Cannabis & Hemp Retail Insights from Cova

How to Start a Cannabis Dispensary in Minnesota: Step-by-Step Guide

Written by Faai Steuer | Nov 23, 2025 6:59:59 PM

So you’re thinking about opening your very own cannabis dispensary in Minnesota? You’re not alone - it’s a thrilling moment for enterprising folks like you. With Minnesota giving the green light to recreational cannabis in August 2023, lots of people have their eyes on this fresh horizon. You’ll want to roll up your sleeves and get the real scoop on Minnesota’s evolving landscape, from the ins and outs of licensing to staying on top of all the must-know rules. Let’s break it down, step by step, so you can set yourself up for success.

The Minnesota Cannabis Scene: A New Frontier

Minnesota joining the recreational cannabis club as the 23rd state is big news — no two ways about it. The law went into effect in 2023, and after a long wait, the first non-tribal shop to sell recreational cannabis products in Minnesota is Legacy Cannabis in Duluth — the first non-tribal, adult-use, regulated cannabis retailer that did not have previous operations as a medical dispensary. As the market continues to develop, staying tuned to updates from the Minnesota Office of Cannabis Management (OCM) is your best move.

Licensing and Social Equity: Your Golden Ticket

Getting your Minnesota cannabis license is a bit like prepping for a marathon - you need strategy, stamina, and some good luck. The process gives a leg up to social equity applicants: those most affected by old cannabis laws, including veterans, kids from high-poverty neighborhoods, farmers, and people with past cannabis convictions. In July 2024, only social equity applicants were allowed to apply during a short, 19-day window. If this sounds like you, don’t miss your head start. If it doesn’t, you might think about teaming up with someone who fits the bill. CBS Minnesota and MinnPost spell out the process in detail.

This application process isn’t for the faint of heart - here’s what you’ll need on deck:

  • Detailed business plans spelling out your whole operation
  • Solid security protocols
  • Proof of staff training and industry chops
  • Plans for ongoing compliance and community engagement

License tiers in Minnesota include:

  • Microbusiness: Up to 2,500 sq ft of indoor growing
  • Mezzobusiness: Up to 15,000 sq ft indoors or 1 acre outdoors
  • Full Scale Operations: The big leagues, with tougher rules

Depending on your ambition, you’ll apply as a cannabis retailer or medical cannabis retailer.

Choosing Your Spot: More Than Just Real Estate

Location, location, location - it’s more than a catchphrase in this biz. Minnesota puts a lot of thought into where dispensaries can operate. Stores can’t set up shop within 1,000 feet of schools, playgrounds, public housing, and a bunch of other sensitive areas. Especially in busy towns, you’ll need to get creative and plan ahead. The last thing you want is to sign a lease, only to find out your store’s too close to the local jungle gym. Stay on your toes and watch for any rule tweaks from the OCM - this area is still a moving target. Bookmark the OCM’s website or consider joining industry networks for regular updates. Even the best plans can miss tiny changes.

Getting Down to Business: Planning, Tech, and Compliance

This isn’t just paperwork and paperwork. Your business plan should be robust - here’s what to tackle:

  • Lay out your dream team: who’s running what?
  • Sketch your layout - think store vibe, traffic flow, and safety
  • Spell out everyday operations, from stocking shelves to customer service
  • Show your commitment to steady staff training - it matters more than you think

Tech isn’t something to overlook. If you cut corners on your point-of-sale and inventory system, compliance headaches will creep in fast. That’s where a top-tier cannabis POS — like what we offer at Cova Software — makes all the difference.

Cova is proud to power Legacy Cannabis, and even prouder that our system helped them process 7,000+ sales in a single day during Legacy Cup without a glitch. After supporting hundreds of stores across North America, one thing is clear: solid tech saves time, money, and sanity.

What’s the Timeline? Patience is the Secret Sauce

No surprise, the state’s licensing process is slow as molasses. With social equity applications just starting in mid-2024, expect actual shop openings in 2025 at the earliest, and maybe even 2026 if things slow down. While you wait, use your time smartly:

  • Keep fine-tuning your business and site plans - make them sharp as a tack
  • Reach out to social equity applicants to explore partnerships
  • Invest in compliance-centered technology and ongoing staff development
  • Take a field trip to tribal dispensaries and learn from real customer demand

In short, your application needs to shine the first time. When the next window opens, there might be some tough competition, so preparation is everything.

The Role of Tech: Compliance and Smooth Sailing

Let’s be real - one slip around compliance, and the state could knock on your door. Investing in technology crafted for the cannabis industry is just plain smart. Our compliance software syncs up with Minnesota’s seed-to-sale tracking, making your job way less stressful. From real-time inventory to scanning IDs and keeping you under every purchase limit, tech is your lifeline for avoiding those pricey mistakes. Need quick answers about retail tech? Dive into our up-to-date FAQ here or book a demo to see Cova in action.

Insider Tips for Minnesota Market Success

  • Reach out early to social equity groups - relationships matter here
  • Stay glued to news from the OCM - regulations change fast
  • Scout your store locations with a fine-tooth comb - don’t get snagged by zoning laws
  • Prioritize team training so your customer service is both friendly and compliant
  • Lean on analytics (yes, Cova’s got your back) to customize your inventory and deals as the market evolves

FAQ: What Future Dispensary Owners Are Asking


  • Who can be a social equity applicant? Veterans, folks impacted by old school cannabis rules, residents in less affluent zip codes, and farmers – check the latest OCM guidelines for details.
  • What are the types of licenses in Minnesota? You’ll pick from microbusiness, mezzobusiness, or full-scale retail licenses - each has its own footprint size and requirements.
  • Are the location restrictions really that tight? Absolutely - dispensaries can’t open within 1,000 feet of a whole range of spots like schools and playgrounds. Map it out in advance.
  • How long is the application period? In 2024, the first window for adult-use licenses was just 19 days - future dates haven’t been posted yet, so stay ready.
  • What software do I really need? A cannabis-specific POS and compliance solution, like Cova, will handle state reporting, inventory, ID checks, and purchase limits with no fuss.
  • Do you need a POS that integrates with Metrc? Yes — absolutely. Minnesota mandates seed-to-sale tracking through the Metrc traceability system. All licensed retailers are required to report their inventory, sales, and product movement accurately.

    To stay compliant, you’ll need a POS with built-in Metrc integration that automates reporting, reduces manual work, and minimizes the risk of errors that could lead to fines or violations.

Conclusion: Prep Now, Win Later

Is opening a Minnesota dispensary complicated? Sure. But building a business that lasts is never supposed to be easy. Focus on your fit as a social equity applicant, craft a knockout business plan, and invest in compliance that runs like a well-oiled machine. The opportunity is real for those willing to dig in and do their homework. Got more questions? Want to see how Cova can make your dispensary dream a reality? Connect with us to chat or book a consultation. We’re here every step of the way.