Top Reasons To Hire A Cannabis Consultant

A Nascent Trade

Some of the barriers to entry that once stood between business acumen and the Cannabis trade were moved to the side by passionate professionals who saw an opportunity for growth. The industry pioneers endured the dawn of implementing the regulatory framework of progressive states like Colorado while still facing prohibition firsthand. Almost a decade after the first recreational amendment passed in 2012, there is still nothing easy about entering the Cannabis space. It can be aggravating, complicated, exhausting, and expensive. 

Apart from the regular stressors of opening in any trade, unique challenges face this type of business owner, from the formation stage to raising capital for scaling. There is an underlying vein of stigma toward the plant and all its ancillary neighbors, a level of ignorance that can only be corrected by a knowledgeable professional. There are strict laws that govern each municipality, from a city council in a small rural town to Federal law, which still prohibits consumption and sale. Small mistakes during the formation stage can lead to long-term systemic consequences for the company. Business applications set cannabis dispensary owners apart from other retail outlets, as a new coffee shop doesn’t have to fill out a 100-page licensing application perfectly to open one store. 

Hunt around for a short period and listen to the horror stories: Leasing nightmares, inexperienced vindictive Chief Cultivators ruining production models without a formal contract, licensing of a purchased property for cultivation without proper power and water lines, or building a business around false information about zoning requirements. The reasons for hiring a seasoned professional, much like the truth, speaks without saying a word. One of the biggest mistakes a newcomer to Cannabis will make is underestimate the intricacies of running an outfit in a still highly controversial regulated space. But, if the company’s preference, in general, is to go to court without a lawyer, then don’t bother reading any further.

On Expertise

There are more resources now for the Cannabis industry than ever before, but it is still a developing trade. The information needed to run a successful business is far more granular than most entrepreneurs might expect. Like finding the proper attorney or therapist: each consultant has their specialty, and it’s essential to find the right solution that fits the scenario. There are many avenues where a niche is developed for clients to fall into, like a puzzle piece. Some cannabis licensing consultancy experts will come from a background in cultivation, processing, or retail, while others will have operational experience running a vertically integrated model. The more detailed-oriented, prominent picture consultants will focus on formation, standardization, and start-up. Critical mistakes can cost anywhere from a lot of money to losing a business license. Those skilled in government and local community relations know the landscape of social equity within their jurisdiction, and they will know who to talk to and how to speak to them. Planning for a licensure submission is an entirely different process than building the most cost-effective cultivation production model and facility. 

Even professionals who have a strong business presence may only be highly valued in the area they perfected over years of practice at their facility. Standing in one place has some disadvantages, too, leaving a highly professional organization to seek unbiased, specialized help on short-term or as a long-term strategic advisor. Another advantage of not being a permanent employee is that they are not bound to the social politics of a company, including being wary of bringing up solutions that may be unfavorable to members of the board. With no personal connection, they can stay objective in their evaluation of any situation. This objectivity can be employed toward creative solutions that can be noticed by “fresh eyes.”

Cannabis consultants that are even bodied and comprehensive can provide expertise in all critical aspects of planning, permitting, licensing, compliance, and scaling. How much is it worth having the advantage of seeing around the bend? How much does sanity matter to you? 

On Foresight

One significant benefit of investing in the help of an experienced cannabis consultant can communicate with someone whose cadence always radiates in the shadow of the bigger picture. Subject matter experts can save time and prevent unnecessary start-up expenses, as well as offer a road map that may help see around the bend before any competitor who did not value due diligence. It is wise to consider the scope of the industry, where to fit into it, and the risks associated with a business of this nature. This includes the existing barriers to entry that are left before moving forward into the start-up stage. 

Unless there is established quantifiable hands-on experience running a particular type of company, a healthy level of caution and contemplation should be developed before entering the Cannabis space. This is where due diligence comes into play, and seeking consulting guidance is the same. Paul Neal “Red” Adair was a firefighter with a specialty in oil wells. He is credited with the quote, “If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.”

Seeking guidance from a cannabis application consultant might appear cost-prohibitive, especially at the beginning of the project, but this is a common misconception. A business formation consultant is well versed in the regulatory framework, real estate and building planning, and application processes. Filling out the application improperly can lead to costly re-submissions, granted that is an option. In more competitive markets where a lottery is employed to hand out licenses: Only the most detail-oriented owners will make their way into that waiting room.

On Hiring

Once licensure is ensured, it’s time for high-level planning while keeping compliance paramount. A good cultivation consultant can save a company millions of dollars with a robust production model and building plan that is analytical and pragmatic. They can also secure cost-effective plant nutrients, mediums, and skilled labor such as an apprenticed Head Grower, the person who manages the facility daily, becoming a critical asset for protecting the top and bottom line. A good Start-Up consultant will have the tools and connections to help with standardization, organization, supply chain management, and vendor relations, the backbone to any successful company. 

If Cannabis is foreign trade, how is it possible to understand the skill sets necessary to run the company from the professionals who need to be hired to handle the job daily? Without a foundational understanding required to hire, someone familiar with job descriptions, responsibilities, and technical knowledge is an invaluable resource. There is an idiom of hip hop culture that refers to this asset: Real Recognize Real.

On Compliance

Even the most progressive countries and states are struggling with how to enforce cannabis laws. Yet business owners who do not comply with these laws’ rules and regulations face grave consequences. Just ask the owners of SweetLeaf CO. The uncertainty spans from local to Federal, and makes it difficult for lenders and banks to service this cash based business, making it a challenge for businesses to implement long-term logistics. Engaging a cannabis consulting firm gains access to a group of professionals well versed in rules that can prevent a company from closure.

On Due Diligence

It’s essential to choose the right consultant, especially in the earliest stages when small mistakes can cause significant long-term operational issues. Paying attention to details is critical, from incorporating a business to set up Payroll and HR/employee benefits packages. Being organized and well prepared with an expert can set the owner apart from their competitors, knowing that structure, planning, and purpose together build a strong foundation for any new organization.