8 Important Steps To Take After Receiving Your Commercial Cannabis Grow License

8 Important Steps To Take After Receiving Your Commercial Cannabis Grow License

8 Important Steps To Take After Receiving Your Commercial Cannabis Grow License

8 Important Steps To Take After Receiving Your Commercial Cannabis Grow License

You secured your license. Now what?

As a new operator in an emerging market, it’s important to get to work as soon as you receive your commercial cannabis grow license. This not only helps you stay ahead of your competition, but it also makes sure you are not impacted by regulations that require licensees to be operational within a certain timeframe or risk license forfeiture.

To help you get started with your commercial cannabis grow operation, we put together 8 essential steps to aid your transition from a conceptual business to an operational one.

 

 

Teamwork

#1. Celebrate and Involve Everyone

Securing a commercial cannabis grow license is a huge accomplishment and it’s important to celebrate your hours of hard work. Of course, recognize your team and their efforts, but be sure to also recognize your community as a whole. Establishing a commercial cannabis grow operation in a community will garner both criticism and praise, so it’s beneficial for you to start your business’s residency in the area by thanking the community, recognizing praise, and combating negative criticism.

Consider creating some positive PR with a press release and/or interviews with local or online media outlets, as well as joining your local Chamber of Commerce to start making connections. Now is also a good time to establish a social media presence for your operation if you plan to leverage one. This gives you a place to promote any positive press you create as well as an opportunity to start gaining followers. (Of course, be mindful of social media platform guidelines around posting cannabis content.)

Hyping up your business early, while it’s still in development, gives future customers the opportunity to watch you build your operation, in turn piquing curiosity in them once you officially “go live.” Generating positive buzz is valuable, and will support your future marking initiatives down the road. Once you recognize your team and community, it’s time to turn your attention to becoming operational.

#2. Evaluate Your Plan

In states with heavily contested and litigated merit-based application processes, months to years can pass before licenses are issued. That means from the time you submitted your application to the time you received your license, some things may have changed, so it’s important to evaluate what, if anything, needs to be updated from your initial plan. 

#3. Determine What Other Licenses You May Need

Unfortunately, your commercial cannabis grow license is likely not the only license you need to operate legally in your state. With your plan in place, it’s time to get a firm understanding of what additional licenses and approvals are necessary to commence operations. Each state has different licensing requirements that you can find on their official government cannabis website. You’ll likely need to register your grow operation with whatever agency your state categorizes cultivation under, such as the Department or Office of Agriculture. This registration typically proves your operation is compliant in regards to water quality, waste removal, chemical usage, etc.

Additionally, you may need a business license from the city and county you’re operating within. And if you’re planning on handling the transportation of your product once your business is operational, you’ll want to start working on obtaining that license as well.

To secure any additional licensing, it’s helpful to have the proper paperwork in order. Some documents you may need include:

  • Commercial cannabis grow license
  • EIN letter
  • Business entity operating bylaws, minutes of organizational meeting
  • Any and all agreements with lenders, investors, or landlords

#4. Meet with Regulators, Community Stakeholders, and Gatekeepers

The key players in your community are important to have on your side. These people include your state representatives and the regulators specifically assigned to your license, as well as the mayor, city manager, city council, chief of police, fire chief, and zoning personnel. Remember: Your proposed commercial cannabis grow operation may be the first experience they have with a cannabis business.

Go out of your way to set up meet-and-greets and solicit warm introductions with these stakeholders, including those that may feel less favorable toward your operation. (This is where your Chamber of Commerce connections we mentioned earlier can come in handy.) Also, consider bringing key members of your team with you to these introductions, especially if you’re not planning on being the “face” of the operation. You and your team should take this opportunity to listen, educate, and address any concerns.

Ultimately, the better your relationship with community leadership, the smoother and faster your commercial cannabis grow project will proceed. Consider offering tours, hosting public community awareness events, and providing any opportunity you can to educate anyone willing to learn.

Group of people questions

#5. Make Sure Funding Is Secured

The application phase is often self-funded or supported by a friends-and-family (F&F) round, with construction and operational portions raised once there’s an indication on a license. This can work, but if fundraising doesn’t happen timely or according to plan, it can stall or kill the project.

Ideally, prior to receiving your commercial cannabis grow license, you’ve already negotiated funding, and money can be accessed and deployed based on milestones. Be sure any financial models are representative of the current project and market status with your sources and uses included.

When reviewing your financial models, consider these questions:

  • Is all required capital committed under favorable or at least realistic terms? If not, how much is outstanding?
  • Who are the investors? At what valuation?
  • Are the initial investors willing to invest additional funds with licensing milestones met?
  • Has the valuation gone up now that the license is in hand?

Although fundraising for cannabis can be challenging, more options are available now that institutional lending through local credit unions and smaller banks is more common. There’s also the potential to offset your capital needs through equipment financing, rebates, and participating in incentive programs.

Remember that your business is subject to the 280E tax code, so make sure you plan for that burden when securing financing. Keep in mind that many, if not all, of your licenses will also have annual registration renewal fees.

Pipp Horticulture Cannabis Grow

#6. Narrow Down Design, MEP, and Equipment

Depending on the requirements of your application, you may already have a complete set of facility drawings, or you may only have a basic conceptual design. If you only provided a basic design, it’s time to hire an architect, engineers, and consultants to create a full set of drawings.

Things to consider as you design:

  • Budget
  • Regulated plant capacity/plant count
  • Building or plot size
  • Waste removal process
  • Phased planning (utilizing your current budget with expansion considerations for the future)

 

We suggest hiring experienced cannabis operators as consultants to provide input to the architect and MEP team on room sizing, electrical demands, environmental conditions, water usage, fertilization and irrigation, proposed plant spacing, and the post-harvest process. It’s essential to consult with operators with experience at the scale you’re looking to operate now and in the future.

It’s also important to utilize vendors with a proven track record of success and cannabis-specific experience, like Pipp Horticulture. We provide expertise and guidance gained from working with top commercial cannabis growers across the globe and can help license holders set up and scale any size cannabis grow operation. Cannabis cultivation equipment is massive and needs to stay top of mind when designing your facility.

Grow equipment needs include:

 
Elevate Platform System

#7. Build Your Team

You must be intentional when narrowing down what positions you need to fill and when. Companies often hire a master grower right away even though cultivation may not start for six or more months. Depending on your existing team and current needs, initial hires should focus more on finance, construction, and project management.

 

Sozo Group Shot

Key Internal Hires:

  • Project Manager
  • Owners’ Rep
  • CFO/Controller
  • Operational Advisor

Key External (3rd-Party) Hires:

  • Legal with experience with local building and zoning ordinances and processes
  • Code Consultant
  • Architect experienced in building cannabis facilities
  • MEP team experienced in building cannabis facilities (often referred by architect)

Be sure to create a staffing plan that includes fully-burdened compensation estimates and a timeline for recruiting, hiring, and training.

Leafline Labs Team Cannabis Cultivation
8 Important Steps To Take After Receiving Your Commercial Cannabis Grow License

#8. Initiate Commissioning Process

In construction, commissioning is the professional process of ensuring all building systems behave correctly and perform interactively according to the Design Intent, or Owner’s Project Requirements (OPR), of the building. Put simply, it’s making sure all building systems are working correctly before initializing operations.

The key persons involved in commissioning include:

  1. Facility Manager/Operations/General Manager
  2. Maintenance Team
  3. Head of Cultivation & Extraction
  4. Head of Manufacturing
  5. Security (internal)

 

This is a great time to identify responsibilities, coordinate, and set up onboarding and training with your team and equipment vendors. We suggest filming as much commissioning and training as possible for your future standard operating procedures (SOPs) and training guides. This process can also help you determine what your requirements will be for future employee applicants.

Conclusion

Securing a commercial cannabis grow license is a serious accomplishment, so be sure to celebrate! But remember that time is of the essence in this rapidly growing industry, so you must get to work as soon as you can.

It’s an overwhelming process, but following these 8 steps can make it go smoother. When you’re ready to start designing, reach out to us at Pipp Horticulture, and our experienced team of indoor cannabis operators and designers will work with you to create an efficient, effective, and high-yielding commercial cannabis grow operation.

Get a FREE Grow Consultation

Converting To a Vertical Farming Facility – 5 Things You Must Know

Converting to a Vertical Farm: 6 Tips for a Seamless Transition

Converting To a Vertical Farming Facility – 5 Things You Must Know

When cannabis first emerged as a leading agricultural product, single-tiered cultivation methods evolved quickly to keep up with consumer demand. Stationary facilities became fully mobile while adding tiers to accommodate vegetative and flower production.

Cultivators jumped at the opportunity to rewrite SOPs and increase efficacy without compromising yields. How could they transform their facilities for optimized profit and real-world success?

The answer is simple: embrace purpose-built vertical farming technologies and determine the best ways to use them. Over the past few years, the refinement of LED lighting, airflow solutions, fertigation guidelines, and HVACD controls has empowered growers to produce COAs and yield metrics once considered unattainable.

These amazing results are a byproduct of proper planning, understanding mechanical, electrical, and plumbing systems, preparing for SOP refinement, sourcing quality genetics, and using efficient solutions to make the most of investments and the space available.

Multi-tier cannabis cultivation might seem intimidating. However, with careful design, good partners, and the appropriate tools, you can transition to multi-tier growing or build a new facility from the ground without hesitation.

Let’s explore six key factors to consider as you take your cultivation operation to the next level.

Flora Terra - Pipp Horticulture Mobile Vertical Grow Racks
Oakfruitland Vertical Farming

1. Have a Solid Plan

Executing a new infrastructure requires effective planning in any industry but is especially necessary when cultivating cannabis. When transitioning to a vertical farm, growers must understand the biggest limiting factors of their success. 

Working collaboratively with equipment experts like Pipp Horticulture can ensure a seamless transition to vertical cultivation. Our team will help you choose a racking design and layout that aligns with your unique space and production requirements

For example, we can provide a total canopy number per room, allowing you to estimate lighting, HVACD, plumbing, fertigation, and electrical needs. These insights will help you create an accurate timeline and budget for your project as you move through the process.

Here are a few questions to ask when converting to a vertical farming system:

  • Do I have adequate electric capacity? 
  • Is my building structurally sound enough to install HVACD on the roof? 
  • How much extra dehumidification performance will I need? 
  • What is the best light for my tier spacing? 
  • How am I going to move air through the racks?
  • Can I ramp up propagation or clone orders to meet demand? 
  • How big will my plants be? 
  • How will my team access the second tier?
  • Which Standard Operating Procedures (SOPs) will I need to adjust?
  • What additional airflow solutions should I consider for each space? 
  • Will we need more space for curing?

2. Make Checklists

Visit each department in your facility–from your cloners to harvesters. Talk to them about the impact of going multitier. What metrics and KPIs are most likely to be impacted? What levels of support do they need? These conversations help you prioritize the expenditures on your checklists.

Next, list every item you need to purchase as the business owner. Make sure you have enough lights, fans, and pumps. But, remember to also consider increased operational expenses (e.g., additional nutrients, media, scissors) to prevent production delays and accurately calculate Capex, margins, and profit.

Another tip is to constantly revisit your to-do list throughout the process. Keep tabs on progress and ensure everyone has an opportunity to ask questions and learn. Your team may also need to do some prep work, like pre-fabricating irrigation dripper lines or unboxing materials. For this reason, mutual understanding and collaboration are pivotal.

3. Account for Increased Needs

Vertical farming doubles, even triples, your production capabilities. Is your facility equipped to handle these changes?

Going multi-tier will significantly increase yields. Do you need to increase your curing capacity? The good news is solutions are readily available to optimize your curing space with mobile curing racks, purpose-built hangers, and airflow management solutions. 

You will also need to consider your lighting options for your multi-tier racking as well as accessibility options and innovations that ensure the conditioned Co2-rich air that is delivered to the room is also delivered directly to the plants.

For example, Vertical Air Solutions’ In-Rack Airflow System is one of the best products for managing airflow in your vertical farm. With VAS 2.0, you can avoid the hassle of addressing stagnant air zones that frequently develop due to multi-tiered growing systems. Homogenizing leaf temperature on the bottom and top tiers (both at the front and back of the room) makes precision crop steering more achievable.

Below is a list of capacities to monitor while converting to a vertical farm:

  • Electricity 
  • Water
  • Nutrients
  • Labor
  • HVACD

4. Choose the Right LED Light

How will you light the top tier — hanging lamps from the ceiling or the racking? How big will your plants be at each stage? What PPFD are you hoping to achieve at each stage of growth? The answers to those questions will help you select the right wattage, spectrum, and fixture design to fit the space.

LED options for the modern cannabis cultivator are extensive. Thanks to their efficient output, slim design, and relatively low heat output it is easier than ever to find the right light to optimize plant growth at every stage.

While the performance of quality LED fixtures is no longer a question, you must still consider the mounting distance from the plant. Determine how much space the fixture needs to effectively accommodate in-rack airflow and plant growth.

LED lighting is a great fit for multitier cultivation as it is more controllable than HID lighting and capable of stimulating secondary metabolites, shortening production times, and reducing operational expenses (assuming your design and supporting equipment are set up for success).

5. Train Staff on Equipment, Ladder, and Scaffold Usage

Safety should always be a top priority in any operation. Vertical farms need to invest in solutions that prevent accidents, especially with employees tending higher-tier plants. Effectively training your team on navigating safety gates, ladders, and second-tier access ensures consistency, confidence, and employee well-being.

Host instructional meetings where employees can learn the dos and don’ts of vertical farming maintenance. Get feedback and adapt to obstacles as they arise. These exchanges help make sure everyone understands how to best use available tools to increase efficiency and prevent misuse.

Choosing a stable platform can also limit many safety concerns. Pipp’s ELEVATE® is designed to fit smoothly into Mobile Racking Systems, allowing growers to easily and quickly access upper-level tiers. This ergonomic design requires only one person to set up, thus helping reduce the risk of fatigue and injury. 

6. Budget Accordingly

Last but certainly not least is budgeting. Yes, converting to and building a vertical farm requires an initial investment. Crunching numbers and signing checks can be daunting, but you see the opportunity to futureproof your facility and remain competitive for the long haul.

Going multi-tier isn’t just about increased canopy space and top-line revenue. Consider room utilization, grams per cubic foot, and production costs that fuel the operational efficiency and the phasing of your project. Taking advantage of utility incentives for your lighting, HVACD, and other electrical equipment can provide incentives to reduce capex and production costs while building a more valuable asset. 

So, when budgeting for your project, be sure to consider your facility’s efficiency in addition to top-line revenue. This factor may help you determine how to allocate extra funds for retrofitting your current garden or building a future phase.

Use this checklist to assist you in budgeting for your vertical farm project:

  •  Start-up costs (e.g., contractor fees, equipment, lighting, etc.)
  • Operational costs (e.g., electricity, labor, water usage, etc.)
  • Equipment maintenance
  • Production supplies
  • Estimated profits
  • Additional equipment and support needed to help plants flourish and your business thrive

Making the Switch With Pipp

Running a cannabis operation can be challenging in itself, and a complete overhaul can seem overwhelming. Whether you’re building a new facility or upgrading a pre-existing one, Pipp Horticulture can be your best resource when implementing a vertical farming system. 

Pipp’s internal Grow Team has over 100 years of combined cultivation experience. We also work with some of the best industry consultants and have a vast network of vendor partners globally. We are here to provide our customers with unparalleled support before and after equipment installation. 

Ready to get started? Contact us today for a consultation and more information on the benefits of vertical cannabis cultivation.

About the Guest Author

Since 2014, Robert Sandow, a cannabis consultant and writer, has been a notable figure in the cannabis cultivation industry. Having been born and raised on a farm in Kansas, Sandow brings a unique appreciation for small growers. He also values the importance of cultivating medicinal plants for the betterment of communities. His work has helped pioneer multi-tiered cannabis production.

Sozo Vertical Farming
Tru Infusion with Pipp Horticulture

Get a FREE Grow Consultation