The cannabis industry is burgeoning! We asked Emily Seelman, Founder and CEO of Canna Business Services, her take on the 3 biggest pitfalls one can fall into in the cannabis industry. Navigating around these common stumbling blocks is crucial to your success in winning a license in this lucrative, newly-developing industry.
Obtaining a property
Finding real estate that is cannabis-friendly and properly zoned is a top priority. You will need to obtain an agreement to purchase or lease the property. An incorrectly zoned location or one located too close to certain properties will be prohibited in your state's/locality's cannabis regulations. The process of finding available real estate and procuring it can take some time to negotiate with the owners, so it's important to move quickly to obtain all paperwork necessary to apply for a cannabis business license.
Setting up a winning team
Your plan is only as effective as the people you have executing and backing it. Funding your project can be another stumbling block when applying for a license. Pursue investors that are reliable, have industry experience, and are able to show proof of funding when the time comes to apply. According to Seelman, "The ultimate goal should be to build out your team with people who have experience in both the industry and other regulated industries. Too few members and your application looks incomplete. Too many members and you may find yourself corralling individuals who are not necessary to your team —a waste of your energy and resources when you're up against the application clock."
Starting too late
Many times people wait until the application window opens to begin planning. This doesn't give you enough time to pursue properties, gather a team, secure financials, and begin preparing your narratives. "We have seen countless teams wait for the application window to open, resulting in their inability to create a competitive application because they only have time to establish the bare minimum," says Seelman.