Today we’re going to speak about the best way to put a cannabis business application together. The agenda for today is essentially we’re going to begin with the thing that makes an application 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 lots of other things that we’re going to tie up neatly ultimately.
Just a couple things to give you an idea 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 have over 300 clients situated in various states. We have now 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 inside our second full business year. Perform would love you to find out that we have a thorough and deep comprehension of tax compliance and assurance related requirements for your cannabis industry and also this includes cannabis licensing. We will help you with tax preparation and planning, auditing and assurance, business plans, and anything else associated with operating a company within the cannabis industry.
So like I said, we’re going first of all what makes a software successful. I think what all applicants prospective and current applicants really learn in the process is that the instructions and understanding them is about 80 % of passing a successful application. You must know very well what exactly the city or even the state wants, the way that they wanted delivered. A lot of the time, you know, the headers in the requirements can be misleading.
Like I said, you already know, they might say, oh, we must have a business plan, however when you look at the requirements are what they’re asking for. It provides nothing concerning your typical notion of what a business plan actually is. So half the battle or over fifty percent in the battle is absolutely being aware of what could they be asking for, how do they desire me to submit this and and then submitting it. You’re planning to want to thoroughly address every area of the application in detail. You would like to make sure that you realize the prerequisites. Although most of the time applications do have a similar 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 business plan that requires you to demonstrate and explain your day-to-day operations, which include cash handling practices, some security, some inventory and record keeping where versus the city of LA that may say, oh, we want 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 simply be careful and check out the descriptions from the headers because sometimes the headers could be misleading.
Next you’re going to have to surround yourself with the right people. You need to show in the application that you have the best team in place to operate a successful operation. Usually they will likely ask for the owners or licensees to incorporate a quick writeup demonstrating experience with 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 inside your team.
You’re also planning to wish to have solid financial projections and security measures to stop fraud. As you know, cannabis is actually a highly regulated industry and these are the two pillars that many states, if not completely of them, want you to focus on. You’re also likely to want to vet all of your partners, do your homework. You will need to go via a background check and also this background check is necessary by all cities and states.
Another vital thing that you should consider before even applying for cannabis staffing plan is you’re likely to want to ensure that you have the funds for to construct out and operate for about 6 months to some year. We obtain a lot of inquiries from prospective clients who wish to enter into the cannabis industry and they’re always mesmerised by the amount of money actually is put into building out and operating a cannabis business before it becomes profitable and 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 up a business while keeping it running. And second, if an individual. We all do get a lot of clients that do not have experience in the cannabis cannabis industry.
On the contrary they have experience with business, successful business, and that is certainly a thing that cities examine also because not everybody could have cannabis industry experience as it is illegal. It absolutely was illegal on the state level and is also now legal. So that 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 will need to consider putting a team of people together that will show strengths running a business, finance, HR, that most amount to a business.
As an example. We get a lot of inquiries from people that want to become cannabis business operators that have no training even running their particular business so they could have some funds, you understand, that they’ve inherited or or some friends, a group of friends that, hey, you understand, decide 1 day that, hey, we need to go into the cannabis industry and if we pool our money together, we will surely start one end and quite often they actually do have the funds for.
But now you ask who are the group members? And lots of time, you may have to pay to outsource for these qualified team members. If you’re going to do get into medical cannabis, you may want to have a doctor or perhaps a pharmacist in some manner, shape or form on the staffing plan. At least for your first six to one year. This always strengthens your odds of being issued a permit and a license because you know even if you have the money, you must have employees and the members to trudge forward successfully within 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 across the board, compliance will likely be among the big determinants of whether or not cannabis business will likely be successful. Therefore if I were you, a very important thing to perform is to enter your banking accounts or maybe your asset portfolios and discover precisely how much money you have, how much money you’re likely to must raise, and the amount of money you’re likely to need to put in this cannabis business. Because it’s not cheap.
You’re also likely to wish to have an extremely solid comprehension of state and local regulations. More often than not, applicants will hire consultants to do this on their behalf. Regulations may be tricky because they’re very vague. There’s plenty of wiggle room, so you’re planning to want to find somebody that can either be a part of your team that will help you with compliance moving forward, or you’re going to wish to engage the services of a company or perhaps a consulting group that can do this to suit your needs like us.
The final 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 company aside from everybody else’s? And lots of time this is achieved through, you know, giving to a city, but it’s more about community integration, you understand, flipping the idea of cannabis is bad into how cannabis can certainly be useful, how it can reach out and touch lives, you understand, throughout the board, whether it’s for patients or consumers and especially for that community where you’re going to put together.