Cannabis Business Boom in Florida : How to Succeed in the Sunshine State

Intro Speaker (00:05):
Welcome to Cann Strategy, elevating Your cannabis business, the podcast where we sow seeds of wisdom to cultivate success in the cannabis industry. Whether you're an ambitious entrepreneur, an insightful investor, or a forward thinking operator. This podcast is your insider pass, equipping you with crucial tips, cutting edge trends, and profound insights directly from industry front runners. In each episode, we unlock the best practices of successful cannabis business operations, unravel regulatory complexities, and explore promising opportunities in this dynamic market brought to you by Cann Strategy. With over eight years of hands-on experience across the United States, we're dedicated to empowering you with the knowledge and tools you need to elevate your cannabis business. So fasten your seat belts and prepare for a deep dive into the heart of the cannabis business world. Remember, in this ever-evolving industry, staying ahead is not just about keeping up with trends. It's about defining them. Enjoy the episode and make sure to subscribe, like and share.

Podcast Host (01:20):
Florida has emerged as a thriving hub for cannabis businesses following the acceptance of a second round of cannabis business license applications earlier this year with the application window for cannabis businesses known as medical marijuana treatment centers, or MTCs closing in April, a select 22 lucky applicants will soon be awarded the highly sought after Florida cannabis business licenses. In this episode, we will delve into the details of the Cannabis Business Operation Rules in Florida and shed light on the exciting prospects that lie ahead for new licensed businesses in the state. First, let's discuss the cannabis business license application process. Early 2023, Florida again opened its doors to cannabis entrepreneurs inviting them to apply for licenses. The application process was rigorous, ensuring that only the most qualified and dedicated individuals or entities were considered after a comprehensive evaluation. 22 Applicants will be granted the coveted Florida cannabis business licenses in August by the Office of Medical Marijuana.

(02:20)

Use the Office of Medical Marijuana use is an arm of the Department of Health charged with writing and implementing the Department of Health's rules for medical marijuana, overseeing the statewide medical marijuana use registry, licensing Florida businesses to cultivate process and dispense medical marijuana to qualified patients and certifying marijuana testing laboratories to ensure the health and safety of the public as it relates to marijuana compliance with a regulatory body like the O M M U is crucial in any state to succeed in the cannabis business. Once selected by the Office of Medical Marijuana use the new licensees will proceed to the challenge of setting up, launching and operating their vertically integrated cannabis businesses, which is a promising yet complex venture even for experienced cannabis companies. What kind of market opportunities will these new licensees have? As the medical cannabis market continues to burgeon in the sunshine state, businesses are bestowed with exciting growth opportunities, including confident whispers that adult use legalization is coming down the pipeline in Florida for 2024 or 2025.

(03:22)

Though it may seem that the sooner the adult use legalization occurs, the better the 22 new cannabis businesses would be best served by a 2025 timeline, so they have the time to build out their facilities and establish their operations in the medical space before taking on the onslaught of demand that adult use will inevitably bring. Florida has a population of 22.6 million and a recorded 137.6 million visitors in 2022. That's a huge jump in potential customers that the cannabis market in Florida will see compared to the approximately 900,000 medical patients they serve. Currently. Operating successfully will require a deep understanding of the unique characteristics and stipulations of Florida's cannabis industry. Operating a cannabis business in Florida requires adopting a vertically integrated approach, meaning that companies are required to have control over every stage of the cannabis supply chain, including cultivation, processing, dispensary, operations, and delivery. The theory is that this business model ensures that quality and safety standards are maintained throughout the entire process.

(04:26)

On the flip side, it requires every company to be good at four separate business lines, each of which require different core competencies. Managing multiple aspects of the supply chain requires careful coordination and expertise. It involves overseeing cultivation operations, ensuring proper processing and packaging of products, managing dispensary inventories, and coordinating efficient delivery services. Many businesses in the state have struggled to excel across their supply chain. Florida has been known for selling notoriously subpar cannabis flower to its medical card holders and customers have described the demeanor of employees at some dispensaries as if they are absolutely miserable. Good news for new businesses is that there is definitely room for improvement. Perhaps the new operators will come on the scene with improved performance, or perhaps they will face the same hurdles to achieving quality that the existing operators have faced. So what do new licensees have to look forward to other than a slew of complete challenges to conquer a lot from our perspective, one of the most exciting features of Florida's cannabis regulatory model is the store expansion opportunities.

(05:29)

Florida provides a unique platform for cannabis businesses to grow and expand exceedingly. Further than most other legalized states allow license holders are permitted to open as many dispensaries as their company can adequately supply with cannabis products. This flexibility allows for strategic market penetration and ensures that businesses can cater to the demands of consumers across the state effectively. For reference, Illinois only allows 10 dispensaries per company, and the company has to compete for every license. New York will allow three dispensary licenses per company, and Ohio allows a total of five dispensaries per company with each license being competed for separately. Each of those states has a limit on the total number of dispensaries in their state, whereas Florida simply has a cap on the number of license holders, but doesn't strictly limit the store count. To the same extent for comparison, Florida licensees compete once for their license and then under that license have the opportunity to scale their retail dispensary footprint as far as is feasible for their business.

(06:27)

The company with the largest market share in Flo, Florida has 125 dispensaries listed on their company website as of July, 2023. With existing operators who have taken advantage of scaling their dispensary footprint across the state, new operators will have to figure out how to thrive and establish market share in a state that already has a substantial number of cannabis dispensaries. What will it take to succeed at Cann strategy? We know that certain elements are key to the effective establishment and growth of your cannabis venture in Florida. Let's go over a high level overview of the to 10 keys to success for a cannabis business in the Sunshine State. Success Key one, coordinated project management. Project management refers to the process of planning, organizing, executing, and overseeing a project to ensure it is completed efficiently and successfully. It involves a wide array of tasks, including defining project goals and objectives, establishing timelines and budgets, allocating resources, managing teams, and tracking progress against the defined goals.

(07:26)

When initiating a significant endeavor such as starting a medical marijuana treatment center, effective project management is indispensable. This sector laid in with numerous tasks ranging from regulatory compliance, facility setup, staffing, product development to marketing and sales demands, meticulous organization and coordination. Good project management helps synchronize these elements, streamlining operations and meeting crucial deadlines. Moreover, it aids in the efficient utilization of resources and effective risk mitigation, ensuring that the entire startup process aligns with the business goals. Without skilled project management, there's a risk of projects going over budget, missing critical deadlines or failing to meet the established objectives hindering the success of your cannabis business. Success Key two, finding a quality general contractor. The role of a general contractor extends beyond mirror construction. They serve as valuable guides in navigating the intricate landscape of cannabis related building codes and zoning requirements. This includes understanding the regulations specific to the cannabis industry, such as ventilation standards, security requirements, waste disposal regulations, and more.

(08:35)

Their knowledge can help avoid legal complications and ensure that your facility is compliant from the start. Selecting a good general contractor is thus a critical decision. There are several factors to consider in making this choice. First, look at their experience in the cannabis industry. Do they understand its unique challenges and regulatory landscape? Have they successfully completed similar projects? Examining their portfolio and asking for client references can provide valuable insight, success, q3 selecting and implementing top tier technology systems in today's rapidly evolving, tech driven landscape, the implementation of robust and adaptable technology systems is an absolute necessity for managing a cannabis business. Effectively, these systems span multiple aspects of operations, including inventory management, sales, customer relations, and compliance reporting. When correctly chosen and effectively utilized, this technology can provide a substantial competitive advantage, optimizing business efficiency, productivity, and maintaining regulatory compliance within the stringent cannabis industry.

(09:40)

Inventory management, for instance, can be dramatically improved through sophisticated technology systems, allowing real-time tracking of stock levels and precise forecasting of future needs, sales and customer relationship management. CRM platforms can offer valuable insights into customer behavior, streamline sales processes, and foster stronger relationships through personalized customer interactions. Furthermore, technology plays an essential role in compliance reporting in the cannabis industry where businesses must navigate a complex web of regulatory requirements. Advanced software can automate the compilation and submission of compliance reports, reducing the risk of human error, and ensuring timely reporting. Hence, selecting the right technology systems and harnessing them effectively is paramount in driving growth and success in the competitive cannabis industry. Success Key four, brand development. Creating a powerful and distinctive brand is crucial for success in the increasingly competitive cannabis market. A brand is much more than a logo or tagline. It embodies your company's values, mission, and the unique customer experience you provide.

(10:46)

Your brand should convey your guiding principles and unique value proposition consistently across all communication channels. This could be the exceptional quality of your products, the extent of your product range, superior customer service, or a commitment to social responsibility customer experience. Extending beyond mere transactions to every interaction with your business is also a vital part of your brand Design elements such as logo, packaging, and website aesthetics should echo your brand's persona and captivate your target audience. Moreover, developing a compelling brand voice and leveraging storytelling can make your brand more relatable and memorable. Forging strong emotional connections with your customers, whether it's the story behind your company's creation, your team's personal journeys, or testimonials from satisfied customers, storytelling can significantly enrich your branding strategy. Success. Key five, facility design. Dispensary design can greatly impact customer experience and by extension, your business's success. A well thought out design should facilitate efficient operations, display products in a compelling manner, and create a welcoming, engaging atmosphere for customers.

(11:53)

Ensuring ADA compliance and considering customer flow and safety can also boost customer satisfaction and business reputation. Similarly, every facet of facility designed for cultivation and production from layout and space allocation to lighting, temperature control, and air filtration systems can significantly impact both operational efficiency and the quality of the cannabis and cannabis products. Success. Key six, recruiting and training staff. Your staff carry the success and efficiency of your business in how they operate on a daily basis. In the dispensaries, staff are the face of your cannabis business. Hiring knowledgeable customer centric personnel and providing them with comprehensive up-to-date training on cannabis products. Sales techniques and compliance requirements can significantly enhance customer service quality and ultimately your bottom line. In cultivation, you'll need truly skilled cultivars who understand plant health, how to optimize outcomes such as cannabinoid and terpene levels, and how to maintain exquisitely sanitary conditions in production.

(12:55)

You'll need staff who are knowledgeable about the use and safe handling of equipment and products. Similar to cultivation, you'll need production staff who understand how to get the best outcomes for products and how to maintain an exquisite level of sanitation standards. Your delivery drivers will need to be good drivers, of course, and additionally be mindful of their surroundings to look out for any security risks while they are on their route or conducting a delivery. Having a coordinator who understands route planning if a must. Recruitment and hiring is often treated as a simple task when finding great talent that will stay with your company, is an art, which includes a mix of finding the people, asking the right types of questions and sussing out their character and potential culture fit success. Key seven, working with multiple testing facilities. Every cannabis business must have their products tested by a licensed lab to ensure the quality and purity of cannabis flour and extracts.

(13:49)

Regular testing can prevent contamination issues, ensure dosage accuracy, and enhance consumer trust in your products. It also plays a critical role in staying compliant with Florida's stringent cannabis testing regulations. Aligning with multiple reliable testing facilities ensures the consistent quality and safety of your cannabis products and creates redundancy in your lab testing. So if one lab is having issues, that does not stall the flow of your company's process. Multiple lab relationships will also be key when adult use is legalized and the labs have to deal with an onslaught of products to test, which they will have never before had to handle success. Key eight, implementing SOPs, standard operating Procedures. SOPs are a set of step-by-step instructions that guide your staff through essential tasks, functions and operations within your business. They serve as an operational roadmap detailing precisely how routine activities should be conducted to ensure efficiency, safety, and consistent quality.

(14:47)

Implementing comprehensive easy to understand SOPs is vital to ensuring consistency in business operations. This means each process is carried out the same way each time, reducing the likelihood of errors and increasing the reliability of outcomes. Furthermore, SOPs can help standardize training procedures for new employees, helping them understand the job requirements more quickly and accurately. A well-defined s o P can also enhance product quality by following the same steps. Every time a task is performed, the variability in the process outcome can be significantly reduced. Success Key nine, systemizing the supply chain. An efficient systemized supply chain is vital to consistently and sustainably meet customer demand. A crucial component of this involves establishing strong collaborative relationships with reliable suppliers. It's essential to have multiple sources for key products and materials as this mitigates risks associated with supplier disruptions. This redundancy can ensure business continuity even when one source faces unexpected issues, thereby maintaining the stability of the supply chain.

(15:50)

Effective inventory management practices also play a critical role in an efficient supply chain. Businesses must balance maintaining sufficient stock to meet customer demand against the cost of holding excess inventory, predictive analytics, demand forecasting, and just-in-time inventory systems can be invaluable tools for maintaining this balance. These techniques can help identify trends, predict future demand, and ensure products are available precisely when needed, thereby reducing storage costs and the risk of stockouts or overstocks. Optimizing logistics and distribution strategies is another critical aspect. This involves not only selecting the most coste effective methods for transporting goods, but also considering how these methods can adapt to changing circumstances. Success. Key 10, working closely with state and local regulators. Compliance with the omu regulations, covering licensing, product testing, labeling, security, and employee qualifications is not just legally required, but also crucial for establishing a reputation for safety and integrity in the cannabis industry.

(16:50)

Maintaining a positive proactive relationship with state and local regulators is vital for navigating the regulatory landscape and staying abreast of changes that could impact your cannabis business. Regular communication can foster mutual understanding and cooperation, facilitating smoother business operations and reducing the risk of issues. By now, you should have a more in-depth understanding of cannabis business in Florida and some of what it will take to be successful. As of now. It could be several years before the Office of Medical Marijuana use reopens the licensing application process. While this might sound disheartening, it's important to remember that in this competitive industry, time is a resource. This interval can be used strategically to prepare to study the market dynamics, to understand the nuances of the Florida cannabis business landscape and to build a robust business plan. Or if you're capitalized in the eight figure range, you can look into pursuing an acquisition to enter the market sooner.

(17:44)

As you can see, setting up a successful cannabis business in Florida involves a combination of astute, stringent quality control, robust technology systems, effective branding and meticulous compliance with state and local regulations. At Cann Strategy, we offer comprehensive consulting services designed to guide cannabis business owners like you to success. We take pride in our extensive industry knowledge, commitment to customer service, and hands-on approach. Our team of experts is equipped to assist you at every step of the journey from initial setup and scaling your operations to managing compliance and preparing your business for future opportunities in the adult use market. Our personalized approach ensures that your business receives the exact support it needs to thrive in Florida's rapidly evolving cannabis market. When you choose Cann Strategy, you are not just choosing a consulting firm. You're choosing a co-pilot committed to helping you succeed in the cannabis industry. Your success is our mission, and we will leverage the expertise of our various hand selected consultants to help you achieve your business goals. We are here to guide you towards success. Start your journey today with Cann Strategy and make your mark in the thriving Florida cannabis industry.

Intro Speaker (18:59):
That brings us to the end of another enlightening episode of Cann Strategy, elevating Cannabis Business ventures. We hope you've enjoyed our deep dive into the ever-evolving world of cannabis business and gleaned valuable insights that can help propel your venture to the next level. Remember, whether you're an aspiring entrepreneur with a burning eye idea, an investor seeking lucrative opportunities in the cannabis space, or an established business aiming to scale up. We're all navigating this dynamic industry together. Sharing knowledge and experiences isn't just beneficial. It's pivotal to our collective success in this vibrant sector. As always, this episode is brought to you by Cann Strategy, your reliable partner in cannabis business development. With over eight years of experience in the cannabis industry across the United States, Cann Strategy offers unparalleled consulting services ranging from license applications, business startup and development strategy to operational guidance about overlooked adjustments that can take your cannabis business to the next level of performance.

(20:10)

Let us be your compass guiding you through the intricacies of the cannabis industry. Reach out to us and let's explore how we can cultivate success together in this burgeoning market. If you found today's episode valuable, consider leaving us a review. Share it with a fellow cannabis entrepreneur or investor, and hit the subscribe button to stay ahead of the curve with the latest trends and insider tips in the cannabis industry. Until next time, this is Cann Strategy, elevating your cannabis business ventures where knowledge isn't just power. It's your ticket to unrivaled growth and success in the cannabis industry. Stay savvy and keep growing.