Today we’re going to speak about the best way to put a cannabis business application together. The agenda for today is essentially we’re going to begin with what 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 going to tie up neatly in the long run.
Just a couple things to give you a sense of whatever we do 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 over a dozen audit related projects in the last year and we’re supposed to hit seven digits in revenues inside our second full business year. We do want you to know that we have a thorough and deep knowledge of tax compliance and assurance related requirements for that cannabis industry and 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 in the process is the fact that instructions and understanding them is approximately 80 percent of passing an effective application. You need to know very well what exactly the city or perhaps the state wants, the way that they wanted delivered. A lot of the time, you understand, the headers from the requirements may be misleading.
Like I said, you understand, they can say, oh, we must have a business plan, but when you browse the requirements are what they’re asking for. It provides nothing related to your typical concept of what your own business plan really is. So half the battle or over fifty percent from the battle is really being aware of what could they be seeking, how can they desire me to submit this and and after that submitting it. You’re going to want to thoroughly address every area of the application in more detail. You would like to ensure that you recognize certain requirements. Although usually 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 business strategy that needs you to demonstrate and explain your everyday operations, which include cash handling practices, some security, some inventory and record keeping where versus the metropolis of LA that 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 pretty much what you’d expect in a business strategy. So you should be careful and check out the descriptions from the headers because sometimes the headers may be misleading.
Next you’re going to have to surround yourself with all the right people. You would like to show in the application that you have the best team in position to run a successful operation. Usually they are going to demand the owners or licensees to add a brief writeup demonstrating expertise 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 planning to want solid financial projections and security measures to stop fraud. Everbody knows, cannabis is a highly regulated industry and these are the basic two pillars that a lot of states, if not all of these, want you to focus on. You’re also likely to desire to vet all your partners, do your homework. You are likely to have to go through a background check and this background check is required by all cities and states.
Another vital thing that you need to consider before even obtaining cannabis staffing plan is you’re going to want to ensure that you have the funds for to develop out and operate for at least half a year to a year. We receive lots of inquiries from prospective clients who would like to enter into the cannabis industry and they’re always blown away by how much money actually goes into building out and operating a cannabis business before it will become profitable and also you know, there’s no other way round the financials, you know, cities and states will not issue permits to people that can’t demonstrate a monetary capacity to start a business and keep it running. And second, if a person. Perform get a lot of clients which do not have expertise in the cannabis cannabis industry.
On the contrary they have got experience with business, successful business, and that is certainly a thing that cities take a look at also because not everyone may have cannabis industry experience since it is illegal. It had been illegal over a state level and it is now legal. Which means you know, if you can to demonstrate some kind of experience in the cannabis industry, you understand that’s a self revealing, but when you don’t, then you really need to consider putting a small group of people together that may show strengths in business, finance, HR, that every soon add up to a business.
As an example. We obtain a lot of inquiries from people who wish to become cannabis business operators who have no training even running their particular business therefore they might have some money, you understand, that they’ve inherited or or some friends, a small group of friends that, hey, you already know, decide some day that, hey, we must enter into the cannabis industry and in case we pool our money together, we will surely start one end and sometimes they are doing have enough money.
But the question is who definitely are the group members? And plenty of the time, you might need to pay to outsource for these particular qualified associates. If you’re likely to do get into medical cannabis, you might want to possess a doctor or even a pharmacist in some manner, shape or form on your staffing plan. A minimum of for the first six to one year. This always strengthens your odds of being issued a permit along with a license simply because you know even if you possess the money, you must have the employees and also the members to trudge forward successfully in this industry and remain compliant because that is a really big issue…compliance. And when 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. Therefore if I were you, a good thing to do is to go into your bank accounts or perhaps your asset portfolios and find out just how much money you have, the amount of money you’re likely to must raise, and how much money you’re planning to must put into this cannabis business. Because it’s not cheap.
You’re also planning to wish to have an extremely solid knowledge of state and native regulations. More often than not, applicants will hire consultants to do this for them. Regulations could be tricky because they’re very vague. There’s lots of wiggle room, so you’re planning to wish to find somebody that can be either element of your team to assist you with compliance continuing to move forward, or you’re planning to desire to engage the expertise of a business or perhaps a consulting group that will accomplish this to suit your needs like us.
The last thing that you’re really gonna want to consider prior to applying for a cannabis business licenses is asking yourself what will set my company aside from everybody else’s? And lots of time this is achieved through, you already know, giving back to a town, but it’s much more about community integration, you already know, flipping the idea of cannabis is bad into how cannabis can actually be helpful, how it can reach out and touch lives, you already know, across the board, whether it’s for patients or consumers especially for that community where you’re going to set up.