March 18, 2013

Weekly Wrapup: Medical Marijuana Moving Forward in MA + Snapshot of Dispensary Startup Costs

Image for wrapup of medical marijuana news

Something monumental is happening in Massachusetts: The state is actually moving forward with medical marijuana regulations at a surprisingly rapid pace.

Last week, the state’s health department released its near-term regulatory timeline, setting March 29 as the target date for the release of its proposed rules covering the MMJ industry. A public hearing will be held April 19, and final regulations could go into effect as early as May 24.

Those are three very important dates for medical marijuana entrepreneurs in the state, and the overall timeline indicates that officials are committed to the process.

That’s not always the case. In fact, the rapid progress so far in Massachusetts is the exception rather than the rule.

In many states that have passed MMJ laws, the only real surprises that arise during the regulatory process are typically negative ones – in the form of delays, challenges, opposition and setbacks. Most of Massachusetts’ neighbors have struggled mightily in this regard. It has taken years for New Jersey, Washington DC, Rhode Island and Vermont to finalize regulations and lay the groundwork for dispensaries to open, and they’re still grappling with challenges.

Entrepreneurs who want to start dispensaries, grow operations and other MMJ businesses in Massachusetts are understandably antsy. They want to know what type of regulatory framework they’ll have to operate under and the types of application and permit fees they’ll have to pay, as it will affect their entire business plan.

Some entrepreneurs in Massachusetts have expressed frustration that no one has the answers at this time. But when compared to the situation in other states, they are actually in a very enviable situation. Still, cautious optimism is warranted – as delays could crop up at any time.

Also last week, we wrote about how two dispensaries planning to launch in Rhode Island recently submitted in-depth information about their startup costs, revenue projections and other financial metrics to the state. We feel this data is extremely helpful to entrepreneurs hoping to start similar operations in other areas of the country.

This kind of information is exceedingly hard to come by in the medical marijuana industry. These documents show the full range of costs involved, from build-out expenses and payroll to equipment and even office supplies. While of course these costs will vary greatly depending on many different factors (local regulations, market size, permit fees, etc), the information at least gives you an idea of what to expect.

What’s particularly interesting are the revenue projections. The two dispensaries expect to generate a combined $4 million in sales during their first full year of operation – which is way higher than the national average. Those projections could be optimistic – or they could reflect the reality in a market with strict limits on the dispensaries and minimal competition. Time will tell.

Other top stories in MMJ Business Daily:

Is an Early Window of Opportunity Closing for Medical Cannabis Investors?

Colorado Amendment 64 Task Force Report: Opportunities for Existing MMJ Businesses

Dave McMichael: Professional Packaging Crucial for Dispensaries, Edibles Companies

Post Your Comment:


Please note:
Comments are moderated by our editors who do their best to approve comments ASAP. As Marijuana Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.

WA Prosecutor to Sue 15 Unlicensed Dispensaries

marijuana lawsuit

A group of unlicensed dispensaries that have resisted attempts to shut them down are now [click to continue...]

UK Might Debate Marijuana Legalization

Lawmakers in the United Kingdom must consider debating the merits of marijuana after more than [click to continue...]

New York Licensees to be Announced by Friday

The wait is nearly over. The New York Department of Health confirmed that it plans [click to continue...]

Oregon Recreational Marijuana Sales to Begin Oct. 1

OregonMedicalMarijuana

The third recreational cannabis state is now just months away from beginning sales. Oregon residents [click to continue...]

Nevada Dispensary Considers Lawsuit Over Delays

A dispensary in Nevada that has been hoping to open since February is considering filing [click to continue...]

WA Cannabis Shops Busted for Selling to Minors

Nineteen Washington State marijuana stores face suspensions and fines after they failed to properly check [click to continue...]

Dispensary Bill on Tap in Michigan

Michigan medical cannabis issues, pot dispensary updates, news about marijuana by state

Concerned with what might happen if voters legalize recreational marijuana at the ballot next year, [click to continue...]

CDC Calls for Strict Edibles Labeling, Public Education

After evaluating a fatal accident that took place last year in Denver, the Center for [click to continue...]

Israel to Sell Medical Marijuana in Pharmacies

Israel, one of the world’s leading countries on medical cannabis research, will soon be dispensing [click to continue...]

Third Minnesota Dispensary Opens Despite Low Patient Count

Photo of open sign

Minnesota’s third medical cannabis dispensary has opened despite the low number of patients registered to [click to continue...]

Police Raid Business Owned By CA Industry Association Exec

A business run by the president of the California Cannabis Industry Association was raided and [click to continue...]

Illinois Poised to Begin Seed-to-Sale Tracking

As Illinois’ medical marijuana industry ramps up, regulatory officials are preparing to start following medical [click to continue...]

Washington State Dispensaries to Benefit From PTSD Addition

marijuana conditions

A week after Colorado shot down an attempt to add post-traumatic stress disorder as a [click to continue...]

MMJ Patient Boom in Rhode Island

Rhode Island’s three medical cannabis dispensaries must be pleased: In the past two and a [click to continue...]

Marijuana Business Daily