“I want to start a marijuana delivery service in my city.”
The statement itself would trigger questionable eyes and weird look at you. Few people will judge you why someone would invest in such a controversial or risky business. But if you look at the latest stats, it altogether suggests a different story about the cannabis business. The industry has experienced unprecedented growth over the last few years.
As per the WallStreet’s cannabis analyst, the market is expected to touch $80 billion by 2030. Also, In 2018, investors put $10 billion into the North American cannabis market, which is anticipated to be worth $16 billion by the end of 2019.
It is obvious to have lots of thoughts and questions about how to start a marijuana delivery service. No worries! In this article, we will try to clear out all your doubt about cannabis business and stigma associated with starting a business in the industry. You will also come to know about various delivery models you can start by following some regulations and laws.
But before that, know the status of cannabis worldwide.
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How to Start a Marijuana Delivery Service?
Here’s the Detailed Guide on Starting Your Delivery Service for Cannabis.
Select a Location
Scrupulous research of the area or city is vital for a prosperous marijuana business. In the United States, marijuana is not legal at the federal level but it is valid in various states provided that you follow the rules.
The legality of cannabis is distributed by various purposes like recreational, medical, transportation, and cultivation. Some states allow medical marijuana, whereas other states allows usage of both recreational and medical purpose. Before investing in a delivery business make sure that you are aware of the state law of a particular city or area.
If you are from other countries, then don’t forget to follow the rules check the legality of cannabis of your country. Then ask your self following questions :
Will I get enough users to make my business lucrative?
Will people order marijuana online or they would stick to get it from their trusted source?
How can I convince marijuana dispensary owners to register in my delivery application?
Once you ask yourself these questions, make sure that you know how to start a weed delivery business.
Do you know what people search in your city for marijuana weed delivery app or Cannabis delivery services app?
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Get the License and Permits
One of the most tiresome but important processes, if you want to start your own marijuana delivery service, is to get the license or permits from the government.
Before you apply for your business, don’t forget to do your homework and contact a legal professional in your state who can assist you to go through everything seamlessly. Before jumping into cannabis delivery service, get information on which documentation, licensing, and regulatory bodies you have to comply with.
For example; if you are wondering how to start a medical marijuana delivery service in California, you have to apply on the specifically portal and website for dispensary owners to start a business. If you get the clearance certificate from the state then you are good to go with your business.
Decide on Your Business Model
Once you have got the license you are now free to open marijuana delivery service. Start the work on your business plan and other factors of your business.
Now let’s talk about the delivery business option that will earn you a fortune you are expecting from the cannabis industry.
There are three business models you can implement if you want to start a delivery service for cannabis.
1. Single Medical Dispensary
This business model is best for those who have already started their dispensary. If you have a physical store but want to serve to the wider audience.
Building an online website and dedicated delivery application for your store will help you enhance your business. All you have to do is contact an app development company who will help you build an attractive and efficient app and website.
Your user will be able to browse through your app or website and to order required products. Now one of the benefits of having delivery service would be the convenience you provide to your user. Having online medical marijuana delivery service with brick and mortar shop guarantees the trust of your customers.
Above all, you can manage your whole inventory and product listing easily through your panel. As you get the new stock or a new product in your dispensary you can update it easily.
How You Can Earn from Online Cannabis Platfrom?
Since you are opening an online cannabis dispensary, there is no regional limit for getting new customers. The sky is the limit for reaching out to new customers and increase sales. Not only this but you will also have a new way of earning in the form of online advertisement of other businesses.
To illustrate, let’s assume that you have got the toe hold in the online business in the marijuana industry and you sell medical marijuana. Some businesses related to a medical niche will ask you for their product or service to be displayed on your website. And in return, you can charge them money.
2. Cannabis Delivery Service Start-Up (A Budget Friendly Idea)
Now, this is a pure start-up idea!
For this to start, you don’t need any physical store. You just need to create an online app, from which user can order required cannabis product .
If you are tight on your budget and don’t have enough funding to rent or buy a store, this is the most viable cannabis start-up idea you can go for. It would be best if you are growing marijuana. Or if not then you will have to buy it from any cultivator and made some stock at your home or any convenient place.
Now that you have enough stock, you can start your own weed delivery service by building a mobile app for you and your consumers. User will order needed product and you will receive notification from your user and its location. You accept the order and deliver it to the user.
Initially, if you have not many resources you can deliver it by yourself. Then gradually as your business gets traction and consumers knows about your service you can invest in some delivery boys.
You can monetize your app same as the above business model.
3. A Marketplace
Think of a grocery delivery app Instacart!
Same as Instacart , you can build your online cannabis marketplace for the dispensary stores of your state.
A marketplace is one of the most lucrative and giant business you can start in the cannabis industry. For that, you will have to provide a platform for the dispensaries of your state, consumers and delivery guys. Apart from that, you will have to have your own admin panel as well.
Now how will the whole process take place?
You will be the super admin of your marketplace. Your state’s cannabis store owners will register their business on your marketplace. Customers will download your app, register in your app, browse through their various dispensaries and order their marijuana product.
The delivery boys will have their own app, they would get instant notification, as the store owner approve the customer’s order. The product will be delivered to the consumer’s doorstep. Meanwhile, during the order, the users will be able to track the live location of the delivery boy.
Now, as a super admin, you will be able to manage all the operations. You can monitor all the order activity and manage your store owners as well. Every store owners will have their own separate admin panel and they can also manage their operations.
How You Will Earn Money?
Most marketplaces run on a commission-based business model. For completion of every order, you get the pre-decided commission from the cannabis vendor. Additionally, since it is you who run the market place, you can monetize it by advertisements from other sources.
Marketing of Your Business
Once you have incorporated an online model of the marijuana delivery service, you are good to go for the next phase of your business.
As you have made a new marijuana delivery app and website now you can spread the word about it in a local area and then to the city. You can utilize various social media platforms to make your customers aware of your online service. You can also get the help of a reliable marketing agency in your area.
Try to generate some fliers online as well as offline.
Starting a Cannabis Delivery Service: The Bottom Line
If you look at the current status of the cannabis market, it is ever-growing and there is no stopping for this business. In the future, more and more countries are going to legalize marijuana for medical as well as recreational purpose.
Nevertheless, the licensing and getting permission for this business is quite challenging but once you get the license, it’s worth it.
If you are a marijuana dispensary owner or a wannabe entrepreneur who want to start mmj delivery service or recreational marijuana delivery, then above-mentioned business models are best suited for you.
Feel free to contact our experts! They will guide you about all the technical aspects like mobile app and website development.
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FAQs About Starting a Marijuana Delivery Services
- What Are the Prerequisite of Starting a Cannabis Delivery Service?
If you want to open marijuana dispensaries or delivery business, your age must be above 17 years. Apart from that, you have to have zero criminal background and you have to be the resident of that state legally. Though, it would be better to go through state rules.
- What Is Simple to Open? a Dispensary, Growing Cannabis, or Delivery Service?
In general, a delivery business has lenient rules and regulations than opening a dispensary or growing It will cost you less and can be easily established.
- Do I Have to Be Resident of the State to Open a Weed Business?
There is no black or white answer to this question. Mostly, you have to be a state resident to start your cannabis delivery service. But some are an exception. Read state rules.
- Can I Ship Marijuana?
The united states postal service does not allow shipment of the medical or recreational marijuana intestate or any way.
- How Much Does It Cost to Start a Weed Delivery Service?
It mostly depends on the country. Which state and which city are you located in. However, opening a delivery service rely on which kind of business model you are preferring: A independent delivery service, market place, or a single store.