Today we’re going to talk about how to put a cannabis business application together. The agenda for today is actually we’re going to start off with the thing that 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 likely to tie up neatly in the end.
Just a few things to provide you with a sense of whatever we do right 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 located in various states. We have now clients from California, Colorado, Michigan, Oregon, and Washington.
We’ve also performed over a dozen audit related projects during the last year and we’re supposed to hit seven digits in revenues within our second full business year. Perform would love you to learn that there exists a thorough and deep understanding of tax compliance and assurance related requirements for your cannabis industry and also this includes cannabis licensing. We may help you with tax preparation and planning, auditing and assurance, business plans, and everything else linked to operating a business inside the cannabis industry.
So like I said, we’re going first of all what makes a software successful. I believe what all applicants prospective and current applicants really learn as you go along is the fact that instructions and understanding them is approximately 80 % of passing an excellent application. You have to understand what the city or the state wants, the way they wanted delivered. Many of the time, you understand, the headers from the requirements can be misleading.
Like I said, you understand, they could say, oh, we require a business plan, however when you browse the requirements are what they’re asking for. It has nothing related to your typical notion of what your own business plan actually is. So half the battle or over fifty percent from the battle is really understanding what will they be seeking, just how do they really want me to submit this and then submitting it. You’re going to desire to thoroughly address every area of the application in depth. You desire to make sure that you recognize the requirements. Although more often than not 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 really want a cannabis business plan that needs you to demonstrate and explain your everyday operations, which include cash handling practices, a little bit of security, some inventory and record keeping where versus the town of LA which may say, oh, we wish a business plan that wants one to show financials what your company’s mission and vision is, which is really what you’d expect in a strategic business plan. So you should be careful and look at the descriptions of the headers because sometimes the headers may be misleading.
Next you’re going to have to surround yourself with all the right people. You want to show inside the application you have the right team in place to operate a successful operation. Usually they will likely ask for the owners or licensees to add a quick writeup demonstrating experience with either the cannabis industry or related field, and if you don’t have this experience, you’re going to want to find people that do and include them in your team.
You’re also likely to want to have solid financial projections and security measures to stop fraud. Everbody knows, cannabis is actually a highly regulated industry and these are the basic two pillars that most states, if not completely of them, would like you to concentrate on. You’re also likely to want to vet your partners, do your due diligence. You are likely to have to go by way of a background check which background check is required by all cities and states.
Another vital thing that you ought to consider before even obtaining cannabiscultivationconsulting.com is you’re going to want to make sure you have enough money to build out and operate for at least six months to some year. We obtain plenty of inquiries from potential customers who wish to enter 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 you know, there’s no other way across the financials, you understand, cities and states will not issue permits to individuals that can’t demonstrate a monetary capacity to begin a business and keep it running. And 2nd, if someone. We all do get a lot of clients which do not have expertise in the cannabis cannabis industry.
On the other hand they have got experience in business, successful business, and that is certainly something that cities examine also because not everybody could have cannabis industry experience because it is illegal. It had been illegal on the state level and is also now legal. Which means you know, if you are able to indicate some type of experience with the cannabis industry, you understand that’s a self revealing, but if you don’t, then you should consider putting a small group of people together that may show strengths in business, finance, HR, that most add up to a company.
For instance. We receive plenty of inquiries from people that desire to become cannabis business operators that have no experience even running their particular business therefore they might have some cash, you already know, that they’ve inherited or or some friends, a group of friends that, hey, you already know, decide 1 day that, hey, we need to enter into the cannabis industry and if we pool our money together, we can definitely start one end and sometimes they do have enough money.
But the question is who are they members? And a lot of the time, you might have to pay to outsource for such qualified staff. If you’re going to do get into medical cannabis, you might want to possess a doctor or a pharmacist somehow, shape or form on the staffing plan. At the very least for that first six to 12 months. This always strengthens the chances of you being issued a permit along with a license since you know even if you have the money, you need to have the staff and also the members to trudge forward successfully within this industry and remain compliant because which is a really big issue…compliance. And as soon as track and trace is fully operational and vodnsg throughout the board, compliance will be among the big determinants of whether cannabis business will be successful. In case I were you, a very important thing to accomplish is to enter your bank accounts or your asset portfolios and discover just how much money you may have, how much cash you’re likely to have to raise, and how much money you’re likely to need to placed into this cannabis business. Because it’s not cheap.
You’re also going to want an extremely solid comprehension of state and local regulations. Usually, applicants will hire consultants to get this done on their behalf. Regulations may be tricky simply because they’re very vague. There’s plenty of wiggle room, so you’re going to desire to find somebody that can either be a part of your team to help you with compliance advancing, or you’re planning to wish to engage the assistance of an organization or a consulting group that will do this to suit your needs like us.
The last thing that you’re really gonna want to consider before you apply for a cannabis business licenses is thinking about what will almost certainly set my company aside from everybody else’s? And lots of the time this is achieved through, you understand, giving to a major city, but it’s much more about community integration, you know, flipping the concept of cannabis is bad into how cannabis can in fact be useful, the actual way it can reach out and touch lives, you understand, throughout the board, whether it’s for patients or consumers especially for the community where you’re going to set up.