Prepackaged Cannabis Business Plan – Just No

Prepackaged Cannabis Business Plan – Just No

Prepackaged Cannabis Business Plan – Just No is a discussion of the first thing that you DON’T want to do when considering investment in a cannabis business.

We started a series about what to look for in a cannabis advisor last week in California Cannabis Biz Check – Consultants. We began by explaining why you need an attorney and a CPA [more on why a CPA and not an EA in the next post.  Then we explained why we believe it is important that a commercial cannabis business which is located in California have attorneys and CPA’s who are licensed in and pay taxes to California. Then we discussed required withholding on payments to contractors who are non-residents of California.

Prepackaged Cannabis Business Plan - Just No
Stinky EA and Smelly EA

We explained why a CPA should be the professional of choice, and pointed out numerous reasons why, in general, an Enrolled Agent is a poor choice [we noted that there are very rare exceptions to the statement, but they do exist.] Then we should the headquarters of our hypothetical shitty advisors, Smelly & Stinky EA’s. Now, we introduce Stinky EA and Smelly EA to help us continue the discussion. Our discussion continues with a discussion of a group that you should be VERY WARY of they specialize in making words, numbers, and documents look “pretty without understanding what they mean. They would be the purveyors of templates [which is ok if that is what you need and you understand what they are]. When they start offering complete “Business Plans”, “Licensing Packages” or “Business Valuations” we suggest that you RUN LIKE HELL in the opposite direction.

The reason why we say that is that after telling you about everything they are providing you with as an incredible deal, in the next breath, they tell you that they aren’t responsible for anything, and they are not attorneys, CPA’s, financial or tax planners or advisors. Hmm…so what are they besides sellers of “snake oil”.  At least Stinky EA and Smelly EA had to pass a test to hang a shingle. The paragraphs that follow are a sample of the “horseshit” we found on the sites we looked at.

Brand A

We Are Not Financial Advisors – We provide information designed to educate and inform entrepreneurs. We and our Products are not intended to provide legal, tax or financial advice. We are not financial planners, brokers or tax advisers.

Followed by – Complete and professional cannabis business plans, including pro forma financials and projections to help you know how much money it’ll cost to start your business and how much money you can make by starting and operating your 100% legally compliant medical or recreational cannabis business.

Brand B

Record Keeping & Taxes – How to maintain the required records for licensing, auditing & tax purposes. As well as the details about your tax liabilities for your business type and what you can expect to pay in taxes.

Accounting & Tax Mitigation – We can help with suggestions for common accounting practices (GAAP) as well as the regulations that must be met in order to be in total compliance. Since we’re not specialists in this capacity, we urge our clients to seek professional accountants or lean on us for recommendations

We are not a law firm, and the employees of We are not acting as your attorney. Our consulting services are not a substitute for the advice of an attorney.

We are not permitted to engage in the practice of law. This site is not intended to create an attorney-client relationship, and by using us no attorney-client relationship will be created with us. Instead, you are representing yourself in any legal matter you undertake through our services. Accordingly, while communications between you and We are protected by Privacy Policy, they are not protected by the attorney-client privilege or work product doctrine.

Brand C

At this stage, you mainly need a location, a business plan, and to collect all of the required documents to submit for your license. It’s up to you to pick a location and learn the regulations and application requirements for that municipality. Once you do that, come to us for operating plan templates. Most clients prefer not to pay an attorney or CPA >$25,000 to create all of their application materials.  The smart DYI cannabis entrepreneur can save over $10,000 working from templates and having an attorney review everything before submission.

Our next post will start getting into some of the underlying assumptions contained is business plans and what to look for. Remember you can check the license of a California attorney here and a CPA here.

Prepackaged Cannabis Business Plan – Just No

 

Author: abizcannabis

Managing Director & CEO of integrated transactional financial advisory, tax, and technology consulting firm - aBIZinaBOX Inc New York, Chicago, and OaklandCPA.CITP.CISM.CGEIT.CGMAExpertise with: Alt. Investments/Private Equity, Real Estate, Professional Services, CA Cannabis, Tech Start-Ups and Distressed Assets/DebtTechnology Certifications including:Advanced & High Complexity Cloud Integrator AICPA PCPS, CAQ,, IMTA, CITP ISACA CGEIT, CISMState CPA Societies in California, Florida, Illinois, New York and TexasExpertise with Regulatory Compliance - US - HIPAA, FINRA, SEC Rule 17(a)(3)/(4), eDiscovery, FINCEN - EU- EBA, ESMA, EIOPA UK - BoE, PRA, FCA