Anyone who knows how to drive can start a marijuana delivery service. However, it’s just like starting any other business – there are some initial steps you need to take to get started.
Here are ten steps you can take to get started on building your very own marijuana delivery service business.
10 Steps to Launching a New Marijuana Delivery Service Business
1. Choose Your Type of Marijuana Delivery Service Business
The first step in launching a marijuana delivery service business is to identify the type of marijuana delivery service business you want to launch. You might choose from the following types, among others:
- A dispensary delivery service that delivers marijuana products from dispensaries to customers.
- A cultivation delivery service that delivers marijuana plants and seeds to customers.
- An edibles delivery service that delivers marijuana-infused food and drinks to customers.
2. Name Your Marijuana Delivery Service Business
Give your marijuana delivery service business an identity, so people will consider it a well-known and respected brand. You can take the name of your marijuana delivery service business from your industry, focus on a geographical location, or use your name, among other options.
The main goal for naming your marijuana delivery service business is to make it sound appealing and trustworthy so customers will want to use your service.
3. Determine Your Marijuana Delivery Service Business Model
There are several possible types of business models for a marijuana delivery service business, including:
- A subscription-based model wherein customers pay a monthly fee for access to your delivery service.
- An on-demand model wherein customers order marijuana products as needed and pay for each delivery.
- A hybrid model that combines elements of both subscription and on-demand models.
Your business model will determine how you generate revenue so it’s important to choose the right model for your business. No matter which model you choose, make sure that it aligns with your business goals and the products you offer.
4. Choose a Legal Form for Your Business
By incorporating your marijuana delivery service business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your marijuana delivery service business will determine the amount of taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common marijuana delivery service business structures.
5. Write a Marijuana Delivery Service Business Plan
All marijuana delivery service business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team.
When developing your marijuana delivery service business plan and strategy, you should think about the following questions your customers might have:
- What types of marijuana products do you offer?
- Can I order any type of marijuana product?
- Do you have a list of dispensaries from which I can order products?
- How much does delivery cost?
- Are there any minimum orders?
- When will my order be delivered?
- How will my order be delivered?
- Do you have a loyalty program?
- Do you offer any discounts?
- What are your business hours?
- Do you have a customer service phone number?
- Do I need to be home when my order is delivered?
- What if I’m not satisfied with my order?
- How can I contact you if I have questions or problems?
Answering these types of questions in your business plan will give potential customers an idea of what to expect from your business and will make them more likely to use your delivery service.
Read our article about how to write a marijuana delivery service business plan.
6. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your marijuana delivery service business.
For example, to legally operate a marijuana business in some states, you will need to obtain a license from the Bureau of Cannabis Control.
You must also register your marijuana delivery service business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
Read our article about obtaining the proper marijuana delivery service business licenses.
7. Determine Your Budget & Apply for Funding as Needed
In developing your marijuana delivery service business plan, you will figure out how much funding you need to start and grow your business.
If you have funds to invest in your marijuana delivery service business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your marijuana delivery service business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a marijuana delivery service business to help you determine if funding is needed.
Read our article about how to fund your marijuana delivery service business.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your marijuana delivery service business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in GPS tracking software to help you keep track of your drivers and ensure they are taking the most efficient routes. A customer management system can also be helpful for tracking customer information and keeping them updated on their orders.
Read our article about the technology and software you need to run a marijuana delivery service business.
9. Market Your Marijuana Delivery Service Business to Potential Customers
Before you start selling your products, you have to let the world know you exist. The first step is to create a website so people can learn more about your products and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, Instagram, and TikTok. Also consider networking with other people in the marijuana delivery service industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Marijuana delivery service businesses should consider the following promotional strategies:
- Sponsoring events or participating in charity drives
- Offering discounts to first-time customers
- Providing a loyalty rewards program
- Distributing flyers or coupons in the local community
- Creating a blog or YouTube channel to share product information and reviews
- Running ads on social media platforms or search engines
Read our article about how to market your marijuana delivery service business for more tips.
10. Get New Customers & Grow Your Business
When you promote your products, you’ll start to get interest from potential customers.
Make sure you’re ready to serve these customers. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your marijuana delivery service business.
Read our article about how to effectively grow your marijuana delivery service business to learn more.
Starting a Marijuana Delivery Service Business FAQs
The marijuana delivery service industry is growing rapidly as more and more people use cannabis for medicinal and recreational purposes. This presents a great opportunity for entrepreneurs who are looking to start their own business in this space.
A simple checklist to use when starting a marijuana delivery service business is as follows:
- Choose Your Type of Marijuana Delivery Service: This should be based on what you are best at and how much experience you have. Remember to always keep your interests, skills, and experience in mind.
- Name Your Marijuana Delivery Service Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Marijuana Delivery Service Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Marijuana Delivery Service Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Marijuana Delivery Service Business to Potential Customers: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products they truly need.
- Get Customers & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products.
Starting a marijuana delivery service business can be a great way to make a good living. It’s essential to have a strong business plan, the right technology and software, an effective marketing strategy, and the right people to help you grow your business. By following these tips, you can set your business up for success.