Preparing your cannabis business application for success
The cannabis industry is experiencing a hyper-growth period and there is no better time than now to pursue a cannabis business license. All states have different procedures and requirements for business plans, capital and security, which can mean an arduous process. But with the right strategy, proper planning and a team built for success, now is the perfect opportunity for your cannabis business journey.
Do you have the resources to do the research?
If you want to obtain a cannabis license, you will need to conduct effective and efficient research. Knowing the procedures of the cannabis application process in your state will set the tone for your business strategy.
Equally important: gaining a deep understanding of the laws and regulations in your jurisdiction. Before you begin any planning, take the long way and learn everything about your state’s cannabis laws.
Bonus tip: become an expert of your jurisdiction; learning everything from voting history to how much cannabis an individual can possess is the key for successful applications.
What products and services will best fit your business model?
The needs in your market will inform the type of products or services you should provide. This also requires hyperlocal research, as no two jurisdictions are alike.
For instance, in Marin County, California, legal cannabis use, possession and distribution are permitted, but dispensaries are outlawed within city limits, meaning delivery services are the only viable option for licensees.
And in Colorado, like many states, there are stark differences in potency allowances and possession limits for medical and adult-use cannabis.
Be sure to understand the ins and outs of your market’s needs that may influence early business decisions like inventory management, POS systems, advertising and more.
Do you understand the market you will be operating in?
Do you understand your market? Have you determined a need for a cannabis brick-and-mortar, a delivery service or a cultivation facility? These questions should not be underestimated as every market has gaps that your business should look to fill. Research your jurisdiction’s demographics and identify key targets to serve.
Also, consider the social and fiscal impact your business will have on your area. When a successful business grows, so do employment opportunities. Over a longer period, these opportunities can make a significant difference in your city.
Right now, there is a huge focus around the country to make the cannabis industry equitable and accessible for all - something we should all be striving for. Don’t leave that stone unturned - some states have specific requirements for applicants to demonstrate diverse leadership, an inclusive business model or a community impact plan.
Do you have a team with diverse skillsets?
Assembling an experienced team of cannabis and regulatory experts early on can push your application to the finish line. Every jurisdiction has distinctive laws and regulations surrounding cannabis businesses - including accounting, security, legal and zoning challenges. Here’s where your teammates will come in handy.
Your first focus - even before building out your employee roster - is turning in a successful application. So ensure you are partnered up with team members well versed in the medical and adult-use cannabis landscape. Lawyers are excellent team members who can review and define contracts and ownership agreements and draft the language of the application.
Real estate expertise is a necessity. In each state with a legal cannabis market, specific zoning regulations can determine the location of a business. Some municipalities might even require a proposed business location or a structural blueprint of your storefront.
Are you ready to submit a winning cannabis application?
State regulators need to be certain your business will succeed after granting you a license. That’s why it’s so important to research state regulations, study your market and build an expert-level team ready and willing to tackle any and all challenges. These preliminary steps will help you fulfill your state’s application requirements and ultimately obtain a cannabis license.
Join Fyllo’s regulatory experts on February 24th for the Market Watch 2022 Ballots and Possible Next States webinar. Register here.