Financial Preparation
Financial preparation includes areas such as:
- Business Plan
- Investment Capital Acquisition
- Investor Agreement Negotiations / Agreement Drafting
Many entrepreneurs entering the cannabis business require outside investors. This fact is obvious when you analyze the startup costs associated with the current medical dispensaries. Those startups invested hundreds of thousands of dollars during the licensing process. The good news is that startup costs for recreational licensing will be substantially lower; however, all start-ups need an adequate level of funding to start and maintain operations until the return on investment materializes.
Having a business plan will greatly increase your chances of securing the necessary capital. It is very competitive in the cannabis world. Your business plan distinguishes you from all the other businesses looking for the same funding. You will have to compete for a bite of the apple. You must be more prepared and appear more desirable to investors than your competitors. Timing, presentation, and preparedness are all factors that will help you to win funding. Progressive Law can help you in each of these areas, drastically increasing your chances of an investor deciding that your business is worthy of their investment. In addition, we will negotiate on your behalf and strive to get you the maximum capital for the least risk.
In addition to private investment, the current Massachusetts cannabis regulations provide for a Social Equity Program. This program gives special benefits, though there is no clarity to what extent the benefits will be provided. This program was designed to aid applicants who may be in need of capital and at the same time reduce startup costs. Progressive Law will help you apply for this program by advising you on how best to meet the requirements. Proper business planning that takes advantage of the opportunities offered by Social Equity Program will benefit the entrepreneur’s overall strategy.