Considering Starting A Business In The Marijuana Industry? What Do You Think Is The Hardest Part?

Hey man, 
 
I feel your confusion, first of all your question is very vague, as in what are you actually interested in doing exactly, and then it also greatly depends on what state you live in. I can tell you what I had to go through, am going through at the moment, just to give you a general idea of what it would take to go the path of opening a delivery service in california, and its basically the same thing as opening up a dispensary.
 
So first of all, GET A LAWYER!!!! If you are going to be operating in california, you're going to need one, its a lot of paper work to get as legit as possible in california, and the Fed's can always come in and take you out anyway even if you have all your ducks in a row, but its better that you do have them in a row, because its just going to be a lot easier for your case in court, should anything ever happen.
The lawyer is going to draft multiple contracts for you that you are going to need to operate, they are going to draft your NON PROFIT bylaws, they are going to file with the board of equalization, they most likely will advise you to set up a LLC that will manage your company's funds, banks will not deal directly with MMJ companies! Yeah so I probably missed a few things I'll ad them later if i remember, but in general they are going to do the stuff that you would lose your mind at trying to do, Its just a good idea to have them, they keep you up to date on a local and state level, and help you get out of trouble should you get in to any.
BTW you are going to need to appoint officers, you are going to have to have a board, in short you if you do it wrong, you most likely won't even be in charge of your own company, so be very careful who you bring on this venture and appoint and place in various positions. I would appoint someone you trust very well to be the CEO and then place yourself on the board and in position of the chairman of the board, that way you can steer things, the way you like them.
 
Be prepared for constant bad news, there is always something around the corner that might shut you down! Go to city council meeting's your lawyer should always be the one thats informing you about the going's on in your area, Basically GET POLITICALLY  INVOLVED! AND STAY INFORMED! 
 
You are going to need Money and lots of it! You can start on a low budget of a couple thousand, but you are probably cutting corners then, unless you already have a semi large grow, and or have a hook up that will front you your Meds, have a lawyer in the family that knows MMJ law, and own a store front( if you open a dispensary). You are going to have a lot of other misc costs that do add up, to name a few Advertising, you probably want to be on weed maps, that costs you a minimum of around $300 just to be on it, you might want a website, containers to put your med's in, ETC.....it goes on lol.
 
There is a lot more I can mention, but its A LOT of work, don't go thinking its going to be easy, but if you are passionate about it, it will be very rewarding, I'll probably ad more later , but yeah lol. 
 
I'm tired and going to bed now lol, peace... ttyl.
 
PS: This is my first post, high everybody...... o7
 

 

 Become a glass blower.
 
I would love to do it.

 

QuasiPro is definitely more of a pro than I am, but I would recommend looking for a helping hand. I live in California and have heard about a few companies that have incubators for medical marijuana related startups. I would think that this is a great option to look at. There is a company called Ghost Group that is based out of Newport Beach (go look them up) that has a branch dedicated to starting a business in this sector. They also have offices in Denver, CO and are the ones who run Weedmaps. It would be good to look to them for help and experience if you are truly serious and willing to dive into this business. 

 

Hey there Genebutterfield,
 
First off, you need to legalize your marijuana business. This is the most important, and probably, the most challenging part in opening a marijuana business. You have to be aware though that not all states or countries allow the legalization of marijuana business. Thus, you have to find out first if the use of medical marijuana is already permitted in your state. If not, chances are, you won't be able to open a marijuana business legally. These are the states where medical marijuana is considered legal, under state law: http://www.thedispensaryexperts.com/uncategorized/states-pot-legal/. There are several requirements for getting a business permit for this venture, so you better check your city government's website or visit the city clerk's office personally.

 

 
 
That's an awesome lead! Thanks  I have an idea to break into the industry, but never thought I'd get funding... to the business plan mobile!

 

Here are some very hard lessons I learned, doing this on my own.
 
1) Don't ever include words closely affiliated with marijuana, like weed, bud, thc, etc., in your company name. No bank small or large (outisde WA and CO) will accept your business even if you are not in the business of growing, selling or distributing marijuana and accessories.
 
2) Create a holding company as an umbrella to protect your money from lawsuits against your marijuana business. Funnel all your revenue to the holding company and pay yourself from that company instead. 
 
3) Get a CPA and Lawyer right away. If your business takes off, there will be a LOT of eyes on you waiting for you to slip up and take you down.
 
There are a lot more tips, but I think the others got it down.
 
 

 

How much do you guys think a collective would need to get off the ground, with lawyers, business fees, and monthly store front rent costs? Would 50K do it?

 

It all depends on what state you want to start one and the location of the building. In Oregon, and depending on the location (rent cost), 50k would be sufficient. Though it also depends on the interior remodel and how much you need to put into that. I built my interior myself using pallets and other reclaimed wood for a very little cost. The building is around 1700 SF and works great. Check out the pictures below. A medical cannabis dispensary in Bend, Oregon. More information is on our website:Edited out due to forum guidelines ICGreen

 

There are a few things to consider that will make life difficult.
 
The 280E tax law is horrible for mj business, it basically says that when you deal with any schedule 1 or 2 drugs then you can't write off your business expenses off on your taxes with is a huge blow to any business. You need a CPA that knows this tax law very well and is good at find ways to deduct your expenses else where.
 
Banks will not do business with you. It's well known that banks aren't able to hold accounts because they're afraid of being prosecuted. That means you have to deal in cash. I believe you'd have to get a merchant account or something to run credit cards but that may not even be doable. Your cash will need to be housed somewhere and it won't be in a bank. You're also going to be a huge target for getting robbed.