The answer on this question depends on many factors, including location, premises size, your goals and objectives. For example, your goal is to reach the annual revenue more than $1 mln or under $100,000 is also appropriate. For these two goals there will be different initial CAPEX and OPEX:

 $100,000 Scenario

  • $5,000 Application fee (depends on state, one-time application and annual license fees typically range anywhere from $5,000 to $50,000 for dispensaries and tend to be much higher for cultivation licenses)
  • $18,000 for six months rent
  • $20,000 for a space improvements
  • Deals with growers, often costing nothing more that a percentage of the sale from their product, for dispensaries it will be approximately 33%
  • $400 for display cases
  • $50 office supplies
  • $150 for security system
  • $75 for a sign
  • $300 for product bottles and $31 for jars to store the products (again, thrift shops)
  • $50 on labels (all white)
  • plus salaries for manager and guard

= approximately $50,000-$65,000 start-up expenses

$1 mln Scenario

  • $50,000 Legal Fees & Licensing & Insurances
  • $250,000 Building renting (includes security deposit)
  • $70,000 Inventory, packaging supplies
  • $2,500 Website design and development, hosting
  • $70,000 Marketing Campaign
  • $100,000 Space improvements including finishing/painting, kitchen, office space, bathrooms, etc.
  • $20,000 Security system including multiple camera feeds and metal/weapons detectors
  • $50,000 Furniture, Display Counters, Refrigerators, Freezers, Multiple POS/ Cash Registers, Registration Computer, Commercial Label Printer, Storage Hardware and Shelving, etc.
  • $7,000 Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, etc.)
  • plus salaries for director, managers and guards

= approximately $750,000-$1,000,000 start-up expenses

Average sales per square foot for a recreational marijuana store is $1,773 and $1,143 for a medical marijuana dispensary. More established operations boast 40-50% profit margins, while newer shops may only see 20% due to their lack of strategic partnerships and vendor relations.

Sample of a revenue model for a dispensary in Manitoba:
Revenue = $2,100,000 (100%)
-Direct Costs = $850,000 (40%)
Gross Profit = $1,250,000 (60%)
– Operating Expenses = $535,000 (25%)
Operating Income = $700,000 (35%)

Our cannabis dispensary financial model and cannabis dispensary business plan template will help you to estimate all revenue and cost line-items monthly over a flexible seven year period, and then sums the monthly results into quarters and years for an easy view into the various time periods.

Some estimations for different cannabis growing scenarios you can find in our article about cannabis growing business.


We will create complete and professional business plans, including pro forma financials and projections to help you know how much money it’ll cost to start your business and how much money you can make by starting and operating your 100% legally compliant medical and recreational marijuana business.

Please do not hesitate to contact us to make an order for a cannabis business plan or a cannabis industry research. 

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