Today we’re going to speak about how to put a cannabis business application together. The agenda for today is essentially we’re going to start off with what makes an application successful and then we’re going to break it down into sections with financials, location, architects, security standard operating procedures, staffing, community benefits, labor, and plenty of other stuff that we’re planning to tie up neatly in the end.
Only a few things to provide you with an idea of what we do here at Green Growth CPAs. We all do tax preparation and we’ve completed over 500 annual tax statements for cannabis operators spread across all verticals, so that’s dispensary distribution, cultivation, manufacturing, delivery, and testing. We also have over 300 clients situated in various states. We have now clients from California, Colorado, Michigan, Oregon, and Washington.
We’ve also performed spanning a dozen audit related projects during the last year and we’re expected to hit seven digits in revenues within our second full business year. We do want you to learn that we have a thorough and deep knowledge of tax compliance and assurance related requirements for the cannabis industry and also this includes cannabis licensing. We will help you with tax preparation and planning, auditing and assurance, business plans, and everything else linked to operating an organization within the cannabis industry.
So like I said, we’re going to start with the thing that makes an application successful. I think what all applicants prospective and current applicants really learn in the process is that the instructions and understanding them is all about 80 % of passing a successful application. You must know what the city or the state is looking for, the way they wanted delivered. Most of the time, you know, the headers in the requirements can be misleading.
Like I said, you understand, they can say, oh, we must have your own business plan, however when you read the requirements are what they’re requesting. It provides nothing related to your typical concept of what your own business plan is really. So half the battle or over half from the battle is really being aware of what could they be requesting, how do they desire me to submit this and then submitting it. You’re planning to desire to thoroughly address every portion of the application in detail. You want to make sure that you recognize certain requirements. Although most of the time applications do have the identical requirements. They could want specifics that other applications don’t.
For example, let’s say Lynwood, the metropolis of Lynwood in California. They desire a cannabis strategic business plan that will require you to demonstrate and explain your everyday operations, which includes cash handling practices, a small amount of security, some inventory and record keeping where versus the city of LA that might say, oh, we want your own business plan that wants one to show financials what your company’s mission and vision is, which is pretty much what you’d expect in a business plan. So you should be careful and check out the descriptions in the headers because sometimes the headers may be misleading.
Next you’re going to need to surround yourself using the right people. You need to show inside the application you have the best team in place to run an effective operation. Usually they will ask for the owners or licensees to include a brief writeup demonstrating experience with either the cannabis industry or related field, and if you don’t have this experience, you’re planning to want to find individuals who do and can include them within your team.
You’re also planning to want solid financial projections and security measures to avoid fraud. As you know, cannabis is really a highly regulated industry and they are the two pillars that many states, if not completely of those, want you to concentrate on. You’re also likely to desire to vet all your partners, do your due diligence. You will have to go by way of a background check which background check is necessary by all cities and states.
Another vital thing that you ought to consider before even obtaining cannabis staffing plan is you’re going to want to make sure you have enough money to build out and operate for around 6 months to some year. We receive a lot of inquiries from potential clients who wish to enter into the cannabis industry and they’re always mesmerised by how much cash actually is put into building out and operating a cannabis business before it will become profitable and you know, there’s not one other way across the financials, you understand, cities and states will never issue permits to people that can’t demonstrate a monetary capacity to start a business whilst keeping it running. And 2nd, if someone. Perform get lots of clients which do not have experience in the cannabis cannabis industry.
On the contrary they have got experience in business, successful business, and that is something that cities take a look at also because not everybody will have cannabis industry experience as it is illegal. It had been illegal over a state level and is also now legal. So you know, if you can to indicate some sort of experience with the cannabis industry, you already know that’s a self revealing, but when you don’t, then you really need to consider putting a group of people together that may show strengths in operation, finance, HR, that all add up to a business.
For example. We get lots of inquiries from people who wish to become cannabis business operators that have no experience even running their very own business so that they may have some money, you understand, that they’ve inherited or or some friends, a small group of friends that, hey, you know, decide one day that, hey, we must go into the cannabis industry and if we pool our money together, then we can easily start one end and often they are doing have enough money.
But now you ask , who definitely are they members? And lots of the time, you might have to pay to outsource for such qualified associates. If you’re planning to get into medical cannabis, you might like to possess a doctor or a pharmacist in some way, shape or form on your staffing plan. A minimum of for your first six to one year. This always strengthens your odds of being issued a permit as well as a license simply because you know even if you possess the money, you need to have the employees as well as the members to trudge forward successfully within this industry and remain compliant because which is a really big issue…compliance. And once track and trace is fully operational and vodnsg over the board, compliance is going to be one of many big determinants of whether cannabis business is going to be successful. So if I were you, a very important thing to perform is to go into your accounts or your asset portfolios and discover exactly how much money you have, how much cash you’re likely to need to raise, and how much cash you’re going to have to put into this cannabis business. Because it’s not cheap.
You’re also planning to wish to have a really solid comprehension of state and native regulations. More often than not, applicants will hire consultants to do this for them. Regulations could be tricky simply because they’re very vague. There’s a lot of wiggle room, so you’re planning to want to find somebody that will either be a part of your team to assist you with compliance moving forward, or you’re likely to want to engage the services of a company or a consulting group that will do that to suit your needs like us.
The very last thing that you’re really gonna want to consider prior to applying for a cannabis business licenses is asking yourself what will almost certainly set my company besides everybody else’s? And plenty of enough time this is achieved through, you understand, giving returning to a town, but it’s a little more about community integration, you know, flipping the thought of cannabis is bad into how cannabis can in fact be helpful, how it can reach out and touch lives, you already know, over the board, whether it’s for patients or consumers especially for the community where you’re going to set up.