But anyone who’d like to get into the business better have a lot of money, they warn. The panelists estimate it can take roughly $1 million to open a dispensary, and between $10 million and $20 million to open a large cultivation center. And because cannabis businesses may not legally deduct expenses, Heizer said, the effective tax rate is about 70%, so with gross margins of 50%, a company might “squeeze out” a 4% profit.