Are You Prepared To Apply For A Cannabis Business License?

As cannabis laws continue to change around the world, many opportunities have opened up for professionals considering starting a legal cannabis business. The cannabis industry appeals to many entrepreneurs as it offers a largely untapped legal market with a well-established customer base. 

To be one of the successful few cannabis businesses to enter the legal market and to scale and grow your operations over the long term, there are a number of things you need to consider and plan from the beginning. To make it all the more complicated, each state with a legalized cannabis market may have its own rules and regulations when applying for a cannabis business license. 

Be sure your group is well-prepared for your state’s licensing process by considering the following questions: 

1. Does your team have all the skills needed to operate a cannabis business?

Just like any business, it takes diverse skill sets and knowledge to operate successfully. It’s essential for business owners to honestly assess themselves and their team to make sure all the bases are covered. 

For example, individuals with specialized cannabis cultivation experience will benefit greatly from partnering with those that have experience in business and legal compliance. Similarly, entrepreneurs with solid business acumen will likely benefit from partnering with or employing individuals with cannabis-specific knowledge and experience. To increase your chances for success, your business will need individuals with high-level business experience and cannabis-specific or commercial agriculture experience. 

2. What specific products or services will your cannabis business provide?

There is a tremendous diversity of potential products and services to offer within the cannabis industry –ranging from flower, specialty extracts, and even product distribution. Focus your efforts and take the time to develop your business’ offerings thoughtfully.

For example, how are your offerings unique? Start simply with just a few products or services and spend the time and financial resources to ensure that the products or services you provide are the best you can offer. Expanding into too many offerings too quickly will only lead to subpar products and services and an unstable foundation for your business. 

3. Who are your customers?

Customers for your business are like oxygen for life -- your business thrives on them. Without customers, you will not be in business very long. Knowing your specific customer base provides valuable insight into marketing efforts and assessing the viability of the cannabis market you wish to enter. 

Important questions to ponder include: 

• Will you be serving other businesses or selling directly to the end consumer? 
• What are your customer demographics? 
• Are they medical cannabis patients or recreational users, or both? 
• Considering the cannabis laws in your state (or country), how many potential customers are currently available? 
• Is the market likely to expand? 

The more you know about your ideal customer, the more you can tailor your offerings to meet their needs.

4. Have you carefully studied the state and local laws regarding your specific cannabis business?

First and foremost, in the cannabis industry, your business is a compliance company with the privilege of cultivating, manufacturing/distributing, or selling cannabis products. 

That being said, thoroughly understanding the state and local laws you would be operating within is paramount. You can have the best idea for a product, a qualified team, and a well-written business plan. However, if your facility fails to meet local regulations, you’ll be out of business before you get started. 

We recommend you not only meet all state and local regulatory standards, but also all federal standards. Technically, federal regulations do not yet apply to our industry. By exceeding USDA, FDA, and OSHA standards from the beginning, you are effectively protecting your company, employees, and customers well into the future.

5. Have you spoken with a qualified cannabis industry consultant?

The cannabis business application process requires thorough planning and immaculate attention to detail. Teaming up with an experienced consultant who has navigated the application process many times is highly valuable. 

Cannabis business consultants can review and help you develop the foundation of your business through articulation documents, pitch decks, and financial models. Compliance-oriented consultants will ensure your business adheres to all regulations and is prepared to navigate changes in future legislation. Structuring your business correctly from the beginning will make the difference between a profitable cannabis company and a business failure.

Prepare for Business Licensing with a 3C Cannabis Application Consultant

Congratulations! Once you thoroughly understand your business offerings, your team, your customers, and your state and local laws, you are prepared to begin the cannabis business application process. 

At this point, teaming up with an experienced cannabis industry consultant is invaluable in a variety of ways: 

• assessing the viability of your business plan 
• refining your business structure and standard operating procedures 
• selecting compliant real estate 
• navigating raising capital 
• completing your cannabis business application on time

Together we can create responsible cannabis businesses that will safely serve our customers, turn a profit, and build a better industry. 

Are you planning to start a cannabis business in the near future? Reach out to our team at 3C to learn about our cannabis consulting services today!