As soon as Michigan voters came down in favor of recreational marijuana, entrepreneurs were excited about the industry’s revenue potential. In addition to the much-touted tax benefits for the state, local businesspeople would finally have the opportunity to get in on a burgeoning market.
We’re now more than a month and a half in to legal recreational marijuana sales in Michigan. How are things looking?
More than $10 million in sales through 6 weeks
A report from the Detroit Free Press found recreational marijuana sales through the first six weeks have topped $10.09 million. About $1.675 million of that went to taxes – leaving an estimated $8.4 million for the businesses themselves.
This number is even more noteworthy when taken in context. Through those first six weeks, there were just 16 marijuana retail shops licensed and operating across the state, according to the newspaper.
Not that there aren’t uncertainties. Crain’s Detroit Business spoke with a handful of recreational marijuana business owners across the state. While demand for marijuana has been strong, some shop operators are concerned about:
- Product shortage
- Cities placing a ban on recreational marijuana businesses
- The impact on patients who need medical marijuana
- Increased competition as more retail stores open
Starting a recreational marijuana business
At its core, launching a recreational marijuana company isn’t much different from starting up any small business. You’ll need to consider:
- A business plan
- Financial and tax requirements
- Permits and licenses
- Industry laws
- Other needs as they arise
It’s a process that can seem daunting, especially for those first-time entrepreneurs. But with the right guidance and legal support, becoming a business owner doesn’t have to remain a dream.