How to Start a Marijuana Delivery Service in New York

New York is not an easy market for prospective medical marijuana entrepreneurs. The costs of setting up the company and the limited supply of licenses make things more challenging. However, the state is trying to address these problems by expanding the program and adding more dispensaries.

Registered Organizations (the official name of marijuana businesses) are tasked with supplying, delivering and manufacturing all the medical marijuana in New York state qualifying patients. Read on to learn how to start a medical marijuana delivery service in New York.

When was cannabis made legal
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New York governor Andrew Cuomo legalized the use of medical marijuana use by registered patients with qualifying conditions in July 2014.

With that bill, marijuana retail businesses (also known as Registered Organizations) are the responsible vendors for manufacturing and supplying New York State with medical marijuana.

Applications were open for a short period of time, as they were closed in June 2015, less than a year since legalization.
However, applications for prospective entrepreneurs were closed in June 2015.

How many marijuana businesses are there currently in the state

Marijuana businesses
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There are currently 10 registered organizations in operation state-wide, and New York state has not indicated when they will accept new applications.

The medical marijuana program license application period was open from April 27 through June 5, 2015. Only five registered organizations were allowed by law and were awarded in August of 2015. The license holders are allowed to open 4 dispensaries each, totaling to 20 locations in the whole state. The first dispensaries opened on January 7, 2016.

New York’s program authorized each of license winners to operate one cultivation and processing facility and five geographically-spread out dispensaries. It should be noted that costs for opening and operating a dispensary in New York state are quite high.

In 2016, 526 physicians were registered to certify patients for medical marijuana, and 2,675 patients received certifications.

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    How much money is there in the New York marijuana market

    Medical sales for 2016 amounted to $35,700,000 while estimated medical sales for 2021 are expected to reach $253,500,000

    Delivery Owner requirements

    Delivery Owner requirements
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    New York’s dispensary system is currently quite preventive to new business owners, with limited doctor participation and supply adding up to the high costs. Although the state is trying to address the problem, there is no planned date for the re-opening of retail business applications.

    However, a biannual report that came out in August 2016 suggested 12 recommendations for improving the program, including the need to add five more dispensing organizations in the next two years.

    Several of those recommendations have already been implemented, such as home delivery, chronic pain as a qualifying condition, wholesale, and allowing physicians assistants and nurse practitioners to certify patients for the program.

    One notable aspect of New York’s legislature is that it specifically bans patients from smoking cannabis. All methods must be approved, but smoking is banned. This erratic legislature leads to lower purchasing from patients, endangering the viability of the cannabis market in the state.

    License and Financial requirements

    License and Financial requirements
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    2015 was the year in which the first and last application for medical cannabis businesses process was open. For this procedure, applicants were required to submit:

    • $10,000 non-refundable application fee
    • $200,000 registration fee, refunded to applicants not issued a registration

    Licensing and renewal fees are quite steep in New York state:

    • Registered Organization Registration Fee= $200,000 (submitted at time of application, and refunded if application is subsequently denied)
    • Registered Organization Registration Renewal Fee= $200,000 (submitted at time of application, and refunded if application is subsequently denied)

    How much does a marijuana delivery service in New York make?

    Marijuana dispensaries and delivery services generally bring anywhere from $50,000 a year up to millions, or even tens of millions of dollars.

    Timeframe

    The time frame varies greatly on how long it takes to get a cannabis business up and running, but it can often take one year or more to get finances in order, acquire necessary licenses, get suppliers and employees lined up, etc.

    Links
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    Looking to start a marijuana delivery service in New York? The consulting companies listed below provide a wide range of services from helping with state licensing requirements and applications to running and stocking your business.

    Alice

    Need to know the latest and greatest of marijuana news? Alice has you covered! She loves to travel all around the globe and manages the pick up important bits and pieces from all over the place.... [Read full bio]

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