Won A Kentucky Cannabis License? Now What?

Your 10-Step Guide to Starting A Kentucky Cannabis Business

Congratulations! You just won your Kentucky cannabis business license! Now what? Here we’ll dive into the ten critical considerations to ensure a successful launch within the Kentucky cannabis market.

1) Follow Up With Commonwealth Requirements

Local Regulations – Revisit local and Commonwealth regulations to ensure all cannabis compliance requirements are understood and will be met. 
Compliance Support – Hire or consult with a compliance officer or legal expert to assist with ongoing regulatory adherence, particularly should you decide you may want to sell your cannabis license.

2) Create Detailed Cannabis Business Operational Plans

Standard Operation Procedures – Write SOPs for all processes of operation (from cultivation to processing to dispensing) tailored to cannabis industry standards. 
Product Tracking – Implement a compliant seed-to-sale cannabis tracking system.

Tip For Operational Planning

As part of the cannabis licensing process, you had to submit summaries for many aspects of your Kentucky business. But are they ready for further scrutiny with operations looming? Reach out to Canna Advisors for help in writing robust plans for operation or for answers to quick questions via an hourly consultation session.

3) Build Out Your Cannabis Facility

Design For Success – Work with architects and engineers experienced in cannabis facilities to ensure the space meets operational needs and regulatory standards. 
Build Efficiently – Coordinate with pertinent contractors for timely build-out, including HVAC, lighting, irrigation, and other systems specific to cannabis production.

4) Identify and Install Equipment for Operations

Source Equipment – Purchase or lease necessary equipment for cannabis cultivation, processing, packaging, and sales. 
Pre-Launch Equipment – Install and test all equipment, ensuring functionality and regulatory compliance.

Tip For Equipment Testing

You may not think you have much equipment as a cannabis dispensary operator, but don’t overlook your POS system. Be sure the installation process has gone smoothly and that hired dispensing technicians know how to operate appropriately and can handle whatever a patient or customer may ask.

5) Hire and Train Staff

Source Your Team – Recruit cannabis team members for roles in cultivation, processing, compliance, security, sales, and more. 
Train Your Team – Provide specific training on Commonwealth and local compliance, including handling product, inventory management, and reporting.

Tip For Staffing

Hiring the right team is often overlooked is the development of cannabis company culture. Be sure to take this step seriously to find a team comfortable with requirements from the Commonwealth, with products and services being offered, and with each other. This is particularly true for dispensaries who will have a much more public facing role in the larger medical cannabis supply chain.

6) Establish Supply Chain and Vendor Relationships

Supplier Sourcing – Identify and establish relationships with suppliers for initial clone purchases or dry flower, packaging, and any necessary services (such as safety compliance facilities).
Inventory Management – Set up an cannabis inventory management system to track orders, storage, and supply to ensure smooth operations.

7) Finalize Marketing and Sales Strategy

Branding and Packaging – Finalize your business brand identity, packaging design, and product names that comply with Kentucky marketing and advertising laws. 
Marketing & Sales Strategy – Develop a compliant cannabis marketing plan targeting the appropriate customer base.

8) Complete Final Inspections and Receive Operational Approval

Final Inspections – Undergo final Commonwealth and local inspections to ensure business compliance before launch. 
Final Sign-Off – Obtain final sign-off from the Office of Medical Cannabis officially allowing operations to commence.

9) Soft Business Launch and Gradual Scale-Up

Soft Launch – Conduct a soft business launch to test all operational and make any necessary adjustments. 
Full Launch – Once fully updated to your specifications (and those from the Commonwealth if necessary), conduct a full-scale business launch with all marketing efforts in place.

Tip For Launch

It’s common for cannabis businesses to open ‘under the radar’ (soft launch) while promoting a ‘Grand Opening’. This has the advantage ironing out any last operational wrinkles and garnering interest in your now fully operational facility.

10) Ongoing Compliance and Growth

Frequent Auditing – Implement regular business audits to ensure continued regulatory compliance and operational efficiency.
Expanding Product Lines – Explore additional cannabis product offerings, markets, or partnerships to scale and expand business reach within the bounds of legal limitations.

Partner With Our Kentucky Cannabis Consultants for Success

Following through with each of these steps will better position your nascent cannabis business for success. Compliance is critical here but you can’t forget the importance of building out your team and following through with business plans and financial modeling for your business.

If you need help with your cannabis business in Kentucky, reach out to our expert cannabis consultants today to discuss how our Startup Services may work best for you.  