Cannabis is an essential business in most legal states, yet many small dispensaries are struggling and actually bleeding revenue. During an alleged cannabis business boom, why are dispensaries losing money?
It’s because the cost to own a dispensary adds up. The cost for a license can go into the millions in some legal states, and this doesn’t account for the restrictions and qualifications many regions have for cannabis businesses. Plus, in some legal states such as California, taxation on products becomes too high for legal sellers to compete with the illicit market.
On top of that, most small cannabis businesses need to find investors, lawyers and distribution tech to start operations and streamline processes. In an industry that’s heavily regulated and stigmatized, this can be incredibly difficult for most established companies, let alone small to mid-sized emerging businesses.
– Read the entire article at Benzinga.