One of the most common questions asked by folks looking to get into the Michigan cannabis industry is, “what’s the first step to getting a license?” Answering this question depends on what sort of business you want to have. There are many different considerations that go into the decision to start any business, not just a cannabusiness. With that in mind, here’s our 3 best tips for those looking at joining Michigan’s cannabis industry.
Tip 1: Decide What Type of License Best Fits Your Skillset
Generally speaking, there are 6 core industry jobs, all with their own licenses. You may want to join our state’s:
Each of these licenses covers a different type of commercial involvement in the cannabis supply chain. Your first step should be to review them to determine which best aligns with your skillset and goals. If you (or your team) come from a retail background, operating a safety compliance facility may not be a good fit, because it requires laboratory experience.
Cannabusinesses face all the ordinary challenges any other new company faces plus some additional regulatory and legal hoops to jump through because cannabis remains illegal under federal law. By matching your existing skillset with the license type that best fits those skills, you leverage your existing business experience to the benefit of your new venture. In other words, don’t reinvent your skillset wheel—use what you already know, because you’ll have plenty to learn just in starting your company.
Tip 2: Identify Your Core Team and High-Level Roles
If you’re going to be the sole owner of the business, this is an easy step: You will be handling everything. However, many entrepreneurs looking to start a business come to the table with partners reasons like capital considerations or division of labor. You don’t need to have 100% of all of the details sorted out at this point. It’s common for businesses to take on additional capital investment and investors along the path to licensure. However, it’s critical to identify your core team—the folks that will be there day-to-day in the trenches operating the business—and come up with a rough breakdown of how equity will be divided and who will handle which tasks in operating the business.
Tip 3: Write Down a List of Long-Term and Short-Term Goals for Your Business
Every business should have some long-term and short-term goals that they want to accomplish, and cannabusinesses are no exception. Taking the time to sit down with the team and identify short-term goals (thing you’d like to accomplish within the next year) and long-term goals (things you’d like to accomplish within the next 5 years) helps build cohesion of vision amongst your team. Writing these goals down on paper keeps your actions in perspective.
Starting a new business is a daunting task. It can seem overwhelming at times, with many appealing options to choose between. By identifying and writing down goals, you and your team members will find it easier to remember what is most important to you. Your goals list will also help you determine which tasks and items should be given the most priority and attention with respect to time and capital allocation.
We Can Help You Start the Cannabusiness Licensing Process
Once you have a solid plan for the future, it’s time to contact a lawyer to get your company off the ground. Especially in the cannabis industry, even a small legal error can be a huge setback. Instead of trying to go it alone, we recommend you speak to a law firm with experience helping people like you get started.
Entrepreneurs are an important part of Michigan’s economy and our team at Grewal Law PLLC is proud to support them. We can answer your questions about cannabis licensing and other common issues that face new businesses. Cannabis law is complex. Make sure your business is supported by an attorney who knows how to help.
Grewal Law PLLC has an entire team dedicated to serving our communities’ cannabis law needs. Call us today at (888) 211-5798 for professional help with your cannabusiness.