5 Quick Tips for NEW Cannabis Licensees
Our team at CannXperts has been serving the cannabis industry and its stakeholders since early 2018. Our Licensing Specialists have submitted thousands of applications and our Compliance Officers have helped hundreds of companies stay compliant with proactive on-site compliance inspections.
In an effort to help new licensees (and current ones who would like a refresher), our team put together a list of five quick tips from our years of experience to avoid future headaches - and potential violations! Hang on, the entrepreneurial ride can get bumpy - but we’re here to help …
TIP 1: We recommend keeping your company’s formal, registered name somewhat vague until the rest of the world catches up to our industry. We’ve seen some issues arise from people using words like “cannabis,” “marijuana,” or other industry-specific terms in their company names. And don’t forget: your public facing name can be different from your formal company name, so “XYZ Holdings, LLC” can do business as “Major Dabs” - or whatever you choose as your customer facing name.
TIP 2: Unlike most businesses, this industry is HIGHLY regulated and you are going to need help. Cannabis regulations can be difficult to comprehend, change often and are not always consistent with how businesses in other industries operate. You are going to have a handful of questions, especially in the beginning! Because of these complexities, even if you feel confident you are doing absolutely everything "by the book," chances are... you are not! So...
Retain an attorney who is an expert in cannabis laws (among other areas!) in your state - we have a list of great ones we’ve worked with for years!
Find a good accountant who understands the nuances of cannabis tax law. The government wants their piece and they can shut you down if they don’t get it. A good accountant will save you more than they cost.
Hire CannXperts for license support and for semiannual, confidential, third-party compliance audits. It’s better that we spot what you are doing wrong before state regulators do. We’ll help you get back on track and provide you with some peace of mind so you can concentrate on building your empire.
TIP 3: Get it in writing! The legacy market was built on relationships, trust and handshake deals … but the industry and its players have changed a lot. If it’s important to you and your business, if it involves money, property, equipment, etc. … then please get it in writing. If it has anything to do with ownership interests, profit sharing from your licensed business or any link to your licenses, run it by your cannabis attorney and one of our licensing specialists.
TIP 4: One thing that hasn’t changed is time-tested good business practices. Treat your employees, vendors, customers and competition with respect. The vast majority of enforcement actions are triggered by people who are mad at you (or jealous of your success), and their only outlet is to call the state regulators to lodge all sorts of heinous complaints about you and your business, whether true or not.
TIP 5: What’s predictable is preventable. Every adult-use state has experienced the boom-bust cycle (or soon will). Stay lean, control your costs, and build reserves during the good times that will keep you running during any potential downturn. Additionally, build your vision, core values and team that is centered around a strong sales model and mission statement that aligns with your branding and marketing.
If you are interested in learning more about CannXperts and how we can help you along this journey, just reach out! If we are not in your state right now, we will be soon.
Please note: CannXperts is a team of licensing and compliance specialists, experienced and exceptional at supporting all participants in the industry - but we are not lawyers, we are not a law firm, and we cannot give legal advice. We work with licensees, regulators, financial institutions and other industry stakeholders to ensure comprehensive license management and industry-leading compliance support.
