If you’re considering opening a cannabis dispensary in California, now might be the time. Since the cultivation and sale of recreational marijuana was legalized in California in January, less than 400 retail recreational-focused storefronts have been opened in the state. This equates to less than one dispensary for every 100,000 age-appropriate customers, which, when compared to Oregon’s 14 stores-per-100,000 ratio, indicates there aren’t nearly enough stores to satisfy the state’s demand.

The lure of becoming a purveyor of cannabis is certainly understandable. In the first two months of legalization, California residents spent $339 million on recreational marijuana products. With a good location, a knowledgeable staff, a trusted supplier, and a great marketing campaign, you, too, can take advantage of this 21st century version of the California Gold Rush. But is that really everything you need to start and maintain a profitable recreational cannabis company in California? Not by a longshot. Here are three things that you absolutely must consider before even thinking about stocking your first strain.

Licensing

Recreational marijuana may be legal, but the California Bureau of Cannabis Control has laid out strict guidelines for every aspect of the supply chain, from growing to processing to selling to possession. This may be obvious, but it’s worth repeating: Do not even consider starting a cannabis business without first obtaining the appropriate licensing. The bureau offers a ton of excellent resources to help you prepare for and complete the application process.

Although the process is straightforward — you know exactly what information will be required to submit on and along with your application — obtaining, gathering, and compiling this information can be time-consuming. Study the checklists, FAQs, and license application before you start filling it out so that you’ll experience no frustrating roadblocks or requests for additional information along the way.

Be prepared to supply verification that you’ve complied with your local licensing and permit regulations (which may differ from those at the state level), and that you and your proposed location comply with all applicable laws. You’ll also be asked to supply financial documents, business formation information, a detailed scale diagram of your store, proposed operating procedures, and a surety bond along with your application fee. Yes, it’s a lot — but it’s worthwhile so that you, your employees, and your customers will be fully satisfied with your new business.

Attorney

Having an attorney who specializes in helping you obtain your marijuana license in California can be exceptionally helpful. Cannabis law is a growing specialization for California attorneys, and whether or not you ask one of these professionals for help before applying for your license (which would be an excellent idea), you should speak with and retain an attorney specializing in marijuana law to ensure that your business is operating within guidelines and to help you with other law-related needs, such as changes in rules and regulations, defense against liability claims or employment disputes, and general business advice.

Insurance

So after all of your (and your attorney’s) careful preparation, you’ve submitted your application, and it’s been approved. You’re ready to hang out your marijuana-leaf-adorned shingle, right? Not so fast. The third thing you must absolutely have in place before selling your first flower is insurance. Like attorneys, some insurance agencies now specialize in policies for all types of cannabis businesses, including retail dispensaries. Exit 15 W Agency, a provider of cannabis industry insurance in Sacramento, CA, recommends a legal marijuana dispensary policy to protect you and your employees from liabilities and loss. A typical retailer policy can (and should) include protection against property damage, loss of inventory (even in transit), and loss of income in the event of a fire or other catastrophe. Additionally, coverage can include liability for claims from customers who have suffered unexpected reactions or side effects from the products you sell.