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Marijuana Club Startup Guide

Cash Reserves

 

Murphy's Law: Whatever can go wrong will go wrong.

You are probably certain that you are going to be instantly wealthy because you opened a Marijuana Club. There is good reason to believe that you could be right. Lots of people are, in fact, getting rich from Marijuana Clubs.

However - nothing ever goes exactly as planned. You could get some unexpected legal issue from the local city council. You could have a pipe burst in your store and put you out of business for a week. Your suppliers could get a huge infestation of spider mites.

You are embarking on a risky adventure to unknown places. Business is risky even when you don't have all the legal issues of selling marijuana. Any number of bad things could happen that could effectively put you out of business for a month or more.

Because of these risks, you will want to have cash reserves -- spare cash -- that can get you through the bad spots until you are really roling in money.

How much reserve do you need? Many experts would say something like three to six months of income. For most people starting clubs that will probably not be realistic. They just don't have that much money. You will have to make this judgment yourself, based on your own situation. But, whatever you do, don't work out a budget that is borderline bankrupt. Things will go wrong that weren't in the budget so you will need cash to handle them when they happen.

 

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