Read on Twitter
The most asked question in my DMs:
"How do I start a marijuana business?"
But when I share a link to regulations and license applications, I get crickets. Nobody wants to do the work.
If you're serious, here's how to start a recreational cannabis business:
"How do I start a marijuana business?"
But when I share a link to regulations and license applications, I get crickets. Nobody wants to do the work.
If you're serious, here's how to start a recreational cannabis business:
Everything I’m about to lay out for your consideration varies by state - I don’t have the time to break this stuff down state by state. If you don’t have the wherewithal to research your state after reading this, don’t bother.
Builders build!
Builders build!
You are probably out of lucky if you live in Nevada, Illinois, Florida....
They do not do open licensing. That's not a comprehensive list by any means. It's not federally legal yet, it is what it is.
They do not do open licensing. That's not a comprehensive list by any means. It's not federally legal yet, it is what it is.
The application process is all about checking boxes.
For context the state of Oregon receives almost NO complete applications.
Rarely do people check every box. Because of this, they tell people it’s a 18+ mo wait.
If you bring a complete app: Less than 8 wks
Check the boxes.
For context the state of Oregon receives almost NO complete applications.
Rarely do people check every box. Because of this, they tell people it’s a 18+ mo wait.
If you bring a complete app: Less than 8 wks
Check the boxes.
License Types -
Different states have different names but there are 3 big categories:
* Retail
* Grow/Production
* Processing/Manufacturing
* Distribution/Wholesale
Different states have different names but there are 3 big categories:
* Retail
* Grow/Production
* Processing/Manufacturing
* Distribution/Wholesale
Retail is straight forward. You’ll have additional endorsements or approvals for things like delivery, walk up windows, medical, etc.
For grows, there are different canopy types or “tiers”. These define if your license is for indoor, outdoor, outdoor with supplemental, etc
You'll need water rights for all that water
You'll also need Phase 3 power service
You don’t just get a license to grow and set er up.
You'll need water rights for all that water
You'll also need Phase 3 power service
You don’t just get a license to grow and set er up.
Processing/Manufacturing licenses have a ton of variance.
Making a gummy is pretty different from BHO requiring a blast proof room.
This is what you need for making any edible, drink, topical, cartridge, extract, or concentrate.
Making a gummy is pretty different from BHO requiring a blast proof room.
This is what you need for making any edible, drink, topical, cartridge, extract, or concentrate.
Typically: same license, different endorsements/specs
These range from a commercial kitchen to solventless to BHO to supercritical CO2.
Different types will have different building code and zoning reqs.
We're talkin blast proof rooms, fire sprinklers, and your first born child
These range from a commercial kitchen to solventless to BHO to supercritical CO2.
Different types will have different building code and zoning reqs.
We're talkin blast proof rooms, fire sprinklers, and your first born child
Distribution/Wholesale licenses are some of the most straight forward.
Not doing hundreds of consumer transactions/day.
Not doing agriculture.
Not running intense machines with volatile gasses to convert flower into other things.
You just reconfigure and move things.
Not doing hundreds of consumer transactions/day.
Not doing agriculture.
Not running intense machines with volatile gasses to convert flower into other things.
You just reconfigure and move things.
All of these licenses need space.
This introduces county and municipal layers.
Kern and Modera county in CA don’t allow anything. San Benito only allows manufacturing.
The city of Portland issues its own licenses in parallel with the state.
Layers!
More reading for you.
This introduces county and municipal layers.
Kern and Modera county in CA don’t allow anything. San Benito only allows manufacturing.
The city of Portland issues its own licenses in parallel with the state.
Layers!
More reading for you.
In local guidelines, you’ll have to consider things like proximity to other licenses and schools.
This map shows my city: Portland.
Here, retail licenses can’t be within 1,000 ft of another retailer or a school.
The red dots are dispensaries, the blue dots are school buffers.
This map shows my city: Portland.
Here, retail licenses can’t be within 1,000 ft of another retailer or a school.
The red dots are dispensaries, the blue dots are school buffers.
Did I mention it’s competitive?
In some areas without the 1000ft rule, you have shops across the street from each other.
This thread isn't about the business element of all this. If it was, I'd tell you to think a lot about how you're gonna beat all those other pink dots.
In some areas without the 1000ft rule, you have shops across the street from each other.
This thread isn't about the business element of all this. If it was, I'd tell you to think a lot about how you're gonna beat all those other pink dots.
Next, zoning.
Zoning can be a bit ambiguous and exact verbiage varies locally, but your properties zoning needs to align with your use. For example:
Commercial
Mixed Use
Industrial
Employment
Agriculture
This is the first thing to look at after your other needs are met.
Zoning can be a bit ambiguous and exact verbiage varies locally, but your properties zoning needs to align with your use. For example:
Commercial
Mixed Use
Industrial
Employment
Agriculture
This is the first thing to look at after your other needs are met.
You’re going to have to get your building ready for business. This might mean fresh paint, or new walls. Walls and electrical mean permitting.
You’ll have to submit your floor plan, and this will need to show the pending buildout.
This all should be submitted with your app.
You’ll have to submit your floor plan, and this will need to show the pending buildout.
This all should be submitted with your app.
Pro tip: Use shipping containers for cannabis storage.
They’re cheap, secure, easy to control temps, usually considered a vault for compliance, and fire proof for insurance.
They aren't gonna make your warehouse flows more efficient, but they make up for it other ways.
They’re cheap, secure, easy to control temps, usually considered a vault for compliance, and fire proof for insurance.
They aren't gonna make your warehouse flows more efficient, but they make up for it other ways.
Speaking of security - this’ll cost anywhere from $25k-$100k.
Generally you’ll need 1080p coverage of every inch of licensed area and the interior and exterior of all entries.
Commercial doors and locks.
Here's the security diagram from an old space we had - only 800 sq ft.
Generally you’ll need 1080p coverage of every inch of licensed area and the interior and exterior of all entries.
Commercial doors and locks.
Here's the security diagram from an old space we had - only 800 sq ft.
You’re leasing a building, building it out, installing security, furnishing...
If you don’t complete your app and paperwork, you could end up with 5 figure monthly lease payments can go on for months while you're in line.
Check the boxes the first time.
If you don’t complete your app and paperwork, you could end up with 5 figure monthly lease payments can go on for months while you're in line.
Check the boxes the first time.
Finally, the application.
Fees vary.
What matters is you fill it out.
With it, you'll be submitting things like:
Leasess
Zoning verifications
Alarm permits
Floorplan
Security layout
Cap table / ownership structure
Personal history
MJ Control Plan
Fees vary.
What matters is you fill it out.
With it, you'll be submitting things like:
Leasess
Zoning verifications
Alarm permits
Floorplan
Security layout
Cap table / ownership structure
Personal history
MJ Control Plan
Google: “marijuana license *state name*"
Find your state’s governing agency and dig in. It’s not for the faint of heart.
Other tools -
Loopnet/Craigslist and broker
Google Sketchup for floor-plans
Local property databases
Preview (Mac) for annotating
A business plan...
Find your state’s governing agency and dig in. It’s not for the faint of heart.
Other tools -
Loopnet/Craigslist and broker
Google Sketchup for floor-plans
Local property databases
Preview (Mac) for annotating
A business plan...
The chaser to all this is that I wouldn’t recommend starting a plant touching business.
As the saying goes:
The gold miners didn't get rich, the people selling the picks and shovels did.
There's a lesson there, and I'll expand on it in my next thread.
As the saying goes:
The gold miners didn't get rich, the people selling the picks and shovels did.
There's a lesson there, and I'll expand on it in my next thread.
I tweet about business and building cannabis brands all day, come smash that follow button for more and hit me with any questions you can’t find on Google!
> @landforce<
Check my pinned tweet for more about me.
> @landforce<
Check my pinned tweet for more about me.
