Are you looking to get into the cannabis industry? Maybe you are looking to learn how to open a dispensary, start a grow, become a process manufacturer, or a cannabis microbusiness?
The industry is currently growing rapidly and is extremely profitable with more and more states legalizing medical and recreational cannabis such as New Jersey, New York, and Connecticut. However, even for a seasoned businessperson, the amount of information regarding regulation, timing, and being able to submit and win licenses on time can be overwhelming. Overcoming this informational hurdle of what you “need to know” and what you “don’t know you need to know” can mean the difference between a profitable cannabis business and a missed opportunity.
So let us help you organize the informational necessities with the next few questions to get a better picture of your next steps:
What type of cannabis business is right for you?
Each state grants businesses different license types depending on the function of the business and can vary from state to state. Each type of business has its own set of requirements, level of difficulty in obtaining licensure, and potential for profit. Beyond dispensaries, there are various types of cannabis businesses and even potential ideas you might have that will fit into one of the licenses your state offers. Furthermore, each state has varying opportunities that can be, at this time, oversaturated and undersaturated. This means that it’s very important to look at the potential options and explore license opportunities you might not be aware of.
How much does it cost to start?
The cost varies based on the state that you’re in, type of business, and your business model. In states that are currently legalizing like New York and New Jersey, these costs and financial needs are being shaped. Those that are wise to the latest information will take advantage and be prepared which will give one an advantage in winning licenses. Based on the type of cannabis business, cost will vary but typically business owners can expect an initial cost of $250,000 to $2 million.
Do you qualify for state licensure?
There are various factors that will be taken into account as to whether you qualify for a state license which typically include your background check and length of state residency. This situation varies by state. Furthermore, most cannabis legislation contains social equity stipulations which incentivize business license applications from certain groups such as women, minorities, and veterans.
How difficult is it to obtain a license in my state?
This varies state to state but most license scenarios require you to produce an impressive license application. Illinois for example, had many competing for a fixed number of licenses and based who they granted licenses to on a variety of factors including how high their application and business plan was scored. It is also very common for those looking to obtain a license to form their team and partners in order to demonstrate experience and expertise in the industry, thereby giving them preferential advantages during the licensing and compliance process.
How can Cannaspire help?
Cannaspire specializes in providing expertise to businesses at any level of operation within the cannabis industry: from helping individuals that don’t know where to start to mature cannabis businesses that are looking to expand or be sold. For those looking to learn how to start a cannabis business, we can help you better understand your next steps and get the right information to make smart decisions today in order to seize this opportunity. We do this through our 45 minute consultation call for those getting started. During this consultation we will go through topics such as:
- Understanding needed qualifications
- Capital requirements
- Legal and real estate needs
- Necessary partnerships
- And more
If you are ready to take the next step, you can schedule a time with the form below.