A delivery business is a great way to increase the profit margins of your marijuana products while providing an additional convenience to your customers. It can also be a lucrative option for dispensaries that are already established in your area. However, before you decide to start a delivery service, you should first understand how the model works and the different costs associated with it.

To begin with, you’ll need to determine the distance of your delivery zone. This is important because you don’t want to overextend your delivery radius and incur higher costs for gas, staff, insurance, and inventory. You can also look at similar industries, such as pizza shops, to get an idea of how far people are willing to travel for a delivery.

Next, you’ll need to decide on the legal structure for your company. This will impact your business registration requirements and taxes. You can choose to register your cannabis delivery business as a sole proprietorship, partnership, limited liability corporation (LLC), or a corporation. It is also crucial to learn about the state and city’s regulations for marijuana businesses, as well as how much inventory your driver can carry with them on each trip.

Once you’ve determined the location and the legality of your weed delivery business, you can focus on setting up a website, marketing, and hiring drivers. You can use a route planner software like Route4Me to create optimized routes for your drivers and ensure they always show up on time.