Cannabis License Application

Applying for a cannabis license can be an extremely time consuming and challenging adventure. Whether applying for a cultivation, manufacturing, dispensary or vertically integrated license, your success requires considerations on a multitude of different levels. These considerations include approaches to the application documents along with planning for implementation post-licensure. Applying equal importance to each phase will ensure a higher level of application success while also minimizing post-licensure headaches.

The application documents will generally include narratives of SOPs along with detailed information of systems and methodologies. These narratives are then supported by plans and other graphic documents. One of the greatest mistakes operators make is taking the approach of submitting documentation meeting the application requirements while assuming the ‘real’ design will be completed post-licensure. This generally occurs based on one or both of the following. Either the operator desires to limit expenditures during the application phase or they believe they are too busy to properly plan the proposed operation. Limiting the investment makes sense, as there are no guarantees on licensure. A failed application is thereby wasted resources on both the time and money fronts. However, proper planning ensures a fully vetted design and thereby increases the chances of success. Further, with a properly planned approach the time and financial investment can both be effectively managed. As the old saying goes, time is money. Therefore, saving time by properly planning the application process will also save money. The savings will be realized on the frontend, the application development, and the backend, implementation post-licensure.

While application requirements vary drastically from state to state the process of planning, development, and submission should be standardized and straightforward. On the frontend, a properly planned application is not vastly different than implementing a new facility design. The process begins with a review of the regulations and application requirements. Analysis of the integration of the project vision (budget, schedule, needs, desires, goals, and objectives) to the application will define the project approach. The project approach includes development of narrative foundational documentation such as SOPs and defining systems and methodologies. Utilizing the vision and business model the team develops the facility program. The facility layout is developed through integration of narrative documentation with the facility program. The above process defines proper development of a license application.

Adhering to the above defined process for development of an application makes post-licensure a breeze. When developing an application based on vision, business models, and regulations all post-licensure activities are streamlined. The beauty of adherence to this process is time invested post-licensure is utilized to improve the concept in lieu of trying to create one in a time crunch. Additionally, some states require modifications to application documents to be approved prior to starting work. This requirement adds an additional layer of timeline issues making development of the concept even more challenging.

In an industry that is quickly becoming dominated by operators who think outside the box, adherence to a process focused on proper planning and development can be the difference between operational success and failure. The need to lower both CapEx and OpEx are becoming more and more critical in a vastly competitive market. The falling value of flower has changed the ease of success by which the industry once played. Additionally, in new states, or those transitioning from medical to adult-use, those who are first to market enjoy higher revenue based on supply and demand. As more facilities become operational, increasing competition and saturating supply, product value is driven downward. This reality challenges operators to collaborate with teams who possess exceptional industry knowledge and experience. Through this collaboration, and utilization of time-tested processes, operators can streamline planning while developing solutions meeting the established vision.