How to Open a Dispensary in Minnesota
Your complete guide to starting a cannabis retail business in Minnesota. From licensing to opening day.
Choose Your License Type
Cannabis Retailer
Sell cannabis products purchased from licensed cultivators and manufacturers.
Best for: Focus on customer experience
Microbusiness
Cultivate, manufacture, AND sell under one license with lower scale limits.
Best for: Full control, smaller scale
Mezzobusiness
Similar to microbusiness but with larger cultivation and sales limits.
Best for: Growth-oriented operators
7 Steps to Open Your Dispensary
Research & Business Planning
- Study Minnesota cannabis laws and regulations
- Research the competitive landscape
- Identify target market and location
- Write comprehensive business plan
- Determine license type needed
- Calculate startup and operating costs
Secure Funding
- Calculate total capital requirements
- Explore funding sources (investors, loans, self-funding)
- Prepare investor pitch deck
- Secure proof of funds for license application
- Budget for 12+ months operating capital
- Consult cannabis-specialized accountant
Location Selection
- Verify city/county allows cannabis retail
- Research zoning requirements
- Identify buffer zones (schools, churches, etc.)
- Evaluate foot traffic and demographics
- Negotiate lease with cannabis clauses
- Get landlord approval letter
Local Approvals
- Apply for local cannabis business permit
- Attend planning/zoning meetings
- Complete community notification requirements
- Obtain conditional use permit if required
- Get building permits for renovations
- Document all local approvals
State License Application
- Complete OCM application forms
- Submit background check authorization
- Provide operating and security plans
- Submit proof of capital and location
- Pay application fees
- Respond to OCM inquiries promptly
Facility Buildout
- Design compliant floor plan
- Install required security systems
- Build retail sales area
- Set up inventory storage (vault)
- Install POS and seed-to-sale tracking
- Ensure ADA compliance
Pre-Opening Preparation
- Hire and train staff
- Order initial inventory
- Complete final inspections
- Set up banking/cash handling
- Develop marketing strategy
- Soft launch to test operations
Estimated Startup Costs
Costs vary significantly based on location, size, and buildout complexity
* Social equity applicants may qualify for reduced fees and financing assistance
Critical Considerations
Local Opt-Out
Many Minnesota cities have banned cannabis retail. Verify your target location allows dispensaries BEFORE investing.
Banking Challenges
Most banks won't work with cannabis businesses. Plan for cash-heavy operations or find cannabis-friendly credit unions.
280E Tax Rules
Federal tax code limits deductions for cannabis businesses. Effective tax rates can be 70%+. Work with a cannabis accountant.
Real Estate Complexity
Many landlords won't lease to cannabis. Those who will may charge premium rates. Get cannabis clauses in writing.
Frequently Asked Questions About Opening a Dispensary
Resources
Not Ready to Open Your Own?
Explore existing dispensaries or find jobs in the cannabis industry while you plan.