When ambitious people start a business based on something they care deeply about, they’re often missing critical information about running an effective business—and this is the case for many cannapreneurs.
As more more states legalize cannabis, the number of would-be-business owners (with plenty of critical business skills to learn) in the cannabis space will increase, too.
As the saying goes, “you don’t know what you don’t know.” That’s why a step-by-step quick-start guide to starting and running your own profitable cannabis business is vital!
Ready to dig in?
Cultivating Plant Passion
Yes, passion is priceless. It will keep you committed to your business when the going gets tough (and it will, because while being the boss is rewarding, it comes with some challenges). But passion doesn’t account for everything, and it doesn’t make a viable business plan. Cannapreneurs often have a deeply personal story about how cannabis has changed their lives.
Some tell of how cannabis helped them manage ADHD, anxiety, depression, pain, and other chronic illnesses and conditions. These experiences create real motivation and are the root of many missions to help others improve their lives, too.
But a dream is just an idea and doesn’t mean you understand how to make it come true.
If this resonates with you (or someone in your circle), understand that to get a business from idea to reality, you need a blueprint and specific business know-how that includes business astuteness and knowledge of the financial pitfalls and opportunities cannabis-based businesses present.
Where Social Equity and Passion Collide
Some states, like Massachusetts, handle social equity in cannabis licensing, a sorely-needed development. As a result, special considerations are given to applicants who might not otherwise be able to obtain a cannabis license, such as:
- Early application submission and priority review
- Faster applications to provisional licensing and permitting
- Prior cannabis-related arrest records may be forgiven (depending on specific details and state rules)
- Low-cost funding availability
- Business courses that aim to increase knowledge of the business world.
Some social equity cannabis licensees still face the same challenges as passion-driven cannapreneurs despite the above considerations. That’s why they should get support from experts who can guide them and shorten their learning time.
Hire cannabis consultants when you need them.
Getting the help you need to run your cannabis business isn’t just for newbies – even expert entrepreneurs need support because of the Schedule 1 classification. There are very specific steps you must take to keep your business on the legally compliant track.
Even if you’ve had significant business experience (cannabis-related or not), it’s still vital to have the right pros in your corners, and that includes accountants.
We can help you start your business on the right track in so many ways, such as:
- Creating and reviewing your business plan
- Making a real-time roadmap to implement your plan
- Understanding costs vs revenue
- Assisting you with creating an inventory management process
- Getting the tech you’ll need to make your business go
- Teaching you to asses wholesale market rates, harvest rates and turnovers
- Growing your supplier relationships (not limited to cannabis-specific)
- Taxes (such as what you need to collect as a cannabusiness and your liabilities)
- Creating essential reports to keep compliant with local and federal regulations
- Knowing the steps to take to license and open your business
- Procedures for managing your cash, such as forecasting
- … and so much more.
Our cannabis accounting experts are ready to help arm you with the info you need to turn your passion for cannabis into a fully loaded business. Get in touch today to find out more.
Is opening a dispensary in your future? Click here to discover what you really need to know before you start.