Cannabis Business Planning
Cannabis business planning includes areas such as:
- Business Plan
- Corporate Document Drafting
- Business Agreement Drafting
- Intellectual Property Protection / Acquisition
- Employment Agreements
A Canna-business is no different from other businesses when it comes to business strategic planning. All prospective businesses must prepare an in-depth market/financial analysis before beginning any venture. In addition, any potential business comes with specific goals, markets, expected revenue, labor and supply requirements that must be thoroughly investigated and weighed for feasibility.
Moreover, a Canna-business is different from other ventures because it not entitled to the same treatment under certain laws and regulations. For instance, tax considerations and criminal sanctions are major issues to be investigated on the federal level. An owner of a Canna-business must perform its due diligence in considering these factors. That why we here at Progressive Law can help avoid the pitfalls and minimize the risks associated with municipal, state, and federal laws and regulations.
Progressive Law can help you determine whether the cannabis industry is a viable option for you. We have found that many clients come to Progressive Law with dreams of green fields growing money. Like every other business venture, however, there are risks associated with any potential rewards. In fact, Canna-business entrepreneurs face greater challenges than other typical business ventures. For example, Canna-businesses face an eighty percent (80%) effective tax rate because current federal tax laws do not allow for many business expense deductions associated with cannabis. A potential Canna-business owner must understand the financial requirements and risks involved prior to beginning any application process. With these pitfalls and risks, it is easy to see why you need a law firm with actual experience in the industry.
In the past few years, Massachusetts has licensed some medicinal cannabis facilities but just recently has started the licensing of retail facilities. This immerging market is not only hampered by the lack of standardized rules and regulations but also, more importantly by the lack of trained professionals experienced in the cannabis field. Progressive Law’s work product has proven to stand out among its peers. One of our more recent success stories is a Canna-business located in Rhode Island.
Due to the many laws associated with the cannabis industry, Canna-business entrepreneurs must be prepared to scrutinize all individuals who will be associated with the venture. . The individuals you choose to be members of your team inclusive of all positions may determine the outcome of the success of your application submission and overall success of your Canna-business. There are stringent background restrictions preventing certain persons from participating in the industry. Choosing the wrong individuals, especially on the ownership, investment, and executive levels can halt your application or cause other issues in an ongoing Canna-business. Proper planning and preparation on personnel requirements will allow you to achieve success on multiple levels.
Progressive Law can help you build your team. We can act as your partner in all aspects of the planning. Together, we can build a Team that will enhance your chances of obtaining a cannabis license and with the team skills, continue to help you succeed in your new venture. Progressive Law can have background checks conducted for potential partners, investors, and employees prior to submitting an application to the Cannabis Control Commission. This preserves your reputation and eliminates any questions concerning the thoroughness of any hiring procedure.
The overall business plan consists of several business documents. Your business could potentially need partnership agreements, employment agreements, non-competition agreements, confidentiality agreements, etc.. Each of these agreements will need to be negotiated and formalized. Once again, Progressive Law can assist with this process while optimizing the most benefit with the least amount of risk.
Once you have your team assembled, you can proceed to the next stage. This consists of the Business Plan. Investors, banks, potential partners and licensing authorities. All require a comprehensive business plan backed up by current projections, statistics and financial statements. The entrepreneur will find it easier to convince others to participate in a new venture when they are presented with a comprehensive plan. Entrepreneurs have dreams and aspirations; however, others may not comprehend the opportunities that you easily recognize and therefore, you will need to paint them a picture. A business plan is an entrepreneur’s (artist’s) vision put on the paper (canvas). The plan gives all members of the Team a unified direction.
As you build your business plan and analyze the opportunities, it is important to determine the best return on your investment. In 1848, a storeowner named Sam Brannan went out into the street holding gold dust in one hand and his hat in the other waving and shouting, “Gold! Gold from the American River!” He sold all of the people, quitting their jobs to run off and get rich mining, shovels. Sam made money, while many others following their dreams did not. . There is more than one type of Canna-business opportunity. Progressive Law can help you determine the best one to fit your dreams.
[1] “Miners vs. Merchants: Fortunes Made Through Global Trade.” Flexport. N.p., 08 Aug. 2016. Web. 17 Mar. 2017. <https://www.flexport.com/blog/trade-merchants-rich-california-gold-rush/>.
[1] Id.
[1] Id.
