Today we’re going to talk about how to put a cannabis business application together. The agenda for today is essentially we’re going to start off with the thing that makes a software 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 activities that we’re planning to tie up neatly ultimately.
Just a few things to give you a concept of whatever we 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 also have over 300 clients located in various states. We now have 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 inside 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 anything else linked to operating an organization in the cannabis industry.
So like I said, we’re going first of all the thing that makes a software successful. I do believe what all applicants prospective and current applicants really learn along the way is the fact that instructions and understanding them is approximately 80 percent of passing an effective application. You must know what the city or the state wants, the way they wanted delivered. Most of the time, you understand, the headers in the requirements could be misleading.
Like I said, you know, they might say, oh, we need your own business plan, however when you browse the requirements are what they’re requesting. It offers nothing concerning your typical concept of what a business plan is really. So half the battle or over half in the battle is actually understanding what are they asking for, just how do they want me to submit this and then submitting it. You’re planning to desire to thoroughly address every portion of the application in more detail. You desire to make sure that you realize the requirements. Although usually applications do have the same requirements. They might want specifics that other applications don’t.
For instance, let’s say Lynwood, the town of Lynwood in California. They want a cannabis business strategy that requires one to demonstrate and explain your everyday operations, which include cash handling practices, a little bit of security, some inventory and documentation where versus the metropolis of LA that may say, oh, you want 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 simply be careful and check out the descriptions from the headers because sometimes the headers can be misleading.
Next you’re going to have to surround yourself with the right people. You want to show inside the application that you have the correct team set up to perform a successful operation. Usually they will ask for the owners or licensees to incorporate 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 wish to find individuals who do and can include them in your team.
You’re also likely to want to have solid financial projections and security measures to avoid fraud. Everbody knows, cannabis is actually a highly regulated industry and these are the two pillars that many states, if not all of those, would love you to concentrate on. You’re also going to want to vet your partners, do your due diligence. You are going to need to go through a background check and this background check is necessary by all cities and states.
Another vital thing that you ought to consider before even applying for 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 plenty of inquiries from prospective clients who want to go into the cannabis industry and they’re always amazed by how much money actually goes into building out and operating a cannabis business before it might be profitable and 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 financial capacity to start up a business and keep it running. And 2nd, if an individual. We all do get a lot of clients that do not have experience with the cannabis cannabis industry.
On the contrary they have experience with business, successful business, and that is something which cities look at also because not everyone may have cannabis industry experience because it is illegal. It absolutely was illegal on a state level and is also now legal. So you know, if you are able to show some sort 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 will show strengths running a business, finance, HR, that all soon add up to a business.
For instance. We get a lot of inquiries from people who wish to become cannabis business operators who have no experience even running their own business so 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 should get into the cannabis industry and in case we pool our money together, we can easily start one end and sometimes they are doing have the funds for.
But now you ask , who are the group members? And plenty of time, you may have to pay to outsource for such qualified team members. If you’re likely 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. A minimum of for your first six to 12 months. This always strengthens your chances of being issued a permit and a license since you know even if you possess the money, you need to have employees and also the members to trudge forward successfully in this particular industry and remain compliant because that is a really big issue…compliance. And when track and trace is fully operational and vodnsg across the board, compliance will be one of the big determinants of whether cannabis business is going to be successful. So if I were you, the best thing to do is to go into your banking accounts or your asset portfolios and discover just how much money you might have, how much money you’re planning to must raise, and how much cash you’re likely to have to put in this cannabis business. Because it’s not cheap.
You’re also likely to want a really solid understanding of state and native regulations. Usually, applicants will hire consultants to achieve this to them. Regulations can be tricky simply because they’re very vague. There’s plenty of wiggle room, so you’re likely 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 going to want to engage the services of an organization or perhaps a consulting group that may do that for you personally like us.
The final thing that you’re really gonna want to consider prior to applying for a cannabis business licenses is asking yourself what is going to set my business besides everybody else’s? And lots of enough time this is achieved through, you understand, giving returning to a town, but it’s a little 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 setup.