As the cannabis industry continues to blossom in the United States, New Jersey stands at the precipice of a green revolution. With the legalization and decriminalization of adult-use cannabis, the Garden State has become a fertile ground for budding entrepreneurs with 27 adult-use dispensaries currently open and 900 licenses on the books.
If you are among the many who have acquired a cannabis dispensary license and are ready to navigate this exciting new venture, read on for some helpful tips on opening your New Jersey dispensary.
Dispensaries must operate within the defined laws of their state and individual municipality if they are to thrive in the growing cannabis industry. The first thing you will want to do is review and understand the regulations that will apply to your new business.
Here is an overview of the most common questions asked about opening a New Jersey dispensary.
In New Jersey, there are limits on how much cannabis a dispensary can sell to a customer at one time. Customers are limited to purchases of 28.35 grams (1 ounce) of cannabis or its equivalent in products such as vape oil, resin, or edibles. There is no limitation on how many times a customer can return to a dispensary to purchase more product in a single day, but they cannot legally possess more than 6 ounces at any one time.
Restrictions on where a dispensary can be located vary from city to city across the state, and some municipalities have opted out of allowing dispensaries altogether. However, there are no restrictions in place at the state level regarding how many dispensaries can be located in a defined area, but local zoning may include limitations that will need to be reviewed based on the intended location of your dispensary.
The regulations surrounding cannabis have evolved, leading to changes in the way dispensaries can operate. Currently, the traditional restrictions on the placement of dispensaries no longer apply. Consequently, the establishment of a dispensary is now primarily governed by zoning laws set by each municipality. In other words, potential locations for dispensaries are determined by individual zoning regulations applicable in each respective area, rather than flat rules revolving around distances from schools, churches, and such.
Dispensary staff much have valid cannabis employment IDs. Budtenders and other staff must be at least 21 years old, attend certification training, and pass a background check, including fingerprinting, to work in a dispensary.
Security is a critical concern, with robust protocols required to protect your product and ensure safe transactions. A full list of the necessary security measures is available online, but it only includes the minimum requirements.
Below is a summary of the key security requirements:
New Jersey dispensaries are expected to generate $1 billion in sales in 2023. That number is expected to increase to as much as $2.4 billion in 2026. With numbers like that, your dispensary can indeed be profitable, but it will require careful planning and management. Factors such as location, competition, product quality, customer service, and effective marketing all play into the profitability equation. Given the projected growth of the industry, those who strategize effectively could reap significant benefits.
An engaging and customer-friendly design can set your dispensary apart. You should consider your target audience and ideal customer experience when designing your dispensary.
Here are a few tips for designing a space that will draw in customers and keep them coming back:
Having a skilled and knowledgeable team is crucial. Take the time to thoroughly screen applicants when recruiting, as your budtenders will be the face of your business.
Here are the roles you need to fill:
You should also consider using an HCM platform like KayaPush, which offers comprehensive recruitment, HR, and payroll solutions for the cannabis industry. If you do have an automated payroll solution, then it is highly recommended to hire a cannabis-specific accountant.
Promotion is essential for the success of your dispensary. Like any other retail business, you will want to maximize your advertising dollars by doing market research and concentrating your efforts on what works best for your products and customers.
Generally speaking, you should include the following in your marketing strategy:
In New Jersey, advertising can be shown where viewers or listeners can reasonably be expected to be above the age of 21, but this still leaves a lot of options on the table for your marketing campaigns.
As you venture into the dynamic New Jersey cannabis industry, remember that the journey is as crucial as the destination. While the path might seem challenging, with the right tools and strategies, you can create a successful and profitable dispensary.
Consider leveraging platforms like KayaPush, which offers an all-in-one employee management software solution designed specifically for cannabis businesses. From HR to automated payroll, KayaPush is your best bud on this exciting new journey.
“KayaPush has it all in one platform where you can kind of build what you need. Especially as a start-up, that’s important to us to be cost-friendly. You have the best price for what you’re offering. ”
-Marry Ann from Riverside Wellness-