Today we’re going to discuss how to put a cannabis business application together. The agenda for today is basically we’re going to begin with exactly what makes an application successful and then we’re planning 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 couple things to give you an idea of what we should do here at Green Growth CPAs. Perform tax preparation and we’ve completed over 500 annual tax returns for cannabis operators spread across all verticals, so that’s dispensary distribution, cultivation, manufacturing, delivery, and testing. We also have over 300 clients based in various states. We have now clients from California, Colorado, Michigan, Oregon, and Washington.
We’ve also performed more than a dozen audit related projects within the last year and we’re expected to hit seven digits in revenues in our second full business year. We all do would love you to learn that we have a thorough and deep understanding of tax compliance and assurance related requirements for that cannabis industry and this includes cannabis licensing. We can help you with tax preparation and planning, auditing and assurance, business plans, and everything else linked to operating a company within the cannabis industry.
So like I said, we’re going first of all what makes an application successful. I think what all applicants prospective and current applicants really learn as you go along is the fact that instructions and understanding them is all about eighty percent of passing an effective application. You must know what the city or the state wants, the way that they wanted delivered. Most of the time, you know, the headers in the requirements may be misleading.
Like I said, you understand, they can say, oh, we require your own business plan, but when you read the requirements are what they’re seeking. It has nothing concerning your typical concept of what your own business plan really is. So half the battle or over half in the battle is actually being aware of what could they be requesting, how do they really want me to submit this and then submitting it. You’re planning to wish to thoroughly address every portion of the application in more detail. You would like to ensure that you recognize the requirements. Although more often than not applications do have the identical requirements. They might want specifics that other applications don’t.
For example, let’s say Lynwood, the city of Lynwood in California. They want a cannabis strategic business plan that needs one 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 town of LA which may say, oh, we want a business plan that wants you to definitely 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 need to surround yourself with the right people. You would like to show inside the application which you have the best team set up to perform a successful operation. Usually they will ask for the owners or licensees to incorporate a brief writeup demonstrating experience with either the cannabis industry or related field, and in case you don’t have this experience, you’re going to want to find people that do and may include them in your team.
You’re also planning to wish to have solid financial projections and security measures to avoid fraud. Everbody knows, cannabis is a highly regulated industry and they are the two pillars that most states, if not completely of these, would like you to pay attention to. You’re also going to wish to vet all of your partners, do your homework. You are going to will need to go by way of a background check and also this background check is needed by all cities and states.
Another important thing that you need to consider before even trying to get cannabis staffing plan is you’re going to want to ensure that you have enough money to construct out and operate for around 6 months to a year. We receive lots of inquiries from prospective clients who want to get into the cannabis industry and they’re always mesmerised by how much money actually enters into building out and operating a cannabis business before it might be profitable and you also know, there’s no other way round the financials, you understand, cities and states is not going to issue permits to folks that can’t demonstrate a financial capability to begin a business while keeping it running. And 2nd, if an individual. Perform get lots of clients that do not have expertise in the cannabis cannabis industry.
On the contrary they may have experience in business, successful business, and that is a thing that cities take a look at also because not everybody will have cannabis industry experience because it is illegal. It was illegal on the state level and it is now legal. So that you know, if you can to indicate some type of expertise in the cannabis industry, you understand that’s a self revealing, but if you don’t, then you will need to consider putting a group of people together that will show strengths in business, finance, HR, that every amount to an organization.
For instance. We get a lot of inquiries from individuals who desire to become cannabis business operators that have no training even running their own business so that they may have some cash, you already know, that they’ve inherited or or some friends, a group of friends that, hey, you understand, decide some day that, hey, we need to enter into the cannabis industry and if we pool our money together, then we can definitely start one end and sometimes they actually do have the funds for.
But now you ask , who definitely are the group members? And plenty of the time, you might have to pay to outsource for such qualified staff. If you’re going to get into medical cannabis, you may want to possess a doctor or perhaps a pharmacist in some way, shape or form on your own 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 possess the money, you must have employees as well as the members to trudge forward successfully in this particular industry and remain compliant because that is a really big issue…compliance. And as soon as track and trace is fully operational and vodnsg over the board, compliance will likely be among the big determinants of whether or not cannabis business is going to be successful. So if I were you, the best thing to perform is to enter your accounts or maybe your asset portfolios and see exactly how much money you may have, how much cash you’re planning to need to raise, and how much money you’re likely to need to put into this cannabis business. Because it’s not cheap.
You’re also planning to wish to have a very solid comprehension of state and local regulations. More often than not, applicants will hire consultants to do this for them. Regulations may be tricky because they’re very vague. There’s plenty of wiggle room, so you’re likely to wish to find somebody that can either be element of your team to assist you with compliance moving forward, or you’re likely to want to engage the assistance of a business or perhaps a consulting group that will do this for you like us.
The final thing that you’re really gonna want to consider prior to applying for a cannabis business licenses is wondering what will set my business aside from everybody else’s? And a lot of the time this is achieved through, you already know, giving back to a major city, 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 useful, the actual way it can reach out and touch lives, you understand, throughout the board, whether it’s for patients or consumers and particularly for your community where you’re going to put together.