WITH a focus on operational requirements, such as standard operating procedures, we will soon offer document templates for those seeking NY Cannabis Licenses, for both larger entities and for microbusiness license applicants.
When it’s time to submit your NY cannabis application, we will offer any plans and procedures that are required. These will include items such as:
- An Environmental Impact Plan
- Security & Safety Plans and Procedures
- Diversity Hiring Plan
- Adverse Events SOPs
- Quality Assurance and Quality Control SOPs
- Recall SOPs
- Packaging and Labeling SOPs
- Inventory Control SOPs
- Record Keeping SOPs
- Waste Disposal SOPs
- Standard Operating Procedures for Each License Type
- Accounting and Tax Compliance SOPs
- Testing SOPs
- Transportation SOPs
- Delivery SOPs
Every document we call a “plan” is written in narrative text, paragraph form. Every document we call a “procedure” or “SOP” is written in step-by-step instructional format.
Our New York cannabis application documents will contain policy citations and links to the relevant regulatory text. This set of cannabis operating plans and SOPs will be offered at a package discount price. If you purchase the whole kit, you will save 25% over buying each document separately.
New York Dispensary Licensing
Want to Make Your New York Cannabis Licensing Process MUCH Easier?
These Cannabis Cultivation, Processing, Distribution and Dispensary licensing documents will save you hundreds of hours preparing your NY cannabis application! You’ll understand what we mean when you preview them. Our years of experience with cannabis licensing and compliance documents ensure that the plans and procedures you submit will be what the CCB is looking for.
It’s exciting to see the recreational cannabis industry in New York finally come into being! All adults should have the right to safely consume recreational cannabis, so it’s great that New York is willing to be on the forefront of the industry, beating most other US states to the launch of an adult-use cannabis market. Now, let’s get started obtaining your New York recreational license!
Applications for New York cultivation licenses and processing licenses will be accepted by the OCM starting in the spring or early summer of 2023.
How to Apply for a Dispensary license in New York
One of your highest priorities should be to find a properly zoned location where you have permission from the local municipality (and from the building owner if you are leasing) to operate as a cannabis grower, processor, distributor or retailer, and you’ll need at least a few hundred thousand dollars for buildout and licensing/compliance requirements.
Is Opening a Dispensary Profitable?
Making money in the NY cannabis industry will be easier for early entrants, simply because competition gets stiff when the market is flooded with participants. When the number of dispensaries gets above ~25 per 1 million residents, it becomes difficult to process enough transactions to make good money.
How to Open a Dispensary in New York
Are you interested in getting involved with exciting new cannabis industry opportunities in New York state? The Office of Cannabis Management (OCM) is New York’s cannabis regulatory agency, and they have published regulations that explain what’s involved in applying for a New York dispensary license.
There’s a lot of paperwork to gather that describes your business entity, contracts, and eligibility, and proves that you have permission to use your location, have sufficient funding, and have no serious criminal convictions.
What if I have No Experience Operating Cannabis Dispensaries?
As long as the New York cannabis licensing process isn’t competitive, a lack of experience shouldn’t hold you back, assuming your paperwork is compliant and complete. The Cannabis Control Board, which is the agency that operates within the OCM, will likely ask for certain types of operating procedures. These are documents that show how you will ensure adequate security to your cannabis facility, proper control of cannabis waste, good inventory control and record keeping, and possibly a few other procedures.
Fortunately, a dispensary is a lot less complicated to operate than a production business. Dispensaries only buy packaged products at wholesale price, then resell them at retail price. It’s pretty much the same as running any retail business, except you have much bigger security concerns since it’s a value product that thieves are interested in (including employees), and you’ll be doing a lot of your business in cash. Additionally, there’s a lot more regulatory compliance involved than with most other retail businesses, but you’ll learn that pretty quick and will just need a compliance expert on your team to handle it all.
The main challenges you face in opening a dispensary are in securing a properly zoned property, getting local approval from the city or county, and raising enough money to get started. Then, its all about security and inventory control once you are operational.
How Much does a New York Dispensary License Cost?
The license itself will cost $7000. However, beyond the cost of the actual license submission, if you buy New York cannabis application templates from a company like ours, add a few thousand dollars to your budget for that. Or if you hire an attorney or consulting company to create the entire application document set for you from scratch, that often costs between $30,000-$60,000. It seems like a lot, but when you see how much paperwork is involved and think about how high-stakes the situation could be, it starts to make sense. A custom application packet can take 200+ man hours to put together and has lots of expertise behind it.
We offer the low-cost DIY New York recreational license document option with our template sets.
As for the cost of the location, it’s obviously a lot different if you buy the property versus leasing it. Leasing is a lot cheaper, and may be possible for as little as $2500 per month, or as high as $10,000 per month, depending on the city and exact spot you pick. Plan on having 6 month’s worth of rent set aside, plus deposit, to cover that cost.
Then there’s the cost of getting the building ready for business. This typically costs about $200,000, but can be done on the cheap for half that much for a small location. It involves making the place attractive to customers, getting the security system up and running, the point of sale software, display cases, safes, locks, climate controls, storage, furniture and office equipment. Email us for a free sample budget for a New York cannabis dispensary license.
Tip: If you don’t already know a lot about cultivating commercial cannabis and would be happy with having any kind of cannabis license, you’d probably be best off with a processing, distribution license or dispensary license. Processing, distribution and dispensary license types are cheaper types to operate, don’t require as much experience; not as much can go wrong.
The templates we offer are written from the standpoint of a hypothetical cannabis business applicant. It’s as if you are getting to see a competitor’s completed application and can use it as a model create your own high-level custom cannabis application.
How much will a New York cannabis license cost?
Total cost for a cannabis application in New York has many components. The first is the amount that the state will charge to apply for the license, which will range from $750 to $5 million depending on the license type and size.
If you are interested in information on the NY microbusiness license cost, follow that hyperlink to our other website. Spoiler alert, it’s $4500, but it’s still worth going to our microbusiness page for much more detail.
There are many other costs that need to be taken into account for planning purposes when it comes to obtaining a NY cannabis license:
- If you want to 100% ensure that your license won’t be kicked back over technical errors, an attorney will charge a few thousand dollars to review your documents before you submit.
- If you are purchasing a property, your down payment could easily exceed $100k. If you are leasing a property, you’ll need a security deposit, plus enough rent money to cover you until you can harvest and sell plants. That’s going to run anywhere from about $30k to $150k, depending on the size of the property.
- You will need several hundred thousand dollars to cover all of your build-out and early operational expenses. This varies greatly depending on the size of the building. For growers, figure $400 per square foot for a vertical LED setup, which covers equipment, materials, construction and mechanical installation costs. It’s a lot of money, but it’s good to know about it early on, so you won’t run out of money half way through the process. The cost for dispensary buildout is closer to $200,000 for the average dispensary, but of course can run much higher if you are trying to be the Apple of cannabis dispensaries.
Contact us today to learn more!
What else should I know about starting my New York Cannabis Application?
There are 4 main components of a successful cannabis application: 1) Solid financial backing 2) Sufficient experience 3) Proof of ownership (or owner’s permission to use) of an adequate facility/location and 4) a complete and well organized set of application documents. Read more about each license type below.
Hi, I’m Jennifer Martin. I’ve been working on cannabis industry documents and application materials since 2016, and I’ve been designing and operating cannabis cultivation facilities for over 20 years. At heart, I’m a commercial grower, and I wish it were easy to legally set up shop anywhere and just grow cannabis plants for a living. Unfortunately though, many states are concerned about seeming too liberal about legalizing psychoactive substances, so they are making it difficult, if not impossible, to get a cannabis license. This is finally changing in New York!
New York Cultivation License
This is the most difficult license type to operate, and the most expensive to set up. The pitfalls are plentiful for growers because of bugs, diseases, mold and the challenges involved with growing perfectly healthy cannabis plants.
How to Plan for a New York Grow License
- Have a healthy budget. Plan on spending upwards of $400 per square foot on build-out. This is because of climate controls, grow lights, and everything that has to go into creating clean-room conditions. Without a proper build-out, you will get mold, which means crop loss.
- Have some cultivation experience. If you have grown cannabis before, you know about all of the problems that can happen. You need the kind of experience that teaches you how to read the plants, in the same way that a cook smells, hears and tastes what’s going on with a recipe while it’s being cooked. It takes most growers at least 5 years to learn these skills.
- Know about diseases and bug infestations. New cultivation operations often fall into the trap of acquiring clones for a quick start, but then finding out that the clones have mites or hop latent viroid, or other pests. Physical inspection and quarantine is not enough, but it’s a start. A clone from the batch should be sent to a plant pathologist for clearance before they are brought to the facility. Or if you have a very well separated quarantine room, keep them in that room for no less than 1 month for visual inspection. Mites and other problems can take that long to become visible.
New York Dispensary License
This is not a difficult license type to operate, but it has it’s PITA factors, if you know what I mean! The main ones are security (both from employee and external theft) and dealing with a lot of customers who might have unreasonable expectations.
How to Plan for a New York Dispensary License
- Go overboard on security. There’s a lot of cash going around in the dispensary business, as well as a lot of product, and lots of people would like to get their hands on it. You’ll always be watching your back when running a dispensary. Put cameras in the safes, keep non-executive staff out of the top offices and keep the safe and all unsold product near you. Any vulnerabilities will be exploited, and you have no privacy when you are a NY dispensary license holder.
- Plan for lots of inventory control and record keeping. No other business types have as much regulatory compliance associated with them than cannabis businesses, so be prepared for lots of paperwork, document and video storage, and cybersecurity.
- If you will be doing delivery, be prepared for danger. Cannabis delivery businesses can be very lucrative, but also very dangerous. Your delivery drivers should have experience dealing with stick-ups and other security related problems that can occur at the point of sale. The job is not for the faint of heart.
Assuming your New York Dispensary Application is well prepared, and you have a good location, your cannabis dispensary has the potential to be a big success!
Contact us for a free Business Plan to get started with your paperwork.