How Much Does it Cost to Open a Cannabis Dispensary in Missouri

How Much Does it Cost to Open a Cannabis Dispensary in Missouri?

Zencanna
August 19, 2020 0 Comment

How Much Does it Cost to Open a Cannabis Dispensary in Missouri? With the increased demand in the cannabis industry, entrepreneurs are making moves to open their dispensaries. Although this is a smart decision, it can be a pricey one.

With costs associated with real estate, licensing, and staffing, it can add up into the triple digits. That’s no surprise; it usually takes money to make money.

Missouri is overflowing with opportunities for the growing cannabis industry, but what does it take to break into the market? This guide will give you an overview of the costs for a medical marijuana dispensary. 

Get Licensed 

The first thing you must do before anything is to obtain a dispensary license. License application fees vary from state to state. Missouri DHSS shows the cost for a medical marijuana license in Missouri to be a non-refundable $6,000 with an annual license renewal fee of $10,000.

Obtain Capital

To show the state you’re capable of funding your business. It’s essential to have proof of capital. An excellent way to do this is to have outside investors who are in the industry contribute to your business and become a possible partner.

In Missouri, it’s required that you be a Missouri resident for at least one year and have majority ownership of your dispensary. This means you’ll need at least 50% ownership to get accepted for the license.

“Cannabis tax” might also impact your overall needed budget as it will get applied to things like loan agreements and contractor rates. 

Federal Taxes

Taxes are a big challenge of opening a dispensary. While medical marijuana can be legal in the state, different laws apply at the federal level.

Forbes wrote Statute 280E is a “statute that states that a business engaging in the trafficking of a Schedule I or II controlled substance (cannabis!) is barred from taking tax deductions or credits.”

Meaning that you have to pay taxes on all your revenue without the benefit of claiming business expenses. 

Real Estate and Zoning

Although real estate can be costly, when compared to other states, Missouri is one of the cheaper options for property costs. Lease or mortgage payments can range from $1,500 to $6,000 per month, depending on your city and the size of a property. Renovations can add up to $50,000 to make the business fit your brand image. 

Entrepreneurs are responsible for operating within available zones. These zones can be restrictions like having your location at least 1000 feet away from schools and churches. Zoning rules can vary depending on the neighborhood, and many regulations are still being established.

Security and PoS Software 

Every business needs security, but dispensaries are a larger target for theft due to the products’ value and high cash transactions. Just like surveillance cameras and key-card access, PoS software is also necessary for dispensaries.

Missouri law requires businesses to document inventory, sales, transfers, and other data. Failure to follow these guidelines can result in the loss of your license.

A PoS system like Zencanna will manage, track, and charge customer transactions. It’s a compliance tool that automates tax calculations and tax filing. These costs can range from $5,000-$20,000.

Hire a Qualified Team 

One person can’t take on this business. You’ll need a team that specializes in a variety of skills to tackle all aspects of the job. Everyone should have the product knowledge and use the correct language to assist customers with their needs effectively.

Depending on the size of your business, you’ll need a few budtenders, a supervisor, and a manager. The annual payroll can run up to $250,000. 

Take Action  

We know there are many factors that come into play when trying to open a cannabis dispensary. With an estimated up-front cost to open a cannabis dispensary in Missouri of $85,000 to $150,000, it can be a tricky decision.

No one said it was a simple task, but with lots of motivation and hard work, it won’t be long until you start making a profit.

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