Owning a Dispensary May Be Your Gateway Into the Cannabis Industry

Higher Yields Consulting Owning a Dispensary May Be Your Gateway Into the Cannabis Industry

For those interested in getting into the cannabis industry, owning a dispensary is a solid option to pursue — and it’s less intimidating than you might think. Dispensaries are a great learning ground because they’re less intense and have a lower barrier of entry than other cannabis-related fields.

Currently in the U.S., dispensaries have an expansive footprint. Like Starbucks, many cities have a dispensary on every corner. In other words, aspiring dispensary owners don’t have to worry about market saturation or limited opportunities.

Higher Yields Consulting Owning a Dispensary May Be Your Gateway Into the Cannabis Industry

Plus, since the cannabis industry is so new, you don’t need an extensive cannabis background to get started, and you can easily open a dispensary without having to grow your own product.

Read on to find out if owning a dispensary is the right path for you and how to get started.

Who Is Best Fit for the Dispensary Path?

Owning a dispensary is such a great entry point because it’s pretty across-the-board as far as who can get into it. Anyone who’s interested in cannabis and wants to start a business has the opportunity to do so.

Colorado recently opened a social equity program to help those who were disproportionately impacted by the war on drugs by removing barriers in the marijuana licensing process. Other states are putting forth similar efforts, as well, so this may be your shot to get into the industry.

Of course, realizing your dream of owning a dispensary is easier in some states than others. In Oklahoma, for example, the running joke is that it’s easier to get a cannabis license than a fishing license.

Although the number of retail cannabis licenses in Oklahoma declined by 8% in 2020, according to MJBizDaily, the state still issued 565 new permits throughout the year and remained the state with the highest number of retail licenses, overall.

Pros of Owning a Dispensary

For many reasons, owning a dispensary is ideal for those looking to break into the cannabis industry. To name a few, a dispensary:

  • Is less intense in terms of tracking and compliance. The tracking software is easier to master than in other types of facilities, making dispensaries a great place to learn.
  • Has a lower barrier of entry, comparatively. Cultivation requires a botany degree, while manufacturing and extraction usually require some level of college education. Running a dispensary, however, doesn’t require you to meet these standards.
  • Is the quickest way to cash for investors. Building out a retail dispensary takes less time and money than building out a cultivation or extraction facility. 
  • Is less technical and detail-oriented for owners. Even with inspections and other regulations, a dispensary is still easier to design and inspect than cultivation and extraction facilities.
  • Typically follows a plug-and-play situation. Retail dispensary operations are all fairly similar, so you have a template to work from.
  • Has a smaller footprint and is a smaller investment. Unlike extraction facilities, dispensaries don’t use expensive equipment. They also take up less space — some can be as small as 1,000 square feet, whereas cultivation requires many times that amount of space.

Is varied in terms of the experience you want to create. If you want to be the Apple store of dispensaries, you can certainly spend more to remodel and upgrade to more expensive equipment. But you can also keep it smaller and more simple if you prefer.

Higher Yields Consulting Owning a Dispensary May Be Your Gateway Into the Cannabis Industry

If you’re new to the industry and want a point of entry with fewer prerequisites and a faster timeline to get started, owning a dispensary may be your best choice.

Cons of Owning a Dispensary

Despite the advantages, owning a dispensary is not without its challenges and restrictions that you’ll need to be aware of if you decide to go this route. Owning a dispensary means you:

  • Are reliant on wholesalers (unless you’re vertically integrated). If your wholesaler’s crop goes, you’ll have to figure out what to do to sustain your business.
  • Will face high competition. Since there are so many other cannabis dispensaries, your potential customers have many more options.
  • Might have trouble finding real estate. Choosing a strategic location isn’t as simple as choosing where to put a typical restaurant; a dispensary can’t be located near schools, day care centers, rehabs, pools, etc. Plus, you’ll face more limits and restrictions that will depend on your county and state. 
  • Can’t even be near another dispensary, in some cases. In Aspen, Colo., for example, you’re likely to see dispensaries lined up one after the other, whereas in Arizona, Nev., dispensaries can’t be within a certain distance of one another; the exact distance varies at the local level.

If you do choose to open a dispensary, make sure you are prepared with due research to meet all of the requirements for your area.

Owning a Dispensary: Where to Start

If you’ve decided to open up a dispensary, start locally. Choose the area in which you want to operate, and really get to know the regulations and community members. 

It’s important to work with someone in real estate who is familiar with cannabis so they can help you comply with the area’s setback restrictions. Have them help you write a proper real estate contract and application that will accurately reflect the cannabis industry. 

Keep in mind, too, that the exact license and application requirements will vary by state. Georgia, for example, has strict regulations and an extremely competitive application process that only awards licenses to six companies compared to Oklahoma’s much shorter list of regulations and hundreds of licenses.

Owning a dispensary is a great way to break into this fast-growing industry. As long as you pay close attention to requirements for your location, you have plenty of opportunity for growth and success. 

If you’re interested in owning a dispensary or getting into the cannabis industry, get in touch with Higher Yields Cannabis Consulting. We can provide you with the right tools and connections to set you on the path to success.

Athletes Who Smoke: Combating the Stigma of Cannabis in Sports

Higher Yields Consulting Athletes Who Smoke: Combating Cannabis Stigma in Sports

Although cannabinoids are technically banned by the National Collegiate Athletic Association (NCAA), there are still plenty of athletes who smoke. In many cases, these athletes face discrimination largely due to the stigma surrounding recreational cannabis. 

Higher Yields Consulting Athletes Who Smoke: Combating Cannabis Stigma in Sports

The stigma athletes face varies by race, gender, and even sport. Negative attitudes and biases against cannabis reinforce the idea that athletes who smoke perform poorly.

Here’s what you should know about the social stigma surrounding cannabis in sports.

Perception of Cannabis in Different Sports

Until it’s been legalized on a federal level, there won’t be enough research to fully understand the potential benefits and drawbacks of cannabis use in athletes. That being said, existing literature strongly suggests that the use of cannabinoids can reduce inflammation, help manage chronic pain, and more!

Despite the promising evidence, though, many sports have negative perceptions of cannabis and view athletes who smoke it — or use it at all —  with similar disdain.

In particular, weight-class athletes — such as wrestlers and lightweight rowers — constantly consider their weight. The perception that smoking causes weight gain — contrary evidence notwithstanding — elicits a fear that keeps these athletes away from it.

In other sports, though, cannabis use is more acceptable. For example, in baseball, chewing tobacco plays an important role in the game’s culture. Recreational cannabis isn’t too far from tobacco, so there tends to be less stigma that surrounds athletes who smoke marijuana.

Fighting the stigma in sports will require a shift in sports culture, the responsibility of which will fall mainly to coaches and governing bodies. Coaches can pave the way toward acceptance within teams, while governing bodies can do so on a regional or national level.

Male & Female Athletes Who Smoke

Gender also plays a role in the cultural acceptance of cannabis use. For male athletes who smoke, it’s just “boys being boys,” but when female athletes smoke, it turns into, “Why aren’t you taking better care of your body?”

Of course, this speaks to a larger double standard that’s rooted in sexism. Society perceives women who smoke as leading a risky or dangerous lifestyle. These negative perceptions have teeth, and it shows.

When I was in college, I was an athlete at Tufts University who smoked marijuana. Although I quantitatively outperformed my teammates on the field due to superior nutritional and lifestyle habits, I was still kicked off the team for cannabis use.

Higher Yields Consulting Athletes Who Smoke: Combating Cannabis Stigma in Sports

Had I been a male athlete, I would likely have been given support and kept my spot on the team. Unfortunately, that wasn’t the case, so I was left out in the cold. I was ostracized by my so-called teammates, without any mental health support.

It was not the experience I’d hoped for, but in the end, it taught me a valuable lesson about double standards when it comes to cannabis.

To combat the sexism that affects female athletes who smoke, education is crucial. By demonstrating the recovery benefits of cannabis to coaches and athletes, we can begin to break the stigma. Doing so will create new opportunities for women in sports.

A Racial Divide Among Athletes Who Smoke

As a light-skinned person of color who’s not often recognized as a person of color, I have a unique perspective on the role of race in cannabis and athletics. In many sports — especially basketball and football — the perception is that if you’re Black, you probably smoke marijuana.

Assumptions of this nature reinforce stereotypes and perpetuate racism. If we can change these predispositions, we can benefit athletes who smoke and communities of color at the same time.

Despite white and Black communities using marijuana at the same rates, a person of color is nearly four times as likely to be arrested for possession. To start, passing decriminalization and expungement laws would cease punishment for these minor offenses.

Unfortunately, most people don’t even know that resources are available to those who have been convicted of cannabis crimes. Simply providing education about helpful organizations and other resources that serve people of color helps to support these communities.

Fighting the Stigma in Cannabis & Athletics

At the end of the day, our biggest tool in fighting stigma is education. Once more-extensive research has been conducted, we’ll have more information at our fingertips to show how beneficial cannabis really is.

By breaking down walls and fighting the stigma, we can transform the culture of sports into one that’s more friendly to athletes who smoke.

Are you looking to fight the stigma surrounding legal cannabis? Reach out and we can help!

Which States Are Hot for Medical Marijuana?

Higher Yields Consulting Which States Are Hot for Medical Marijuana?

If you’re looking to enter the cannabis market, starting out in a state that has approved medical marijuana only can be a good strategic move. But alongside the opportunities in medical-only states are also limitations.

Currently, 20 states have medical-only programs, which are approved through either voter initiative or legislation. Each state will have its own patient registration and caregiver programs, as well as a list of debilitating conditions that qualify patients to receive state-certified medical marijuana cards.

Higher Yields Consulting Which States Are Hot for Medical Marijuana?

Even with a medical marijuana card, though, only certain states and municipalities allow individuals under the age of 21 to purchase cannabis.

So, which states are ideal for getting into the medical marijuana market, and which ones should you keep an eye on for future developments? Read on to find out.

Pennsylvania: Most Successful Medical Marijuana Program

Pennsylvania easily tops the list of hot medical-only states, proclaiming itself as one of “the most successful programs across the country.” Success here isn’t measured by registered patients or dispensaries but rather the efficiency and continued development of the state’s overall program. 

Pennsylvania’s 23 qualifying conditions for medical marijuana aren’t limited to terminal illnesses. People with conditions across the board, from chronic pain to cancer, are able to get their medication.

The state has 119 dispensaries but only 30 growers and processors. Capping off licenses to create this ratio has contributed massively to Pennsylvania’s success, and some of the hotter recreational states are now trying to emulate this model.

Further, Pennsylvania’s competitive application and licensing process has kept it from facing the same problems as states like New Jersey, whose lenient processes have kept medical marijuana programs tied up in litigation and prevented them from getting a proper jumpstart on their programs.

Oklahoma: Hungry for Quality Brands

In many ways, Oklahoma is the exact opposite of Pennsylvania: Its market is incredibly saturated with 10,000-plus licenses, and the state is notorious for a lack of quality control. However, its low barrier of entry is an excellent opportunity for those who know how to operate under higher standards of quality.

Business is booming, and the fact that so many are out there doing it wrong — from branding and marketing to customer service to the product itself — leaves the door wide open for someone to do it right.

The best way to enter the Oklahoma market is through manufacturing, which our cannabis experts have determined makes up only 13% of licenses compared to cultivation (64%) and retail (21.9%). In other words, there’s a ton of product out there but not enough people to process it.

On the flip side, despite fewer manufacturing licenses, there are still many brands out there to compete with — many of whom have very poor branding and marketing (or none at all).

The companies that do have good branding and marketing are usually multi-state operators (MSOs) who have recognized the opportunity of introducing quality into a low-quality market that is so easy to enter.

Delaware: On Its Way to Legalization

Although Delaware is small, it’s on the brink of opportunity. The state recently passed House Bill 150, initiating its path to legalization for adult recreational use. That means it’s the perfect time for dispensaries with dual licenses to get an early in.

From an operator’s perspective, it’s best to get started in a state that either already has a successful adult-use market or will allow adult-use soon. When Illinois and New Jersey first legalized adult-use, for example, they opened early application rounds specifically for their medical marijuana license holders.

Higher Yields Consulting Which States Are Hot for Medical Marijuana?

Now, dispensaries with dual licenses are raking in the profits while those with only adult-use licenses have been tied up in litigation for more than a year. Dispensaries in Delaware also have the advantage of reciprocation: Customers with medical marijuana cards for other states, such as Pennsylvania, can shop in Delaware, too.

Note that there are already a few MSOs in Delaware, including Columbia Care and CannTech (acquired by Ayr Technologies), and there may be legal issues with attempts to block the adult-use bill. But overall, Delaware is a small state with big opportunities — especially for dispensaries with dual licenses.

Mississippi: A Cautionary Tale

Until recently, Mississippi was well on its way to becoming a hot state to enter. In November 2020, 74% of the population voted in favor of the state’s medical marijuana initiative, and Mississippi’s cannabis market was poised to be a competitive but extremely lucrative industry.

Politicians and legislators were less excited about the initiative. On May 14, 2021, the state’s Supreme Court overturned Initiative 65, citing a “flawed process.” Now, for any such legislation to pass, it must be done by lawmakers rather than citizens, and the state’s once-promising cannabis market is stalled for the foreseeable future.

However, the people can still fight the decision by appealing to their lawmakers. Despite the obstacles, people interested in getting into the Mississippian cannabis market should keep an eye on the state’s future developments.

States to Watch for Medical Marijuana Programs

In addition to the above four states, cannabis entrepreneurs should keep an eye on a number of states whose medical marijuana developments are currently in process.

Ohio

Ohio has just opened up its medical marijuana round for the first time in years. The state not only approved three additional debilitating conditions to qualify patients for a medical card but is also going to double its marijuana dispensaries and award 73 additional licenses later this year.

Lowering the barrier of entry suggests that the state is preparing to expand its patient base significantly and may even approve recreational marijuana use soon.

South Dakota

Although South Dakota does not have a medical marijuana program set up just yet, both medical and recreational cannabis were approved on their ballot in November 2020. Its Supreme Court is trying to fight the recreational side — and will probably win — but the state is planning on moving forward with a medical program. 

While this will create more opportunity for medical dispensaries, they could become overwhelmed if they don’t have enough cultivators or producers. Still, South Dakota is a state to watch because there will likely be opportunity for business licenses in the near future, once the adult-use mess is sorted out.

Missouri

In Missouri, opportunity for more licenses is coming soon, although we don’t have an exact date yet. The first round was very competitive, and with competition comes a lucrative market, so keep an eye out for the second round to open.

Knowing which states to enter — and when — can be crucial for the success of your medical marijuana dispensary. Contact us at Higher Yields Cannabis Consulting to determine which state is the best fit for you and how you can get in with the strongest application.

Making Space for STEM Professionals in the Cannabis Industry

Higher Yields Consulting Making Space for STEM Professionals in the Cannabis Industry

Science, technology, engineering, and math — also known as STEM — is the backbone of nearly every modern industry. A STEM professional brings an unmatched level of expertise to the table that’s crucial for growth and success.

Higher Yields Consulting Making Space for STEM Professionals in the Cannabis Industry

However, STEM-educated engineers are conspicuously absent when it comes to cannabis. In a still-developing industry, STEM professionals play an integral role in maintaining good marketing practices, staying compliant, and ensuring product integrity — to name a few.

Here’s how the expertise of a STEM professional can take an otherwise ordinary cannabis operation to the next level.

A STEM Professional at Higher Yields

Here at Higher Yields Cannabis Consulting, I serve as the team’s Design and Build Engineer, a role in which I use my STEM education to help clients build the facilities of their dreams while ensuring the functionality and ergonomics of each space. I do all of this within the client’s budget.

But I wasn’t always the STEM professional I am today, and the path I took to get here was a little different. Although some people enter the cannabis industry right out of high school, I knew that as a Black, gay woman, I needed to bring something more to the table.

Forging my own path at Purdue University, I graduated with a degree in multidisciplinary engineering. The program enabled me to study an array of topics ranging from electrical, mechanical, and bioengineering to chemistry and thermodynamics. If you can name it, I probably studied it.

To be sure I could apply my degree as a STEM professional in the cannabis industry, I also pursued a minor in product lifecycle management (PLM), which gave me the know-how to follow a product or operation from ideation all the way to recycling.

PLM is extremely applicable to cannabis because many of our clients here at Higher Yields are new entrepreneurs. Thus, we do a lot of ideation prior to getting their product or operation off the ground. From there, we continue along the PLM process.

Applying STEM to the Cannabis Industry

In both the United States and Canada, cannabis operations are seeking STEM professionals to take on the challenges of pioneering a growing industry. Some have begun studying plants on a cellular level to produce specific physiological effects. Others look to integrate A.I., blockchain, and even cryptocurrency!

Higher Yields Consulting Making Space for STEM Professionals in the Cannabis Industry

The possibilities are endless when it comes to research and development, but that’s not the only responsibility of a STEM professional. In fact, maintaining integrity and fostering standardization are two of our most important responsibilities.

Of course, cannabis can be grown in a basement. People have done it for years and will likely continue to do so. However, as STEM professionals, it’s our job to ensure operations consistently develop each product with the utmost quality.

STEM as a Pathway to Social Equity

In cannabis, social equity is always a factor. The unique perspectives of STEM-educated women of color help combat the lasting effects of the war on drugs and promote social change.

When marginalized groups are in STEM positions, we can implement practices and cultivate mindsets and values that support those groups. In this situation, everybody wins, so it’s important to instill such practices, mindsets, and values within emerging states.

I got into this industry to use my passions for both cannabis and STEM to impact standards, inclusion, and integrity. STEM professionals make that happen.

STEM Professionals in Cannabis

For STEM students and engineers, there’s no shortage of opportunities to make real change. Reach out to your community and fight the stigma! For operators, find a STEM professional to help you put standards and integrity before all else.

Are you looking to bring STEM into your operation? Book a consultation and we can help!