Making the move from a largely unregulated cannabis environment to one with comprehensive requirements put in place by your state or municipality? If you operate in Michigan, California, Montana, or Canada, you’re likely putting together a transition plan now.
This new framework will require changes in how your marijuana business operates, but the good news is, you have time to develop your approach. Regulation can be intimidating, but your business can succeed if properly prepared for the future.
Form a Team
Leaning on other cannabis entrepreneurs for advice and insight will help inform a more knowledgeable transition. Speak with business owners in Colorado about any challenges they face with obtaining permits or abiding by a new regulatory framework, like zoning. Until the rules are drafted, it’s difficult to know exactly what to expect in the cannabis license application process. Still, when you research upcoming markets like Ohio and Pennsylvania, it’s safe to assume you may need a hefty amount of liquid and tangible assets available – Pennsylvania requires $2M in proof of funds with $500,000 in the applicant’s bank account {source: Marijuana Business Daily}. If investors and business partners are needed, be sure to vet any potential relationships and define the terms of your agreement early.
Your way of doing business may be affected by new tax regulations. Hire a lawyer and accountant that are familiar with the regulations and cannabis-specific tax issues, like 280E.
A thorough understanding of the regulations and how your operation will meet the new requirements should be a major focus. Hire a compliance officer that knows the current law and whose main mission is to follow developments and become very familiar with new regulations.
Be Involved
Contact your local and state officials to begin developing crucial relationships during this transition. Create a positive impression of your business and the cannabis industry by understanding the issues policymakers are interested in and by advocating for a progressive regulatory framework. Attend city meetings and be prepared to educate your municipality on the benefits of cannabis for patients and the community. Consider a membership with organizations like National Cannabis Industry Association and Marijuana Policy Project.
Form Positive Compliance Habits Now
With new regulations comes more compliance requirements. To show your municipality that compliance is top-of-mind at your operation, work with your compliance officer to develop an audit of your current processes and identify where you could improve. Are you prepared to manage the seed-to-sale process with a granular level of insight? Are your Standard Operating Procedures up-to-date?
You might be surprised to know that compliance comes with an incredible level of business insights like inventory forecasting, sales analytics, more efficient processes, and a stronger ability to serve patients and customers. By implementing a sophisticated business management software now, your cannabis business will benefit from advanced features such as loyalty points, H/R and payroll management, yield forecasting, and more – all while building a solid, compliant foundation.
Visualize a Successful Future
If you’re in a market that is transitioning from a medical to a recreational model or you’re in a place that is enacting a more regulated framework, the mission of your company should be clearly defined. What are your company’s morals and goals? Do you plan to expand to further markets? Are you going to continue to serve patients in a boutique, specialized environment? Plan for the future with clear objectives that are easy to communicate to potential stakeholders, employees, and the community.
MJ Platform’s expert team of cannabis consultants is prepared to assist you with developing custom responses to parts of the cannabis application or the entire thing. From A-to-Z, we can set up your cannabis business from applying for a license to building a business plan, to setting up the methodologies and structure of your operation to get you ready for go live. We have actual experience in the industry and will always keep your business focus top-of-mind.
