FREQUENTLY ASKED QUESTIONS

STARTING A CANNABIS BUSINESS

POINT7 APPLICATION TEMPLATES AND NARRATIVES

Developing cannabis-specific content associated with an application requires years of industry experience in order to fully understand industry standards and best practices. In addition, the content is written by technical writers who understand the grading process associated with obtaining highly competitive licenses in a regulated industry. Having a technical writer draft your application may make the difference in successfully winning a license in some of the most competitive markets in the country. While there is a cost associated with hiring a consultant team to develop your application, working with the right team can be the difference between successfully obtaining licensure and a large sunk cost. Our team has over 20 years of combined experience drafting content for state applications. Our team can provide you with the technical writing aspects that will ensure you have a competitive application.

Starting a cannabis business is different in each country, state and local municipality. However, almost every location that permits the operation of a cannabis business requires a cannabis business application. No two application processes are alike; each area has unique regulatory requirements and grading or scoring criteria. The best place to begin when starting a cannabis business is to research the specific regulations in the country, state, or county where you wish to operate and to visit the specific regulatory licensing body’s website for further information. Once you’ve decided the type/location of the business you will pursue in this industry, our team is here to help you each step of the way.

Writing a cannabis business application can be a daunting task. Whether you’re a new or existing operator, the application writing process can be demanding of time, taking anywhere from three weeks to three months, depending on the length and specifications of the application. Each application comes with its own set of challenges that Point7 can guide you and your team through, no matter where you stand in the application process.

Writing a cannabis business application can be a daunting task. Whether you’re a new or existing operator, the application writing process can be demanding of time, taking anywhere from three weeks to three months depending on the length and specifications of the application. Each application comes with its own set of challenges, which Point7 can guide you and your team through, no matter where you stand in the application process.

Each cannabis business has its own unique set of startup requirements and can vary based on a number of factors. Some factors that have the ability to affect startup costs include the size and scope of the business model, the proposed location’s unique local market factors, the current physical state of the proposed location, and the compliance requirements from the regulatory body. Our team of financial and operational experts can help you understand how much it would cost to start your specific cannabis business model in your specific market.

Most cannabis business licensing applications have some form of ‘Proof of Capitalization’ requirement that determines exactly how much money is needed to apply for a cannabis business license. Each state or local jurisdiction can determine its own minimum capital requirement, but those amounts don’t necessarily reflect the true cost to start up the business. Sometimes the application requires the applicant to determine the projected startup cost, and then show sufficient capital for the applicant’s projections. There is a common myth that you need over one million cash to apply for a cannabis business license or start a cannabis business, but our team has proven time and time again that undercapitalized teams with core competencies can still secure cannabis business licenses.

It is impossible to say which license type has the best return on investment because each state has a different licensing process and different business models created through the state’s legislation. There are noticeable trends across different business models. For example: processor licenses typically show a higher return on investment; dispensary licenses are typically dependent on market supply and demand factors so return on investment varies; and cultivation licenses are typically a higher return on investment in states with a limited license count.

If you are interested in pursuing a state license application, you should begin by familiarizing yourself with the state regulations regarding medical or adult-use cannabis. Generally, state regulations will provide definitions and guidelines regarding the state license application and what license types will be available for submission. The regulations will also define which state agency has the authority to administer and enforce the regulations. Once you are familiar with the regulations, you should familiarize yourself with the specific state agency. Frequently, the state agency will issue emergency rules that are also applicable to the state license application. It is also beneficial to speak to an attorney as he/she may have a strong understanding of your state laws and how they will interact with the new regulations and the application process. Our team has interpreted state regulations for ten states and will help guide you through understanding the specific regulations and what it means for your business.

Once you are familiar with the current regulations you should assess whether you can meet the requirements outlined in those regulations. For example, do the regulations have a social equity component? If so, should you incorporate it into your application? Do you have enough initial capital to open a facility or will you fundraise? Being prepared to answer questions such as these may increase your chances of winning a license. Most states want applicants to show that they will be able to open and operate a facility within one year from receiving a license. Our team has answered these types of questions for various state applications. Let us guide you through the meticulous details of the application.

Our services vary depending on how much assistance you need in the application process. If you have a strong understanding of the regulations and requirements to open a business, you may only want to purchase our templates, which provide relevant regulations and generic responses to the application. These are very affordable and customizable to your business. Individual templates range from $1,250-$7,000.

If you need more help to develop your application and/or need advice on creating documents, such as a business plan, our general consulting services may be more beneficial to you. Under this purchase option, Point7 will draft customized narratives for each application question based on information you give us. This option can cost from $25,000 upward depending on the services you require. Whether your needs are simply to help streamline the process, or whether you need a full roadmap to complete the application, we have the service that will fit your needs.

While requirements differ from state to state and from city to city, you can generally expect the following to be required in almost every application process:

Proof of Funding
Business Formation Documentation
Lease or Property Ownership Documentation
Business Plan
Operations Plan
Qualification of Owners
Community Benefits / Community Engagement Plan
Safety and Security Plan
Floor Plan and Site Plan
Zoning Verification
Staffing Plan / Organization Chart

Misunderstanding the timeline and the minimum requirements needed to build a successful application is often the biggest mistake made in the application process. Some application processes are released with only a 30 day application period. That being said, you should be preparing well in advance of the application period, as 30 days is not enough time to build a team, acquire real estate, and put together a “winning” application. While every process is different, most teams should allocate at least 90 days for pre-licensing tasks associated with the application process. Our team will create a timeline to ensure you stay on track and don’t miss a deadline, or submit an incomplete application.

Point7’s team of consultants form a strong foundation of expertise in cannabis business operations, business management, finance, creative design, marketing, and branding. Our team has over 40 years of regulated cannabis business experience and a successful track record in application consulting, writing, and development. We have won both state and local cannabis business licenses for our clients in the following states: Arkansas, California, Colorado, Michigan, Missouri, Ohio, Oregon, Pennsylvania and Maryland.

GENERAL CANNABIS QUESTIONS

Cannabis is still federally illegal in the United States. Many states have come to pass medical or adult-use legislation with varying degrees of regulation and oversight. Each state is operating on its own timeline, the legality status can change seemingly overnight if you are not tracking the movement of bills, propositions, and legislation. Our team is dedicated to keeping you informed with our United States Cannabis Market Research.

Cannabis is still illegal in most of the world, with only a few countries regulating and taxing the sale of the plant. Worldwide medical and recreational cannabis legislation is progressing at a rapid rate as more and more countries see the inherent value in the plant and the misguided banning of the substance. Curious about cannabis legislation in specific international markets? Check out our International Cannabis Market Research.

Point7 is preparing to support Clients in Kentucky, Virginia, New York and Minnesota! Email us at hello@pointsevengroup.com to get started!

New Jersey application materials are now available for cultivation, manufacturing & retail! Email hello@pointsevengroup.com to learn more!

FREQUENTLY ASKED QUESTIONS

STARTING A CANNABIS BUSINESS

POINT7 APPLICATION TEMPLATES AND NARRATIVES

GENERAL CANNABIS QUESTIONS

LEARN HOW WE SUPPORT OUR CLIENTS

LEARN HOW WE SUPPORT OUR CLIENTS