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 begin with the thing that makes a software successful and then we’re going to break it into sections with financials, location, architects, security standard operating procedures, staffing, community benefits, labor, and lots of other activities that we’re likely to tie up neatly ultimately.
Just a couple things to provide you with an idea of whatever we do here at Green Growth CPAs. We 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 have over 300 clients located in various states. We have clients from California, Colorado, Michigan, Oregon, and Washington.
We’ve also performed more than 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 would like you to find out that we have a thorough and deep understanding of tax compliance and assurance related requirements for your cannabis industry and this includes cannabis licensing. We can help you with tax preparation and planning, auditing and assurance, business plans, and anything else related to operating an organization within the cannabis industry.
So like I said, we’re going first of all what makes a software 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 understand what the city or even the state wants, how they wanted delivered. Many of the time, you know, the headers of the requirements may be misleading.
Like I said, you understand, they might say, oh, we require your own business plan, but if you browse the requirements are what they’re seeking. It provides nothing to do with your typical notion of what your own business plan is really. So half the battle or over half in the battle is absolutely being aware of what could they be asking for, how can they desire me to submit this and and then submitting it. You’re going to wish to thoroughly address every part of the application in depth. 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.
As an example, let’s say Lynwood, the town of Lynwood in California. They want a cannabis strategic business plan that needs you to demonstrate and explain your everyday operations, including cash handling practices, some security, some inventory and record keeping where versus the town of LA that may say, oh, we want a business plan that wants you to show financials what your company’s mission and vision is, which is really what you’d expect in a business plan. So you should be careful and look at the descriptions from the headers because sometimes the headers may be misleading.
Next you’re going to need to surround yourself using the right people. You would like to show in the application you have the best team in position to perform an effective operation. Usually they will request the owners or licensees to add a brief writeup demonstrating experience in either the cannabis industry or related field, and if you don’t have this experience, you’re likely to wish to find people who do and include them inside your team.
You’re also going to want solid financial projections and security measures to stop fraud. You may already know, cannabis is actually a highly regulated industry and these are the basic two pillars that a lot of states, if not completely of those, want you to concentrate on. You’re also planning to desire to vet all of your partners, do your homework. You will will need to go through a background check which background check is required by all cities and states.
Another vital thing that you should consider before even obtaining cannabis staffing plan is you’re planning to want to make sure you have the funds for to construct out and operate for about half a year to your year. We receive plenty of inquiries from potential customers who wish to get into the cannabis industry and they’re always amazed by how much money actually is put into building out and operating a cannabis business before it becomes profitable and also you know, there’s no other way across the financials, you already know, cities and states will not issue permits to folks that can’t demonstrate an economic capability to begin a business while keeping it running. And second, if someone. We do get lots of clients which do not have experience in the cannabis cannabis industry.
On the contrary they may have experience with business, successful business, and that is certainly something that cities take a look at also because not everybody will have cannabis industry experience as it is illegal. It absolutely was illegal on a state level and is also now legal. Which means you know, if you are able to show some type of experience with the cannabis industry, you know that’s a self revealing, however, if you don’t, then you will need to consider putting a small group of people together that can show strengths in business, finance, HR, that most add up to a company.
For example. We get plenty of inquiries from people who wish to become cannabis business operators which have no experience even running their own business so they may have some cash, you understand, that they’ve inherited or or some friends, a small group of friends that, hey, you understand, decide one day that, hey, we should go into the cannabis industry and if we pool our money together, then we can definitely start one end and quite often they actually do have enough money.
But now you ask , who are the team members? And plenty of the time, you might have to pay to outsource for these particular qualified staff. If you’re going to do get into medical cannabis, you might like to have a doctor or even a pharmacist in some way, shape or form on your own staffing plan. At the very least for your first six to 12 months. This always strengthens the chances of you being issued a permit as well as a license simply because you know even if you possess the money, you should have employees and also the members to trudge forward successfully in this industry and remain compliant because that is a really big issue…compliance. And once track and trace is fully operational and vodnsg across the board, compliance is going to be among the big determinants of whether cannabis business will likely be successful. Therefore if I were you, a good thing to do is to enter your accounts or maybe your asset portfolios and find out just how much money you might have, how much cash you’re going to must raise, and how much money you’re going to need to put into this cannabis business. Because it’s not cheap.
You’re also planning to want a really solid comprehension of state and native regulations. Most of the time, applicants will hire consultants to get this done to them. Regulations can be tricky simply because they’re very vague. There’s plenty of wiggle room, so you’re planning to desire to find somebody that will either be a part of your team that will help you with compliance advancing, or you’re planning to want to engage the services of a business or even a consulting group that may do this for you like us.
The very last thing that you’re really gonna want to consider before you apply for a cannabis business licenses is wondering what will set my business aside from everybody else’s? And plenty of time this is achieved through, you already know, giving returning to a city, but it’s a little more about community integration, you already know, flipping the idea of cannabis is bad into how cannabis can in fact be useful, the way it can reach out and touch lives, you know, across the board, whether it’s for patients or consumers and particularly for your community where you’re going to set up.