Skip to content 
Everything You Need to Know: Building a Cannabis Dispensary
At the end of 2024, there were 12,349 licensed retail stores in the US. This created increased consumer access, a boost to local businesses, and state economic growth compared to the previous years. With more competition than ever, standing out requires strategic planning, compliance, and a strong brand presence. If you’re planning on jumping into the cannabis space and building out a new retail dispensary, here are some key points to keep in mind.
Navigating the Process of Starting a Dispensary
Opening a dispensary involves extensive paperwork and regulatory requirements. Below is a checklist of essential licensing and compliance measures that must be secured:
- Cannabis Retail License: Each state/province’s licensing bodies impose a unique license application process. In many areas, there is only a limited number of licenses available and they are typically issued using a merit-based point system or a lottery system.
- Zoning and Land Use Approval: The location of your weed shop must comply with local zoning laws.
- Health and Safety Permit: In many locations, dispensaries must comply with health and safety codes and pass routine inspections.
Location and Zoning
You will need to find a compliant location before spending on any equipment or designing the interior of your weed shop. Typically, your retail space must be within a certain distance from schools, parks, and other public spaces. Keep in mind that in some states/provinces – municipalities, towns, or counties can opt out, or ban cannabis retail within their jurisdiction. Before you enter into a lease or purchase a commercial space, be sure to check if that area allows new cannabis retail businesses to open in the jurisdiction.
Another thing to keep in mind is that: not every landlord is open to having a cannabis business buy or lease their property. Leasing is the most common option for new dispensary owners, as it’s typically more flexible and faster to get started. Buying a commercial property for a retail store is a major upfront investment when starting a dispensary. It’s only advisable for those with high capital. Buying your weed shop, however, allows you to have full control over the property and have revenue and tax deduction opportunities.
Allocate Funds for The Build Out of Your Weed Shop
While a cannabis business can bring in large revenues, be prepared for unexpected twists and turns that can plague the industry. An average-sized retail dispensary (which is around 1800 ft.) can cost around $700,000 as of February 2025. Renovations or building out can cost around $350,000 to $3,500,000+. This will also entail the installation of security systems, procurement of equipment, and branding and designing the space. Most retail dispensaries are found in free-standing buildings or strip malls. Builders estimated the following build-out costs:
- Vacant strip mall spaces: $500,000 to $800,000
- Renovation of existing free-standing building: $350,000 to $1,000,000
- Construction of new dispensary: $900,000 to $3,500,000
- Renovating old buildings (50+ years): starts at $600,000
Experienced builders always advise businesses to prepare contingency costs for unanticipated expenses and other new cannabis store support needs.
Carve Out a Distinct Dispensary Identity
Compared to other retail stores, it’s double the effort (and fun) when opening a cannabis store. Because of unique zoning laws, you need to plan your space for a welcoming yet compliant atmosphere. Prepare the following, as they’re a top priority for cannabis dispensaries:
- Surveillance, alarm, and access controls
- Age verification systems
- Compliance with health and safety standards
Once you get security and safety guaranteed, it’s time to plan out a well-designed layout. This should give your customer the easiest and most seamless shopping experience. The satisfaction and efficiency from entering your shop, until they exit with a purchase, should be the primary goal when opening a dispensary.
- Entrance: Dispensaries impose a security check or ID verification upon entering. Regardless, the personnel and the atmosphere should be welcoming.
- Product Display Areas: Organize your cannabis products by category. Everything should be kept clean and well-lit. Some also opt for digital screens to display product information and other promotions.
- Interior Design: The store design should reflect the brand and vibe you want to create. Using materials that align with your company ethos can easily attract like-minded people. Incorporate logos, brand colors, and brand messages in your space.
- Exterior Design: Aside from the aesthetic appeal, a well-maintained perimeter is essential when owning a dispensary. You need to keep them clean and organized. When it comes to exterior design, the surrounding environment matters. You can stand out by ensuring your brand is on point but complementing the architecture and community at the same time.
- Staff Areas: A well-designed layout should incorporate a proper space that benefits the staff too. Workstations where they can process transactions, break rooms where they can rest, and a private area where the employees can huddle can ensure the staff is highly motivated.
Ensure Effective Inventory Storage and Management
To ensure your customers keep coming back for your potent products, business owners must understand how to start a pot dispensary with a focus on quality and effective inventory management. From receiving deliveries to performing after-sale audits, applying the correct technology and systems can help to simplify processes.
- Storage space: To guarantee their potency and lengthy shelf life, cannabis products must be kept temperature-regulated. Shelving units or lockboxes can also help in keeping things organized.
- Signages and Labeling: This can help in ensuring the staff is following FIFO (First In, First Out) and being ready during spot audits done by regulatory agencies.
- Waste Disposal: There should be on-site garbage bins for different types of waste. Waste disposal must adhere to local regulations.
Work With CannDelta
With the high competition, strict regulations, and financial inefficiencies you may face when owning a dispensary, it’s important more than ever to be fully prepared before any build-out or implementation. Leveraging the expertise of a consultant to help open a cannabis retail store can ensure the success of your launch.
CannDelta brings specialized knowledge about the cannabis retail niche and specific consumer behavior. A strategic build-out considering the best practices to attract customers, increase sales, and stand out from competitors is possible with the help of our team of consultants. Contact us today and let us help you speed up the process!
Sign up with the form below to download your free guide!
Frequently Asked Questions
How much does it cost to open a cannabis store?
What are the requirements to open a dispensary?
Businesses must understand how to start a pot dispensary entails certain documents and fees. If you’re eligible to apply, you need to complete the application with your state’s authorized bureau for cannabis licensing. You must provide proof you’re capable of opening a business with the resources you have. This is done through the submission of business plans, financial plans, property layout plans, and employment plans. Aside from these, you must also be willing to undergo background checks and comply with inspections before (and during) the operations. A municipal approval (or equivalent thereof) must also be secured to ensure the State grants you a cannabis retail license. Only when you’ve been issued a license should you start a dispensary.
How do I start a cannabis retail business?
- Know your local, state, and federal rules and laws on cannabis.
- Get required licenses including cannabis permits.
- Secure funding.
- Choose a suitable site for your pot business following local zoning rules.
- Develop your cannabis dispensary such that it represents your brand and complies with security and safety rules.
- Have a robust marketing plan.
- Maintain compliance.
