Sure you need money for your cannabis business. But when most people start seeing dollar signs and cannabis leaves everywhere they look, they don’t always think about the pros they’ll need to make their piles of green grow.
About half of all cannapreneurs are in it because they’re passionate about cannabis but may never have run a business. The other half may have a bit more business acumen but don’t know the nuances of the cannabis industry.
As we continue our series for cannabis business owners in the licensing process, today’s post is all about the team of professionals to help your budding business thrive.
The Right Resources Matter
Monetary resources are essential for your cannabis business, sure. But having the right people in your corner can make or break your efforts. If you’re here, you already know the benefits of working with a seasoned finance pro who understands the ins and outs of cannabis accounting, METRC reporting, and Schedule I regulations. (And even if the current administration is able to remove the Schedule I classification, most of the reporting is unlikely to change).
In addition to financial pros, you’ll also need these professionals at your side
- Attorney to help you ensure that you’re legally covered and compliant with local and federal regulations
- Real Estate Agent or Broker to help you negotiate a fair lease for your cannabis business
- Licensing Consultant to help you navigate the process of securing a cannabis business license
- Insurance Broker to help you get the best possible coverage for your needs.
A few notes on real estate:
- Because of the IRS 280E rules on expense deductions, it’s not usually a good idea for your cannabis business to own real estate.
- Other reasons to push real estate investments to a separate arm include the risk of license, forfeiture tax considerations, and overall flexibility.
- Finally, some investors don’t want to invest in the cannabis license entity itself, but will invest in your real estate.
When choosing which professionals to hire, it’s best to find those who have experience in the cannabis industry, as it typically presents unique challenges and requires extensive knowledge.
Choosing the Right Pros Matters
Just like any other team, having the right people on your side can make the difference between success and failure. If you haven’t found your cannabis business professional support team yet, we’d love to chat about your accounting needs.
We know that the licensing process can be a long period of time and you have to use your money wisely until you can become operational and actually become revenue producing. But don’t skimp on the important things like getting the right professionals to help you at the right time.
Ready for financial support in your cannabis business? Contact Accounting for Green today to find out how to get started.
To catch the other videos in this series, see the links below.
Conversation #2 Documenting Funding for Your Cannabis Business
Conversation #4 Choosing a Host Community and Location
Conversation #5 Understanding Forecasts in the Cannabis Economy
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Here’s a transcript of the video:
So there are other important professionals that you’re going to need during the process. You are definitely going to need finance and accounting, you’re definitely going to need an attorney, you’re probably going to need a real estate agent and or broker. You will definitely need an insurance broker because you will need a policy as part of your application process.
And there are other licensing consultants that you can use to get you through and help you more easily attend to the different pieces of the application process. It is best to use these people as you need them. We know that licensing process can be a long period of time and you have to use your money wisely during that process till you get to the end and you can become operational and actually become revenue producing. But don’t skimp on the important things. And the important things are getting the right professionals to help you at the right time.
You are going to want to use professionals that are in or working in or providing services to other clients in the cannabis industry because they know a lot of the ins and outs that are going to help you move ahead more quickly and waste less time and money.
So there they are, finance and accounting, attorney, real estate help, insurance broker, and licensing consultant. Those are the important people that you’re going to need during the process.
Why are these professionals important? Well, I think I just hit on that they have a lot of insight they are going to save you time and money in the long run. They’re going to help you cover your bases in a better way. They’re going to understand what you really want to get out of your journey and what your goals are in the end and are going to help you get there more quickly