How to Start a Cannabis Delivery Service in California

How to start a cannabis delivery service

Rarely do people grow up thinking that they will work in the marijuana industry.  But, with the way that the industry is evolving, it isn’t such a bad idea to get in on the ground floor.  This is especially true when it comes to cannabis delivery services. But, where do you start?

There are many different ways to make money from marijuana.  While dispensaries are great, there are also stocks and investment opportunities.  However, the business savvy people in the marijuana industry are constantly looking for new ways to expand their profiles.  With such an on-trend industry like cannabis, there are constantly new corners to turn in order to turn a profit.

One of these is cannabis delivery service.  This combines peoples need for medical marijuana with the convenience of getting it delivered right to your door when you need.  With California leading the way in the revolutionary service, how can you get in on the ground floor? Here is everything you need to know about starting your own cannabis delivery service in California.

Know the market

In order to be successful in your business endeavor, you should first know how the market works.  This will be the first deciding factor in whether or not you will be able to turn a profit. It should be said that while the cannabis delivery service is thriving now, that may not always be the case.  As it stands now in California, the marijuana market is among some of the top earners. Some reports show that the marijuana industry is taking in around $840 million a year in revenue.

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This number is split among dispensaries, stocks, and other services like delivery.  It is also important to remember that this number is sure to increase with California now offering recreational marijuana for sale.  Some even say that the industry could well be worth upwards of 1 billion in the next few years. As far as the market projects, it is a good time to get in the cannabis delivery service field.

Obtaining a license

The most difficult part of starting a cannabis delivery service will be filing for a license.  California has a limited number of licenses that they can issue. Along with filing for a license, you will also be subjected to a lengthy background check.  This can be anything from financial to criminal, so keep that in mind before filing. Also, because the state receives so many requests, they are only able to process around 6 background checks per day.  This means that you may be waiting around to hear back. So don’t plan on any opening day until after you know you’re in the clear.

After you get the go-ahead from the state, there are still plenty of hoops to jump through.  You will need to find a location that aligns with the state’s laws. Depending on where in California you want to put your cannabis delivery service, you may have to avoid public buildings and school zones.  Once you have found a location, you will need to get clear from the Planning Division. This process can take up to two weeks.

Lastly, before starting your cannabis delivery service you will have to meet with your community’s council for the final stamp of approval.  They will surely have many questions for you regarding location, finances, and safety. So, make sure that you are well prepared ahead of time so save yourself some heartache.  You will also need to make sure that your business plan is within the community and environmental standards.

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Costly process

One of the most important things to remember when starting a cannabis delivery service is that will be a costly endeavor.  Here are some of the costs that you can expect to see:

  •   Background check – $78
  •   Zoning permits – $250
  •   Preliminary costs – $3,250
  •   Ranking costs – $2,500
  •   Community meeting – $1,900

This means that even before you can purchase your business that you will need to pay over $8,000 in filing fees alone.  This, of course, will be on top of your building lease, insurance, employee rates as well as other logistics.

Can you turn a profit?

Like any well-run business, you can expect to turn a profit but not right away.  Cannabis delivery services are 100% dependent on their customer base. You will first need to find your right angle.  Whether this is through advertising or word of mouth, it is important to build a good reputation with your community.  If you really want to ensure that you will be a success, you should hire a consulting firm from the beginning. They will be able to guide you when it comes to marketing and licensing requirements.  Of course, this is an extra expense but you need to spend money to make money. Your cannabis delivery service will need to be nurtured in order to grow.

Final Thoughts

Starting a cannabis delivery service in California is not for the weak of heart.  You will not only need to be financially committed, but time committed as well. It is also important to remember that while you may not turn a profit right away, the more time and care you put into it, the better the outcome will be.  Good luck.

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Comments (1)

  1. Avatar for mark stuart mark stuart May 10, 2018 / 3:28 am / Reply

    Yes, Time maintenance also a crucial fact to consider.

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