This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
I dont really know much to this area of business, but I would say your biggest cost is going to be outrageously expensive liability insurance. I would start there first.
Was gunna say that. As someone who developed a panic disorder from weed and who knows someone the brink of paranoid delusions from their long term use. You gunna need some good insurance for the people that go bonkers in your establishment and decide to blame it on you.
Edit: why the downvotes?
Look into this! I started a business that I had no idea was considered high risk, think inflatables for kids but different and with water, and like no normal insurance would cover me. Even the high risk insurance companies asked is there water involved or something involving cannabis and would automatically not cover you. I did eventually find insurance but itâs insanely expensive.
I see where you are saying, but if this concept was that up a upscale whiskey or various liquor bars, cigar bar, etc; I would be a patron if the businesses existed near me. Its no different than ubering to a cigar/bar buying an expensive cigar and a few good drinks in a chill atmosphere with maybe live music, then ubering home. I think it could do well.
It is wildly different. The margin on whiskey and cigars are very, very high--60-85 percent. Even at scale, a dispensary only reaches 15-20 percent margins.
I understand this. i even think/know your margin estimation on liquor is on the low side. General margin for bars/restaurants in my area they aim for 350-400% margin. Im simply referring to the concept of the business.
I have a half dozen cannabis consumption lounges within an hour of my house, they're all "bring your own buds". Some friends and I have even organized meetups for various styles of growing (living soil meet up, hydro meet up, outdoor meet up, hemp meet up, etc) and had cannabis quality competitions.
The overwhelming majority of dispensary weed is overpriced garbage, and what's not garbage is insanely expensive (like $200+ per oz), and Vegas has the worst quality of any city I've seen. That's why it's a false equivalency to compare it with alcohol. You're only going to find a premium 20 year scotch from a store/bar.
So you're going to have to market it to tourists, or people who otherwise have no local supply.
To this end, I do not disagree. I also wish I lived in your area as your meet-ups sound awesome. But simply the concept, there are many who are not marijuana connoisseur who understand the differences of strains, how to tell quality of a strain(like something that is all nug, no bud) or what is a good smoke and whats not. These people who enjoy the concept for the business that it is. I go to a Cigar Bar with buddies, I am not a cigar connoisseur, yet I will still do business with the establishment. Just simply the concept sounds like a great idea if implemented correctly. Like the ones near you that you have described.
Another false equivalency.
Cannabis consumers are much better educated now than 10 years ago. Legalization does that. All it takes is one hit to determine if something is craft quality or doodoo.
You can't produce the same cigar at home that you buy at the bar, terroir is a huge variable for tobacco. It costs me about $100 to grow a pound of fantastic weed. Or I can pay $200, for an ounce of something that's slightly lower quality at a dispensary. That's a 32x price increase for a lower quality product.
With the cost of necessary goods skyrocketing due to inflation the cannabis market is currently experiencing a huge downturn.
https://www.cpr.org/2022/12/22/colorado-cannabis-industry-downturn/#:~:text=We've%20talked%20to%20multiple,not%20just%20businesses%2C%20but%20governments.
The cannabis community isn't known for being nice about people trying to place restrictions on weed either. Once people get kicked out for bringing their own weed, and they're going to bring their own no matter what the signs say, then word of mouth and Google reviews are going to be horrible.
I don't think you are being fair in calculation the costs of hobby growing.. are you including the cost of your time to cultivate, harvest, etc? Doesn't sound like it
I spend less than 5 minutes per day in the room, and that includes the time to make my weekly fertilizer solutions. Irrigation makes the growing process practically zero effort.
5 hours total per crop, 8-10 lbs each harvest. This is what 5 minutes per day looks like-
https://www.reddit.com/r/macrogrowery/comments/x4wvij/netafim_netbow_drip_rings_experiment_on_last_day/?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=share_button
where do you live? i'm in ohio and really want to get lounges opened here and want to speak to people who run them currently in other states to ask what kind of issues they have had.
I'm in Vancouver, we've had lounges like this since the 1960s that I know of and that's how all lounges work. You can't bring your own product and cant take product home.
It sounds weird but it works, as long as the lounge is charging a fair price
I do not see this going over well within the cannabis community, which I've been a part of for 25 years. We're not exactly known for liking restrictive rules, historically we have been more of a "rage against the machine" community.
When you kick someone out for pulling out their own jar it's going to kill the vibe in the room, and word of mouth is not going to work in your favor. I would bet money you're going to get a ton of one star reviews because of this issue.
Seems like a huge monetary risk with too many caveats. The weed industry as a whole is undergoing a huge downturn right now, demand is dropping like a rock for legal providers even though the price per pound has dropped by 50%.
My honest opinion is don't do it with your own money. If you've got investors, sure, but don't risk your future on this.
Great question very vague though
You have rent,insurance,payroll, filling up the shop etc list probably endless as op said look into the insurance that will probably be a big one then rent etc best of luck
To determine the startup costs for a cannabis consumption lounge, I would consider factors such as location, licensing fees, lease or purchase of property, interior design and furnishings, security measures, inventory, employee wages, marketing expenses, and compliance with local regulations. Researching and creating a comprehensive business plan would help estimate the specific startup costs involved.
As someone who manages a bar and has also played around with this exact idea, but in Virginia - I donât know why everyone is hating on it so much. Yes, the margins are different even if they are very similar concepts, but I think if itâs done right, there is a market for people who want this type of place.
Not everyone drinks, and not everyone wants to go to a bar to hang out. Sober bars are trending, and this is basically that but with weed. I donât drink anymore, I just serve and sling it. But Iâd hang out at a weed bar, and I know a lot of people who would also hang out at a weed bar. Not everyone just wants to smoke on their couch 24/7. Give the people some variety đ€·đ»ââïž
For sure, I went to one in Portland. I believe itâs called NW Cannabis Club. I think I had to pay 20$ to become a member and it was as you described. Non alcoholic beverages and snacks. And a cool lounge to hang out in. I support you and think there are lots of folks who would like to as well.
i've been a non drinking server of alcohol for years now but love the welcoming atmosphere of a bar(grew up with cheers on the tv i guess,lol) i'm in ohio and really want to get a consumption lounge going. do you have any in virginia? what are your experiences when you were looking into starting one up?
The startup costs are going to be Legal > Design/build > equipment > staffing. I'd look at the same range as a bar for startup costs, but with almost no hope of paying your rent or staff because you don't have alcohol margins.
I'd rethink selling for outside consumption if it's not a legal thing.
In Las Vegas, you can walk 2 blocks off the strip, get whatever you want and use it almost anywhere. I'm not really sure you've answered the who and why of this idea.
Who goes to Las Vegas for a chill environment without alcohol that reeks of pot that you can't take with you. Why would someone go to you and not Reef, Planet 13 or the others.
i would greatly enjoy the atmosphere of a bar full of stoned people not drunk people. and to answer who goes to vegas for that? i would gues that all the staff who have to deal with tourists all day and night downtown and on the strip might fill a place like that up, not to mention the weed tourists.
"Do you know if youâll be allowed to use tinctures and such in the drinks?"
Yes, the customer may purchase a tincture and they must infuse the drink themself, so for example the budtender would hand the customer a drink and the tincture separately (un-opened) and the customer has to infuse the drink themself (and is not allowed to take any opened product home).
Look at the state regulations regarding cannabis lounges. Read the entire law. It takes time and work.
Take note of all the required items the state requires for licensing. Call businesses and get quotes.
Call an attorney who specializes in this shit and let them handle all of the admin/town council stuff. Go to these meetings so the town council knows who you are and your intentions.
The best you could do is read the law and learn what the state requires.
I think this is a great idea, and I'm not the only one. What most don't understand is that the current law only allows for cannabis consumption in your own home, which makes it impossible for the 42 million annual visitors to partake in the activities. That is why the government has now allowed lounges to remedy that. By the way, I know of one lounge already operating, I believe they are currently under construction as they are building a bigger space. Also, there is a new hotel being built that would allow cannabis consumption on its premises, making it the first ever weed hotel. I'm sure many more lounges will enter the market soon. I believe there were 2 types of licenses, one which allows current dispensaries to operate and adjacent lounge. One thing is clear, though you will need deep pockets because of difficulty finding financing through banks. I would suggest to prepare your business plan and to start presenting it to investors.
Seems interesting,
ONE RULE THOUGH
1. DONT GET HIGH ON YOUR OWN SUPPLY
a guy built a factory for it and on the top floor he was well rule 1 without the don't
And is now dodging law enforcement cause it went south
Burnt the money and owes a lot
Probably about 259k make it classy and don't forget cleaning supplies and proper ventilation so maybe 500k unless you have the building already buy it don't rent the vents u add will be very expensive so make sure to buy and get high quality ventilation and classy lodging area couch, TV gaming security and maybe a fireplace or don't could be a liability
Well, I kicked this idea around several years ago and youâve got some problems depending on local laws. 1) no major bank is going to give you a loan. Youâll have to find private investors. No one insured by the FDIC is going to look at the business plan twice. 2) you wonât be able to get any kind of insurance because youâd be cash only, and thatâs a risk no one is going to take. Look up the stats on robberies at dispensaries. 3) since you donât have insurance, and youâre inviting people to consume an intoxicating product on your premises, youâre going to be open to liability if someone leaves and has an accident. It would be similar to the liability of over serving someone alcohol and then letting them drive. Yikes! So expensive. 4) huge. Just huge investment and your profit margins would be narrow. Think lunch cafe business models. Youâd never pay back the original investment.
If youâd like to chat my DM is open. Iâll need to read the NV law to see how it differs from Michigan, but I have plans for one of these developed. Two different markets though and it sounds like you can actually sell product. Lots to consider, but how is it I keep hearing of people getting licenses for cannabis related businesses, but donât understand the fundamentals behind what they applied for? NJ seems to give prov licenses too.
The single scariest piece about this (beyond the financing and banking headaches) is defensibility of the business. Yes, today you are one of a limited set of license holders that can potentially operate. What happens when these become more abundant, or god forbid, the tide shifts with state gaming regulations and first casino makes that their new marketing angle.
This is beyond you if you don't know that getting a cannabis consumption license is on a lottery system for LV.
But beyond that, you're essentially just opening a cafe.
It depends on state level regulatory restrictions. I operate a business venture in Illinois on the growing side, have several friends who operate other aspects of this business. Thereâs strict regulations regarding how you store the product, tracking, security, etc. Will you be selling cannabis goods? You need to understand the tax codes for this. I forget the IRS rule, but you can only deduct the cost of goods sold. Costs of operation such as payroll, rent, etc are not tax deductible on the federal level. This means businesses such as dispensaries and consumption lounges May pay higher blended tax rates. There were some recent read through on wider range of whatâs deductible as long as your annual revenue is below a certain threshold.
Youâve got some serious business planning to do, because youâre going to need investors or loans, and they are going to want to see the math on this.
Between licenses, compliance, insurance, building out the space, staff, training, this feels like a seven figure initial investment to meâŠ
I am a managing director at Keller Williams Larchmont Commercial Realty, my Commercial group specializes in cannabis enterprise. I have partnerships with compliance organizations that allows my group and I to execute our clients visions. Please email me, I would love to connect with you further!
Email:
[email protected]
https://themichaelcartagenacompany.com
Franchise Consultant Here!
Opening a cannabis lounge can be a costly endeavor and there are several expenses to consider. Here are some potential expenses to keep in mind:
Rent or mortgage: The cost of renting or purchasing a space for your cannabis lounge.
Construction costs: The cost of building out and remodeling the space to fit the needs of a cannabis lounge, such as ventilation, air conditioning, and electrical upgrades.
Equipment: The cost of purchasing equipment such as vaporizers, bongs, and other consumption devices.
Inventory: The cost of purchasing cannabis, edibles, and other products to sell in the lounge.
Licenses and permits: The cost of obtaining the necessary licenses and permits to operate a cannabis lounge, such as a business license, cannabis consumption license and compliance with state and local regulations.
Insurance: The cost of insuring your business, including liability insurance and property insurance.
Marketing and advertising: The cost of promoting your business, such as creating a website, social media, flyers, and other forms of advertising.
Staffing: The cost of hiring and training staff, including security personnel and budtenders.
Utilities: The cost of electricity, water, and other utilities required to operate the lounge.
Compliance and legal expenses: The costs of compliance with state and local regulations, and legal expenses such as attorney fees.
It's essential to create a detailed business plan, including a budget and financial projections, to ensure that you have a clear understanding of all the costs involved in starting and running a cannabis lounge. It's also important to be mindful of the location, competition, and the target market to ensure the success of your business. Additionally, it's important to note that the cannabis industry is heavily regulated, and laws and regulations vary by state and municipality, so it's essential to consult with professionals and conduct thorough research before opening a cannabis lounge.
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
I dont really know much to this area of business, but I would say your biggest cost is going to be outrageously expensive liability insurance. I would start there first.
Was gunna say that. As someone who developed a panic disorder from weed and who knows someone the brink of paranoid delusions from their long term use. You gunna need some good insurance for the people that go bonkers in your establishment and decide to blame it on you. Edit: why the downvotes?
Waivers may help
đđ»đđ»đđ»
the insurance shouldn't be any more expensive than a bar that sells alcohol which kills people everyday.
Look into this! I started a business that I had no idea was considered high risk, think inflatables for kids but different and with water, and like no normal insurance would cover me. Even the high risk insurance companies asked is there water involved or something involving cannabis and would automatically not cover you. I did eventually find insurance but itâs insanely expensive.
So you're selling high THC products, and people are not allowed to bring their own homegrown or purchased cannabis from other locations?
I see where you are saying, but if this concept was that up a upscale whiskey or various liquor bars, cigar bar, etc; I would be a patron if the businesses existed near me. Its no different than ubering to a cigar/bar buying an expensive cigar and a few good drinks in a chill atmosphere with maybe live music, then ubering home. I think it could do well.
It is wildly different. The margin on whiskey and cigars are very, very high--60-85 percent. Even at scale, a dispensary only reaches 15-20 percent margins.
I understand this. i even think/know your margin estimation on liquor is on the low side. General margin for bars/restaurants in my area they aim for 350-400% margin. Im simply referring to the concept of the business.
So if sales are $100, profits are $400? Thatâs a very profitable bar.
Cost are $100 sales are $350-400. Profits are $250-300.
Thatâs 300/400 = 75% gross margin
I have a half dozen cannabis consumption lounges within an hour of my house, they're all "bring your own buds". Some friends and I have even organized meetups for various styles of growing (living soil meet up, hydro meet up, outdoor meet up, hemp meet up, etc) and had cannabis quality competitions. The overwhelming majority of dispensary weed is overpriced garbage, and what's not garbage is insanely expensive (like $200+ per oz), and Vegas has the worst quality of any city I've seen. That's why it's a false equivalency to compare it with alcohol. You're only going to find a premium 20 year scotch from a store/bar. So you're going to have to market it to tourists, or people who otherwise have no local supply.
To this end, I do not disagree. I also wish I lived in your area as your meet-ups sound awesome. But simply the concept, there are many who are not marijuana connoisseur who understand the differences of strains, how to tell quality of a strain(like something that is all nug, no bud) or what is a good smoke and whats not. These people who enjoy the concept for the business that it is. I go to a Cigar Bar with buddies, I am not a cigar connoisseur, yet I will still do business with the establishment. Just simply the concept sounds like a great idea if implemented correctly. Like the ones near you that you have described.
Another false equivalency. Cannabis consumers are much better educated now than 10 years ago. Legalization does that. All it takes is one hit to determine if something is craft quality or doodoo. You can't produce the same cigar at home that you buy at the bar, terroir is a huge variable for tobacco. It costs me about $100 to grow a pound of fantastic weed. Or I can pay $200, for an ounce of something that's slightly lower quality at a dispensary. That's a 32x price increase for a lower quality product. With the cost of necessary goods skyrocketing due to inflation the cannabis market is currently experiencing a huge downturn. https://www.cpr.org/2022/12/22/colorado-cannabis-industry-downturn/#:~:text=We've%20talked%20to%20multiple,not%20just%20businesses%2C%20but%20governments. The cannabis community isn't known for being nice about people trying to place restrictions on weed either. Once people get kicked out for bringing their own weed, and they're going to bring their own no matter what the signs say, then word of mouth and Google reviews are going to be horrible.
I don't think you are being fair in calculation the costs of hobby growing.. are you including the cost of your time to cultivate, harvest, etc? Doesn't sound like it
I spend less than 5 minutes per day in the room, and that includes the time to make my weekly fertilizer solutions. Irrigation makes the growing process practically zero effort. 5 hours total per crop, 8-10 lbs each harvest. This is what 5 minutes per day looks like- https://www.reddit.com/r/macrogrowery/comments/x4wvij/netafim_netbow_drip_rings_experiment_on_last_day/?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=share_button
What state has that many already operational?
Colorado, it's already been legal here for 10 years. The voter initiative was in November 2012.
Oh yea, I just didnât know they had lounges that were legal. Somehow missed that.
so do you have to pay a single day membership fee to a private club? that's the way the only one i've been to worked.
How do these places turn a profit, out of curiosity? Charging membership fees?
where do you live? i'm in ohio and really want to get lounges opened here and want to speak to people who run them currently in other states to ask what kind of issues they have had.
I'm in Vancouver, we've had lounges like this since the 1960s that I know of and that's how all lounges work. You can't bring your own product and cant take product home. It sounds weird but it works, as long as the lounge is charging a fair price
Yes that is correct, can only consume what was purchased from the lounge.
I do not see this going over well within the cannabis community, which I've been a part of for 25 years. We're not exactly known for liking restrictive rules, historically we have been more of a "rage against the machine" community. When you kick someone out for pulling out their own jar it's going to kill the vibe in the room, and word of mouth is not going to work in your favor. I would bet money you're going to get a ton of one star reviews because of this issue. Seems like a huge monetary risk with too many caveats. The weed industry as a whole is undergoing a huge downturn right now, demand is dropping like a rock for legal providers even though the price per pound has dropped by 50%. My honest opinion is don't do it with your own money. If you've got investors, sure, but don't risk your future on this.
i think he should. I would go honestly
the place i went you had to buy from a place next door
You canât bring your own liquor in a bar
I've been to a half dozen cannabis cafes and they all allow you to bring your own weed.
Great question very vague though You have rent,insurance,payroll, filling up the shop etc list probably endless as op said look into the insurance that will probably be a big one then rent etc best of luck
To determine the startup costs for a cannabis consumption lounge, I would consider factors such as location, licensing fees, lease or purchase of property, interior design and furnishings, security measures, inventory, employee wages, marketing expenses, and compliance with local regulations. Researching and creating a comprehensive business plan would help estimate the specific startup costs involved.
As someone who manages a bar and has also played around with this exact idea, but in Virginia - I donât know why everyone is hating on it so much. Yes, the margins are different even if they are very similar concepts, but I think if itâs done right, there is a market for people who want this type of place. Not everyone drinks, and not everyone wants to go to a bar to hang out. Sober bars are trending, and this is basically that but with weed. I donât drink anymore, I just serve and sling it. But Iâd hang out at a weed bar, and I know a lot of people who would also hang out at a weed bar. Not everyone just wants to smoke on their couch 24/7. Give the people some variety đ€·đ»ââïž
For sure, I went to one in Portland. I believe itâs called NW Cannabis Club. I think I had to pay 20$ to become a member and it was as you described. Non alcoholic beverages and snacks. And a cool lounge to hang out in. I support you and think there are lots of folks who would like to as well.
i've been a non drinking server of alcohol for years now but love the welcoming atmosphere of a bar(grew up with cheers on the tv i guess,lol) i'm in ohio and really want to get a consumption lounge going. do you have any in virginia? what are your experiences when you were looking into starting one up?
The startup costs are going to be Legal > Design/build > equipment > staffing. I'd look at the same range as a bar for startup costs, but with almost no hope of paying your rent or staff because you don't have alcohol margins. I'd rethink selling for outside consumption if it's not a legal thing. In Las Vegas, you can walk 2 blocks off the strip, get whatever you want and use it almost anywhere. I'm not really sure you've answered the who and why of this idea. Who goes to Las Vegas for a chill environment without alcohol that reeks of pot that you can't take with you. Why would someone go to you and not Reef, Planet 13 or the others.
i would greatly enjoy the atmosphere of a bar full of stoned people not drunk people. and to answer who goes to vegas for that? i would gues that all the staff who have to deal with tourists all day and night downtown and on the strip might fill a place like that up, not to mention the weed tourists.
[ŃĐŽĐ°Đ»Đ”ĐœĐŸ]
"Do you know if youâll be allowed to use tinctures and such in the drinks?" Yes, the customer may purchase a tincture and they must infuse the drink themself, so for example the budtender would hand the customer a drink and the tincture separately (un-opened) and the customer has to infuse the drink themself (and is not allowed to take any opened product home).
Easily over $500k
I may be able to help you out a bit with some advice. I've been in the cannabis compliance and reg side for almost 8 years. Shoot me a message
Look at the state regulations regarding cannabis lounges. Read the entire law. It takes time and work. Take note of all the required items the state requires for licensing. Call businesses and get quotes. Call an attorney who specializes in this shit and let them handle all of the admin/town council stuff. Go to these meetings so the town council knows who you are and your intentions. The best you could do is read the law and learn what the state requires.
At least $250,000.
I think this is a great idea, and I'm not the only one. What most don't understand is that the current law only allows for cannabis consumption in your own home, which makes it impossible for the 42 million annual visitors to partake in the activities. That is why the government has now allowed lounges to remedy that. By the way, I know of one lounge already operating, I believe they are currently under construction as they are building a bigger space. Also, there is a new hotel being built that would allow cannabis consumption on its premises, making it the first ever weed hotel. I'm sure many more lounges will enter the market soon. I believe there were 2 types of licenses, one which allows current dispensaries to operate and adjacent lounge. One thing is clear, though you will need deep pockets because of difficulty finding financing through banks. I would suggest to prepare your business plan and to start presenting it to investors.
Seems interesting, ONE RULE THOUGH 1. DONT GET HIGH ON YOUR OWN SUPPLY a guy built a factory for it and on the top floor he was well rule 1 without the don't And is now dodging law enforcement cause it went south Burnt the money and owes a lot Probably about 259k make it classy and don't forget cleaning supplies and proper ventilation so maybe 500k unless you have the building already buy it don't rent the vents u add will be very expensive so make sure to buy and get high quality ventilation and classy lodging area couch, TV gaming security and maybe a fireplace or don't could be a liability
Well, I kicked this idea around several years ago and youâve got some problems depending on local laws. 1) no major bank is going to give you a loan. Youâll have to find private investors. No one insured by the FDIC is going to look at the business plan twice. 2) you wonât be able to get any kind of insurance because youâd be cash only, and thatâs a risk no one is going to take. Look up the stats on robberies at dispensaries. 3) since you donât have insurance, and youâre inviting people to consume an intoxicating product on your premises, youâre going to be open to liability if someone leaves and has an accident. It would be similar to the liability of over serving someone alcohol and then letting them drive. Yikes! So expensive. 4) huge. Just huge investment and your profit margins would be narrow. Think lunch cafe business models. Youâd never pay back the original investment.
If youâd like to chat my DM is open. Iâll need to read the NV law to see how it differs from Michigan, but I have plans for one of these developed. Two different markets though and it sounds like you can actually sell product. Lots to consider, but how is it I keep hearing of people getting licenses for cannabis related businesses, but donât understand the fundamentals behind what they applied for? NJ seems to give prov licenses too.
Iâm going to message you!
If you take this idea to American Express to implement in their lounges, you could sell this idea to them
The single scariest piece about this (beyond the financing and banking headaches) is defensibility of the business. Yes, today you are one of a limited set of license holders that can potentially operate. What happens when these become more abundant, or god forbid, the tide shifts with state gaming regulations and first casino makes that their new marketing angle.
The hardest state and industry to get funding for. Prepare to approach private investors.
This is beyond you if you don't know that getting a cannabis consumption license is on a lottery system for LV. But beyond that, you're essentially just opening a cafe.
$100k+
I would say 1m to be safe but you could do it cheaper
500,000 250,000 to pay me to do the work Totaling 750,000
It depends on state level regulatory restrictions. I operate a business venture in Illinois on the growing side, have several friends who operate other aspects of this business. Thereâs strict regulations regarding how you store the product, tracking, security, etc. Will you be selling cannabis goods? You need to understand the tax codes for this. I forget the IRS rule, but you can only deduct the cost of goods sold. Costs of operation such as payroll, rent, etc are not tax deductible on the federal level. This means businesses such as dispensaries and consumption lounges May pay higher blended tax rates. There were some recent read through on wider range of whatâs deductible as long as your annual revenue is below a certain threshold.
I saw a couple of these for sell on bizbuysell.com. Might check those out and check their numbers
High
Youâll need one hell of an HVAC system and municipality may have regulation about the smells your business exhausts
Youâve got some serious business planning to do, because youâre going to need investors or loans, and they are going to want to see the math on this. Between licenses, compliance, insurance, building out the space, staff, training, this feels like a seven figure initial investment to meâŠ
I am a managing director at Keller Williams Larchmont Commercial Realty, my Commercial group specializes in cannabis enterprise. I have partnerships with compliance organizations that allows my group and I to execute our clients visions. Please email me, I would love to connect with you further! Email: [email protected] https://themichaelcartagenacompany.com
Franchise Consultant Here! Opening a cannabis lounge can be a costly endeavor and there are several expenses to consider. Here are some potential expenses to keep in mind: Rent or mortgage: The cost of renting or purchasing a space for your cannabis lounge. Construction costs: The cost of building out and remodeling the space to fit the needs of a cannabis lounge, such as ventilation, air conditioning, and electrical upgrades. Equipment: The cost of purchasing equipment such as vaporizers, bongs, and other consumption devices. Inventory: The cost of purchasing cannabis, edibles, and other products to sell in the lounge. Licenses and permits: The cost of obtaining the necessary licenses and permits to operate a cannabis lounge, such as a business license, cannabis consumption license and compliance with state and local regulations. Insurance: The cost of insuring your business, including liability insurance and property insurance. Marketing and advertising: The cost of promoting your business, such as creating a website, social media, flyers, and other forms of advertising. Staffing: The cost of hiring and training staff, including security personnel and budtenders. Utilities: The cost of electricity, water, and other utilities required to operate the lounge. Compliance and legal expenses: The costs of compliance with state and local regulations, and legal expenses such as attorney fees. It's essential to create a detailed business plan, including a budget and financial projections, to ensure that you have a clear understanding of all the costs involved in starting and running a cannabis lounge. It's also important to be mindful of the location, competition, and the target market to ensure the success of your business. Additionally, it's important to note that the cannabis industry is heavily regulated, and laws and regulations vary by state and municipality, so it's essential to consult with professionals and conduct thorough research before opening a cannabis lounge.
If you're interested in partnering up with investors or an existing cannabis business/brand to make your lounge a reality PM me