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 what makes a software successful and then we’re likely to break it into sections with financials, location, architects, security standard operating procedures, staffing, community benefits, labor, and plenty of other things that we’re going to tie up neatly in the long run.
Just a few things to give you a concept of what we should do here at Green Growth CPAs. We all 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 have over 300 clients based in various states. We now have clients from California, Colorado, Michigan, Oregon, and Washington.
We’ve also performed spanning a dozen audit related projects within the last year and we’re supposed to hit seven digits in revenues inside our second full business year. Perform would love you to know that we have a thorough and deep understanding of tax compliance and assurance related requirements for the cannabis industry which includes cannabis licensing. We will help you with tax preparation and planning, auditing and assurance, business plans, and everything else associated with operating a company in the cannabis industry.
So like I said, we’re going to start with exactly what makes a software successful. I believe what all applicants prospective and current applicants really learn along the way is the fact that instructions and understanding them is all about 80 percent of passing a successful application. You must know very well what precisely the city or perhaps the state wants, the way that they wanted delivered. A lot of the time, you know, the headers in the requirements can be misleading.
Like I said, you already know, they can say, oh, we require a business plan, but when you look at the requirements are what they’re requesting. It provides nothing to do with your typical idea of what a business plan actually is. So half the battle or more than half in the battle is really being aware of what will they be seeking, how do they really want me to submit this and and then submitting it. You’re going to desire to thoroughly address every portion of the application in more detail. You desire to make certain that you understand the prerequisites. Although more often than not applications do have a similar requirements. They could want specifics that other applications don’t.
For example, let’s say Lynwood, the metropolis of Lynwood in California. They really want a cannabis business plan that needs you to demonstrate and explain your day-to-day operations, which include cash handling practices, a little bit of security, some inventory and record keeping where versus the town of LA that may say, oh, we wish 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 strategic business plan. So simply be careful and check out the descriptions in the headers because sometimes the headers may be misleading.
Next you’re going to have to surround yourself using the right people. You need to show inside the application that you have the correct team set up to operate an effective operation. Usually they are going to demand the owners or licensees to incorporate a short writeup demonstrating expertise in either the cannabis industry or related field, and in case you don’t have this experience, you’re likely to desire to find people who do and can include them in your team.
You’re also going to want to have solid financial projections and security measures to stop fraud. You may already know, cannabis is a highly regulated industry and they are the two pillars that most states, if not completely of these, would love you to concentrate on. You’re also planning to want to vet all of your partners, do your homework. You will have to go via a background check and also this background check is needed by all cities and states.
Another really important thing that you need to consider before even applying for cannabis staffing plan is you’re likely to want to ensure that you have enough money to develop out and operate for around half a year to some year. We obtain plenty of inquiries from potential customers who wish to enter 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 will become profitable and also you know, there’s no other way around the financials, you already know, cities and states is not going to issue permits to individuals that can’t demonstrate a monetary capability to start up a business whilst keeping it running. And 2nd, if an individual. We all do get lots of clients which do not have experience in the cannabis cannabis industry.
On the other hand they may have expertise in business, successful business, and that is certainly something which cities look at also because not everybody will have cannabis industry experience since it is illegal. It absolutely was illegal over a state level and is also now legal. So you know, if you are able to demonstrate some sort of expertise in the cannabis industry, you know that’s a self revealing, but when you don’t, then you really need to consider putting a small group of people together that will show strengths in business, finance, HR, that most add up to a business.
For example. We receive lots of inquiries from individuals who desire to become cannabis business operators who have no experience even running their very 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 know, decide some day that, hey, we must go into the cannabis industry and in case we pool our money together, then we can easily start one end and sometimes they are doing have enough money.
But now you ask who are the team members? And lots of enough time, you might need to pay to outsource for such qualified associates. If you’re likely to do get into medical cannabis, you may want to have a doctor or a pharmacist in some way, shape or form on your own staffing plan. A minimum of for your first six to 12 months. This always strengthens your chances of being issued a permit along with a license since you know even if you possess the money, you must have the staff and the members to trudge forward successfully within this industry and remain compliant because which is a really big issue…compliance. And once track and trace is fully operational and vodnsg throughout the board, compliance is going to be among the big determinants of whether or not cannabis business will likely be successful. Therefore if I were you, a very important thing to do is to go into your bank accounts or maybe your asset portfolios and discover just how much money you may have, how much money you’re planning to must raise, and how much cash you’re going to have to put in this cannabis business. Because it’s not cheap.
You’re also likely to want to have a really solid comprehension of state and local regulations. More often than not, applicants will hire consultants to do this to them. Regulations can be tricky simply because they’re very vague. There’s a lot of wiggle room, so you’re likely to desire to find somebody that will either be part of your team to help you with compliance advancing, or you’re going to wish to engage the services of an organization or a consulting group that can do that to suit your needs like us.
The final thing that you’re really gonna want to consider prior to applying for a cannabis business licenses is thinking about what will set my business aside from everybody else’s? And plenty of the time this is accomplished through, you know, giving returning to a major city, but it’s more about community integration, you already know, flipping the thought of cannabis is bad into how cannabis can certainly be useful, how it can reach out and touch lives, you know, over the board, whether it’s for patients or consumers and particularly for your community where you’re going to put together.