The Governors of New Jersey, New York, and Connecticut signed adult-use cannabis sales into law in 2021. Once up and running, tri-state cannabis annual sales could have combined sales in excess of $5 billion within the first five years.
Those billion-dollar numbers have cannabis multi-state operators (MSOs) and startup cannabis entrepreneurs racing to gain the golden ticket to those billions: a license. Sounds easy but it’s not. Each state has its own tangle of state law, local zoning regulations, and fees to navigate before starting manufacturing, delivery, retail, and consumption lounges.
Dozens of municipalities in New Jersey and New York have already banned marijuana businesses from setting up shop. Finding a permitted location and earning the cooperation and trust of local communities, town councilors, and mayors is a must.
New Jersey just opened up the application process for licenses. Connecticut finalized rules about licensing in December. New York delayed releasing final rules for obtaining a license and may not begin legal adult-use sales until 2023, a costly waiting process for businesses raising capital and leasing properties.
Those laws and regulations are difficult and expensive. It’s estimated that a New York retail license might take $2 million to acquire when all the steps and procedures are accounted for, and that’s before any money is raised or spent on real estate, equipment, training, marketing, and products.
On the bright side – being one of the first license holders and operators in the tri-state area will be lucrative in the long run and a prime location to build a national and global brand. The regulations in each of these states have strong social equity components for those harmed by the War on Drugs and allow for microbusiness licenses for the little guy. If you aren’t a publicly traded multimillion dollar MSO, you still have a fair chance to get a license and realize your cannabis business dreams.
Reach out to Arcview Management Consulting at arcviewconsulting.com
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