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How to Start Cannabis Delivery Service Business Legally

If you’re looking to get involved in an industry that’s exciting, helpful, and has tons of potential for growth, the cannabis industry is perfect for you. As time goes on and people become more accepting of the benefits of cannabis, cannabis businesses are becoming more highly demanded by consumers. While many entrepreneurs consider opening a […]

If you’re looking to get involved in an industry that’s exciting, helpful, and has tons of potential for growth, the cannabis industry is perfect for you. As time goes on and people become more accepting of the benefits of cannabis, cannabis businesses are becoming more highly demanded by consumers. While many entrepreneurs consider opening a dispensary, you might want to start a cannabis delivery service business instead.

There are many benefits to starting a cannabis delivery business. You won’t have to deal with the excessive startup costs of opening a storefront and buying tons of stock but you can still make plenty of money, especially as marijuana delivery is in high demand. So how should you get started? Here’s a guide on how to start a cannabis delivery service business legally.

Build A Business Plan

Before anything else, it’s important to make a detailed business plan for your cannabis delivery service. Making a business plan is important for any kind of business as it helps you map out what your business provides to customers, how you’ll stand out ahead of competitors, how you’re going to fund it, and how you’re going to profit.

There are many things you should include in your business plan. This includes where you plan to operate, what your company offers to customers that competitors can’t, your target market, your business and staffing structure, and financial projections. It also helps to have goals or targets that you plan to reach.

The more detailed your business plan is, the better. Not only will it help you get your business off the ground more smoothly, but having a good business plan can also help you acquire a marijuana business license. Working out how much money you’ll need is also important when it comes to getting funding, and your business plan can even help you get investors.

Get Your Cannabis Delivery Business License

One of the most crucial steps you’ll need to take to start a cannabis delivery service legally is getting licensed. Since you’ll be dealing with cannabis products directly, you won’t be able to operate without acquiring a marijuana business license in your state. This process can be long and costly, but you can’t start your business without it.

Licensing procedures vary from state-to-state. In many cases, you can apply online and present a series of documents to your state’s marijuana department to prove that you know what you’re doing and can run your business successfully. You might want to get in touch with a cannabis licensing consultancy to help you with getting licensed.

Usually, states have different licenses for different types of cannabis businesses. That means that, even if you have a dispensary license, you’ll likely need another license for transporting and delivering marijuana. You’ll also need to go through the general business licensing procedures of your state.

Get Your Cannabis Delivery Business License

How To Get Funding For Your Cannabis Delivery Business

Getting funding for your marijuana delivery business can be tricky. Since marijuana is still federally illegal in the United States, banks will generally refuse to provide bank loans to marijuana businesses. Fortunately, there are many alternative funding options you can use.

Many cannabis businesses are funded by investors. There are many ways you can get investors- one option is to simply contact investors through cannabis business directories and Linkedin groups. You can also meet investors at cannabis business events. Make sure you have a solid business plan and a pitch to give to potential investors.

Alternatively, you might want to contact equity firms or cannabis business incubators. These services can give you the capital you need to get your business started. However, keep in mind that when you fund your business via investors, you’ll need to sacrifice shares in the business in exchange for funding.

Crowdfunding is also an option. This involves using a crowdfunding platform to entice viewers to donate funds to your business. While you won’t have to give up equity, it helps to offer some kind of incentive to funders. In some cases, you can even use a personal loan or savings, although this is much riskier.

Get The Equipment And Resources You Need

While getting licensing and funding can be tough for marijuana businesses, the rest of the process is fairly straightforward. While a delivery service doesn’t cost as much to start as a dispensary or growing operation, there are still many things you’ll need to spend your funds on for a successful start.

Although you don’t need a storefront to run a delivery service, you will need a physical location- especially when it comes to storing goods. You’ll also need to invest in some delivery vehicles as well as hiring licensed drivers.

You’ll also need to hire some people. As well as drivers, you’ll need people to handle your finances, legal matters, human resources, and other day-to-day operations. Many of these operations can be outsourced to third-party services, but it still helps to have a small team to run your delivery service efficiently.

Get The Equipment And Resources You Need

Marketing And Promoting Your Cannabis Delivery Service

A cannabis delivery service is nothing without customers or clients, so you’ll need to promote your delivery business. There are many ways a delivery service can run- you might want to offer to handle transportation for dispensaries or you might want to be a middle-man between customers and cannabis stores. 

Whichever way, figure out your target market and how to promote your service to them. While you can’t use Google ads or billboards, there are various effective ways to market yourself. Setting up a business website is essential and social media marketing can be particularly effective. Working on SEO and contacting clients will also help.

You might also want to visit cannabis events and expos. Many of these even let you set up a stall to promote your business. As well as telling potential customers or clients what you offer, you can also give out promotional gifts such as custom branded cannabis products to get people interested in your business.

Conclusion

Starting a cannabis delivery service is a great idea for any budding entrepreneur who’s interested in the marijuana industry. Getting licensing and funding can be a hassle, but once you overcome those hurdles, you’ll find that marijuana delivery is in high-demand and you can get your business off to a flying start. For help with promoting your business, check out CannabisPromotions.