The time has finally come for one of the nations most sophisticated (and wealthiest) economic regions in the U.S. to dive into legal recreational cannabis sales. Even though New York legislation is about a year or more away from allowing the first legal recreational sale of marijuana, the time is now to consider laying the foundations for successful cannabis license procurement in New York. Those that have their sights set on obtaining a license and starting a cannabis business in New York should immediately begin considering:
- Funding & partnerships
- Do you know how much money you will need to successfully operate your business?
- Do you have the funds ready to go or will you need to structure for a raise?
- Who will your partners be? Do you have a history in the space or will you be building your network?
- Location of License(s)
- Cannabis real estate, opportunity zones, security, and the build of your facility are all wrapped up in your choice of location. Will you rent or buy? And are you prepared to hold onto real estate while the regulations are enacted?
- Standard Operating Procedure (SOP) Development
- Regulators require that businesses develop and submit SOP’s during the licensing process. Many companies develop SOP’s merely to win licenses, but the market has found that operational SOP’s that can be implemented from the beginning are beneficial to the efficacy and long term success of the business. Being able to project your expenses (and thus your profit) relies on the proper development of operating procedures.
- Do you already have a product? Do you know how to scale? Are your practices GMP compliant?
- Go-To-Market Strategy
- Who is your customer? Build the personas of your target clients. This will be integral to every aspect of your business communications — from your website, to your marketing material, to the packaging of your products.
- What are your price points?
- Map out your supply chain. Every ingredient, machine, and label is important to the success of your product.
- What are your differentiating factors? Why is your business different from other companies, not just in your local market, but also on the global and national stage?
- How will the decriminalization of cannabis consumption in New York City and New York state affect your business?
- Competitive Intelligence
- Who else will be entering, and how will they be either a threat to you, or a possible partner?
- Who is already in the market and what benefits or threats could they pose to your business?
This is just the start, and seeking careful guidance and navigation services with seasoned industry leaders in this space could be helpful to your journey. New York will likely see fierce competition, as it is attractive from both a local population, tourism, and a brand establishment perspective. Often the recreational cannabis brands and marijuana companies that are first-to-market, have a stronghold. The consumer is ready to buy, and you need to be there to capture the market share! Being among the first licensed recreational cannabis companies in New York is something that has venture funds salivating and investors keen to diversify. This is the sign that Big Money was waiting for! You need a business plan that stands out to capture funds if you are a prospective operator, and if you are looking to invest you will need shrewd guidance to avoid the pitfalls of overzealous green rushers. Operators that are already medically licensed facilities will have a leg up, but there are plenty of planning and operational considerations that will be necessary considerations. The sand is falling through the hourglass, are you ready?
Gateway Proven Strategies has the combined experience of working on over 600 licenses nationwide. Our strategic expertise has taken clients from the license procurement phase to business maturity to exit. We pride ourselves on our team of best-in-class consultants serving best-in-class clientele. We are not only stakeholders in this thriving industry, but also responsible, ethical advocates.
We would be honored to earn your business and guide you into the green gateway.