RECREATIONAL CANNABIS USE NOW LEGAL IN NEW YORK! HERE'S WHAT YOU NEED TO KNOW
Are you looking for information about how to start a dispensary in New York? This article will keep you informed on the basic things you need to know about recreational cannabis use in New York. This provides a valuable foreshadowing of what's to come.
The start of your journey in the cannabis industry, like any other company, can be exciting and enjoyable, and a little daunting. However, following a few basic guidelines to take the first few steps will help you lay a solid foundation and build a successful company. This article will go through three steps to help you start a cannabis company in New York.
Types of cannabis company licenses
Just one form of cannabis company receives a license in New York: vertically integrated growers/dispensaries. These companies cultivate marijuana, process it, package and mark it, and then market it to patients in a retail environment. Cannabis businesses in New York must adhere to strict guidelines for inventory monitoring, surveillance, record-keeping, testing, and advertisement, among other things. You can open up to four dispensaries if you get a cannabis business license. Independent cannabis research laboratories are not permitted in New York State. At this time, the state is not granting rights.
Aside from that, there's a lot of other stuff to do. There are plenty of different ways to participate in the burgeoning cannabis industry if you don't want to cultivate or sell cannabis in New York. You can start a marijuana app, a payment processing service, an advertising agency, a consulting company, a pest control tool, an accounting firm, an automated plant watering system, a protection service, a packaging labeling service, or a law firm, to name a few.
Fees and other access barriers
Check city and county codes to see if cannabis businesses or specific sites are prohibited.
Fees for applications:
In New York, obtaining a cannabis producer/dispensary business license costs $210,000. If your application is rejected, you will receive a refund of $200,000 of your money.
In New York, a producer/dispensary license costs $200,000, and you must renew your license every two years.
Is a cannabis business plan needed in New York?
While a business plan is not necessary to obtain a medical marijuana business license in New York, it will help the process go more smoothly. Your operating procedure must also be included in your application, including details on production, sales, protection, hours, and personnel, some of which naturally overlap with a business plan. A business plan will be needed if you want to raise money from investors. This raises the issue of what should be included in your business plan.
A marijuana business plan in New York should contain the following:
• Overview of the product or service:
Would you open a dispensary and cultivate your cannabis, or would you work for a cannabis consulting firm? What distinguishes your company? Please be as descriptive as possible. What strains or goods would you sell if you open a marijuana dispensary?
• Conducting market research:
How many people live within five miles of a dispensary if you're planning to open one? Who would be your user base if you have an app, and why will they use your app instead of someone else's? Where possible, use actual numbers that have been tested by a third party (instead of estimates).
With whom will you be in direct and indirect competition? What do they excel at, and where do they fail? What is their credibility on the internet? What would you do to set your business apart?
• Management team:
Compile a list of your credentials and those of the other members of your management team. (Think of it as a condensed edition of your resume with the highlights.) Include expertise in the cannabis industry and leadership, customer support, and business development skills from other sectors.
This section can be challenging. You'll need a five-year financial outlook that includes annual sales, operating expenditures, costs, and net profit projections. The sales forecast for each year should consist of not only revenue but also margin and direct costs. Estimate how much product you think you'll sell (based on market potential), your selling price, your production cost, and how much you'll spend on salaries, leases, and other expenditures to estimate revenue. Your cash flow statement will prove that you'll be able to remain in business. You will want to provide a sensitivity analysis (best- and worst-case scenarios) that indicates revenue that is 15% higher or 15% lower than your original estimate. Marijuana growers need to conduct a sensitivity analysis focused on future sales price per pound potentialities. You should even provide a break-even report, which will show you which month will be profitable.
• Specifications exclusive to New York:
If your state requires it, you can provide information about your protection system, inventory monitoring, safe product transport, quality assurance, and everything else in your business plan that isn't covered elsewhere in your application.
• Proposal to investors:
How do you value the shares if you're pitching your idea to investors? Consult an attorney to ensure that you are following state and federal laws. You will need your lawyer to draft an offering memorandum, also known as a private placement memorandum (PPM). A PPM tells potential investors about the details of the investment vehicle (your company) as well as the investment's potential risks.
Search for "cannabis rules" or "marijuana laws" in your city or municipality's name. Check recent local news reports or contact the city clerk, city manager, or town hall if your city or municipality's website does not have details about cannabis. Learn about things to consider before opening a dispensary in your country or state by visiting serviceganja.com.