Today we’re going to discuss the best way to put a cannabis business application together. The agenda for today is basically we’re going to begin with what 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 going to tie up neatly in the long run.
Only a few things to give you a sense of what we do right 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 more than a dozen audit related projects during the last year and we’re anticipated to hit seven digits in revenues inside our second full business year. We do want you to know that there exists a thorough and deep comprehension 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 related to operating a company within the cannabis industry.
So like I said, we’re going to begin with exactly what makes a software successful. I do believe what all applicants prospective and current applicants really learn along the way would be that the instructions and understanding them is approximately eighty percent of passing an effective application. You need to understand what the city or the state is looking for, the way they wanted delivered. Most of the time, you know, the headers of the requirements could be misleading.
Like I said, you understand, they could say, oh, we must have a business plan, but if you read the requirements are what they’re requesting. It provides nothing related to your typical concept of what a business plan is really. So half the battle or over fifty percent in the battle is actually being aware of what are they asking for, how can they desire me to submit this and then submitting it. You’re planning to desire to thoroughly address every portion of the application in detail. You desire to ensure that you recognize certain requirements. Although more often than not applications do have a similar requirements. They may want specifics that other applications don’t.
As an example, let’s say Lynwood, the city of Lynwood in California. They desire a cannabis business strategy that needs one to demonstrate and explain your everyday operations, which include cash handling practices, a little bit of security, some inventory and record keeping where versus the town 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 strategic business plan. So just be careful and check out the descriptions of 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 you have the right team in position to run an excellent operation. Usually they are going to ask for the owners or licensees to add a quick writeup demonstrating expertise in either the cannabis industry or related field, and if you don’t have this experience, you’re planning to wish to find people that do and may include them within your team.
You’re also likely to want to have solid financial projections and security measures to avoid fraud. You may already know, cannabis is really a highly regulated industry and these are the basic two pillars that most states, if not completely of those, want you to pay attention to. You’re also likely to wish to vet all of your partners, do your due diligence. You are going to need to go via a background check which background check is required by all cities and states.
Another really important thing that you ought to consider before even obtaining cannabiscultivationconsulting.com is you’re going to want to ensure that you have enough money to develop out and operate for about six months to your year. We get plenty of inquiries from prospective clients who would like to enter into the cannabis industry and they’re always amazed by how much money actually enters into building out and operating a cannabis business before it becomes profitable and you know, there’s not one other way around the financials, you understand, cities and states will not issue permits to individuals that can’t demonstrate a monetary ability to start up a business whilst keeping it running. And 2nd, if someone. We all do get lots 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 something that cities take a look at also because not everybody could have cannabis industry experience because it is illegal. It absolutely was illegal on a state level and it is now legal. Which means you know, if you can to demonstrate some type of experience with the cannabis industry, you understand that’s a self revealing, but 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 amount to a business.
For instance. We get plenty of inquiries from people that desire to become cannabis business operators which have no experience even running their very own business so that they could have some funds, you understand, that they’ve inherited or or some friends, a group of friends that, hey, you know, decide one day that, hey, we need to go into the cannabis industry and in case we pool our money together, then we can definitely start one end and quite often they are doing have enough money.
But now you ask that are the team members? And plenty of enough time, you might have to pay to outsource for such qualified staff. If you’re going to do get into medical cannabis, you might want to possess a doctor or a pharmacist in some way, shape or form on your own staffing plan. At the very least for your first six to one year. This always strengthens the chances of you being issued a permit as well as a license because you know even if you possess the money, you should have the employees and also the members to trudge forward successfully in this particular industry and remain compliant because which is a really big issue…compliance. And as soon as track and trace is fully operational and vodnsg throughout the board, compliance is going to be one of the big determinants of whether cannabis business will likely be successful. Therefore if I were you, a good thing to accomplish is to go into your banking accounts or your asset portfolios and find out exactly how much money you might have, how much money you’re likely to have to raise, and the amount of money you’re going to need to put in this cannabis business. Because it’s not cheap.
You’re also planning to want an extremely solid comprehension of state and native regulations. More often than not, applicants will hire consultants to get this done on their behalf. 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 continuing to move forward, or you’re likely to desire to engage the assistance of a company or a consulting group that will do this to suit your needs like us.
The last thing that you’re really gonna want to take into account before you apply for a cannabis business licenses is asking yourself what will almost certainly set my business apart from everybody else’s? And lots of time this is accomplished through, you already know, giving back to a town, but it’s a little 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 already know, throughout the board, whether it’s for patients or consumers and especially for that community where you’re going to set up.