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 the thing that 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 things that we’re going to tie up neatly in the end.
Just a few things to offer you a concept of whatever 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 situated in various states. We have clients from California, Colorado, Michigan, Oregon, and Washington.
We’ve also performed spanning a dozen audit related projects during the last year and we’re supposed to hit seven digits in revenues within our second full business year. We all do would like you to know that there exists a thorough and deep comprehension of tax compliance and assurance related requirements for your cannabis industry and 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 inside the cannabis industry.
So like I said, we’re going to begin with what makes an application successful. I do believe what all applicants prospective and current applicants really learn along the way is that the instructions and understanding them is all about 80 percent of passing an excellent application. You must know very well what exactly the city or even the state wants, how they wanted delivered. Most of the time, you already know, the headers of the requirements can 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 asking for. It has nothing to do with your typical idea of what your own business plan really is. So half the battle or over fifty percent in the battle is really being aware of what will they be asking for, just how do they really want me to submit this and and then submitting it. You’re planning to desire to thoroughly address every part of the application in detail. You would like to ensure that you understand certain requirements. Although more often than not applications do have the same requirements. They might want specifics that other applications don’t.
For example, let’s say Lynwood, the town of Lynwood in California. They desire a cannabis strategic business plan that needs you to definitely demonstrate and explain your day-to-day operations, including cash handling practices, some security, some inventory and record keeping where versus the town of LA that may say, oh, we 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 strategy. So just be careful and check out the descriptions in the headers because sometimes the headers may be misleading.
Next you’re going to need to surround yourself with the right people. You want to show within the application you have the right team set up to run an effective operation. Usually they are going to request the owners or licensees to include a quick writeup demonstrating experience in either the cannabis industry or related field, and when you don’t have this experience, you’re likely to desire to find people who do and include them in your team.
You’re also going to want solid financial projections and security measures to prevent fraud. Everbody knows, cannabis is actually a highly regulated industry and these are the two pillars that many states, if not completely of those, would like you to pay attention to. You’re also likely to wish to vet your partners, do your homework. You are going to have to go via a background check which background check is necessary by all cities and states.
Another really important thing that you should consider before even trying to get cannabis staffing plan is you’re planning to want to make sure you have the funds for to construct out and operate for about 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 might be profitable and you know, there’s hardly any other way round the financials, you already know, cities and states will not issue permits to individuals that can’t demonstrate a monetary ability to begin a business whilst keeping it running. And second, if a person. We all do get a lot of clients which 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 a state level and it is now legal. So you know, if you are able to show some kind of expertise in the cannabis industry, you know that’s a self revealing, but if you don’t, then you really need to consider putting a team of people together that may show strengths in operation, finance, HR, that every amount to a company.
As an example. We receive plenty of inquiries from individuals who wish to become cannabis business operators that have no experience even running their very own business so that they might have some funds, you 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 must enter into the cannabis industry and if we pool our money together, then we can definitely start one end and often they do have enough money.
But now you ask who are they members? And lots of enough time, you might need to pay to outsource for these particular qualified team members. If you’re going to get into medical cannabis, you might like to use a doctor or perhaps a pharmacist in some way, shape or form on the staffing plan. At the very least for that first six to twelve months. This always strengthens your odds of being issued a permit as well as a license because you know even if you possess the money, you should have the staff and the members to trudge forward successfully in this particular industry and remain compliant because that is a really big issue…compliance. And once track and trace is fully operational and vodnsg throughout the board, compliance is going to be among the big determinants of whether or not cannabis business is going to be successful. In case I were you, a very important thing to do is to go into your banking accounts or perhaps your asset portfolios and discover just how much money you might have, how much cash you’re going to have to raise, and how much cash you’re going to need to put in this cannabis business. Because it’s not cheap.
You’re also planning to want to have a really solid knowledge of state and native regulations. Most of the time, applicants will hire consultants to get this done to them. Regulations could be tricky because they’re very vague. There’s a lot of wiggle room, so you’re going to want to find somebody that can be either part of your team that will help you with compliance continuing to move forward, or you’re planning to desire to engage the services of a business or a consulting group that will do this for you personally like us.
The last thing that you’re really gonna want to consider prior to applying for a cannabis business licenses is thinking about what will set my business aside from everybody else’s? And lots of time this is achieved through, you already know, giving returning to a town, but it’s much more about community integration, you understand, flipping the concept of cannabis is bad into how cannabis can in fact be useful, the actual way it can reach out and touch lives, you know, across the board, whether it’s for patients or consumers especially for the community where you’re going to put together.