Cannabis Delivery Business

How To Start a Marijuana Delivery Service Business Legally In Your State?

December 9, 2019 1 Comment

How to start a marijuana delivery service business legally in your state – Cannabis industry in U.S. is riding high on the back of growing demand and increased acceptance (more and more states are legalizing marijuana). Although, the status of legal acceptance has found its way through 33 states, for medical and 10 states for recreational marijuana, marijuana business set ups are using this as an opportunity to grow far and wide.

However, considered illegal at the federal level and tough competition from the illicit black marijuana market, are a few factors, which are making it tough for the entrepreneurs to enter the domain. 

In such a scenario, entering or starting a marijuana delivery service is both easy and a lucrative way to take advantage of the growing marijuana industry in your state.

Let’s understand a few benefits that as an entrepreneur you might reap with a marijuana delivery service.

Benefits of Starting Marijuana Delivery Service

  • Easy to enter the Marijuana market as compared to dispensaries/cultivation facility, which need a physical location
  • No upfront costs involved like those for buildout, deposits, fixtures or displays.
  • Lower cost overheads make it easier to focus on marketing strategy, menu selection and branding exercises.
  • Less exposure to law enforcement makes it easy to remain confined within the legal compliance of the state and keep the hostile local citizens at bay as well.
  • Advertising becomes easy through portals like Weedmaps and Leafly.
  • No storefront/brick mortar location
  • Just renting out a commercial space for official use is enough.
  • Easy payment options through credit cards
  • Access to medical marijuana patients becomes easy and convenient

Steps to start a marijuana delivery service business legally in your state

Before investing into a marijuana delivery service, ensure that you abide by the state law of your chosen city or county or area. Since the legality of marijuana is different for recreational and medicinal marijuana, transportation and cultivation, it’s important to understand whether your state approves the usage of such marijuana or not. 

  • Select the location: – Once the state law has been understood, it’s crucial to boil down to a locality or area, which has potential marijuana (medicinal or recreational) consumers for your marijuana delivery service.
  • Get the license and permits: – Getting the right license and permits is important before you legally get started. For instance, if in California then you need to apply for the delivery license on the same portal, as that for dispensary owners to start the business. A clearance certificate is all that you need to get going.
  • Decide your business model: – Once the license is availed, it’s crucial to understand what type of business plans will be best suitable for your nature of marijuana business. 
  1. Single medical dispensary- If you already have a dispensary and wish to cater to a wider audience, then building a website, along with a dedicated delivery service will be the best option for you.
  2. Cannabis business delivery start-up-This is a very good business model, especially for those, who don’t intend to have a physical store. All you have to do is build a mobile app for your weed delivery service. Your potential consumers will receive notifications and alerts about the latest product listings through the app menu and accordingly place orders.
  3. Marketplace- This will be like grocery delivery app, where you list the existing grocery stores thriving in your state. Just like that, you can build your online cannabis marketplace for the dispensary stores in your state. The state’s cannabis store owners register with their businesses with your marketplace, customers will download the app, browse through various dispensaries and their menus, before placing orders through your app. With the approval of their orders, the delivery boys (who have their own app) will get notifications and will deliver the product to the consumers. As an admin, the advantage of this model will be that you will be able to control and foresee all the order activity and manage the store owners as well. Even store owners, who will have their separate admin panel, will be able to manage their operations independently as well.
  • Deciding down on store: – Since the cannabis delivery model talks about safe transportation of cannabis products from one end point to consumer, it’s important to understand where the inventory, will be stocked. Although, you don’t necessarily need to have a fancy store to upkeep inventory, yet a place needs to be decided, which is big and safe enough to stock marijuana products. Before deciding on the storage space, research and ensure you have adequate supplies to meet the marijuana demand in your locality. Also learn the rules and regulations that you have to adhere to before stocking up a certain quantum of cannabis and deliver as well.
  • Reliable vehicle fulfilling delivery compliance: – More than having a sturdy, reliable and secure vehicle, it’s important to ensure that it complies with the state laws regarding the use of the vehicle for cannabis transportation purposes. 
  1. The cannabis transportation vehicles should be capable of securing the cannabis items during transportation, capability of being temperature controlled (to control perishable cannabis items during transport) and it should be equipped with an alarm (or GPS tracking device is even better).
  2. Also, drivers, minimum 21 years of age, should not be transporting products more than $3000 at any time. 
  3. The drivers, in charge of transporting marijuana, should have a valid copy of business license, their driver’s license and their appropriate employee ID badge all the time, at the time of delivery service.
  4. The drivers should record every transaction by creating a delivery request receipt, which includes both business and customers information.

The cannabis industry is riding high so investing in the industry wisely, while fulfilling the compliance necessities, will be a great start. With so many players in the industry, the only thing that will work for the entrepreneurs will be to stay legally compliant and offer a unique cannabis solution for the space. 

If a concept is innovative, but not within the legal framework, it will not be scalable one in the long run.

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