Today we’re going to speak about the best way to put a cannabis business application together. The agenda for today is basically we’re going to start off with the thing that makes a software 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 likely to tie up neatly in the long run.
Just a few things to offer you a sense of what we should 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 also 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 within our second full business year. We all do would love you to learn that there exists a thorough and deep comprehension of tax compliance and assurance related requirements for the cannabis industry and this includes cannabis licensing. We can help you with tax preparation and planning, auditing and assurance, business plans, and other things related to operating an organization within the cannabis industry.
So like I said, we’re going to start 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 approximately eighty percent of passing an excellent application. You must understand what exactly the city or perhaps 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 can say, oh, we must have a business plan, however when you read the requirements are what they’re asking for. It provides nothing concerning your typical concept of what your own business plan really is. So half the battle or over half in the battle is really understanding what are they asking for, just how do they really want me to submit this and then submitting it. You’re planning to desire to thoroughly address every portion of the application in more detail. You want to ensure that you recognize the 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 metropolis of Lynwood in California. They desire a cannabis business strategy that requires 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 city of LA that may say, oh, we want a business plan that wants one to show financials what your company’s mission and vision is, which is pretty much what you’d expect in a strategic business plan. So you should be careful and look at the descriptions from the headers because sometimes the headers could 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 right team in place to run an effective operation. Usually they will likely request the owners or licensees to incorporate a brief writeup demonstrating experience with either the cannabis industry or related field, and when you don’t have this experience, you’re going to desire to find individuals who do and can include them in 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 a highly regulated industry and they are the two pillars that most states, if not completely of those, would like you to concentrate on. You’re also planning to desire to vet 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 really important thing that you ought to consider before even obtaining cannabis staffing plan is you’re likely to want to successfully have enough money to develop out and operate for about half a year to some year. We receive a lot of inquiries from potential customers who want to go 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 will become profitable and also you know, there’s hardly any other way across the financials, you already know, cities and states is not going to issue permits to folks that can’t demonstrate a monetary capacity to start a business and keep it running. And second, if an individual. We do get lots of clients that do not have expertise in the cannabis cannabis industry.
On the other hand they have got expertise in business, successful business, and that is certainly something which cities look at also because not everyone could have cannabis industry experience as it is illegal. It was illegal on the state level and is also now legal. So you know, if you can to demonstrate some type of experience in the cannabis industry, you know that’s a self revealing, however, if you don’t, then you will need to consider putting a group of people together that will show strengths running a business, finance, HR, that all amount to a business.
For instance. We receive lots of inquiries from people that wish to become cannabis business operators who have no training even running their very own business therefore they might have some cash, you already know, that they’ve inherited or or some friends, a team of friends that, hey, you understand, decide some day that, hey, we must get into the cannabis industry and in case we pool our money together, we will surely start one end and quite often they are doing have the funds for.
But now you ask , that are they members? And plenty of the time, you might need to pay to outsource for these qualified team members. If you’re going to do get into medical cannabis, you might like to have a doctor or perhaps a pharmacist somehow, shape or form on your staffing plan. At the very least for your first six to one year. This always strengthens the chances of you being issued a permit and a license because you know even if you have the money, you need to have the staff as well as 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 over the board, compliance is going to be one of the big determinants of whether or not cannabis business will likely be successful. In case I were you, a very important thing to perform is to go into your bank accounts or your asset portfolios and find out exactly how much money you have, the amount of money you’re planning to must raise, and the amount of money you’re planning to need to put in this cannabis business. Because it’s not cheap.
You’re also likely to wish to have an extremely solid knowledge of state and native regulations. Most of the time, applicants will hire consultants to achieve this on their behalf. Regulations may be tricky simply because they’re very vague. There’s lots of wiggle room, so you’re going to desire to find somebody that will be either element of your team to assist you with compliance continuing to move forward, or you’re going to wish to engage the services of an organization or even a consulting group that can accomplish this for you personally like us.
The final thing that you’re really gonna want to consider before you apply for a cannabis business licenses is asking yourself what is going to set my company besides everybody else’s? And a lot of the time this is achieved through, you know, giving back to a city, but it’s a little more about community integration, you already know, flipping the concept of cannabis is bad into how cannabis can actually be useful, the actual way 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 setup.