Guide to Becoming a Legal Medical Marijuana Distributor

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Guide to Becoming a Legal Medical Marijuana Distributor

People who have the guts and are not afraid to roll up, becoming a distributor of medical marijuana is a great opportunity for anyone. If you are not aware, the marijuana industry, especially in the field of medicinal usage, is such a huge success with over eight billion generated revenue in a year. 

If you are planning to become a legal, medical marijuana distributor, this article will help you guide on the things you have to consider, prepare, and plan before starting up this business legally. 

Comprehensive Guide for Distributor of Legal Medical Marijuana

Analysis of the Potential Risks

Legal Risk

Regardless of the rising number of states and countries legalizing marijuana for medicinal usage, and even some included recreational use, marijuana remains to be an illegal substance in the eyes of federal law. There is not vastly case pertaining to this prohibition; hence, the topic of marijuana remains to be quite vague. 

With this, it makes the distributors of marijuana remain in the legal light of federal law and potentially lead to legal risks. It is advised that before starting up, make sure to consider a lawyer with knowledge of marijuana cases and law. 

Financial Risk

In opening any type of business, the financial matter is something that involves risks. Upon entering the marijuana business or even as distributors, backing in finances really makes a lot of crisis. Consider money and the time you need to invest in finances before starting up any type of business venture. Make sure that you are managing finances accordingly for those who have a tight budget. 

In most cases, many marijuana types of businesses have difficulty in securing financing even through banks, because most of the banks don not involve any transactions pertaining to the marijuana industry. It will take a lot of money to start-up and could take up all your savings, but that’s alright. Usually, it will take around 250,000 dollars or more, depending on how small or big your business will be. 

License and Paperwork

Make a concise and clear plan of what your business will be. It is the most important aspect before starting a business. To give some ideas on what to look for and plan ahead, you can follow these tips. 

Initially, it is important to get a business license to start up a business. In some states, the typical license fee is 5,000 dollars, although this is not the same for other states. Hence, you should expect that it could reach up to 250,000 dollars. If you intend to upgrade and tend to grow your own farm, it may require another license for growing which of course need additional fee. 

In most cases, you should be planning about the monthly renting fee with a deposit if you don’t own a commercial lot. You may also need materials like cases for display, jars, and bottles. Supplies for the office and high definition security system. It is also included the expenses for the promotion of your products and advertisements. Above all, a business like this requires a name and logo to become known of your own brand and be recognized. 

Pricing of Products 

It is also important to understand the significance of pricing your medical marijuana accordingly.  Because the charge of marijuana will determine the amount and quality of the products, on the average price, typically, medical marijuana serving an ounce will cost around 200 dollars. Compared to high-grade medicinal marijuana, it will charge you per gram of around 60 dollars. But all these are not included some state tax, which will vary according to one state to another. 

Making It Profitable 

A business will be much profit if you offer or sell various marijuana-infused products like edibles. They are highly popular products from marijuana that many users are glad to spend. Many customers also buy ingredients for their medicinal marijuana-infused products made at home. Selling marijuana paraphernalia like pipes is also a common product sold in this kind of business. Above all, most of the business owners that have their own farms tend to gain profit more. 

Location of Facility

One of the most essential aspects of planning when trying out to become a legal, medical marijuana distributor is the suitability of the location chosen for the facility for your business. In considering this aspect, one must look into the potential risks or problems that may arise in terms of zoning, legal considerations of the facility, and the physical features of overall structure and location. 

It must be prepared and filed documents necessary for these facility requirements that include proof of ownership, if there is a letter expressing intentions and lease. You can consider getting an expert that can predict any disadvantages and advantages of the whole process. This should not be ignored as it can cause a rather greater consequence with the law. 

Training and Knowledge

There is nothing more accurate and precise to understand the concept of coming to be a legitimate medical marijuana distributor. Jumping to the idea of having a business could lead to disaster and lack of preparedness. Being educated on the aspects important in this business like a variety of marijuana, how to deal with customers and different approaches, the benefits, and risks of various strains of marijuana. 

There are training courses available for this that could help you get a comprehensive understanding of the whole process and nature of this business. You can pass on the knowledge to your employees, and it would be easy to handle clients and meet their specific needs or demands.

Planning the Business

It is essential that when putting up this type of business venture, you have a defined vision, mission, and goals. The way you handle your business and other essential factors of it must be according to the goals, mission, and vision you have come up with. It requires looking into the industry summary, which gives you an overview of the business operations.

The executive summary is also important to plan ahead since it is the key factor of the entire business plan, which summarizes the whole aspects of it. Plan ahead the business’ market and competitive analysis, which directs you to your target customers and the needs of your market. The management plan is also needed to help you understand the management structure and to get you the idea of financing of your team. This will guide you to achieve success in your venture. 


Sweat and money are your best buddies in starting to coming to be a legitimate medical marijuana distributor. With all the things listed above, you are finally down to represent an industry of medical marijuana. It is a dream that is adored by many but only given to a few people with proper dedication and effort. Indeed it is hard work and involves a lot of processes and many things to evaluate to accomplish a fast and instantly thriving business.

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