Currently there are two sides of Colorado cannabis businesses: medical and retail.

Colorado saw $996.2 million in legal sales of medical and recreational cannabis in 2015, according to the Denver Post’s calculations of tax data reported this week (and throughout 2015) by the state’s Department of Revenue. In 2014, the state’s legal cannabis vendors sold roughly $699 million.

Currently, the state allows the below businesses to operate legally within the state:

Cannabis Grower/Cultivator: this license is for entities that wish to grow medical marijuana plants from seed or clone, to flower and finish. Growers wishing to provide clones, but who do not intend to flower or finish plants, may apply for a specialty nursery license.

How to start cannabis growing legally in Colorado

  1. Determine your potential location and the way of cultivation: outdoor, indoor or greenhouses, and also premises sizes.
  2. Develop financial model or a business plan to estimate the start-up expenses and potential profitability.
  3. Establish the company according to the law requirements before licensing process.
  4. Site design and equipping according with the regulations.
  5. Acquire the necessary licenses to be completely legal.
  6. Recruiting process is very important for the growing business.
  7. Contract to provide your own cannabis product line to dispensaries and cannabis products manufacturers.

Cannabis Processor: this license allows business entities to process raw medical marijuana plant matter into a variety of medicinal products.

How to start cannabis extraction business legally in Colorado

  1. Determine your potential location and main product lines.
  2. Develop financial model or a business plan to estimate the start-up expenses and potential profitability.
  3. Choose the equipment or the processing line.
  4. Premises preparation and equipping according with the regulations.
  5. Acquire the necessary licenses to be completely legal.
  6. Contract to provide your own cannabis product lines to dispensaries.

Cannabis Dispensary: businesses that intend to retail medical cannabis to qualifying patients will require a dispensing license

How to open medical cannabis or recreational dispensary legally in Colorado

  1. Determine your potential location and premises sizes.
  2. Develop financial model or a business plan to estimate the start-up expenses and potential profitability.
  3. Acquire the necessary licenses to be completely legal.
  4. Renovation, design and equipping according with the regulations.
  5. PR company and promotion.
  6. Contract with cultivators and cannabis products manufacturers.

Additional license types currently in the law include:

Cannabis Tester: laboratories intending to test medical marijuana products for quality and potency will be required to apply for a tester license

Cannabis Distributor: It is required that – while business agreements can be made directly between any licensed entities—a third-party distributor be responsible for overseeing and officially conducting any business transaction that occurs. Distributors are required track all products received, and to have them tested for quality.

From the legislative perspective, the inclusion of the “distributor” model was a necessary compromise to address the trust deficit with people who do not believe the cannabis industry is effectively and consistently self-regulating.

Cannabis Transporter: business intending to transport medical marijuana from one licensed facility to another.

 

We create medical and recreational cannabis business plans for different types of cannabis business:

Please do not hesitate to contact us to make an order for a cannabis business plan or a cannabis industry research. We will create complete and professional business plans, including pro forma financials and projections to help you know how much money it’ll cost to start your business and how much money you can make by starting and operating your 100% legally compliant medical and recreational marijuana business.

Related Post