Marijuana Application Consulting
Our firm uses FDA grant writers to aid in Marijuana Application Services. Governments have increased their level of sophistication and knowledge of cannabis business operations. The story and narrative that is told to them in your Business Plan are at the heart of our writing. The first piece is building the right team to give regulators comfort in selecting your company as a license holder. Our Marijuana Application Services start with a financial analysis of the market to help you understand the return on investment and costs around the project. In the most competitive markets, the permit acquisition phase can cost $500,000-$2,000,000 depending on the market and what is required for the submission. Licenses are worth typically $2,000,000 – $10,000,000 on day one once the license in provisioned. Our firm has one of the highest success rates in the world. 91.6% of our projects are successful; we have effectively obtained 22 out of 24 license submissions.
01. Research the Law
Know the Cannabis Law and Rules | In a situation where you are in a State where legislation has not yet passed, read the pending legislation to see how the market develops, more importantly how the market can shift. Being involved from the beginning in rule suggestions can get your team noticed. By keeping an eye on which elected officials are supporting bills, you can obtain a competitive advantage by aligning with them. If you are unable to make direct contact, align with a lobbying group that has been documented to work with that Congressman. Follow the Congressman that are voting positively for pro-cannabis legislation, they either see the value in having cannabis within the state or see how they can personally benefit from a thriving marijuana market. Once the Governor of a State signs the legislation into law, get very well acquainted with the law. Read the bill that was enacted. Once the state has determined which governmental branch will spearhead the program, personnel will be selected. In Colorado, the Marijuana Enforcement Division was under the Department of Revenue. Most emerging states like Pennsylvania, New York, Florida, and Massachusetts are headed by the Department of Health. In some cases, you will see the Department of Health and Hygiene. It typically depends on bandwidth but most of the time it will be lead by the Department of Health. In Hawaii, it was the Department of Public Safety then the Department of Health took over the responsibility when the dispensary model started to get traction.
02. Know the Right People
Try to align with the Commissioner of the Cannabis Program | The ideal scenario would be to get an acquaintance of yours into that commissioner seat, if you are unsuccessful take the lobbyist route. It will be key to get face time, act as a subject matter expert in cannabis and provide value when you meet with him or her. Push the Sanjay Gupta Weeds stuff and let them know that the reason why marijuana is so important is due to the fact it is saving the lives of children. There is nothing stronger than the ability to give children solutions outside of death. Yes, people are making tons of money in cannabis, but the popularity in the plant comes from its therapeutic abilities. For this reason, once marijuana has found it’s way to saving children, within a state, it will be very hard for the government to take that freedom away. It only takes one person related to a legislator, with an approved condition for the program to be successful.
03. Know the Rules
Understand the Rules and Regulations that Govern the Program | Once the commissioner, in conjunction with the state, has assigned some of the head roles within the program, draft regulations will be published. These rules and regulations are written mostly from other States. Keep in mind that once the program goes recreational or “adult use”, the Liquor Control Board will more than likely take the program over as seen in Alaska, Washington and Oregon. It is very popular for State governments to follow some of the guidelines by the Marijuana Policy Project, American Herbal Products Association, and the American Herbal Pharmacopoeia. Submit questions to the state website. These question submissions make the government aware you are a serious contender for licenses. This foresight plays well with credibility. Get definitive answers on elements of your business. For example, being able to deliver cannabis is a huge deal. Many states don’t have the ability to do this and could be an area where your business uniquely defines itself.
04. Engage Experts
Engage a Cannabis Consulting Company | The best cannabis consulting companies charge hefty costs to guide you through the permit acquisition process. Although it adds incredibly to your pursuit capital costs, it is money well spent with the right group. Cannabis consulting companies bring a Rolodex of important cannabis contacts and strategic partnerships. Pick a firm that has completed at least twenty submissions. A marijuana consultant with less than a year of experience is not a cannabis expert they are a cannabis enthusiast. Choose a company where the owners own a marijuana production, manufacturing or dispensing facility.
05. Get State Info
Get Automatic E-mail Notifications from the State Medical Marijuana Site | The State will create a site to manage all public information. Sign up to receive electronic information from the Department of Health website. Also keep an eye on the Frequently Asked Questions (FAQ) section for definitive published answers to questions. Major topics in the past have been the ability to cultivate outside, capacity to deliver cannabis, and how patients qualify.
06. Know the Advisors
Get Acquainted with the Advisors that are assigned to the Department of Health Advisory Board | The trend in emerging states limit the number of conditions and illnesses patients can qualify for the registry. The State will appoint an advisory board to suggest condition and diseases to the Department of Health. As more conditions become acceptable, the market size increases. Work with Advisors to make sure Chronic Pain and Sleep Disorders are on the approved list. These are the two conditions that made the Colorado market flourish.
07. Follow the Department Heads
Follow the Department Heads | These people will be everywhere, for the next 8 to 16 months they are celebrities. They will be asked by Law Firms, Conferences, and Special Interest Groups to speak at events about the program. These events are the perfect opportunities to get an answer to questions if you are unable to get a public answer from the FAQ section of the State site.
08. Attend Town Hall Meetings
Attend the Town Hall Meetings | After the rules are published most States will allow for public comment via town hall meetings. Town hall meetings are an excellent way to get your company name out due to the fact you have to State your name and company for the record. Ask questions that are incredibly well thought out. For example, you can give a small overview of your intentions before asking your questions. Try to stay away from questions they can’t answer. From example, how are the first clones and seeds going to be provisioned from the State? In the industry, we call this the “Immaculate Conception.” Genetics simply appear in cultivation centers due to the ambiguity of the law. One possible solution would be for Schedule 1 Narcotic Drug Enforcement Agency (DEA) license holders to import from another State i.e. a University or Research Center.
09. Write a Good Plan
Write a Cannabis Business Plan, Determine Deal Structure for Potential Investors and Create a Pro Forma | Once the proposed conditions have been announced you can determine the market size. If the state caps production, the operations side of cultivation may suffer. For example, Hawaii published a cultivation plant count limit of 3,000 plants per cultivation center. Colorado started with six plants per patient. Michigan allows 12 plants per patient but caps the amount of patients per location. Patient totals average between 1.5% to 2.4% of the states totals population.
10. Acquire Property and Assets
Acquire Property and Assets | Sometimes an option on land isn’t good enough, in states like New York extra points were awarded to applicants that owned the physical property. Pick a location that has access to over 7,500 kVA. Get the water tested in the area by an independent laboratory. The water that is available to the property may require water treatment; the condition of the water in the area could result in expenses to filtrate the water before introducing the water into your plants. If you are fortunate enough to either have the resources to buy the land or building, do it. Cannabis real estate is a great venture, whether it is a retrofit building or new construction. Some deals have two companies that are part of the project. The first is an asset holding company the other is the license holding company.
11. Align with Out of State Operators
Align with a current manufacturing, dispensing and cultivation operator from an existing state like Colorado | The Department of Health is looking for companies that know what they are doing; aligning with other successfully ran operations from States that have been operating for years. Get exclusive deals with cannabis business operators, lawyers, accountants, the bonding company, extraction operators, formulation individuals and marijuana consultants.