Today we’re going to speak 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 a software 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 activities that we’re likely to tie up neatly in the end.
Just a few things to offer you a sense of whatever we do right here at Green Growth CPAs. We do 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 situated in various states. We now have clients from California, Colorado, Michigan, Oregon, and Washington.
We’ve also performed over a dozen audit related projects in the last year and we’re expected to hit seven digits in revenues within our second full business year. We all do want you to learn that we have a thorough and deep comprehension 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 other things associated with operating a business within the cannabis industry.
So like I said, we’re going to begin with the thing that makes an application successful. I do believe what all applicants prospective and current applicants really learn along the way is that the instructions and understanding them is approximately eighty percent of passing an excellent application. You have to know what exactly the city or perhaps the state is looking for, the way that they wanted delivered. A lot of the time, you understand, the headers in the requirements could be misleading.
Like I said, you already know, they could say, oh, we need a business plan, but if you look at the requirements are what they’re asking for. It has nothing to do with your typical concept of what a business plan is really. So half the battle or more than half from the battle is absolutely understanding what could they be seeking, just how do they really want me to submit this and then submitting it. You’re going to wish to thoroughly address every portion of the application in more detail. You would like to ensure that you recognize certain requirements. Although more often than not applications do have a similar requirements. They may want specifics that other applications don’t.
For instance, let’s say Lynwood, the metropolis of Lynwood in California. They really want a cannabis strategic business plan that requires one to demonstrate and explain your day-to-day operations, which includes cash handling practices, a small amount of security, some inventory and record keeping where versus the metropolis of LA that may say, oh, you want your own business plan that wants you to definitely show financials what your company’s mission and vision is, which is pretty much what you’d expect in a strategic business plan. So simply be careful and check out the descriptions of the headers because sometimes the headers may be misleading.
Next you’re going to have to surround yourself with the right people. You need to show in the application you have the correct team in position to run an effective operation. Usually they will likely request the owners or licensees to include a brief writeup demonstrating experience in either the cannabis industry or related field, and when you don’t have this experience, you’re going to desire to find individuals who do and may include them inside your team.
You’re also likely to want to have solid financial projections and security measures to avoid fraud. As you know, cannabis is actually a highly regulated industry and these are the basic two pillars that a lot of states, if not completely of these, want you to concentrate on. You’re also planning to want to vet all of your partners, do your due diligence. You are likely to will need to go by way of a background check and this background check is required by all cities and states.
Another vital thing that you need to consider before even trying to get cannabis staffing plan is you’re planning to want to successfully have the funds for to build out and operate for around 6 months to your year. We obtain a lot of inquiries from potential clients who want to enter into the cannabis industry and they’re always blown away by the amount of money actually goes into building out and operating a cannabis business before it will become profitable and you know, there’s no other way across the financials, you already know, cities and states is not going to issue permits to people that can’t demonstrate a monetary ability to start a business whilst keeping it running. And second, if an individual. Perform 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 look at also because not everybody will have cannabis industry experience since it is illegal. It had been illegal on the state level and is also now legal. So you know, if you can to demonstrate some kind of experience in the cannabis industry, you know that’s a self revealing, but if you don’t, then you will need to consider putting a group of people together that can show strengths running a business, finance, HR, that all soon add up to a business.
As an example. We receive lots of inquiries from people who desire to become cannabis business operators which have no training even running their particular business so they may have some money, you understand, that they’ve inherited or or some friends, a group of friends that, hey, you understand, decide one day that, hey, we must go into the cannabis industry and if we pool our money together, we can easily start one end and often they actually do have the funds for.
But now you ask who are the team members? And a lot of time, you might need to pay to outsource for these particular qualified team members. If you’re going to get into medical cannabis, you might like to use a doctor or perhaps a pharmacist in some way, shape or form on your own staffing plan. At least for your first six to 12 months. This always strengthens the chances of you being issued a permit and a license since you know even if you possess the money, you need to have the staff as well as the members to trudge forward successfully within this industry and remain compliant because which is a really big issue…compliance. And when track and trace is fully operational and vodnsg across the board, compliance will be among the big determinants of if cannabis business is going to be successful. Therefore if I were you, the best thing to do is to go into your bank accounts or perhaps your asset portfolios and see precisely how much money you have, how much money you’re going to have to raise, and the amount of money you’re likely to must put into this cannabis business. Because it’s not cheap.
You’re also planning to want to have a very solid comprehension of state and local regulations. More often than not, applicants will hire consultants to get this done on their behalf. Regulations can be tricky because they’re very vague. There’s lots of wiggle room, so you’re likely to wish to find somebody that will be either element of your team that will help you with compliance moving forward, or you’re planning to desire to engage the expertise of a company or perhaps a consulting group that may accomplish this to suit your needs like us.
The last thing that you’re really gonna want to think about before you apply for a cannabis business licenses is asking yourself what is going to set my business apart from everybody else’s? And plenty of time this is achieved through, you know, giving back to a city, but it’s much more about community integration, you know, flipping the thought of cannabis is bad into how cannabis can certainly be useful, the way it can reach out and touch lives, you already know, throughout the board, whether it’s for patients or consumers and especially for that community where you’re going to setup.