Before you embark and opening a medical cannabis dispensary or cultivation center you should take the time to understand the financial and time requirements. Many times, while working with clients and after spending a large amount of time and money the client determines they can longer ‘hold on’ or they don’t have enough to get to the finish line. It’s important to weigh your investment in time and money. If you are in a position where you are well-capitalized and hire the best consultants and get the best project team it can also be very expensive.
The proof of capitalization as required in all of the medical cannabis state’s application responses is expensive, and rarely under $250,000 in proven liquid assets. Since proof of capitalization is such a high priority in these state’s processes it’s often used as a tiebreaker in the event of applications graded as a tie. As consultants, we recommend having much more liquid capital than the application response requires. The application capitalization requirements are often overburdening to the financial resources of a small mom and pop type operation, but the industry has positions to fill for experienced managers. Even experienced entrepreneurs may be torn between debt and equity. A Pharmacology University representative can walk you through the benefits and pitfalls of each.
Define the goals of the division authorizing medical cannabis business permits and build your organization’s mission statement around that. Some states may prioritize a high-quality product for qualifying patients while another state may prioritize job creation and living wage jobs or staff diversity.
Pharmacology University has invested heavily in producing high-quality dispensary and cultivation facility business plans. We’re proud of the fact that we can show entrepreneurs what their proposal will look like during an in-person meeting and entrepreneurs can preview the plans online. In the early stages of the process, each member of our client’s board of directors has plans they can show investors, elected officials, zoning commissions, engineers and contractors. We deliver a road map for clients outlining all executables and deliveries, when they’re due, and who should be responsible for them.