If you’re reading this, you likely have aspirations of starting your very own recreational dispensary in Los Angeles. You’re perfectly aware of the potential to turn it into a successful business venture, and you believe you have the entrepreneurial mind to run it. But as you may know, recreational cannabis – or any business for that matter – requires extensive planning and strategizing. It’s not something you get into randomly, only to just “wing it.” So if you happen to be planning to set up your own weed shop in the Los Angeles area, this article should help you get things started. You will have to do more research afterward, but this should help lead you towards the correct first steps.
Familiarize Yourself With the Potential Legal Risks
Recreational cannabis may have been legalized in California in 2016, but keep in mind that it remains illegal on a federal level. The United States Drug Enforcement Agency (DEA) still classifies marijuana as a Schedule I drug, which means it is deemed to have “no accepted medical use” and has a “high potential for abuse.”
Even if you’re operating in a state where it is legalized, the fact that it isn’t accepted federally may give you some extra hoops to jump through. To make your life easier, have a lawyer who will help you study the necessary parameters, especially if you have no time to analyze the legal mumbo jumbo.
Understand the Financial Challenges
As years pass and legalization continues to sweep across the nation, many big-time investors are beginning to see the upside in putting their money on a cannabis-related business. But not every deep-pocketed entrepreneur holds the same progressive mindset. A lot of them continue to think traditionally and tend to be more risk-averse in their approach. What’s worse is that many banks will likely turn you down if you choose to take out a loan for this planned venture of yours.
To put things in perspective, you will need up to $750,000 in capital to kickstart this business. If you’re serious about it, you may want to put up the money first before diving in, instead of scouring for potential investors who may say no to you.
Study the Competition
The entire state of California, particularly the Los Angeles area, is a hotbed for recreational cannabis dispensaries. That means that the competition will be extra steep. And as a potential new player in town, it wouldn’t be wise to go head-to-head with these more experienced establishments.
You know what they say: ‘If you can’t beat them, join them.’ In this case, study your competitors carefully, pick out their best practices, and try to emulate them. Analyze their SEO and social media marketing strategies. See what works and what doesn’t. It’s like having a cheat sheet for a video game, and you’d want to make the most out of it.
Pick Your Niche
Maybe you want to be the best edible supplier in all of Southern California. Or perhaps you have aspirations of being known for having the best weed-infused sodas in your area. Whatever your plans are, it would benefit you a lot if you went with a specific niche. Not only will you be up against the lesser competition, but you can also develop a specialty that only you would be known for.
Take Your Cue From a Trusted Recreational Dispensary in Los Angeles
A good example of a reputed recreational dispensary is Roots Los Angeles. If you want to have an idea of how a trusted cannabis shop runs, pay us a visit. You can also check out our line of products, from buds to vapes, edibles, and topicals. Our main branch is located along Sherman Way in Sun Valley, and we’re open daily from 6 AM to 10 PM. For inquiries, call us at (818) 210-0095 or visit our website.
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