Where do people get the money to open a dispensery

[Legen]

High guys, I recently decided that I want to try and act on my dream to open my own dispensary. I have gathered most of the information I was looking for to start off and now im just courious where people turn to get the $$$ for the start up costs. Im aware that banks will not give you a loan to open a dispensary so where do people turn? Im looiking at starting the business with roughly 20k and my partner will be be pooling his money in as well although I have no Idea how much that will be yet.

 

[SSHZ]

I thought it was $50K just for the license........then build out the location, add security, hire employees, hire a lawyer and accountant, acquire product to sell, advertise, etc., etc.......better have $200K-$250K available. Most people use profits from drug sales or use their inheritance. LOL

 

[denverdolomte]

People first have amazing business plans / models developed with the help of business consultants.
Then people present to boards of investors to garner the needed capital.
Then you would need all of the paper work done by lawyers.
Business insurance would be needed at probably an absurd amount of LL. (Limited Liability)
Need to have a business location pre-arranged as well.
Experience growing on a massive scale. Along with a tried and true system, as that will be needed dealing with investors.
Know the laws around all the codes for the industry and that you are able to be above code on all areas.

Depending on the size you are looking for I'd guess around $350k upwards to $1mil.
If you haven't dealt with investors before, I'd strongly advise garnering some experience before tackling that, as those are NOT the easiest people to deal with. Case in point do you know the difference between a silent and active investor or what types of percentages they expect?

I opened up a sale firm a few years ago and I can tell you its very expensive to operate a business successfully. Don't plan on taking any money home for a year and constantly re-investing into your business and paying investors off.

I'm not saying you can't do this by any means, just be realistic. Best of luck in your hunt and I hope for the best and look forward to hearing good news.

 

[Legen]

I thought it was $50K just for the license........then build out the location, add security, hire employees, hire a lawyer and accountant, acquire product to sell, advertise, etc., etc.......better have $200K-$250K available. Most people use profits from drug sales or use their inheritance. LOL

The license is 10k anually. As much as I would love to save up 200-250k selling drugs lol but doesnt seem like the smart route. Also inheritance wont be what does it for me haha .

 

[Legen]

This is all just something I want to make happen one day. I have a group of friends that are willing up and move on a phone call to take a shot at growing and selling legally. As far as the legal side this of course is where im lacking. I just wanna try to put it all together one day.

 

[denverdolomte]

This is all just something I want to make happen one day. I have a group of friends that are willing up and move on a phone call to take a shot at growing and selling legally. As far as the legal side this of course is where im lacking. I just wanna try to put it all together one day.

Understandable. Keep planning, honestly the best way I have found to plan business is have a good smoke and few beers with friends, start with two pieces of paper...one piece is your current situation and the other is where you want to be. Spread them far apart and there is a huge gap in the middle, this is your known unknowns. Laugh and bullshit thinking of every possible thing that could be in there and write it down throw it in. As time and months go by figure out a solution to each one of those pieces of paper, by the time you are done you will have a bullet proof idea and ready to build you plan from it.

You'll figure it out man, just keep at it and don't listen to negative BS.

Where are you guys at planning wise?
How much experience do you have with either business ownership or growing the product?

 

[Legen]

as shitty as it sounds basically none haha. at least 3 of us know how to grow and have been through a grow or more. 1 farmiliar with hydroponics. As far as owning a business goes, My grandpa was one of the top managers for wal-mart before he retired but I couldnt go to him with this type of idea until It was 100%.

sounds like a really good idea though!!

Were from the south, after considering washington, cali, or colorado we decided colorado would be best due to start up costs and property cost.

 

[denverdolomte]

Real estate in CO is outrageous, I have friends looking to open up a brew pub and to be in an accessible location is astronomical.

If I could give advice master your grows, as well most grow operations I've seen are soil grows. Then study how other states are making the move to either MMJ or recreational. I met an owner of a dispensary at the bar the other week and asked him if it was even possible to get into the industry here at this point and straight faced say not a chance in hell. Study business as well, study trends in a few different industries, study how people are spending disposable incomes on recreational goods, and learn guerrilla marketing.

Feel free to message me if you want me to delve into these topics more in depth man. You have a great idea and I am always happy to share any knowledge I have with people. Don't want to jack your thread haha.

 

[midnitetoak]

Sounds like somebody needs a business plan and some angel investors. There are a number of private firms trying to find ways to invest in mj futures but they need operators to take the risks and produce profits. Write up a business plan first then garner financial support...or incorporate & sell shares of the business to raise capital.

 

[Bear Country]

I thought it was $50K just for the license........then build out the location, add security, hire employees, hire a lawyer and accountant, acquire product to sell, advertise, etc., etc.......better have $200K-$250K available. Most people use profits from drug sales or use their inheritance. LOL

At least 250K....for sure!!

 

[RIKNSTEIN]

The license is 10k anually. As much as I would love to save up 200-250k selling drugs lol but doesnt seem like the smart route. Also inheritance wont be what does it for me haha .

This is all just something I want to make happen one day. I have a group of friends that are willing up and move on a phone call to take a shot at growing and selling legally. As far as the legal side this of course is where im lacking. I just wanna try to put it all together one day.

First, can you grow? Never mentioned that...and why do you need partners...well ok I have 2 but it's my wife and her sis, and that relationship/partnership is for another thread ...I learned to grow in a closet with CFLs, just to understand what it takes what they need and what it will take to make it a lil larger scale...I started low budget and cheap........after I learned what I was doing I went to HIDs, and a lot of them ......too much for 1 room so I put 2 in each room (5 all together now, but only 3 with HIDs)and it worked better......so learn what you're doing and keep it to yourself...I get over 20lbs per harvest, every 5 months...that's a lot of revenue for the 3 of us...