To date, 11 states have legalized recreational cannabis use, while 33 allow for the use of medical marijuana.  

That means if you’re looking to start up a cannabis-related company, you have more locations to choose from than ever before. It was less than a decade ago that cannapreneurship required a  move to either Colorado or Washington, which were the only two states to legalize recreational cannabis back in 2012. Now, states and cities across the country are opening their doors to this budding industry. 

All that choice creates more opportunity, but it also creates a challenge: How do you narrow down those options and settle on the best place to plant your new company’s roots? 

In our view, the best city to start a cannabis business is one that:

  • Has legalized your intended niche within the cannabis industry (for example, some municipalities allow for cultivation while limiting retail dispensaries, and vice versa)
  • Has a residential and/or tourist community that’s interested in cannabis and cannabis-related products
  • Has an overall vibe that suits your company’s brand and aesthetic 
  • Ideally, has programs and funding options in place to uplift cannapreneurs of all stripes 
  • Isn’t insanely saturated already 

With those criteria in mind, we set our sights on hunting down some of the top weed-friendly cities in the U.S. for starting a cannabis business. 

A Note on Methodology

Before we dive into our roundup of weed-friendly U.S. cities, we wanted to take a moment to familiarize you with our reasoning behind the selections you’ll find here. 

In this roundup, we ruled out a lot of the best-known cannabis industry hubs, because they tend to be some of the most competitive places to start a new company. Here’s looking at you, Boulder, Denver, LA, Portland, San Fran, and Seattle!

We also ruled out locales in Massachusetts and New York, even though cannabis is legal in both states. That’s because Massachusetts is undergoing a notoriously slow rollout at the moment, and a lot of young companies are finding themselves tangled up in bureaucratic gridlock. If you’re patient enough to ride that out, by all means go for it! But you might not find the warmest welcome from Massachusetts cities at this point in time. Meanwhile, New York is known for having strict limitations on the cannabis industry and is outrageously competitive as a result. 

You might also notice that we haven’t selected any cities in the state of Washington, even though it has one of the longest-running cannabis industries and boasts plenty of consumer demand. That’s because as of the time of writing, many new licenses are not being accepted. While Washington might be a great place to run a cannabis company, the state as a whole is not currently super welcoming to newcomers.

Capeesh? Now that we’ve got that out of the way, let’s dive into our picks!

The 14 Top Weed-Friendly Cities in the U.S. to Start a Business

1. Bangor, ME

In 2016, Mainers voted to legalize the recreational use and retail sale of cannabis, but it’s taken some time for the legal industry to get up and running. While municipalities have the option of voting to ban recreational marijuana, the industry is now mushrooming across the state, with the first legal marijuana businesses slated to open their doors this spring

In Bangor, demand for cannabis and cannabis-related products is especially high. The small northern Maine city ranked #7 on Medical Marijuana Inc.’s list of cities most interested in cannabis, and it’s home to a number of annual tourist events that temporarily enlarge the city’s population (and client base). 

Medical marijuana stores are already up and running in the city, but there’s a huge opportunity to get in on the ground floor of the nascent rec market. Maine marijuana businesses will also enjoy less competition and lower taxes than companies that try to set up in already saturated states. 

2. Chicago, IL

Compared to most of the other states represented here, Illinois’ legal cannabis market is barely out of the fetal stage. As of January 1, Illinois consumers aged 21 or older can purchase cannabis from licensed sellers. For now, medical marijuana dispensaries are the only businesses legally permitted to sell rec, but the state plans to issue additional licenses by the middle of this year. 

All told, hundreds of dispensaries are expected to open their doors between now and 2022. Not only does this open up retail cannabis opportunities, but it also creates a huge landscape of other business opportunities, from cultivation and processing to transportation and ancillary product sales. 

Anyone looking to hop in on the ground floor of Illinois’ cannabis boom will find a welcoming home in the Windy City. The legalization bill included strong social justice reforms that aim to undo some of the wrongs caused by the War on Drugs. (To wit, the bill expunges the records of hundreds of thousands of Illinois residents who were convicted under previous laws.) In Chicago, any aspiring entrepreneur from an area that was disproportionately affected by the War on Drugs will enjoy a leg up when applying for a cannabis business license. 

No matter where you hail from, the city is open to business from all members of the cannabis trade, from dispensaries and craft growers to infusers, transporters, and cultivation centers. 

3. Chico, CA

In general, California is a land of rich opportunity for anyone looking to make a career in the cannabis industry. The Golden State was the first state in the country to legalize medical marijuana way back in the 1990s. Since then, Cali has gone on to legalize recreational cannabis in 2016, and it remains one of the major hot spots for cannabis enthusiasts and cannapreneurs alike. 

Chico is a smaller Northern California city that boasts high demand for cannabis and related products. It ranked #9 on Medical Marijuana Inc.’s survey of U.S. cities that are most interested in cannabis, and it’s home to Cal State University Chico — all but guaranteeing weed-friendly patronage.

Even though recreational cannabis has been legal in California for several years, Chico is still sorting out its entree into the world of rec. This means there’s an opportunity to be one of the businesses that will pioneer the presence of legal cannabis in Chico. Competition for dispensary permits will be fierce, as the town intends to hand out a mere four licenses. But there are no limits on businesses that are focused on delivery, distribution, manufacturing, or testing. 

Anyone seeking to open up a weed-related business in Chico must comply with both state and local regulations. At the state level, laws are handed down from Cali’s Bureau of Cannabis Control

4. Eugene, OR

Eugene has long had a reputation as a hippie enclave, so it probably comes as no surprise that its residents are known for their affinity for cannabis. The third largest city in Oregon is also home to the University of Oregon, so the college student demographic is well represented.  

Retail marijuana is already a thriving industry in Eugene, and the city’s cannabis-related laws are much more lax than in a lot of places. Case in point: Recreational Retail Marijuana Stores don’t even need to obtain a business license from the city. 

So if you’re looking to set up shop in a relaxed business environment and in an area where a healthy client base is all but guaranteed, Eugene is a very safe bet. Bonus: Oregon’s tax rate for cannabis businesses is significantly lower than that of its Washington neighbor up north. 

5. Eureka, CA

While cannabis businesses are thriving in urban centers across California, aspiring cannabis business owners shouldn’t rule out smaller cities in the state. Case in point: Per the survey from Medical Marijuana Inc., the residents of the small city of Eureka, in Northern California, have demonstrated the highest interest in cannabis of any city in the U.S. 

Translation? This town has a guaranteed interest in cannabis businesses. 

Perhaps not surprisingly, Eureka is situated in Humboldt County historically and currently one of the largest hubs for cannabis production. The County is also the recipient of a cannabis equity grant that funds equity programs in the industry, which makes it a more inclusive environment for folks who might not be entering the industry with a ton of privilege behind them.

As it does pretty much everywhere, opening up a cannabis business in this county requires a highly involved application process. You can learn more about that process on the Humboldt County government website

6. Fairbanks, AK

Looking to start a cannabis business that’s a little off the beaten path? Consider Alaska, which legalized marijuana back in 2014. 

While The Last Frontier doesn’t promise high population density, the state’s cannabis industry is nevertheless on track to hit $100 million this year. All cannabis business types are welcome, and they’ll benefit from the absence of income and sales taxes

Not only does Fairbanks boast plenty of local demand — one survey found that nearly 15% of the local population owns up to marijuana use — but it’s also a tourist hot spot that draws in crowds of would-be cannabis users. 

You can find a detailed explanation of the marijuana business application process on the state’s Alcohol and Marijuana Control Office site. Also be sure to check out the state’s answers to its most frequently asked marijuana-related questions.

7. Fort Collins, CO

Colorado has long been a site of pilgrimage for cannabis enthusiasts and entrepreneurs. As one of the first two states to fully legalize recreational marijuana back in 2012, Colorado’s cannabis industry is far more established than in virtually any other state. While Denver is the state’s cannabis hot spot, there are tons of opportunities (and cheaper real estate) to be found in cities just a bit further from the beaten path. 

Case in point: Research from Cheat Sheet suggests that more than 13% of Fort Collins residents — which include students at Colorado State University — enjoy partaking of the ganj. And that’s to say nothing of the more than 7 million tourists who traipse through the city each year. 

With all that demand, it’s a good thing the city permits recreational cannabis licenses! There’s just one catch: Only existing medical marijuana businesses can apply for retail marijuana store licenses at this time. But that still leaves plenty of opportunity for cannabis companies of all other types to sprout up within the Fort Collins ecosystem. 

Learn more about the cities’ marijuana-related rules and regulations on the City of Fort Collins website.  

8. Grand Junction, CO

Grand Junction is a Colorado town on the Western Slope with approximately 63,000 residents. It’s starting to draw comparisons to Boulder before Boulder became huge, which is another way of saying that it’s got a pretty 420-friendly population. The town sits at the heart of Colorado’s wine country and offers tons of access to the great outdoors, making it a desirable locale for long-term residents and short-term visitors alike. 

Grand Junction is so friendly to cannabis businesses that Colorado’s Marijuana Enforcement Division (MED) has opened up an office in town. Check out our comprehensive guide to starting a marijuana growing business in Colorado, or head to MED’s website to learn more about what it takes to launch a different kind of cannabis business in the Grand Junction area. 

9. Klamath Falls, OR

Like Eugene, Klamath Falls residents have demonstrated remarkably high interest in marijuana use. This means the southern Oregon town of approximately 21,000 people offers up a built-in client base for any cannabis enterprise. It’s also located just 56 miles from the small town of Medford — another town with a reportedly high interest in cannabis — and not much farther from Gold Hill, the home of Oregon’s first medical marijuana dispensary. 

While Medford does not permit the retail sale of cannabis, Klamath Falls has several authorized dispensaries. No matter the type of business you’re hoping to operate, this region is ripe with demand for cannabis and cannabis-related products. 

When opening up a business, you’ll need to adhere both to local laws and state licensing requirements. As a general rule, Oregon marijuana laws — which have permitted recreational marijuana use since 2014 — tend to be fairly friendly to cannabis businesses. 

10. Oakland, CA

Oakland is home to a burgeoning startup scene, and that includes emerging businesses in the cannabis space. It’s also one of the most progressive cities around when it comes to cannabis business regulations and supportive programming. 

The city boasts a robust equity program to support aspiring cannapreneurs who might otherwise lack the social or financial capital to start up a business on their own. Depending on the business in question, the city’s equity programs might provide technical assistance, employee training, and more. It’s also home to multiple cannabis incubators

Those looking to start up a cannabis-related business in Oakland will need to adhere to both local and state regulations. Learn more about the licensing process on the City of Oakland website

11. Redding, CA

If you like the idea of operating within a smaller Northern California city but are looking to enter a more established market than you’ll find in Chico, then drive about 1.5 hours north to the small city of Redding. 

There, you’ll encounter a population filled with cannabis enthusiasts. (Redding tied with Chico for the #9 spot in Medical Marijuana Inc.’s roundup.) You’ll also find a government that’s already got some cannabis industry experience and a clearly defined ordinance under its belt. 

Under various circumstances, Redding allows for retail cannabis sales as well as cannabis distribution, manufacturing, processing, storage, and testing. Fill out the 14-page application and submit a non-refundable $5,000 application fee, and you’re on your way to being in business.  

12. Reno, NV

Sales of recreational weed became legal in Nevada in 2017, and business has been booming ever since. As of 2019, Nevada wasn’t collecting income tax on cannabis, which makes the state especially appealing to cannapreneurs. 

Las Vegas is the epicenter of the state’s cannabis industry (perhaps in part because it allows social use venues), which means it’s pretty saturated. If you’re looking to start up a Nevada cannabis company with a little less competition, consider heading north to the town of Reno, which is growing in popularity both residentially and as a tourist attraction. 

The city government already has an established process for vetting and approving cannabis companies. It starts with obtaining a provisional or issued license from the state’s Department of Taxation and then walking through the city’s application process, which is laid out here.  

13. Sacramento, CA

The Golden State’s capital might not have quite the same weed-loving reputation as San Francisco or Los Angeles — and that’s exactly why you shouldn’t overlook it as a possible site for your cannabis business. 

The city has invested in several initiatives to make it more attractive to cannapreneurs, including issuing low tax rates on gross receipts for cultivation and manufacturing and uncapping the number of available cannabis business licenses. What’s more, the city was awarded funding to support cannabis equity programs. You’ll also enjoy an easy commute whenever you want to advocate for cannabis-friendly policies at the state capitol. 

14. Traverse City, MI

Michigan residents voted to legalize the possession and sale of recreational marijuana in 2018. Because the state’s cannabis industry is still in its infancy, there’s a big opportunity for businesses to get in on the ground floor of the state’s legal cannabis surge. 

Traverse City might be just the place to do that. The largest city in Northern Michigan, Traverse City is packed with over 15,000 residents who, per that same Medical Marijuana Inc. survey, have collectively expressed high interest in cannabis. The town is also a hotbed of tourist activity thanks to its location near Lake Michigan. That means any cannabis business in Traverse City will benefit from both local and tourist patronage. 

Competition for dispensary licenses in Traverse City is fierce, as there are limited licenses available and they’re selected by lottery. But as of 2019, the city wasn’t limiting other types of marijuana businesses, including growers, processors, transporters, and testing facilities. If your business falls under one of those categories (or another ancillary category), then you could be in luck. 

Learn more about opening up a cannabis business in Michigan on the Michigan Marijuana Regulatory Agency site

Weed-Friendly Cities in the U.S.: They’re Everywhere! 

Here’s the moral of the story: If you’re planning to start up a cannabis business in the U.S., there’s no need to limit yourself to highly competitive and saturated markets. 

By looking beyond some of the cannabis industry’s major epicenters, you’ll discover a variety of exciting locales that welcome cannapreneurs and provide more varied opportunities. From Maine to Alaska, cities of all sizes and vibes are opening their arms to cannabis startups. So go ahead and blaze your own path! 

How to Start a Dispensary (+ Business Plan Templates)

By Cecelia May Thorn

Want to start a dispensary? Here’s a fool-proof guide for starting one — or not starting one, if this article scares you off.

6 Step Plan to Starting a Marijuana Dispensary

  1. Be realistic
  2. Study the laws. Then study them again. Then hire other people who study them professionally.
  3. Decide which state your dispensary will be located in.
  4. Consider potential locations at a more granular level.
  5. Begin the license application process.
  6. Throw out your business plan and start over.

Step 1: Be realistic.

If you ask successful dispensary owners for advice, they’ll all agree: Starting a dispensary isn’t easy. And it carries huge risks.

“You should expect that everything will be chaotic for a few years,” says Evan Anderson, owner of 14er Holistics, a dispensary which has been thriving in Boulder, Colorado, for over a decade. “And it might all go away tomorrow.”

You also have to acknowledge that everything you’re about to do is federally illegal.

Dispensary owners and staff are currently protected by the Rohrbacher-Farr Amendment, which stipulates that federal funds cannot be used to prosecute cannabis entrepreneurs operating in accordance with state laws.

But a few weeks ago (right before the Coronavirus pandemic started taking over the airwaves), the Trump administration released a new budget proposal. Notably missing? The Rohrbacher-Farr Amendment, which had been in all federal budget plans for years. 

Across the country, cannabis business owners furrowed their brows.

So before going any further, check in with yourself: Are you really ready for this? Starting a dispensary will be a roller-coaster. Steel your nerves for a bumpy ride ahead.

Step 2: Study the laws. Then study them again. Then hire other people who study them professionally.

If you really want to open a dispensary (and stay in business), you must become obsessed with legal and regulatory compliance.

“Plan to be in the most regulated compliance industry in the world,” Anderson advises.

Even if you’re a seasoned entrepreneur, and you think compliance is a breeze, beware: the cannabis industry poses unique challenges. And you really can’t go it alone. You’ll need advice from experts who know this industry.

Anderson suggests finding your lawyers and accountants early on. The license application process is too complicated, he explains, for someone who doesn’t know the intricacies of cannabis law at the state and local level.

The tax laws alone will present insurmountable hurdles and headaches.

“It’s not something an average random person can suddenly get involved in,” he says.

For more about the license application process — which can be highly competitive or nearly impossible, depending on your state — check out our guide to starting a marijuana business.

Step 3: Decide which state your dispensary will be located in.

Where will your dispensary be located? Starting a dispensary is a vastly different process in different states.

Obviously, you need to choose a state where marijuana dispensaries are legal. Today, 33 states allow medical marijuana dispensaries; 11 of them allow “recreational” (or “adult-use”) dispensaries as well.

If you try to start a dispensary in a state where medical marijuana is illegal (like Texas, South Dakota, or Idaho), you probably won’t get very far.

If you choose one of the 11 states with both medical and recreational marijuana, you’ll need to decide whether your business will be recreational or medical. Depending on what kind of dispensary you’re starting (and, again, depending on your state), you will face entirely different sets of rules and regulations.

For example, in some states (like New Mexico), dispensaries must be “vertically-integrated.” This means that you can’t own a dispensary without also owning a grow facility (which will supply cannabis for your store), and vice versa.

In other states (like Washington), vertical integration is prohibited: If you own a dispensary, you cannot own a grow facility, and vice versa.

In other states, like Colorado, vertical integration is optional. (When Colorado legalized recreational marijuana, the state phased out its vertical integration requirements, which had been a hallmark of its medical marijuana program.)

If you’re starting a vertically-integrated business, you’ll need to start a cultivation facility as well as a dispensary. This will entail a whole other business plan — and, in most places, a separate location.

Step 4: Consider potential locations at a more granular level.

As with retail businesses of any kind, location is critical.

It’s not just state laws you’ll need to worry about. Your county or city will have regulations of its own. These can vary wildly, even across one state.

Boulder, Colorado, for example, is a notoriously difficult place to run a dispensary. Thirty miles to the south, however, Denver is significantly easier.

“If you can make it in Boulder, you can make it anywhere,” says Erin Weiland, the Chief Operations Officer of Helping Hands Herbals. Her store has been open in Boulder since 2009, when she was one of the company’s first two hires. (Full disclosure: I was the other one.)

“I know tons of people in Denver who’ve never even had an inspection,” she says.

Most Boulder dispensaries, meanwhile, have faced multiple sting operations, orchestrated by city officials who employ undercover shoppers.

“If you’re just governed by the state and one of the M.I.A. municipalities, it’s so much easier,” she explains.

Think you’ve found a location safely outside the purview of a hostile city’s limits? Don’t get too comfortable: a city can “annex” properties beyond its borders.

In 2016, for example, the City of Boulder annexed land in unincorporated Boulder County, just outside the city limits.

Dozens of marijuana business owners fought the annexation — unsuccessfully. Once they were technically inside city limits, they had to change several aspects of their operations to comply with stricter requirements.

“For one thing, we suddenly had to bolt our commercial refrigerators to the floor,” says Karin Lazarus, one of the marijuana business owners affected by the annexation. (She owns Sweet Mary Jane, a licensed manufacturer of cannabis edibles.)

Lazarus, who has also been in the industry for a decade, was accustomed to adapting to regulatory changes on the fly.

Local regulations also limit the potential locations available to cannabis entrepreneurs.

State and local regulations will specify, for example, how close your dispensary can be to schools and daycare facilities. This significantly winnows the number of potential properties available.

When evaluating potential locations, you’ll need to think about parking, foot traffic, curb appeal, buildout, and security requirements, as with any retail business.

But the security requirements will be more onerous for dispensaries than, say, a beauty salon. Most states and local municipalities also have their own security requirements for dispensaries, which are cash-heavy businesses.

You’ll also need to look at the zoning.

If you’re starting a vertically-integrated dispensary, zoning will be much more complicated: Siting a cultivation operation, which usually requires agricultural zoning, is notoriously difficult. (Some real estate brokers specialize in cannabis-compliant properties.)

“It’s like finding a needle in the weedstack,” says Anderson.

You’ll also want to evaluate your potential landlord and neighbors.

These relationships will be critically important — perhaps more so than in most industries.

“In every other industry, you have a right to do business,” says Anderson. “In this one, you have to earn the right to do business, and that starts at a very local level. Start with your next-door neighbor, and go all the way to your governor.”

Step 5: Begin the license application process.

As an aspiring dispensary owner, the license application will be one of your biggest hurdles. This process will be intense, discouraging, and expensive.

To file your application, you will need to have your location locked down already. (Did we mention that this process is financially risky?)

By this point, most applicants have already hired a team of consultants, who will likely charge you an arm and a leg.

But even if you don’t hire any help, the license application fees alone can cost tens of thousands of dollars. (For more information, refer to our guide to starting a marijuana business.)

At times, you may feel that this process is rigged against you. And, depending where you are, you might be right.

You will need to pass several rounds of inspections, including from multiple officials and agencies within your state and local government.

They will demand you make certain changes. You will have to make them. This will cost you yet more money. Once you’ve made the changes to  your buildout, the officials may change their minds.

Are you really ready for this?

Step 5: Write a (tentative) dispensary business plan.

Writing a business plan for a dispensary involves all the same elements as any other business plan. You’ll need to cover revenue, products, customers, supplies, employees, marketing, rent, and all other normal business considerations.

But you’ll also need to consider aspects of the business that are unique to the marijuana industry.

Like access to banking services.

Most FDIC-insured banks are still unwilling to work with marijuana businesses. But you can’t store all your money in cash — no matter how many commercial safes you buy. Storing this amount of cash on the premises would be dangerous and impractical.

So you have a few options.

At a traditional bank, you can lie about the nature of your business. This is the route that, until recently, was employed by almost all dispensaries.

If this is your only option, you’ll have to take steps to reduce the marijuana smell on your cash. You’ll need to carefully train any employees who make bank deposits. You’ll need to get your story straight. Then you’ll cross your fingers and hope for the best.

This strategy does not always work. When the bank discovers the ruse, they close the account.

“If we lose a bank, and we have a stack of checks we can’t deposit, that’s a big cash flow problem,” says Lazarus.

The checks can’t be deposited until another bank account is secured.

The whole rigamarole has to be repeated, at yet another unwitting bank. (Most dispensaries have corporate or LLC names that are different from the name they do business under. These LLC names are often intentionally vague.) Then the funds will be available, for now — until the new bank catches on.

Today, a few non-traditional banks and credit unions have opened to serve marijuana businesses. But that doesn’t necessarily mean that you can bank there.

Some dispensary owners say they’ve spent years on waiting lists for these banks.

If you land one of these special bank accounts, some aspects of your business will become easier.

“I can wear my badge in there,” Weiland says, “and I don’t have to lie about everything.”

But the privilege of transparency comes at a cost.

An anonymous source familiar with Partners Credit Union broke it down.

For normal business deposit accounts, they said, businesses will pay .35 percent on total deposits. Marijuana businesses, however, must spend one to two percent of their gross on banking fees. (Verus, another bank that accepts marijuana businesses, also charges high monthly fees.)

Most dispensaries must also pay for someone to come pick up their cash at least once per week. (This person is usually part of a security company with armored vehicles.)

Of course, dispensaries also can’t get traditional business loans. This makes it difficult to access capital — and should be a main consideration in your business plan.

Although federally-insured banks won’t lend to dispensaries, the federal government still definitely wants their tax dollars.

In fact, you’ll have to pay tax rates at a much higher rate than most businesses, thanks to an obscure section of the U.S. Tax Code called Section 280(E). Again, you will need an accountant well-versed in cannabis tax laws.

Step 6: Throw out your business plan and start over.

“You have to be able to be able to modify your plan,” Weiland says, “and throw out just about everything you thought would work.”

Everything in your business plan will probably change. And it will never stop changing.

The state of Colorado, for example, instated a new requirement last January for heavy metals testing in all cannabis products. Due to a lack of standardized lab testing (and a lab logjam generated by the new deadline), the industry was instantly thrown into chaos.

Even the most well-researched business plans hadn’t accounted for this.

“Write the most compliant business plan you can imagine,” Anderson says, “and then plan to refine it a hundred times before you can use it.”

And make sure you’re ready to use the word “compliance” about eighty thousand times.

Because in the marijuana industry, compliance is (almost) everything. if you violate one of the numerous state or local regulations, you’ll face steep fines — or get shut down.

You don’t want to invest in this business, only to have your dispensary shuttered. (Even you’re banking on a rapid exit plan, keep in mind that a history of regulatory infractions will make your business difficult to sell. Many municipalities have a “three strikes, you’re out” policy.)

If this article hasn’t scared you off, you might be ready to start a dispensary. Good luck!

7 Creative Ideas To Cash In On Marijuana Business Opportunities

By Lydia Kibet

The marijuana industry is on fire.

It is a chance of a lifetime to grab the golden opportunity to start a marijuana business. That’s good news because the marijuana industry is burgeoning today, and a cannabis business could be a lucky chance for your success.

Whether you’re a cannabis beginner or a veteran, there are several cannabis business opportunities that could be of interest to you. Now that medical and recreational marijuana is legal in some U.S. states, chances to make greenbacks on the budding industry is superabound.

Here are 7 creative ideas for individuals looking to cash in on the green rush, but not looking to do plant-touching:

7 Creative Ideas to Cash in on Marijuana Business Opportunities

  1. Marijuana Consulting Firm
  2. Marijuana Painting Class
  3. Marijuana Delivery Business
  4. Edibles Company
  5. Cannabis Cosmetics
  6. Marijuana Tours
  7. Cannabis PR Firm

1. Marijuana Consulting Firm

New marijuana businesses need consulting firms to kickstart their brands the right way. Individuals looking to start a “canna-business” often require help and guidance to ensure that they’re on the right side of the law.

If you have a knack on the legal side of marijuana, this could be a huge opportunity to jump into the industry — and share the knowledge you’ve gained.

With a marijuana consulting firm, you can help commercial cannabis cultivation startups with everything from branding, marketing, design, regulatory compliance, and more. There’s a potential to earn some handsome money in this $4 billion legal marijuana market.

If you begin with a home-based business, you could need an investment of somewhere in the ballpark of $5,000 to start a cannabis consulting firm. This should cover a beautifully designed website to market your services, insurance, and perhaps business cards.

However, to be successful in this business opportunity, you need an in-demand skill set, especially the law surrounding cannabis. If you have the right legal education, and you’re passionate about cannabis law, you should consider getting into the marijuana consulting business.

2. Start Marijuana Painting Classes

You’re perhaps aware of how popular wine painting classes have become. But, have you heard about marijuana painting classes?

If you fancy the idea of art, you can broaden your business and incorporate cannabis painting classes.  For several marijuana lovers, smoking the herb allows them to wind down and unleash the creative side.

Marijuana painting classes allow cannabis connoisseurs to take hits while passing a joint or a dab rig while connecting with their inner Picasso, one brushstroke after another. 

Anyone considering starting a pot-friendly painting business should be intimately aware of the local legal marijuana businesses and the laws concerning consumption zones. Also, you should know where you plan to operate your business as weed will be consumed during classes.

While laws vary from state to state, since you may not sell or distribute marijuana, there’s no need for any special licenses. However, it’s crucial to speak to a lawyer before you start marijuana painting classes because there’s so much legal red tape.

Art is thrilling when the herb touches your soul. Cannabis painting classes offer connoisseurs and fellow artists a chance to come together and unleash their creative art. So, it’s a chance to bring cannabis enthusiasts together to have fun.

3. Start a Marijuana Delivery Business

Transportation services such as Uber and Lyft have gained traction, and on-demand delivery for medical and recreational marijuana is insufficient. This is an excellent opportunity to join the industry by contracting with dispensaries, local firms, and more — and become the Uber of marijuana delivery.

When it comes to marijuana deliveries, launching an app-driven marijuana dispensary-to-door service is the best way to up your game in the industry. 

For example, the Silicon Valley tech startup launched Eaze — a medical pot app that has helped the company scale revenues insanely.

It has chauffeured buds to thousands of card-carrying medical marijuana patients in nearly 100 California cities. The app incorporates the signup flow and onboarding of new medical marijuana patients. It also offers directions and predictive analytics that assist drivers in getting to different locations. Not to mention patient verification, customer service, and the orders made via the app.

That being said, a medical marijuana app will enhance not only your business but also an opportunity to do what other companies in the cannabis industry don’t do. This is because of the direct access to patients. The good news is, an app doesn’t need any special license; a standard business license is ideal.

However, starting an on-demand app like Eaze is pretty expensive.

For starters, simply contract with local firms or dispensaries and use Uber transport services to make deliveries and make money.

4. Starting an Edibles Company

Not everyone has a flair for smoking, with the stop smoking promotions in the U.S, many people are cutting out smoking out of their lifestyle. This doesn’t mean individuals who don’t smoke don’t use marijuana; instead, they eat.

Edibles are rapidly gaining momentum in the marijuana industry, simply because they are discreet and can be consumed anywhere anytime. They are also fancied by consumers who wish to quit smoking cannabis or need long-lasting effects.

According to BDS analytics, edibles made up 12% of the market share in Washington, Colorado, and Oregon in 2016. If you have a knack in culinary, you can start baking and selling edibles infused with cannabis. You can start with some, including cookies, pies, brownies, candy, and chocolate bars — then grow your business slowly.

While selling edibles with weed is still illegal, but you can sell edibles with medical-grade marijuana. Once you’ve identified the flavors your customers fancy, bake a ton of edibles and start making bucks. 

If cooking and baking sounds up right your alley, this could be the marijuana business opportunity for you.

5. Open a Cannabis Cosmetics 

Marijuana has found a spot in the cosmetics and beauty industry, and it’s indeed a creative business idea.

The cannabis plant has a lot of things valuable to nearly every aspect of the human way of living. Since marijuana can heal and repair the skin, you can start a cosmetics company and produce cannabis-infused products like creams, massage oils, lotions, moisturizers, soaps, and much more.

This idea would be much easier if you’re already into a similar business — all you need to do is to incorporate medical-grade marijuana to your list of ingredients. There’s an endless list of cosmetic products available these days that contain CBD.

You can imagine even those who don’t consume cannabis love them.

The marijuana industry is on fire with its line of hemp-infused products, even the famous actress Whoopi Goldenberg has her own line medical marijuana topicals. Why not try your hand in making any of these on-demand beauty products and make enormous profits? 

6. Marijuana Tours

If you live in a state where the drug is legal, leading cannabis-themed tours is an ideal business opportunity.

For outdoor lovers who enjoy hiking, biking, this can be a fun, exciting, and effective way to exercise.

With marijuana legalization and its use on the rise throughout the United States, more and more marijuana tours are winding their way through states where the herb is legal. Most travelers love the idea of marijuana tours, and they’re ready to pay for the experience.

You can take your visitors to 420-friendly locations, such as dispensaries and other local hotspots that can offer them a good time.

7. Cannabis Public Relations Firm 

While marijuana can be used legally within a state, there is still misconception and stigma linked to it.

This is a challenge for nearly every business encounter. This means there’s a gap handy for public relations firms in the industry to aid in cannabis-related businesses — to educate the public and get to the bottom of any stigma.

If you have a flair in public relations and a robust network of journalists and reporters, this could be an excellent opportunity to add value to the marijuana industry. Several Cannabis businesses struggle to get coverage beyond the trade publications.

So, a cannabis PR firm can help educate reporters and journalists to do away with dangerous misinformation and stigma that’s disseminating.

Wrap Up on Creative Marijuana Business Opportunities

Marijuana is relaxing, and today it serves as a phenomenal medicine for various ailments — that’s why it has gained popularity over the recent years. With the seven creative business ideas, you can find the right opportunity that suits your needs. While there’s an endless list of business opportunities, consider your startup capital and what interests you more to profit in the industry.

How to Start an Edibles Business in California

By Alexa Peters

There’s no doubt that cannabis edibles are becoming an increasingly popular—and delicious—way to consume legal cannabis.

In fact, according to a recent research report from ArcView, the cannabis edibles market will be worth $4.1 billion by 2022—which is particularly good news for those who prefer this discreet and smokeless way to enjoy cannabis.

Like Washington, Oregon, and Nevada, California is one of the markets where edibles are the most popular—prompting many to cast their eyes towards the Golden State for their next manufacturing endeavor.

But, with a market saturated with legal and illegal competition, some of the most complex state cannabis laws in the country, and a particularly wellness and eco-conscious group of consumers, entrepreneurs looking to make edibles in California are likely to hit some roadblocks.

That said, starting a cannabis business (recreational or medical) is on the minds of many, and this handy guide to starting an edibles business in California should equip the canna-curious with everything they need to take part in California’s lucrative cannabis market.

Figure out your business plan—and finances

Before you do anything else, you need to put your dream edibles company down on paper with a business plan.

In general, a business plan includes an executive summary which outlines who you are, what you offer, your target market, your competition, team, and other details. Answering these questions first can help a founder assess if their idea is viable and expedite the application process for all permits and licenses down the road. 

“How do you get a foothold in this sunrise industry? With so many people jumping on the seemingly lucrative cannabis bandwagon, it is important for you to carefully think through your cannabis company before starting,” reports the start-up resource Bplans. “In legal states, the markets have become so saturated that cannabis companies can end up with thousands of pounds of unsold product.”

Start your business plan by designing your team, product and brand on paper. If you are a first-time business-owner and need help along the way, there are several online resources like Bplans, that provide support on crafting your business plan for a cannabis manufacturing company.

Coda Signature, a cannabis edibles manufacturer based in California and Colorado, started with a powerhouse team: Lauren Gockley, a classically-trained chocolatier, and her partner Brien Sauchelli, as well as the business-savvy Mark Grindeland and Elizabeth Cooke.

All of these people were key to bringing the acclaimed edibles brand to life.

From the beginning, Coda Signature settled on a very accessible brand—both in terms of the flavors they used and their price point—and they have succeeded by holding fast to that brand throughout the years.

“It’s so interesting because our philosophy on the edibles market and our brand is that we wanted to take really quality products and make them available at a very fair price,” said Marji Chimes, chief Marketing Officer at Coda Signature. “We didn’t want to price ourselves out of the market [but] we wanted best ingredients, beautiful packaging, [and] everyone cares about quality detail.”

Along with analyzing your new brand and consumer base, a business plan should also include a financial summary that highlights the capital you have and what you need to raise. A founder needs quite a bit of money to get up and running—and this is especially true for a cannabis entrepreneur. 

Federal rules and regulations keep cannabis businesses from tapping federally-insured banks for loans for start-up capital—instead, initial capital has to come from personal savings or venture capitalists.

“You need a lot of capital and you need a lot of endurance,” said Chimes. “[Cannabis businesses] are built on the backs of risk takers. We’ve gotten private investors, and you need to find somebody willing to take the risk because there isn’t any other way to do it.”

Luckily, opening a manufacturing facility is cheaper than starting a dispensary or farm, according to experts, but your expenditure will still be large. Expect the bill to include your rent for a cannabis business-friendly property, the kitchen equipment and staff needed, material sourcing, and more.

Also add in California-specific costs like the various state taxes and licensing fees.

Get Familiar with California’s Current Regulatory Climate

Once you have a business plan in place, it’s time to get down in the dirt with California’s complex cannabis regulations.

Chimes notes that California’s state policies are going through a time of transition—making it all the more imperative that you pay attention to the rules.

“Here’s what I will tell anyone who is thinking of starting a cannabis business in California: Do your homework,” said Chimes. “There’s a ton of regulation. There’re a ton of taxes.”

California was one of the first states to pass medical marijuana legislation with Proposition 215, the “Compassionate Use Act,” which passed in 1996. As of November 2016, adult-use cannabis was legalized in California with the Adult Use of Marijuana Act (AUMA), which allows adults over 21 to possess, privately use, and gift up to one ounce of cannabis. 

In 2017, Medical and Adult Use of Cannabis Regulation and Safety Act (MAUCRSA) went into effect.

MAUCRSA combined the state’s then-segmented medical and recreational cannabis spaces into one legal framework.

MAUCRSA also legalized the commercial sale, distribution and production of recreational cannabis at state-licensed facilities—through a complex licensing procedure that involves three governing bodies: California Department of Food and Agriculture (CDFA), California Department of Public Health (CDPH), and Bureau of Cannabis Control (BCC).

Still, even within a system that some have called over-regulated, California has continued to have issues with black market cannabis.

In fact, illegal sellers outnumber legal and regulated cannabis businesses almost 3-to-1, according to an alarming analysis from cannabis sellers in the state, reported in CNBC. 

As a result, California has been continuously tweaking policies to mitigate their black-market problem. In January 2019, the Office of Administrative Law (OAL) officially approved new state regulations for cannabis businesses across the supply chain, some to help bolster the legal cannabis market. And recently, the state has been “going after bad actors” with more enforcement, according to a statement from Governor Gavin Newsom in the Los Angeles Times.

Hence, as California officials scrutinize the state’s cannabis industry, it’s never been more important to understand and assimilate California’s most up-to-date regulations, and to play by the rules as you move forward with establishing your edibles company.

Register with Secretary of State, then dive into dual-licensing

Once you’ve got your business plan and knowledge of California’s system handy, the first part of playing by California’s rules requires all businesses, except sole proprietorships, to register organizational documents and pay fees to California’s Secretary of State. This can be done easily on their website. 

From there, the dual-licensing process can begin.

Under MAUCRSA, the state requires new cannabis manufacturing facilities to obtain both approval from the local city or county government before they seek their state-issued manufacturing license. 

“Prospective cannabis businesses should begin the [dual-licensing] process at the local level: if the local government does not allow commercial cannabis activity within their jurisdiction, they will not be able to obtain a state cannabis license,” according to Matt Conens, of the California Department of Health’s Office of Public Affairs.

As Conens explains, it’s best to decide where in California you want to be located first because many counties in California, like San Bernardino County, don’t even allow cannabis manufacturing.

(Founders can refer to the website for the California State Association of Counties, and this handy map from Cannabis Business Law, to discern which cities and counties will make a hospitable home for your business.)

Coda Signature, which began in Colorado and currently has product in 636 dispensaries across the state, made the decision to get started in California in 2018.

Based on careful research, they knew the Oakland, CA area was cannabis-friendly when they pursued setting up shop there.

We chose Oakland, CA as our location to build our manufacturing facilities because at the time Oakland was being marketed as a very cannabis friendly city, very open to working with manufacturers, they were thrilled to have this kind of industry happening in their community,” said Chimes. 

Once you’ve honed in on a general area, prospective cannabis manufacturers will also need to find an appropriate property for their facility before submitting to local officials for approval. This also poses several challenges. 

Firstly, you’ll need to decide if you will build out a pre-existing industrial building or construct a facility from the ground-up. The benefit with using a preexisting building is it will likely be cheaper to outfit for your needs. In fact, for their flagship Trinidad, CO location, Coda Signature renovated a legacy industrial structure for their edible-making.

“[Founders Lauren Gockley and Brien Sauchelli] chose Trinidad, CO to build our manufacturing facility because it’s very close to the border of New Mexico and the feeling was that if interstate commerce ever happens, we would [be] strategically located,” said Chimes. “Also, it’s a tiny little town and ironically, we bought a facility that used to make frames and small home decor, and we built out the facility in this environment and actually when we took over the space, we hired a lot of the employees that were [previously employed] in that facility.”

In Oakland, Coda Signature found an old cannery that was properly-zoned for cannabis business. This is absolutely necessary if you hope to operate legally in California, reports California Cannabis CPA on its blog

“The real estate market in California is competitive already, and so-called ‘green zones’ regulations severely restrict where cannabis businesses are allowed to operate,” California Cannabis CPA said.

Luckily, there are several business consultant firms that can match your business with the right location, like Cannabis Research Consultants and Be Green Legal.

Once you’ve found a property, you should check with the local city and county to determine what steps your business needs to take to “obtain a required license, permit, or other authorization for the cannabis-related activities that your business will be conducting,” according to this document from the California Secretary of State.

Then, be prepared for intense scrutiny.

As Be Green Legal says on their blog, “Marijuana manufacturing businesses are particularly scrutinized by the police and fire departments, as manufacturing processes must be deemed safe for employees and adjacent tenants or properties.”

So, expect officials to look at your business plan, floor plan, site plan, security plan, community relations plan, and financial analysis as they consider granting you a local permit. 

Applying for the Right Licenses with the Right Governmental Bodies

Once you’ve obtained all applicable local permits and licenses, you can finally apply for the state-issued manufacturing licenses you will need to start an edibles business in California.

Unfortunately, in keeping with the state’s tendency to be highly-regulated, this step is just as convoluted as the last due to the number of licenses and governing bodies involved.

California offers 26 cannabis licenses total—four of which are specific to manufacturing.

According to the California Department of Public Health Manufactured Cannabis Safety Branch, there are four cannabis manufacturing-specific licenses: Type 7, Extraction: Volatile Solvents; Type 6 Extraction: Non-volatile Solvents and Mechanical Methods; Type N: Infusions; and Type P: Packaging & Labeling Only.

Depending on your product and scope of your business, you may need to apply for more than one license.

For instance, Coda Signature has both a manufacturing license and a license to distribute cannabis in California just so they can transport products to local labs for quality testing, Chimes says.

“We do the extraction ourselves, and we do the manufacturing and the distribution, but we aren’t retailers. So, we have a MIP license, a manufacturer of infused products [and] a distribution license,” said Chimes. 

Once you have discerned which licenses you need, MAUCRSA establishes three agencies as responsible for overseeing applications and administering all 26 license types applicants. Manufacturing licensees are directed to apply online for licenses on the website of the Manufactured Cannabis Safety Branch, overseen by California’s Department of Public Health.

Meanwhile, the Bureau of Cannabis Control is responsible for licensing retailers, distributors, testing labs, microbusinesses, and temporary cannabis events, and the California Department of Food and Agriculture is responsible for licensing cultivators.

Bringing Your Business to Life

Once you have been approved for the state licenses you need—congrats! You can start your business.

But, as arduous as the process to set-up a legal shop was, the process of running a successful edibles business in California for the long-term is perhaps even more labor-intensive. Now’s the time to nurture relationships with your supply chain, and bring your team, product, and brand to life.

Having just entered California only two years ago, Coda Signature is still in the process of building their presence in California. Currently, they have their products in 235 California dispensaries, and they work with local growers, quality testing labs, and packaging companies that they nurture positive relationships with.

Part of establishing these positive relationships has involved a personal touch, according to Chimes.

Coda Signature’s chocolatier actually travelled to South America to get to know their cacao producers, Republica De Cacao, in person—and they’ve applied same principle to their relationships with California cannabis dispensaries and cultivators, Chimes said.

“Finding the best providers and then building a relationship [is essential] because cannabis… it’s not just putting strawberry jam in a bottle,” she said.

You’ll want to establish a good relationship with a packaging facility, too, or else get acquainted with how to legally package your product yourself.

In California, laws around packaging and labeling edibles are strict and, as Chimes has found, Californians prefer eco-friendly packaging. In combination with the various regulations, this can be challenging and expensive to pull off.

Additionally, as Chimes notes, once you get started in California, you’ll notice that Californians have very specific tastes.

Coda Signature has found their infused chocolate is not as popular as infused gummies, for instance, and that Californians prefer certain aspects in their edibles like natural, vegan ingredients, and no artificial sweeteners.

Hence, any new cannabis edibles brand should be perpetually analyzing sales in California base so they can deliver to and grow their influence in the California market. 

“They care about the packaging, care about your carbon footprint, so you know, it’s a very health, wellness, environmentally-conscious state,” said Chimes.

Clearly, there are many moving parts to starting an edibles business in California.

You need more than a great idea—you’ll need the tenacity as you work through the complex and evolving regulatory landscape, and the creativity to adapt and cater to a very wellness and environmentally-conscious clientele.

But, by following the necessary steps outlined in this guide, your very own brand of infused brownies, truffles, gummies, or beverages could be flying off the dispensary shelves next year. 

How to Start a Marijuana Growing Business in Colorado

By Laura Newcomer

The Colorado cannabis industry is booming. 

State-wide cannabis sales topped out at more than $1.7 billion in 2019 alone. The industry has generated more than $7.7 billion in the past five years, and it shows no signs of slowing down. 

As more and more would-be “cannapreneurs” enter the space, many aspiring founders are looking into how to start a marijuana growing business in Colorado. 

Cultivation is an especially competitive niche within the broader cannabis industry, for two main reasons. First off, licenses for cultivation are limited in several municipalities (for instance, Denver has instituted a lottery system). Secondly, the rigorous and expensive application process tends to weed out a lot of aspiring cannabis cultivators. 

Currently, the Colorado Department of Revenue’s Marijuana Enforcement Division lists somewhere around 460 licensed medical marijuana cultivators and approximately 680 licensed retail marijuana cultivators in the state. Many more would-be cultivators are clamoring to get licenses and start growing so they can capture a big slice of the ballooning cannabis pie. 

While fierce competition can make it challenging to enter the marijuana growing space, those fortunate enough to survive the licensing process will enjoy plenty of perks thanks to that very competitiveness. Because cultivation licenses are limited, cultivators can often control pricing and sell large volumes of product.

If you’re more intrigued than scared, then you might just have the audacity needed to start your own grow operation! Here’s a thorough overview of how to start a marijuana growing business in Colorado — consider this article your testing ground for what lies ahead. If you can make it through this piece, then you might just have what it takes to survive the licensing process and enjoy success as a cannabis cultivator. 

Prior to Licensing 

You might be excited to start buying seeds and growing some plants, but there’s a long road ahead before you get to the actual “growing” part of starting a marijuana growing business. Much of the work of starting up your business will happen up front before you even press seeds into soil. 

That’s because there’s a lot of bureaucratic red tape surrounding the cannabis industry, and you’ll need to make your way through it all (read: obtain proper licensing) before you can fully invest in your grow operation. 

Here’s an overview of the primary steps you’ll want to follow in order to maximize your chances of successfully obtaining a license. 

Know the risks (and consult an attorney). 

Even though cannabis is legal in a growing number of states and countries, it’s still illegal at the federal level in the United States. This means starting a cannabis growing business comes with some unique risks even in a legal state like Colorado. 

For instance, there are federal minimum sentencing laws for cultivating more than 99 or 999 cannabis plants, and there have been instances of the Drug Enforcement Agency (DEA) removing all cannabis from a business or sending asset forfeiture letters to landlords who rent to dispensaries or grow operations. 

Clearly, plenty of growers maintain cultivation businesses in legal states without facing federal prosecution. Nevertheless, the cannabis industry does operate within a legal gray area these days, and it’s important to know what kind of risks that entails. Some people will be more or less comfortable starting up a business that comes with those risks. 

To minimize your own risks, it’s a good idea to consult an attorney with experience in the cannabis space who can provide consultation during future phases of your start up.

Decide: medical or recreational?

As you start investigating the world of Colorado cannabis cultivation, you’ll face an important question: Do you want to operate in the medical or recreational space

Be aware that medical growers in Colorado are required to own and operate their own dispensary in order to obtain cultivation approval. Recreational growers don’t face the same requirement. This is just one example of the different regulations you’ll face depending on how you choose, and those regulations will affect everything from the licensing process to your business plan, target customers, and projected costs and income. 

You might have personal or business-related reasons for wanting to enter the medical or recreational space. No matter your preference, this is an important decision that will shape the arc of your business moving forward. 

Prepare yourself financially.

Even before you start investing in infrastructure and seeds for your grow operation, you’ll face a lot of up-front expenses. 

Simply applying for a state license will cost thousands of dollars. Expect to pay around $4,000 for a new application fee and possibly several thousand dollars more to complete the application process for instance, a marijuana transporter license application will cost another $4,900, and a local license application will probably cost around $2,500.

This will be the beginning of a long and costly startup process, and you’ll need to be prepared to fork over cash at every stage. If your license is approved, growing 1,000 plants in a 7,700-square-foot facility (for example) could cost around $800,000 or more to get off the ground. Additionally, cannabis businesses pay higher taxes than regular businesses, because they’re not eligible for the same federal tax credits.

Before you get too far along in the process, it’s important to know where all that money will come from. You might consider looking into cannabis startup incubators or seeking investor funding through another channel. 

Research your desired location.

As with any business, it’s important to scout your desired location before putting down roots (in this case, literally!). At a minimum, you’ll want to research: 

  • The laws in your desired municipality. Local regulations vary across Colorado. For instance, the Boulder County Marijuana Licensing Authority generally accepts applications on a rolling basis; you can learn about its processes here. In Denver, growing operations are subject to a lottery process; an overview of Denver application requirements can be found here
  • Available growing spaces for rent or sale, and the infrastructure contained therein. Be aware that in Colorado, producers must grow cannabis in a secured, enclosed location. You’ll need to find a space that meets the legal requirements and that offers enough room to scale your operation over time. Also make sure the location(s) is zoned properly and that there’s adequate ventilation, light, temperature control, and so on. 
  • Competitors in your area. Is there high enough demand to support a new operation in your intended location? Do you have unique skills or resources that could help you stand out from the pack? Be diligent about your research at this stage to increase your chances of success later on. 

Consider hiring a consultant. 

By now, you might be starting to grasp just how complicated this process can be! 

If you have the funds available (and you should, because you’ve already prepared yourself financially), then it’s incredibly helpful to hire a consultant who can guide you through the application, licensing, and startup process. 

If possible, seek out a consultant who’s worked in your desired municipality. They’ll be able to advise you about laws and other considerations that are specific to your location. 

Assemble your team. 

At first glance, you might be wondering why this step would come before the licensing process. After all, why bother putting together a team if you don’t even know whether your business will get off the ground? 

Here’s why: Per the legal folks at Robinson & Henry, your team will constitute an important point of consideration during the application process and they can make or break it. 

To increase the chances of getting your application approved, everyone on your team should meet these minimum criteria: 

  • Everyone involved must have a clean record and must be prepared to pass a criminal background check. Team members must not have any convictions involving controlled substances for at least 10 years, and any felony convictions must have been discharged for a minimum of five years. 
  • Everyone on your team must be at least 21 years old. 
  • Your founding members must have resided in Colorado for at least two years. (The law here is a little gray, so this is a great time to consult an attorney if you don’t meet this requirement!) 
  • Your team should have demonstrable industry experience, and it should be well-rounded meaning you’ll want to show that you’ve planned for all relevant positions, including horticulturalists, accountants, legal counsel, business managers, and so on. 

Draft a business plan. 

Of course, it’s challenging to draft a detailed business plan when so many details are still, well, completely up in the air. But it’s important to try! 

Colorado review boards aren’t shy about rejecting applications that don’t appear to be well thought through, so it’s important to do this thinking before you submit your application. 

At a minimum, your plan twill need to demonstrate that you’ve considered

  • State and local laws
  • Ownership structure 
  • Business costs 
  • Production processes
  • Sales projections 
  • Customer acquisition strategies (e.g. marketing plans) 
  • Your company’s unique value proposition
  • Testing protocols 
  • Suppliers 
  • Legal counsel
  • Security and traceability
  • Compliance 
  • Site plan review
  • Employee training
  • Transportation logistics
  • Waste removal  

Again, it’s smart to work with a consultant and/or attorney during this stage of the process. 

Register your business.

This is one of the rare times that you don’t have to think much about cannabis-specific factors and can simply follow general guidelines for registering a business. To that end

  • Decide on a business entity, such as an LLC or a corporation. It’s definitely a good idea to consult an attorney while making this decision.
  • Select a name for your company, confirm that the name is available using these simple tools, and pay the relevant fee to secure your company name. 
  • Apply for an Employer Identification Number (EIN), aka a business tax ID.

Apply for licensing. 

Alright, here’s where the rubber really meets the road! 

As noted above, you’ll need to apply for licenses at both the state and local level. Local requirements will depend on your desired location, so you’ll need to research them separately. 

Here’s some basic info about the licensing process at the state level: 

  • State licensing is overseen by the Colorado Department of Revenue’s Marijuana Enforcement Division (MED). The Division is headquartered in Lakewood, CO and also has offices in Colorado Springs, the Denver Metro Area, and Grand Junction.  
  • You can learn more about MED Compliance and research forms and application processes here. Again, make sure you cross-reference state laws with the laws in your desired municipality. 
  • Once you’ve completed and submitted all the necessary paperwork, you’ll schedule an appointment with MED. Be sure that all of the business’s part-owners are present, bring copies of all documentation, and bring along personal identification. 

If your application is approved, then all of the owners will need to be fingerprinted. And then you get to pay all the licensing fees! 

After Licensing 

Whew! If you’ve made it to this point, you’re probably ready for a vacation. But in some ways, the work is just beginning. 

The good news is that the next steps will involve less paperwork and more concrete steps toward turning your marijuana growing business into a reality. 

Outfit your grow site. 

You already identified a grow site earlier in this process. Now’s the time to outfit the site to your exact specifications. 

If you’ve put together a rock star team, then they’ll have strong preferences about the appropriate setup. Here are some of the most important factors your team should consider while setting up the operation: 

  • Electricity. This will be your facility’s primary expense, so it’s important to think carefully about this aspect of your infrastructure. So many elements of your operation will rely on electricity, from artificial lighting to dehumidification, fans and other temperature control equipment, ventilation, irrigation control systems, and more. One of the primary considerations here is whether you want to use LED or HPS (High Pressure Sodium) lights. It’s also worth investigating opportunities to utilize solar power. 
  • Going green. If the cannabis industry doesn’t want to be rocked by climate change, then it needs to do its part to minimize energy consumption and greenhouse gas emissions. To that end, consider recycling water, collecting rainwater, utilizing organic soils, investing in solar or wind power, and so on. These practices are good for the planet and your company’s bottom line. 
  • Space. If you’re growing plants in pots, plan for each plant to be grown in a 5- or 10- gallon pot at a minimum. (Cannabis roots like to spread out.) Knowing this and your grow site’s dimensions will help you determine how many plants you can grow at one time. 

Keep investing in your team. 

As you outfit your operation and watch your budget evolve, you’ll get a better sense for whether you have the need and/or capacity to bring on more team members. 

Whenever you acquire new team members, make sure you send each employee through the proper licensing process

Colorado has two types of employee licenses for the cannabis space: 

  • Key Employee licensing designates an employee who makes operational or management decisions
  • Support Employee licensing is required for employees who work for the company but don’t make operational decisions

Refine your cultivation plan.

You already developed some cultivation plans while drafting your business plan prior to the licensing process. Now, it’s time to refine that plan so you can execute it with efficiency and precision. 

Here are some pointers for doing just that: 

  • Select your plant starters. You can kickstart the actual growing process from clones or from one of several types of seeds. Clones typically allow for a faster growing process, but they’re also more prone to developing mold or diseases. When it comes to seeds, you can choose from regular seeds (which are the most reliable but which will include non-flowering male plants), feminized seeds (so you don’t waste time or resources on tending male plants, which aren’t useful in this context), or auto-flowering seeds (which flower on their own, without you having to adjust their light cycles). If you’ve assembled the right team, they’ll have an informed opinion about which option you should pursue. 
  • Select a growing medium. Cannabis can be grown in soil or hydroponically. Hydroponic systems tend to be more affordable, but they’re also not as well suited to a commercial-scale operation. If you opt for soil, keep in mind that growing 100 plants in 10-gallon pots will cost around $1,500 for organic soil and around $1,000 for the pots. 
  • Make sure you have the necessary equipment not only for the growing process, but for the stages that come after it: harvesting, drying, trimming, curing, packaging, and distribution. 
  • Plant for safety testing. Because people will be ingesting your products, you have a legal and moral responsibility to make sure your cannabis is as safe as possible. A key element of that safety plan is testing your products before distribution. Bonus points for sending your products to a third-party tester so there’s no risk of bias. 

Plan for ongoing compliance (including security). 

Security and compliance are lumped under the same category here, because they often go hand in hand. 

For example, in order to be compliant with Colorado state laws, grow operations must create detailed security plans, including maps of the exact location and number of security cameras located within the operation. That’s just one of the many rules required of marijuana growing businesses. 

Effective January 1, 2020, MED has released its comprehensive Regulated Marijuana Rules. The document is nearly 400 pages long, so we won’t outline the whole thing here! But suffice it to say, it’s your responsibility to be aware of all the rules contained in those pages and execute a plan to comply with them. 

Security will be an important component of that, which is why we’ve highlighted it here. But it’s not the only way in which you’ll need to make sure your grow operation is and continues to be compliant. 

Starting a Marijuana Growing Business in Colorado: The Bottom Line

As you can see, starting a marijuana growing business in Colorado is not for the faint of heart. But that’s not to say it isn’t a worthwhile endeavor! 

This just means you’ll need to put in the legwork necessary to develop a solid business plan, solicit financial support, obtain proper licensing, cultivate a great team, and apply sound horticultural knowledge to the actual growing process.

If you’re feeling a little overwhelmed, it helps to take a long view. While cannabis cultivation is far from a low-risk hustle or a “get rich quick” scheme, there are plenty of highly successful companies that prove this can be a great space to enter if you’re equipped to do it right and you’re patient enough to clear some red tape.

So put in your research, surround yourself with a knowledgeable team, and buckle up for a long but rewarding ride on your path to commercial cannabis cultivation! 

The Top 15 Cannabis Blogs for Entrepreneurs

By Laura Newcomer

If you want to be a successful entrepreneur in the cannabis space, then it’s critical to know your industry inside and out. 

In a lot of industries, reading classic books is a great way to establish a baseline level of know-how. For example, if you’re a marketer, you can read Purple Cow or Influence: The Psychology of Persuasion and you’ll be equipped to talk pretty knowledgeably about marketing. While marketing strategies are constantly evolving, the basic principles have remained the same for decades and counting. 

In contrast, the cannabis space doesn’t have a long-established baseline of precepts that can be gleaned from a book, because it’s not a long-established industry! What’s more, it’s changing so rapidly that even descriptions of the space from a couple years ago could now be obsolete. So while reading books can still serve your cannabis business, you might be better off getting your industry updates from cannabis blogs and other digital publications. 

One of the main perks of reading cannabis blogs is that they’re equipped to publish industry updates as they happen, so you can stay abreast of the ever-evolving cannabis space. Cannabis blogs can also provide you with detailed information about a particular niche, whether that’s cannabis law, cultivation techniques, or anything in between. 

There are well over 100 high-quality cannabis blogs on the web right now, but trying to keep tabs on over 100 blogs would be a full-time job — and given that you’re an entrepreneur, you probably don’t have time for that!

So we’ve narrowed in on 15 of our favorite cannabis blogs for entrepreneurs, which will keep you informed about everything from new currencies to analytical testing, political updates, and so much more. 

15 Stellar Cannabis Blogs for Entrepreneurs

No matter whether you’re looking to beef up your cultivation skills, stay up-to-date on the latest political and legal updates surrounding cannabis, or keep tabs on other companies in the cannabis space, these 15 cannabis blogs have got you covered. Prepare to bookmark some tabs! 

1. Cannabis Business Executive 

Are you a cannabis business executive? Then head on over to Cannabis Business Executive (CBE) to avail yourself of relevant industry content tailored just to you! The B2B publication is exclusively devoted to the cannabis industry and reaches more than 40,000 subscribers with its weekly email newsletter. 

The mission of CBE is twofold: They aim to provide cannabis industry leaders with the information needed to run a cannabis business successfully, and they strive to advance the cannabis industry by empowering industry leaders with an understanding of emerging trends and how best to capitalize on them. 

To that end, the blog covers everything from policy and legal developments to industry news. It also features company profiles that provide real-world examples of how to navigate the cannabis space successfully. 

One added perk? In addition to its educational and actionable content, Cannabis Business Executive also houses directories for state regulatory agencies and cannabis associations, which can make it easy to network with other cannabis brands. 

2. Cannabis Business Times

Professional cannabis cultivators, unite! On Cannabis Business Times, that is. There, you’ll find actionable content pertaining to all relevant aspects of running a medical or recreational cannabis business, including cultivation, compliance, legislation, regulation, marketing, finances, and industry trend reports. 

In addition to supplying content on its blog, the organization behind Cannabis Business Times also distributes an email newsletter, publishes a print magazine, produces a mobile app, and hosts the annual Cannabis Conference, an educational event focused on cannabis cultivation and dispensaries. 

The organization is run by a powerhouse team with broad-ranging experience. That team includes editorial director Noelle Skodzinski, the co-founder of Cannabis Business Times and one of the “Top 50 Most Influential Women in Cannabis,” according to Cannabis Business Executive. In 2018, the print arm of the publication earned the title of “Magazine of the Year” from the American Society of Business Publication Editors. 

3. The Canna Law Blog

If you’re involved in the cannabis industry, then you know legality is of the utmost importance. 

Nothing can take down a budding startup (pun intended!) faster than a failure to comply with state or federal regulations. What’s more, those regulations are in a near-constant state of flux as cannabis laws and regulations evolve. So what’s a harried cannapreneur to do? 

We’ll tell you: Head to the Canna Law Blog, which exists to help you make sense of the cannabis industry’s ever-changing legal landscape. 

The blog is run by the Canna Law Group®, a cohort of 10 attorneys who are part of the Harris Bricken law firm. Together, they’ve represented hundreds of cannabis businesses on a range of issues including compliance, intellectual property, real estate, litigation, contracts, employment issues, and consumer product issues. 

The blog itself focuses on everything that falls under the “cannabis law” umbrella, with an emphasis on how different laws impact the industry. The blog’s stated goal is to provide industry professionals with insights into how they can leverage laws to their companies’ advantage.

4. Cannabis Life Network

Don’t let the name fool you — the Cannabis Life Network isn’t merely a blog for cannabis lifestyle enthusiasts. While it does publish content that’s relevant to cannabis consumers, the blog also targets growers and entrepreneurs with a diversity of content that’s meant to educate, entertain, and inspire. 

The editorial team covers a broad range of cannabis-related topics under several umbrellas, including culture, health, law, politics, science, and technology. But perhaps its biggest draw is its huge repository of business profiles, news, and updates, which serve as models and inspiration (and, more rarely, cautionary tales) for other aspiring cannabis entrepreneurs. 

5. Cannabiz Media

The eclectic experts at Cannabiz Media have one mission: to help cannabis and hemp industry professionals simplify the process of business development. To do that, the organization has created a lead-generation and relationship-building platform along with a blog that’s jam-packed with relevant content for industry professionals. 

The Cannabiz Media blog covers everything from state-specific news to cannabis research and statistics, finance and investing, business ethics, intellectual property, product testing, taxes, supply chain logistics, technological innovation, and social issues pertaining to cannabis.

Alongside its educational content, the blog also features actionable posts about how to do everything from writing a business plan for the cannabis industry to understanding how stacked monopolies impact the industry, identifying the best cannabis license holders, obtaining a cannabis business license, networking with cannabis industry professionals, marketing effectively, and much more. 

6. Cannabis Science and Technology

Looking to beef up your cannabis cultivation or manufacturing company’s quality control? Then spend some time on the Cannabis Science and Technology blog, which educates professionals in the legal cannabis industry about all things quality assurance, from analytical testing to cultivation, extraction, processing, and manufacturing. 

Looking to test for potency? The team has you covered with actionable guidelines. Worried about contaminants such as heavy metals, mycotoxins, pesticides, or residual solvents? They’ve got your back with tips for developing effective testing methods. Want to get your lab certified or standardize your testing? They can help with that too. Need to know what atomic absorption spectroscopy is all about? Who doesn’t? 

Bottom line: If you’re looking to understand or develop analytical methods for assessing cannabis and cannabis products, the good folks at Cannabis Science and Technology have got you covered. 

7. Ganjapreneur

Stop by the aptly named Ganjapreneur for daily news updates and industry insights, which are specifically curated for industry investors and entrepreneurs. The platform bills itself as a hub for “trusted cannabis industry resources,” and it delivers on several fronts. 

Blog readers can access broad-reaching content ranging from interviews with cannabis experts to business news, political and legislative updates, and dismantling the War on Drugs. There are also specialized topic categories relating to medical marijuana, industrial hemp, recreational cannabis, or CBD.

In addition to its blog content, Ganjapreneur has a few extra services that might be relevant to your work. If you ever tire of reading, give a listen to The Ganjapreneur Podcast, which includes expert interviews, actionable information, business ideas, and business strategy advice. When you’re ready to grow your team, list job openings on the platform’s job board. And consider growing your brand’s reach by joining Ganjapreneur’s business or CBD directory, distributing your company’s press releases on Ganjapreneur’s platform, or submitting a product for review. 

8. Green Entrepreneur

Brought to you by the well-respected folks at Entrepreneur, Green Entrepreneur targets (you guessed it!) cannabis entrepreneurs at all stages of growth. 

No matter whether you’re just starting a business, looking for effective strategies to keep your business healthy over the long-term, or trying to scale, you’ll find a wealth of high-quality, actionable content. Mixed in with all the business how-tos, you’ll find industry news, trend analyses, legislative updates, brand profiles, and more.

The site also offers a marketplace where all manner of cannabis industry companies can expand their brand awareness and learn about other companies in the space, from cannabis tour companies to edible products, ancillary products, and so on. The B2B directory keeps entrepreneurs appraised of products and services that could advance their business. 

9. Grizzle

In a sea of cannabis industry blogs, Grizzle stands out for focusing on a very specific niche. In fact, it’s not actually a cannabis-specific blog. Instead, it explores broader shifts in the economic landscape resulting from technological disruptions. 

Here’s where the cannabis connection comes in: Because the cannabis space is often at the forefront of financial innovation, it earns a top slot in Grizzle’s coverage beside “Investing” and “Tech.”

The “Marijuana” umbrella on the Grizzle blog includes hundreds of posts about cannabis and finance. Topics range from weekly roundups of cannabis investor news to quarterly results from big players in the cannabis industry, state tax news, legalization news, and much more. If you’re curious about the evolving relationship between cannabis and fintech, Grizzle is a must-read. 

10. I Love Growing Marijuana

In case you couldn’t guess, I Love Growing Marijuana is devoted to content that’s all about… that’s right!… growing marijuana. Since 2012, founder Robert Bergman and his team have been publishing quality content about the art and science of growing cannabis successfully. 

Bergman comes by his expertise honestly: He’s been growing cannabis since the 1990s, starting out with small home grows and gradually scaling up to run industrial grow rooms and lab breeding programs.

Today, Bergman and his team share what he’s learned, detailing everything from choosing seeds and gear to caring for plants, maintaining security, harvesting, and even selling —  quite literally, from seed to sale!

No matter whether your company needs help troubleshooting common issues or is looking to beef up its understanding of plant biology, grow stages, grow gear, the role of water and nutrients, or other growing intel, I Love Growing Marijuana has got you covered. 

11. Marijuana Venture

According to Marijuana Venture, it’s the “only monthly B2B trade publication dedicated to the legal marijuana industry.” We can’t vouch for that, but we can vouch for the fact that cannabis entrepreneurs should be following this cannabis blog, which empowers cannabis business owners to run efficient, profitable, and compliant companies. 

The print version of Marijuana Venture ships to more than 12,000 subscribers and can be found on shelves in major bookstores across North America. Online, the editorial team supplies readers with a huge repository of content pertaining to cannabis cultivation, retail, and business.

That content is informed by insights from the publication’s team of attorneys, accountants, and business professionals. It covers everything from cannabis packaging to the technicalities of mail-order cannabis, sustainability in the cannabis industry, franchising, financials, and more. 

12. Medical Marijuana 411

For more than 10 years, Medical Marijuana 411 has been providing educational resources for folks in the medical cannabis space. The team is comprised of physicians, researchers, and patients who draw on peer-reviewed research to publish accurate and unbiased content about cannabis, especially medical cannabis. 

As part of its educational efforts, the organization has created several Medical Marijuana courses that are accredited by the Accreditation Council for Continuing Medical Education (ACCME) as well as medical cannabis textbooks for medical professionals. Translation? This organization is all about producing high-quality, research-backed content that generates action both within and beyond the cannabis industry.

But it’s blogs we’re after here, and they’ve got a great one of those too. Not surprisingly, its stories are all data-backed. They cover all manner of topics ranging from legislative updates to political analyses, CBD and autism, cannabis topicals, cannabis and anxiety, CBD as a possible treatment for depression, and more.

In the medical marijuana space? Then Medical Marijuana 411 will probably become one of your most-visited sites. 

13. Medical Marijuana Inc.

If you’re an industry professional who’s focused on medical marijuana, then go ahead and bookmark Medical Marijuana Inc. alongside Medical Marijuana 411. 

The editorial team at Medical Marijuana Inc. is devoted to sharing professional journalism that’s focused on all things pertaining to medical marijuana. That’s a big umbrella, and it includes everything from political developments to legislation changes, scientific research, stock reports, investment updates, business news, and even a Cannabis 101 section for non-industry consumers who stumble onto the site.

So if you’re interested in not only the science of medical marijuana but also its business, political, and financial contexts, take a gander at Medical Marijuana Inc. 

14. MJBizDaily

MJBizDaily is a must-read for medical and retail cannabis industry professionals. 

The aptly named blog provides daily updates pertaining to the cannabis industry. Its robust content library covers a huge range of topics including news by state, legal and regulatory issues, financial issues (such as sales, financing, and banking), investing, cannabis cultivation, and international news. It also has dedicated coverage for folks working with hemp, edibles, vaping, retail stores, ancillary products, and more. 

If you don’t already recognize MJBizDaily for its blog or newsletter, then you might be familiar with other publications from the same brand — including the monthly Marijuana Business Magazine. Or maybe you’ve heard of MJBizCon, the world’s largest collection of cannabis industry B2B trade shows, which is produced by MJBizDaily. 

For its long-standing and robust service to cannabis industry news, the organization has been recognized by the likes of The Inc. 500 and Folio Magazine. It’s also a member of the Associated Press. 

15. The Weed Blog

Never feel caught off guard at a networking event again! Think of The Weed Blog as your one-stop shop for ensuring you remain in-the-know about all manner of cannabis news and trends. 

The blog employs the “wide not deep” strategy to keep readers abreast of a huge range of topics, which fall loosely into the following categories: advocacy, cooking, culture, growing, industry news and updates, cannabis science, policy updates, and medical cannabis.

Need a quick primer on how presidential candidates feel about cannabis legalization? The Weed Blog has a post about that. Want to know why so many people are applying for medical licenses in Illinois? The editorial team has got you covered. Curious about what went down at the latest MJBizCon? You’ll find a summary on the blog. Need to sound informed about the “schedule-one contradiction”? School yourself in five minutes flat. 

By reading The Weed Blog, you can maintain the base level of industry knowledge that’s required for anyone looking to operate successfully in the cannabis space. 

Cannabis Blogs: There’s Something for Everyone! 

As you can see, the marijuana space is filled with quality cannabis blogs and bloggers who are tackling the industry from every angle. 

From news updates to actionable content and industry insights, the cannabis blogs listed here will enable you to stay up-to-date in your industry, capitalize on emerging trends, and sustain the breadth of knowledge required of any cannapreneur.

Happy reading!