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 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 a lot of other things that we’re likely to tie up neatly in the long run.
Just a couple things to offer you a concept of what we do right 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 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 within our second full business year. We do would love you to know that we have a thorough and deep comprehension of tax compliance and assurance related requirements for your cannabis industry which includes cannabis licensing. We will help you with tax preparation and planning, auditing and assurance, business plans, and everything else related to operating a business in 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 along the way is the fact that instructions and understanding them is approximately 80 % of passing a successful application. You need to know very well what precisely the city or perhaps the state is looking for, how they wanted delivered. Many of the time, you understand, the headers of the requirements can be misleading.
Like I said, you understand, they can say, oh, we need your own business plan, but if you look at the requirements are what they’re requesting. It offers nothing to do with your typical notion of what your own business plan really is. So half the battle or over half in the battle is absolutely being aware of what will they be seeking, how can they really want me to submit this and and then submitting it. You’re going to wish to thoroughly address every area of the application in more detail. You would like to ensure that you realize the requirements. Although more often than not applications do have a similar requirements. They could want specifics that other applications don’t.
For instance, let’s say Lynwood, the metropolis of Lynwood in California. They desire a cannabis strategic business plan that needs one to demonstrate and explain your daily operations, including cash handling practices, a small amount of security, some inventory and documentation where versus the metropolis of LA that might say, oh, we wish 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 business plan. So you should 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 all the right people. You need to show in the application which you have the right team in place to perform an excellent operation. Usually they will likely request the owners or licensees to incorporate a brief writeup demonstrating experience in either the cannabis industry or related field, and in case you don’t have this experience, you’re going to wish to find individuals who do and may include them in your team.
You’re also going to want solid financial projections and security measures to stop fraud. You may already know, cannabis is really a highly regulated industry and they are the two pillars that a lot of states, if not all of these, want you to concentrate on. You’re also planning to want to vet all of your partners, do your homework. You will need to go via a background check which background check is required by all cities and states.
Another important thing that you need to consider before even obtaining cannabis staffing plan is you’re going to want to make sure you have the funds for to construct out and operate for around six months to some year. We receive a lot of inquiries from potential clients who wish to go into the cannabis industry and they’re always amazed by how much cash actually enters into building out and operating a cannabis business before it might be profitable and also you know, there’s not one other way round the financials, you understand, cities and states will never issue permits to individuals that can’t demonstrate a financial capacity to start a business and keep it running. And 2nd, if an individual. We do get lots of clients that do not have experience with the cannabis cannabis industry.
On the contrary they have expertise in business, successful business, and that is something that cities look at also because not everyone may have cannabis industry experience since it is illegal. It had been illegal on a state level and is now legal. Which means you know, if you can to demonstrate some kind of expertise in the cannabis industry, you understand that’s a self revealing, but if you don’t, then you should consider putting a group of people together that can show strengths running a business, finance, HR, that most amount to a company.
As an example. We obtain a lot of inquiries from people that want to become cannabis business operators who have no experience even running their particular business therefore they could have some money, you already know, that they’ve inherited or or some friends, a small group of friends that, hey, you already know, decide one day that, hey, we should get into the cannabis industry and if we pool our money together, we can definitely start one end and often they are doing have the funds for.
But now you ask that are the team members? And a lot of enough time, you might need to pay to outsource for such qualified team members. If you’re going to do get into medical cannabis, you may want to possess a doctor or a pharmacist in some way, shape or form on your own staffing plan. At least for the first six to one year. This always strengthens the chances of you being issued a permit as well as a license since you know even if you have the money, you need to have the employees as well as the members to trudge forward successfully in this 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 be among the big determinants of whether cannabis business is going to be successful. In case I were you, a good thing to perform is to go into your banking accounts or maybe your asset portfolios and find out exactly how much money you have, the amount of money you’re going to need to raise, and how much cash you’re likely to have to put into this cannabis business. Because it’s not cheap.
You’re also planning to want to have a very solid understanding of state and local regulations. Most of the time, applicants will hire consultants to get this done for them. Regulations could be tricky just 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 a part of your team that will help you with compliance moving forward, or you’re planning to desire to engage the services of a business or even a consulting group that can do this for you like us.
The very last thing that you’re really gonna want to consider prior to applying for a cannabis business licenses is wondering what will almost certainly set my business apart from everybody else’s? And a lot of enough time this is achieved through, you understand, 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 helpful, how 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.