My issue would be the illegal nature of the business and the ease with which your competition can totally fuck with you. The more successful it becomes the more the competition is going to fuck with you. All they have to do is call the police on you. They can videotape you, your store, call the media, and post stuff on social media. Pose as customers. Get inside.
And that's just the totally easy legal things.
You have no legal recourse and no police protection. In fact, they are your enemies. In fact, everyone is an enemy trying to rob, steal, lie, and hurt you.