Today we’re going to talk about the best way to put a cannabis business application together. The agenda for today is basically we’re going to start off with what makes a software successful and then we’re planning to break it into sections with financials, location, architects, security standard operating procedures, staffing, community benefits, labor, and lots of other stuff that we’re going to tie up neatly in the end.
Just a couple things to give you a sense of what we do right here at Green Growth CPAs. Perform tax preparation and we’ve completed over 500 annual tax statements for cannabis operators spread across all verticals, so that’s dispensary distribution, cultivation, manufacturing, delivery, and testing. We also have over 300 clients situated in various states. We 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 supposed to hit seven digits in revenues within our second full business year. Perform would love you to learn that there exists a thorough and deep knowledge of tax compliance and assurance related requirements for that cannabis industry which includes cannabis licensing. We may help you with tax preparation and planning, auditing and assurance, business plans, and anything else associated with operating a company inside the cannabis industry.
So like I said, we’re going to start with the thing that makes a software successful. I believe what all applicants prospective and current applicants really learn along the way is that the instructions and understanding them is approximately eighty percent of passing a successful application. You need to understand what the city or perhaps the state is looking for, the way that they wanted delivered. Many of the time, you already know, the headers in the requirements may be misleading.
Like I said, you already know, they might say, oh, we require a business plan, but when you read the requirements are what they’re seeking. It provides nothing to do with your typical concept of what a business plan really is. So half the battle or over half of the battle is absolutely understanding what are they seeking, how do they really want me to submit this and then submitting it. You’re likely to want to thoroughly address every area of the application in detail. You want to ensure that you recognize the requirements. Although most of the time applications do have the identical requirements. They could want specifics that other applications don’t.
As an example, let’s say Lynwood, the city of Lynwood in California. They want a cannabis business plan that needs one to demonstrate and explain your daily operations, which include cash handling practices, a little bit of security, some inventory and record keeping where versus the metropolis of LA which may say, oh, you want 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 business plan. So just be careful and look at the descriptions of the headers because sometimes the headers could be misleading.
Next you’re going to have to surround yourself using the right people. You need to show inside the application you have the best team set up to run an effective operation. Usually they are going to ask for the owners or licensees to incorporate a quick writeup demonstrating experience in either the cannabis industry or related field, and if you don’t have this experience, you’re likely to want to find people who do and may include them within your team.
You’re also likely to want solid financial projections and security measures to prevent fraud. As you know, cannabis is a highly regulated industry and these are the basic two pillars that most states, if not all of them, want you to pay attention to. You’re also likely to desire to vet all your partners, do your due diligence. You are likely to have to go through a background check and also this background check is necessary by all cities and states.
Another important thing that you should consider before even applying for cannabis staffing plan is you’re likely to want to make sure you have enough money to build out and operate for around six months to a year. We get lots of inquiries from potential clients who want to go into the cannabis industry and they’re always blown away by the amount of money 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 know, cities and states will not issue permits to folks that can’t demonstrate an economic capability to start up a business while keeping it running. And 2nd, if an individual. Perform get plenty of clients which do not have experience in the cannabis cannabis industry.
On the other hand they have got experience with business, successful business, and that is certainly something that cities examine also because not everyone could have cannabis industry experience as it is illegal. It was illegal on the state level and it is now legal. Which means you know, if you can to demonstrate some type of expertise in the cannabis industry, you understand that’s a self revealing, but if you don’t, then you really need to consider putting a group of people together that will show strengths in business, finance, HR, that all amount to an organization.
As an example. We get lots of inquiries from individuals who wish to become cannabis business operators who have no experience even running their own business so that they might have some funds, you understand, that they’ve inherited or or some friends, a group of friends that, hey, you already know, decide 1 day that, hey, we must go into the cannabis industry and when we pool our money together, then we can definitely start one end and sometimes they do have the funds for.
But the question is that are the group members? And plenty of enough time, you might have to pay to outsource for these qualified team members. If you’re planning to do get into medical cannabis, you might like to have a doctor or even a pharmacist somehow, shape or form on your own staffing plan. At least for the first six to 12 months. This always strengthens your odds of being issued a permit along with a license since you know even if you possess the money, you need to have the staff as well as the members to trudge forward successfully within this industry and remain compliant because that is a really big issue…compliance. And when track and trace is fully operational and vodnsg throughout the board, compliance will likely be one of the big determinants of whether cannabis business will be successful. In case I were you, a good thing to accomplish is to enter your accounts or maybe your asset portfolios and find out exactly how much money you may have, how much cash you’re going to have to raise, and how much money you’re going to have to placed into this cannabis business. Because it’s not cheap.
You’re also going to want to have an extremely solid comprehension of state and local regulations. Usually, applicants will hire consultants to do this to them. Regulations could be tricky because they’re very vague. There’s a lot of wiggle room, so you’re going to desire to find somebody that may either be a part of your team to help you with compliance continuing to move forward, or you’re going to desire to engage the assistance of an organization or even a consulting group that will accomplish this to suit your needs like us.
The final thing that you’re really gonna want to consider before you apply for a cannabis business licenses is thinking about what will almost certainly set my business aside from everybody else’s? And plenty of time this is accomplished through, you already know, giving back to a town, but it’s more about community integration, you already know, flipping the thought of cannabis is bad into how cannabis can actually be useful, the actual way it can reach out and touch lives, you understand, across the board, whether it’s for patients or consumers especially for your community where you’re going to setup.