Cannabis is a billion-dollar industry. According to recent estimates, the global marijuana market is projected to grow from USD 33.88 billion in 2023 to USD 67.15 billion by 2028. That represents an impressive compound annual growth rate (CAGR) of 14.66% between the forecast periods.
So, if you’ve been considering setting up a cannabis venture, now is the most suitable time to take the plunge.
Besides being reasonably lucrative, another great thing to love about the cannabis industry is that there are several ways to enter the market. One such method is by setting up a bud dispensary.
But like any business venture, certain things must be done to grow your cannabis bud brand and generate meaningful profits. This article looks at the five keys to running a successful bud dispensary.
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What Are Cannabis Buds?
Cannabis buds are among the most popular formulations that marijuana products are commonly available in. Indeed, there are numerous cannabis outlets where you can get high-quality weed buds.
One such store is Budd Dispensary, a privately owned and locally-operated cannabis dispensary based in the Lake of the Ozarks, Missouri. The outlet deals in both medicinal and recreational cannabis buds.
However, the first thing to do before launching a bud dispensary is to understand what these products are all about.
Cannabis buds are essentially the flowers of a marijuana plant. Buds are characterized by their higher number of trichomes compared to other parts of the cannabis plants. Trichomes are the hairy, aromatic appendages in marijuana where most of the plant’s phytocannabinoids, like cannabidiol (CBD) and tetrahydrocannabinol (THC), are concentrated.
Buds are typically dried for smoking. However, they can also be infused into other cannabis formulations, such as edibles and extracts.
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Tips for Launching and Running a Successful Bud Dispensary
1. Research the Market
In-depth market research is essential before starting any business, including a cannabis bud dispensary. The fact that marijuana buds are niche products makes extensive research all the more necessary.
Start by understanding the locals’ perception of cannabis. If the attitudes are largely receptive, take a physical walk around your target market, carefully noting the presence of marijuana dispensaries.
There’s also the option of conducting online geo-targeted research.
Let’s say you plan to set up a cannabis dispensary in Reno, Nevada. Running a geo-specific search like “cannabis dispensaries in Reno” will list all the online marijuana stores in the city. You can then decide whether setting up a dispensary there is an excellent idea.
2. Understand the Law
Cannabis may offer numerous therapeutic benefits. However, the herb doesn’t enjoy global legality.
The passage into law and subsequent enactment of the 2018 Farm Bill in the United States legalized cannabis products at the federal level, provided that they come from hemp and contain no more than 0.3% THC. However, marijuana regulations vary considerably from one state to another.
Cannabis is presently legal for medical use in 38 states and for recreational use in 23 states as well as 3 territories and Washington D.C. The herb is illegal in Kansas, Idaho, Wyoming, and South Carolina.
The trick is to familiarize yourself with local cannabis regulations before setting up a bud dispensary.
3. Determine Your Business Type
The fastest way to register your cannabis bud dispensary is by visiting the Secretary of State’s website. But before you do, you’ll need to determine your business type.
You can operate a bud dispensary as a sole proprietorship, partnership (general or limited), limited liability company (LLC), or corporation. Note that each business type carries unique licensing requirements and tax obligations.
The type of licensing to apply for will depend on whether you’re targeting medical or recreational cannabis users.
Due to marijuana’s propensity for abuse, you may need to provide additional information to obtain a recreational bud license.
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4. Draft a Robust Marketing Plan
Leading search engines and social media platforms prohibit direct marketing and the explicit sale of recreational cannabis products on their websites.
However, there’s a way around these bottlenecks. One such method is posting informative cannabis-related content and then integrating generic links or hashtags leading to your bud dispensary.
Strive to make your marketing copies at least 80% informative and only 20% promotional. You’ll generate more leads when prospective customers see your genuine desire to inform them rather than simply pushing your products to them.
You might also consider partnering with cannabis social media influencers and leveraging their massive internet following to give your brand more exposure. Don’t forget to hire a search engine optimization (SEO) specialist to boost your dispensary’s online visibility.
5. Stock a Variety of Products
Cannabis buds can vary considerably depending on their cannabinoid profile. Most buds obtained from hemp are higher in cannabidiol and lower in tetrahydrocannabinol. The converse is true for marijuana-derived buds.
Note that “marijuana” is used in this context to denote a specific cannabis cultivar and not as an alternative word for cannabis.
Add different types of cannabis buds to your store, especially if you’re targeting both medical and recreational users. It’s also prudent to stock up on common bud paraphernalia, such as vaporizers, bongs, joints, etc.
The idea is to provide as many products as possible under one roof to tap into a more extensive clientele.
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Wrap Up
Starting a cannabis bud dispensary isn’t a walk in the park. But by following the above tips, the process can be much easier than you could imagine.