How to Start a Cannabis Delivery Business Legally?
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According to Fit small business, around 62% of Americans are in favor of legalizing marijuana. That could accelerate marijuana approval rates in the coming years.
If we glance at other statistics, then As per the Missouri Department of Health and senior services, 2200 business aspirants have applied for a license for starting a cannabis business. They are ready to pay thousands of dollars by looking at the great opportunity in the market.
That's a huge number if we look at the yesteryears.
Do you have a unique delivery idea on starting a business in the cannabis industry but confused about how to take the first step?
In this article, I am going to thoroughly explain the process of starting a marijuana delivery business. We will discuss the prerequisites and how licensing plays an important part in getting started. Let’s get started.
What You Will Need to Start a Cannabis Delivery Service?
To build your cannabis business you need to consider some business aspects that will help you get a toehold in the promising market.
Start With the Licensing
In the United States, most states have legalized marijuana for both recreation and medical purpose. Canada, as we know is the forerunner in legalizing marijuana.
Getting your license from the state authority should be your prime focus. So; if you want to start a cannabis business in California
, you will have to approach the Bureau of Medical Cannabis Regulation. The agency is responsible for giving license to cannabis retailers, distributors, testing labs, micro-businesses, and temporary cannabis events happening in California.
Different states and different countries have distinct rules and different laws
. Hence, go through each rule and licensing procedure before investing in the business.
Make a Business Plan
Once you get the green signal from the approving authority, you can now make an effective business plan.
Research on your potential customers. Know what are age groups you want to target. Survey the area of your city where you want to target at the beginning. Decide on whether you want to start an on-demand marijuana delivery app or not. You will need delivery staff for delivering your products to the customer’s doorstep.
Initially, as long as your business has not taken a momentum, you can deliver the cannabis product by yourself.
An Application Will Play Major Role
Now that you are building a delivery service for your marijuana business, you will need a feature-rich mobile application. There are many on-demand apps for various kinds of services in the market. You are providing a marijuana delivery app in a less competitive market. So there are high chances of your business to get success.
You may ask what kind of delivery business should I start?
Your question is obvious because there is more than one option in the delivery business. Some popular options are;
1. Building Only delivery app - If You Cultivate Marijuana
Creating a delivery app for your business will be the most cost-effective idea. All you have to do is cultivate your marijuana and store it at the safe storage. Your marijuana app will list your products with alluring images and consumers will be able to order from the app. The delivery boy will complete the order by delivering the product.
You can maintain your panel which displays incoming orders and completion, staff management, customer details, and inventory.
2. Aggregator App - Works on Commission Based Idea
You must have ordered food from the app like UberEats, and Postmates. What do they do? Restaurants register in the UberEats like app platforms. On every order completion, UberEats gets the commission from the particular order.
So what you will have to do for starting UberEats for cannabis?
Gather the information on local cannabis dispensary owners. Tell them about your platform. Explain to them how the app will work and how the commission system will work. Ask them to register their dispensary store on your app platform. Start with your delivery business.
3. Online Dispensary
Do you own your brick and mortar store for cannabis? Then, transforming it into an online store will help you get more traction. Your business will get more exposure.
Build a web application and your store’s personal mobile app so that cannabis users can get the products on the go.
Once you are done with mobile application development, getting your users’ attention should be your prime concern, and that can be achieved through a full-proof marketing plan. As Facebook and Twitter have banned such kind of promotion you will have to find different marketing channels for promotion.
The cannabis industry is growing rapidly, so investing such a business will guarantee you a healthy RoI. As more and more licenses are being proposed, the coming years will have more cannabis-related start-ups and businesses.
What are your thoughts on this controversial but bright business idea? Comment your opinion.
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