Final strainwise module one ppt

HELLO!
I am
And welcome to Strainwise University.
Strainwise UniversityTM provides the
most comprehensive coursework
offered in the Cannabis Industry.
2

Welcome to Module 1:
Welcome to Cannabis Basics 101-Module 1. In this
first module we will be focusing on how to submit
an outstanding application.
3
(c) 2018 STWC Holdings, Inc. All Rights Reserved

Quote from Erin about why
she went into this business
4

Module 1:
Submitting an
Outstanding
Application
▸Lesson 1: Lesson 1: Setting Up and Registering Your
Business with the State
▸Lesson 2: Creating a Comprehensive Business Plan
▸Lesson 3: Creating Detailed Financial Statements
▸Lesson 4: Finding a Location for Your Facility
▸Lesson 5: Finding Investment Monies
▸Lesson 6: The Importance of Standard Operating
Procedures
▸Lesson 7: The Most Common Application Questions
5

Module 1
Lesson 1:
Setting Up and
Registering Your
Business with the
State
Determining the Type of Business You
Want to Set Up
▸Limited Liability Company (LLC)
combines the pass-through taxation of a partnership or sole
proprietorship with the limited liability of a corporation.
▸Partnership is a single business where two or more people
share ownership.
▸Sole Proprietorship is a type of business entity that is
owned and run by one natural person and in which there is no legal
distinction between the owner and the business.
6

Module 1
Lesson 1:
Setting Up and
Registering Your
Business with the
State
Tax ID
▸State ID needed when you are actively open selling and/or
have employees so that you can pay state taxes.
▸Federal ID/ FEIN is a 9 digit numbers needed to file
federal taxes on revenue generated.
7

Module 1
Lesson 1:
Setting Up and
Registering Your
Business with the
State
Certificate of Good Standing
A Certificate of Good Standing is a state-issued document
that shows that your business has met its statutory
requirements and is authorized to do business in that state.
8

Module 1
Lesson 1:
Setting Up and
Registering Your
Business with the
State
Lesson 1-Summary
The first step to starting a cannabis business is to set up
and register your business with the state. Of course, this
will vary from state to state, but overall the process is the
same. Your company needs a name, a selected business
type (LLC, Partnership, Sole Proprietorship), the type of
company entity along with State and Federal Tax ID
numbers. Each state’s process will differ slightly.
Application paperwork can be found online in most cases.
9

Module 1
Lesson 2: Creating a
Comprehensive
Business Plan
Selecting and Introducing Your
Management Team
When forming a business there is usually more than one
stakeholder involved. You need to identify key stake
holders to hold positions and define their respective roles
and responsibilities.
Who are the players and what are their responsibilities?
10

Module 1
Comprehensive
Business Plan
Title and Responsibilities
▸President- Leader of the organization and is legally
recognized as the highest titled officer.
▸CEO- (chief executive officer ) is the highest-ranking executive
in a company and responsibilities include making major corporate
decisions. They manage the overall operations and resources of
the company.
▸CAO - A chief accounting officer is the senior executive
responsible for managing the financial actions of a company.
▸General Counsel - A general counsel is the chief lawyer of
your business.
11

Module 1
Comprehensive
Business Plan
Title and Responsibilities
▸Vice President of Business Development- this
person is responsible for the execution of the business plan and
new business strategy for an organization.
▸Director of Branding and Marketing – This
person is responsible for developing a good relationship with the
target market, its essential for brand management.
▸Vice President Regulatory Compliance and
Licensing - This is a person who monitors and tracks
regulatory compliance.
12

Module 1
Comprehensive
Business Plan
Creating a Mission Statement
▸The mission statement will serve as a filter to
separate what is important and what is not
important.
▸The mission statement clearly describes
which markets will be served and how.
▸Your mission statement communicates a
sense of intended direction to the entire
organization.
13

Understanding Your Market
▸Location- Think of the neighborhood you want to place your
business.
▸Age- What is the average age of the population will you target
as a consumer.
▸Income Level – What is their average spend each visit.
14
Module 1
Comprehensive
Business Plan

Understanding Your Market
A few questions to ask yourself about your
market:
▸Are there enough people that fit your criteria?
▸Will my target market see a need for cannabis?
▸Can they afford my products?
▸Can I reach them with my message?
15
Module 1
Comprehensive
Business Plan

Conducting a SWOT analysis
16
Module 1
Comprehensive
Business Plan

Financial Summary
▸Revenue and Expense Statement Summary -
These reports include the results from operations, assets employed,
and key statistics from continuing operations derived from your
defined key performance indicators.
The pieces of a financial summary include a revenue and
expense summary for 5 years as well as your expected
return on investment (ROI) rates.
17
Module 1
Comprehensive
Business Plan

Revenue
Revenue is calculated by multiplying the price at which
goods or services are sold by the number of units or
amount sold.
Ways to calculate revenue:
▸ Accrual Accounting
▸ Cash Accounting
18
Module 1
Lesson 3: Creating
Detailed 5-Year
Financial Statements

Cost of Goods Sold (COGS)
COGS are the direct cost tied to the production of the
goods sold by your business.
Ways to calculate revenue:
▸ Accrual Accounting
▸ Cash Accounting
19
Module 1
Lesson 3: Creating
Detailed 5-Year

Net Income
Net Income is a company’s total earnings. Net income is calculated
by taking revenues and subtracting the costs of doing business.
Total Revenue
–
(Business Expenses + Operating Costs) =
Net Income
20
Module 1
Lesson 3: Creating
Detailed 5-Year

Assets
Assets are resources with economic value that your business owns
or controls with the expectation that it will continue to benefit your
business in the future.
Types of Assets:
▸ Short-Term Assets
▸ Long-Term Assets
▸ Intangible Assets
21
Module 1
Lesson 3: Creating
Detailed 5-Year

Financial ratios
Financial ratios are used by investors to determine if your company
is healthy and an investment will generate a return.
Types of Financial Ratios:
▸ Working Capital Ratio
▸ Quick Ratio
▸ Price-to-Earnings Ratio
▸ Debt-to-Equity Ratio
▸ Return-on-Equity (ROE)
22
Module 1
Lesson 3: Creating
Detailed 5-Year

Lesson 3- Summary
When you are applying for a license, you will be asked to include
detailed financial statements for a specified number of years. An
explanation of how revenue was generated and accounted for is
needed. These statements will detail the expenses your business
incurred over this time. Net income and all assets will be
considered when determining your business’s net worth and
financial stability. It is extremely important to keep your books up
to date, check your income statement, balance sheet and cash flow
statement on a regular basis.
23
Module 1
Lesson 3: Creating
Detailed 5-Year

Lesson 4: Finding a Location
for Your Facility
Lesson 4 discusses important zoning and sensitive use
locations guidelines.
Items to review prior to looking for a building.
▸Zoning Laws
▸Zoning Maps
24
Module 1
Lesson 4: Finding a
Location for Your
Facility

Sensitive Use Locations
▸Schools
▸Churches
▸Public parks
▸Recovery/addiction Centers
▸Other cannabis companies
If you find that a sensitive use location is zoned within the area you
want your business, find a different location. Working to get
approval will be hard and often times not fruitful.
25
Module 1
Lesson 4: Finding a
Location for Your
Facility

Physical Building
Once you select a location that is properly zoned you need
to address compliance regulations in place pertaining to
your physical building.
Hiring a cannabis industry consultant will help ensure that
you are looking for building specifications as it pertains to
adjacent walls, grade of steel and security challenges your
building may face.
If you are going to be leasing a building it is easier to be
upfront with your potential landlord to make sure that they
are willing to lease to a cannabis business. Also be
prepared to sign an NNN Lease and pay a premium on the
space.
26
Module 1
Lesson 4: Finding a
Location for Your
Facility

The Final Phase- Modifications
As soon as you purchase or sign the lease agreement you
are able to begin building modifications.
You will not be able conduct any business activities, until
you pass inspections and the municipality your building is
located in, states that you are compliant.
27
Module 1
Lesson 4: Finding a
Location for Your
Facility

Lesson 4- Summary
Whether you want a retail outlet, a cultivation center, or an
extraction facility, you need a location. You need to pre-qualify your
location and then secure the property, before you can submit your
application. When you are looking at zoning maps make sure you
review and mark any sensitive use locations. A location that is
within a sensitive use location should be removed from your
potentials list.
28
Module 1
Lesson 4: Finding a
Location for Your
Facility

Investor Types
There are three types of investors to look at when
searching for start up capital.
▸Angel Investor
▸Venture Capitalist
▸Start Up Incubator
29
Module 1
Lesson 5: Finding
Investment Monies

Angel Investor
Angel Investors are people that have business experience and are
interested in helping someone get their start-up off the ground.
▸Have a net-worth of over $1,000,000
▸Earn over $200,000 annually
▸Require Equity
▸Hands off
▸Help went requested
30
Module 1
Lesson 5: Finding
Investment Monies

Venture Capitalist (VC)
Venture capitalists use other people’s money to invest in
companies. Think of a VC executive as a stock broker.
Instead of stocks, they use liquid cash to invest in
companies.
▸Business is already profitable
▸Strong Business Background
▸Current with the market
▸Require Equity
31
Module 1
Lesson 5: Finding
Investment Monies

Start Up Incubator
Incubators offer admin support, leadership training,
research help, and other consulting. Incubators focus
solely on helping startups and early stage businesses get
to the next level. Most business’ within an incubator are
funded by venture capitalists.
There are a few cannabis focused incubators in the San
Francisco Bay Area, New York City and in areas of
Colorado. More are expected to form in the coming years.
32
Module 1
Lesson 5: Finding
Investment Monies

Lesson 5- Summary
The flood of investors and entrepreneurs into the cannabis
industry has created what is being termed a Green Rush.
The most ideal situation is that you can self-fund your
business. Asking friends and family is another easy route
to get funds. Depending on the size of the needed
investment you may turn to angel investors, venture
capitalists and start-up incubators for help.
33
Module 1
Lesson 5: Finding
Investment Monies

Lesson 6: The Importance of
Standard Operating
Procedures
The cannabis industry is heavily regulated at both the local
and state level. The federal government still views
cannabis businesses as illegal entities.
This is why having standard operating procedures are
important to day to day business.
34
Module 1
Lesson 6: The
Importance of
Standard
Operating
Procedures

What is an SOP?
▸ A Standard Operating Procedure or SOP is a set of step-
by-step instructions compiled by an organization to help
employees carry out routine business operations.
▸ SOPs aim to achieve efficiency, quality output and
uniformity of performance.
▸ SOPs are critical when writing your licensing
application.
35
Module 1
Lesson 6: The
Importance of
Standard
Operating
Procedures

What is an SOP?
▸ A Standard Operating Procedure or SOP is a set of step-
by-step instructions compiled by an organization to help
employees carry out routine business operations.
▸ SOPs aim to achieve efficiency, quality output and
uniformity of performance.
▸ SOPs are critical when writing your licensing
application.
36
Module 1
Lesson 6: The
Importance of
Standard
Operating
Procedures

What should a SOP cover?
▸ Safety
▸ Security
▸ Diversion Prevention
▸ Cultivation and Harvesting
▸ Extraction Processing
37
Module 1
Lesson 6: The
Importance of
Standard
Operating
Procedures

What should a SOP cover?
▸ Safety
▸ Security
▸ Diversion Prevention
▸ Cultivation and Harvesting
▸ Extraction Processing
There are many more which can be found in your manual.
38
Module 1
Lesson 6: The
Importance of
Standard
Operating
Procedures

How Do I Write an SOP?
▸ Name of Process
▸ Purpose/Scope
▸ References
▸ Procedures to Follow
▸ Attachments
39
Module 1
Lesson 6: The
Importance of
Standard
Operating
Procedures

Lesson 6: Summary
When applying for a cannabis business license you need to provide
detailed Standard Operating Procedures (SOP). An SOP is a set of
step-by-step instructions compiled by an organization to help
employees carry out routine business operations. The more your
SOPs detail your safety, security and diversion prevention plans the
better. These are not training manuals for your employees, rather a
guideline of how day to day business will be conducted.
40
Module 1
Lesson 6: The
Importance of
Standard
Operating
Procedures

Lesson 7: Other Items to Keep
in Mind When Submitting an
Application
There are a few other items to keep in mind when you are
submitting your application.
Taking the time to think through each section the city or
state is asking for is critical.
41
Module 1
Lesson 7: Other Items
to Keep in Mind When
Submitting an
Application

Don’t Over Look These Items
▸ Writing Style (spelling, grammar, sentence structure)
▸ Criminal Backgrounds
▸ How You Will Add Value to the Community
▸ Allocating Enough Time and Money For Application
Fees, Permits and Build Out
You can find a list of frequently asked questions to think
about as you prepare for the application process in your
manual.
42
Module 1
Submitting an
Application

Lesson 7: Summary
Taking the time to think through each section the city or
state is asking for is critical. Industry knowledge isn’t
enough, and you need to show in your application that you
are a sound business and an asset to the local community.
Having support from local community leaders will help you
when your application goes before an approval committee.
Your application should provide the required information in
a memorable way.
43
Module 1
Submitting an
Application

Final strainwise module one ppt

Recommended

Recommended

More Related Content

Similar to Final strainwise module one ppt

Similar to Final strainwise module one ppt (20)

Recently uploaded

Recently uploaded (20)

Final strainwise module one ppt