Top 3 Strategic Tips for Cannabis Business Applications

Each state and local municipality have their own idiosyncrasies, understanding them is probably one of the most, if not THE most, important element to the success of your application/licensing. Below are some tips/considerations when thinking of applying for a cannabis business license:

• Mission and Vision – Typically, a state will establish their medical cannabis/cannabis program with a mission in mind, to resolve an ongoing health/equality issue the state currently faces. Make sure your mission and vision for your proposed business aligns with the state’s. For example, Maryland issued additional medical cannabis business licenses to ensure minority participation in ownership. In West Virginia, the medical cannabis program geared toward reducing opioid related deaths. While Illinois looked to rectifying social injustice through their social equity program.
• Building Your Team – When selecting your business partners, knowing their motive is really important. It’s not about dollars and cents. Look for partners that are fair, have a background that will contribute to your venture, and someone you trust! At a minimum, you want the following individuals on your team:
  • Local Business/Community Leaders who truly understand the community and the state as a whole.

• • Cannabis Operators/Consultants who has experience with submitting and winning applications/licenses, as well as opening and operating a cannabis business. Ask your consultant what state(s) they have worked in. This is especially important because every state’s program is different and while a consultant might have worked in California, the East Coast states run their programs differently.

• • Legal Counsel, the documents you prepare for applications are highly legal. It’s always good to have a local attorney who understands local laws to lend advise, where needed, throughout the application process.

• Knowing your local municipality: Go where you will be accepted in the community or township, make sure you have a population base (if applying for a dispensary), and your building has easy access (highways).
• Zoning: Typically, you will have 2 sets of zoning regulations to abide by – the state’s and the local municipality (if it’s an unincorporated area, it’s regulated by the county). While every state and local municipality is different, standard zoning parameters are 500 ft – 1000 ft away from schools, daycare centers, churches, libraries, public parks, etc.
• In my opinion freestanding buildings are best because parking and security will always end up being an issue in shared spaces.

• Funds/Capital for Applications: You will need at least $30,000 for your application. Pending on professional services and the state’s application fees and requirements, applications can cost up to $250,000. Other costs you may incur during an application process include professional services – legal, consultant, architect, CPA, etc.)
• Capital for Opening & First Year of Operations: You cannot get a small business loan for your venture. You will be responsible for raising capital on your own. Put a 3 – 5 year financial projection together to understand your opening costs and first year of operational costs to determine funds needed.

Interested in applying for a cannabis business license? Visit our state page to learn more about your state or give us a call at 480-787-5433