Today we’re going to talk about the best way to put a cannabis business application together. The agenda for today is essentially we’re going to start off with what makes an application successful and then we’re likely to break it down into sections with financials, location, architects, security standard operating procedures, staffing, community benefits, labor, and a lot of other activities that we’re going to tie up neatly in the end.
Just a couple things to offer you an idea of what 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 have over 300 clients situated in various states. We now have clients from California, Colorado, Michigan, Oregon, and Washington.
We’ve also performed spanning a dozen audit related projects in the last year and we’re expected to hit seven digits in revenues in our second full business year. Perform would love you to know that there exists a thorough and deep understanding of tax compliance and assurance related requirements for your cannabis industry which includes cannabis licensing. We may help you with tax preparation and planning, auditing and assurance, business plans, and other things associated with operating a business in the cannabis industry.
So like I said, we’re going first of all exactly what makes a software successful. I do believe what all applicants prospective and current applicants really learn as you go along is the fact that instructions and understanding them is all about eighty percent of passing a successful application. You must understand what precisely the city or the state wants, the way that they wanted delivered. Most of the time, you know, the headers in the requirements may be misleading.
Like I said, you already know, they might say, oh, we need a business plan, however when you browse the requirements are what they’re seeking. It offers nothing related to your typical concept of what your own business plan is really. So half the battle or more than half of the battle is really being aware of what could they be asking for, how can they want me to submit this and and after that submitting it. You’re going to wish to thoroughly address every portion of the application in depth. You want to ensure that you understand the requirements. Although more often than not applications do have the same 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 strategic business plan that requires you to demonstrate and explain your day-to-day operations, which include cash handling practices, a small amount of security, some inventory and documentation where versus the town of LA that may say, oh, we wish 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 business plan. 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 using the right people. You would like to show in the application you have the correct team in position to run an excellent operation. Usually they will ask for the owners or licensees to incorporate a brief writeup demonstrating experience with either the cannabis industry or related field, and in case you don’t have this experience, you’re likely to wish to find individuals who do and include them in your team.
You’re also going to wish to have 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 most states, if not completely of them, would like you to pay attention to. 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 really important thing that you should consider before even trying to get cannabiscultivationconsulting.com is you’re planning to want to ensure that you have enough money to construct out and operate for at least half a year to some year. We get a lot of inquiries from potential clients who want to go into the cannabis industry and they’re always blown away by how much cash actually goes into building out and operating a cannabis business before it becomes profitable and also you know, there’s hardly any other way around the financials, you understand, cities and states is not going to issue permits to individuals that can’t demonstrate a financial ability to begin a business and keep it running. And second, if an individual. We all do get lots of clients that do not have experience with the cannabis cannabis industry.
On the other hand they may have expertise in business, successful business, and that is something which cities take a look at also because not everyone may have cannabis industry experience as it is illegal. It absolutely was illegal on the state level and is now legal. So that you know, if you can to demonstrate some sort of experience in the cannabis industry, you understand that’s a self revealing, however, if you don’t, then you should consider putting a small group of people together that may show strengths in business, finance, HR, that most soon add up to a company.
For example. We obtain a lot of inquiries from individuals who desire to become cannabis business operators that have no training even running their very own business so that they might 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 some day that, hey, we need to go into the cannabis industry and if we pool our money together, we can definitely start one end and sometimes they do have the funds for.
But now you ask who definitely are they members? And lots of time, you may have to pay to outsource for such qualified associates. If you’re going to get into medical cannabis, you might want to possess a doctor or perhaps a pharmacist somehow, shape or form on your own staffing plan. At least for the first six to one year. This always strengthens your chances of being issued a permit and a license simply because you know even if you have the money, you should have the staff and also the members to trudge forward successfully in this particular industry and remain compliant because that is a really big issue…compliance. And as soon as track and trace is fully operational and vodnsg across the board, compliance is going to be among the big determinants of whether or not cannabis business will be successful. So if I were you, a very important thing to do is to go into your bank accounts or perhaps your asset portfolios and find out exactly how much money you have, how much money you’re likely to must raise, and how much cash you’re planning to need to placed into this cannabis business. Because it’s not cheap.
You’re also going to wish to have a really solid understanding of state and local regulations. More often than not, applicants will hire consultants to achieve this for them. Regulations could be tricky because they’re very vague. There’s lots of wiggle room, so you’re going to wish to find somebody that may either be a part of your team to assist you with compliance moving forward, or you’re planning to wish to engage the assistance of a company or perhaps a consulting group that may do this for you like us.
The final thing that you’re really gonna want to take into account before you apply for a cannabis business licenses is wondering what is going to set my business aside from everybody else’s? And a lot of the time this is accomplished through, you already know, giving to a city, but it’s much more about community integration, you already know, flipping the concept of cannabis is bad into how cannabis can in fact be helpful, how it can reach out and touch lives, you understand, over the board, whether it’s for patients or consumers especially for that community where you’re going to setup.