Happy March! As Minnesota digs out of snow into spring, Minnesota’s cannabis industry is digging through the licensing deadline (March 14). I look forward to us emerging into summer: a few micros at first, and then a blossoming industry.

With that poetic thought, I’ve got to get back to writing licenses. But as you can see in this issue, I’m thinking about what’s next, and how to help Minnesota entrepreneurs navigate the process of launching successful and compliant businesses.

As we move ahead, I’d love to hear from you. How can this newsletter, and I, help you move ahead in this crazy industry?

MN-OCM Updates

Licensing

The licensing application period for all cannabis license types (except for event license and the hemp-derived licenses) closes at midnight next Friday, March 14.

Key Links:

• OCM Main licensing page;

• Application Review and Qualifications Guidance (Overview of application requirements and process, and then a detailed rubric for each section of the app).

• Jen’s summary from the special newsletter all about the application on Feb. 17

• Insights: You Asked: WTF is TPII?

Next Steps

Congratulations to the SEA microbusinesses from the fall application round that have now gotten the go-ahead from OCM to move to the next step!

For reference, here’s what I think of as OCM’s “Chutes and Ladders graphic” with the process that applicants will be moving through. Unlike the deadline-driven licensing process, microlicense applicants will be moving through the next steps in the process each at their own pace.

Jen’s take:

The very next step is getting background checks - easy enough. Then, it’s a big one: securing your business location, and submitting to OCM updated versions of all those preliminary plans and documents to describe your business location and comply with the final rules.

In fact, what entrepreneurs are called to do is:

• Identify suitable property, in terms of facilities, location, price, and zoning (coordinate with your local government!).

• Secure that property by lease or purchase

  • This may require raising money from investors first. Or convincing a bank to help you finance a property purchase with a loan secured by the property, or a personal guarantee. This is a big chunk of work.

• Build out that property to meet OCM’s rules and your business’ needs (security systems? outdoor fencing? and so much more).

  • This will be a capital-intensive step! I encourage you to create forecasts of what you will need to buy and at what stage.

I say that not to scare you, but to empower you. In other states, half of the social equity applicants who got licenses never opened. That’s a terrible result, and it reflects a lack of planning and of capital, as well as just what a hard industry this is.

If you want my advice thinking through your capital options, I’m now booking paid strategy sessions in April here.

If you are trying to figure out your capital strategy, I also encourage you to watch the recording of the webinar I did with Green Check today (March 6), which is a good overview of what banks will and won’t do in cannabis, how to put in place valid loans from non-bank sources, the difference between debt and equity, and the basics of raising equity financing from angel investors. I don’t have that link yet, but I’ll add it to my Zaap bio and to the saved Internet version of this newsletter once available.

Lucky Leaf Roundup

Last week the national Lucky Leaf conference returned to Minnesota! I was energized by educating entrepreneurs at the Crash Course portion, and enjoyed networking with friends old and new at the AfterParty organized by CannaConnect.

I also recorded an interview with the Money Talks podcast from Green Rebates, and connected with tons of service providers to the industry (POS systems! Security companies! Lighting companies!) so I can make educated recommendations and referrals as Minnesota entrepreneurs are ready to take those steps.

Upcoming Events

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