3 Things to Consider When Applying for a Cannabis License

Written by: Ian Caine Wilson, MBA
Business Strategist + Development Consultant

Applying for a cannabis license, whether in your local municipality or a particular state, can be a daunting and intimidating process. While some municipalities simplify things for you by providing an application you simply fill out, others don’t give much from which to work with and you’re left on your own to figure out how to write it.

​Either way, if you’re in the position of needing to apply for a license, whether as an owner or as someone entrusted to write the application for others, you have a lot on the line. It’s a process that you cannot afford to screw up. 

Having been through several application processes at both the municipal and state level, here are 3 things I think everyone needs to consider before applying for a cannabis license on their own:

1. Who is responsible for writing your cannabis application?
   
   When I’m out and talking with people about their cannabis businesses and I ask them who is writing their application, they usually tell me that their lawyer is handling it – while rather expensive, having your lawyer write your application is a fine option. What matters most is that it’s written by someone capable of understanding the regulations and addressing the requirements of the application in a clear and concise writing style.
   
   Don’t overlook that this might be someone already on your team, such as your cultivator, or it could be a consultant who you are already working with. The point is that determining who is responsible for writing your application is an important initial step to getting your cannabis business up and running; it is imperative you identify this person early on. 
   
   
2. Who is responsible for providing the drawings necessary to complete your cannabis application?
   
   Whether it be a local municipality or the state itself, you are going to need professional-level drawings of your site and/or facility to obtain your license.
   
   You may have hired an architect to design your facility, but did you explicitly state in the scope of work that they will provide drawings for the application process? If not, you may want to revisit that with them as the drawings for applications sometimes have very different requirements from those that you submit to the city for your building plans.
   
   In California, for example, you are required to submit drawings that show the location, dimensions, and square footage of eachgrow bed, bench, or table that will hold flowering plants – in addition to showing an aggregated total square footage of plant canopy. You don’t need these same specifics, however, to get your local license or a building permit in most cities.
   
   If you aren’t aware of the varied drawing requirements ahead of time and don’t have these items in your contract with your architect, it could cost you tens of thousands in delays or increase in scope of work as you’re scrambling to get the documents you need.
   
   
3. Finally, who will be implementing your vision once you have your license in hand?
   
   It is never too early to figure out who it is that is going to oversee your build-out, run your retail outlet, grow your plants, or operate your new machinery. There is a lot to plan for and having the right people in the right roles improves project success.
   
   I see a lot of people coming into the industry with financial resources and a general business know-how, but without the cannabis-specific knowledge it takes to run an operation in this unique landscape. As more states adopt regulations, competition for key industry players and experienced grow teams is ramping up. You cannot afford to be without cannabis experts as you embark on running a cannabis-based business.
   
   Additionally, in order to properly address all the required items on your application, you are going to need some very specialized knowledge for items such as a cultivation or extraction plan. Without having included cannabis professionals, you may not know what you don’t know and fail to provide important details during the application process. 
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Obviously, there is a lot more that goes into writing and submitting a cannabis business application than can be addressed here, but the above are some of the most common mistakes I’ve witnessed and they are issues you can easily avoid with proper planning. I hope it helps!