Starting a cannabis store is all the rage. However, there are a lot of expectations and stereotypes that come with walking into a shop. People think they are going to see lava lamps and psychedelic music and staff that is stoned behind the counter.
Also people are uncomfortable with giving their driver’s license and address before entering the shop. It is necessary by law but some potential customers are worried that means they will be on some government "bad" list.
In short, customers want the products but can get shy about purchasing the goods.
Our signage and messaging will emphasize medical marijuana and helpful effects of marijuana in an atmosphere of professionalism, appealing to people who don’t want doobie drawings. The lounge is set up like a comfortable doctor’s office and the experience of giving their information is like giving over health insurance info.
We are well supplied with products, we have all the best products at all the best prices. Further, our store is welcoming and puts the customer at their ease. We show the new customers around to get them comfortable with the store. The returning customers are left to shop at their leisure and ask questions if they want.
Last year, the legal cannabis industry in the United States grossed $5.8 billion (medical and recreational channels combined.) Oregon dispensaries sold $393 million in legal cannabis in 2016 ($292 million adult-use.)
It was a big year for cannabis in Oregon. Not only was it the first full year of adult-use cannabis sales, Early Start gave sales a big boost in the summer, and testing challenges resulted in a market slowdown Oct-Dec 2016.
We have a lot of competition. In Eugene OR there are 28 recreational marijuana shops, five medical marijuana dispensaries, and two shops selling recreational and medical marijuana. They are all situated downtown where the city has said that it is legal to have the shop. They have a similar look and a similar staff. They also have a unreliable source of cannabis products.
We will break the stereotype of what a dispensary should be and look like. Our staff is well trained to help the customers pick the marijuana products that will work best for them. We will have the most popular strains for those customers who are looking to get high. We will also be able to recommend t
The line chart on profits might be a bit deceptive because salaries are suppressed during the first year. We expect to make a relative low profit margin of only 1 or 2% on sales during this entire startup period. It’s a very competitive business. Particularly for these initial three years, we expect to spend almost all of our revenue on cost of goods, marketing, promotion, and fixed costs.
Furthermore, our projections include some leeway for the unexpected problems we are sure to encounter along the way.
Financial Highlights by Year
We’re projecting an estimated $120,000 owner investment needed to finance this business through its early stages. That’s not counting some lower-than-normal salaries as well, during the first year.
What we’re financing includes the fixed assets for store furniture and fixtures, plus startup expenses including legal, leasehold improvements, and so forth. These expenses are shown by category in the first three months of expenses.