15/11/2020
5 Things To Know When Starting Your Ma*****na Business
Cannabis is booming and currently the fastest growing industry in the United States of America. While there are Several of ways to get involved in the industry, ma*****na licenses to grow, sell and/or create ma*****na-infused products have become the most coveted accomplishment in this new ever evolving industry.
In order to operate a ma*****na business, you must be licensed by your respective state, in some cases you will also have to be licensed by the city or county your facility is going to be located in.
To start a ma*****na business, you’ll need to obtain a license from your state through an application process. If you’re interested in doing so but don’t know where to start your planning, follow these steps below to see if you want to go down the rabbit hole that is the cannabis application process.
#1 – Understand your State’s Cannabis Licensing Program
Applicants need to understand that each state has different laws, Rules and regulations. For example, some states allow an unlimited number of ma*****na businesses (like Oklahoma) and some states limit the number of ma*****na businesses (like Missouri or Illinois). In addition to understanding ma*****na laws and regulations, we suggest doing your due diligence to figure out if your state is currently accepting applications for licenses or not. Meaning, many licensing processes are done through a Request for Proposal or Request for Application process during specific dates and times. Learn about your state’s program by Doing your own research, Speaking with State representatives or Hiring a Consultant.
Fun Fact: New York only awarded 5 Medical Ma*****na Business Licenses, while Denver, Colorado has more Medical Ma*****na Facilities than Starbucks.
#2 – Know your Ma*****na Business Type:
States often have different license types outlined in their program legislation, rules, and regulations. In order to determine what type of business you want to open, we’ve outlined some of the most popular license types below. These types of business are often referred to as “plant-touching” businesses.
Cultivation/Growing: Cultivates, dry, trim, or cure and package ma*****na for sale to a processing or dispensary/retail facility. Read more about How To Start A Ma*****na Grow/Cultivation Facility.
Processing/Manufacturing (Infused Ma*****na Products): Obtains ma*****na from authorized licensed facilities and extracts resin from the cannabis or creates cannabis infused product for sale and transfer in packaged form to a dispensary/retail facility.
Dispensary/Retail Facility: Purchases Cannabis from a cultivator or processor and sells, supplies, or provides ma*****na to registered qualifying patients/caregivers or customers. Read more about How To Start A Dispensary/Retail Facility.
Distribution/Delivery: Transports ma*****na between licensed ma*****na facilities or from a licensed dispensary/retail facility to patients/caregivers/customers within the operating state.
*It’s important to note that not every state will have these four license types. Some states, such as Arizona, only have one license type that allows a licensee to cultivate, process, dispense, and transport all in one. These licenses are referred to as “vertically integrated” licenses. This is why “ #1 – Understand your State’s Ma*****na Program” is important. When you learn about your state’s program rules and regulations, you’ll learn about their licensing structure. After you are familiar with them, select which license you’ll be applying for.
#3 – Build your Team
If you’re an individual, we suggest finding entrepreneurs, medical professionals, compliance/ regulated industry experience, community liaison, and if possible, ma*****na industry experience. You may also want to consider establishing a diverse team (Veteran/Women/Minority Owned Businesses) as states have been implementing diversity bonus points in their programs.
#4 – Secure Real Estate
When looking for a viable location for your facility, you must consider state and city zoning laws for your type of business. Most zoning laws will require you to be at least 1,000 ft from a school, church or daycare center. For more real estate best practices, set up a consultation with one of our industry experts.
#5 – Know Your Budget and Raise $ Capital
You will need to consider state/city application fees to apply for your ma*****na business license, state required proof of funds, and professional services (realtor, legal, architect, consultant etc.). These are just a few costs you will incur during an application process.
