You’ve got your New York cannabis business license – congratulations! But what’s next? Starting a cannabis business can feel a bit tricky, but don’t worry, we’ve got your back! In this blog, we’ve put together a handy step to help you figure out what comes next. From paying the license fee to finding the right partners and keeping up with the rules, we’ve got the basics covered. Let’s dive into what happens after that exciting license moment because your journey in the world of the cannabis business is just starting.
Get Your Final License
The Board issues the final license once all necessary application materials have been submitted, and the Office officially recommends approval. After the Board gives you the green signal for the license, you need to pay the fee to complete the process. After submitting the fee, you will get the license certification and number. This is a unique number that allows you to operate your business legally in the state. However, it is important to start your business after getting the license certificate and number to adhere compliance.
Submit your License Fee
Before your license is issued, you’ll need to settle the licensing fee. Once your license application gets the thumbs up, the Office will send you instructions on how to make the payment. If you have questions about the licensing fees, visit the Office’s fee schedule.
Get the Right Insurance for Your Business
After obtaining your cannabis business license, every licensee is required to secure the business with the following insurance coverages:
- Unemployment Insurance
- Worker’s Compensation
- Disability Insurance
- Paid Family Leave
- Any other insurance mandated by applicable state or local laws.
Moreover, all insurance documentation must include an indemnification clause for the benefit of:
- The Office of Cannabis Management
- The Cannabis Control Board
- The State of New York
- Any affiliated parties, including officers or employees.
This ensures not only compliance but also the necessary protection for all stakeholders involved in the cannabis business operations. Taking these steps ensures a comprehensive approach to risk management, safeguarding both the licensee and the regulatory bodies overseeing the industry.
Create a Solid Plan to Handle Finances
Just like any other business, a cannabis business also requires substantial funding to start and establish your facility. To handle your finances, you can go with various ways such as using savings, trust funds, finding investors, getting a bank loan, joint venture, etc. To get capital, you can present a compelling business vision to potential investors or lenders, outlining your strategy for revenue generation and long-term profitability.
It’s important to have a solid roadmap to manage the budget and other financial expenses for the upcoming two years to ensure smooth processing. This must cover everything from facility setup, rent, and renovations to inventory, staffing, marketing, and ongoing operational expenses.
Secure Your Business Location
Many cannabis businesses find a home in a physical space, be it a store, manufacturing facility, lab, or another setup. This decision is a critical early move which plays a key role in the subsequent paperwork.
The selection of your business location and the pursuit of a license (the next step) go hand in hand. Some jurisdictions, even with state-level legalization, might not permit cannabis businesses. In such cases, you’ll need to explore alternative locations. Pay close attention to zoning regulations to ensure compliance, considering restrictions such as prohibitions on cannabis businesses near schools, commonly imposed by cities.
Find a Banking Alliance
Look for a financial ally that values transparency and is dedicated to the cannabis industry, addressing your unique requirements. Consider features like easy international fund transfers, hassle-free cash deposit services, and the ability to initiate straightforward payment procedures through ACH transactions or wires.
Craft a Business Plan & Strategy
Begin by ensuring meticulous adherence to all state laws. Identify the location for your marijuana or cannabis business and establish primary supplier relationships while remaining fully compliant with legal guidelines.
Stay vigilant in tracking the ever evolving and diverse regulations governing the industry.
While your business plan is likely to change to shifting laws, having a robust initial framework is crucial when launching a marijuana business. Your business plan should encompass:
- Financial Roadmap:
Detail your business expenses and outline the timeline for achieving profitability.
- Technology, Marketing, and Sales Strategies:
Clearly articulate your plans for leveraging technology, along with comprehensive marketing and sales strategies customized to reach your target customers.
- Differentiation and Competition:
Define how your business stands out and conduct a thorough analysis of both direct and indirect competitors.
- Supplier Relationships:
Identify and establish relationships with both direct and indirect suppliers crucial to your operations.
Crafting a well-rounded business plan not only reflects your commitment to compliance but also serves as a foundational guide for understanding the unique challenges and opportunities within the cannabis industry. Keep it flexible, and ready to adapt to changes in laws and market dynamics.
Work on Marketing & Promotion Strategies
In the cannabis market, as in any industry, successful marketing is the key to attracting your audience. Entrepreneurs, post-website launch and especially after obtaining a license, must focus on promoting their cannabis delivery platform to reach the target audience effectively.
Expand the reach of your business or website using effective methods like social and digital media, as well as distributing eye-catching flyers. Creating awareness of your business and establishing a strong brand presence is a strategic approach to making the business a hit. You can also hire an expert who specializes in digital marketing and promotional services to increase your reach.
How Cure8 Can Help?
As the go-to IT partner for the cannabis industry, Cure8 is your one-stop solution for cultivators, manufacturers, and distributors across the USA and Canada. From licensing to launch and beyond, count on our team of cannabis tech and security experts to guide you every step of the way.
