Pre-License Preparation: How to Get Ready for a Cannabis Licensing Round

Preparing for an upcoming cannabis licensing round can be an intimidating, often met with confusion and frustration from both operators and regulators. While operators wait for applications to be released, law makers are rushing to finalize regulations and get the market up and running. In every new state, there’s bound to be some missteps. 

For operators, though, the time before a licensing round officially opens is critical — it can make the difference between a strong application and a missed opportunity. At Canna Advisors, we encourage clients to take a proactive approach to pre-license preparation, ensuring they build a foundation that allows for rapid, compliant, and competitive submissions once applications go live. Here’s what that may preparation look like. 

Understanding Your Market and Regulatory Environment 

Fully understanding the market you plan to open in should be top priority when planning for your license application. From current competition to the anticipated license limits and types, all variables will play a role in your strategy. Even if the exact application instructions aren’t finalized, you can start by researching the jurisdiction: 

• Timeline: Understand the anticipated timeline for your license window, including the release of new regulations and how regulators plan to accept applications (i.e. all at once or in phases). 

• Regulatory structure: Learn which agencies oversee licensing, compliance, and inspections. Even preliminary rulebooks, guidance documents, or public notices can provide clues about expectations. 

• License types and limits: Know what types of licenses are likely to be offered (cultivation, manufacturing, retail, microbusiness, social equity) and any caps on how many will be issued. 

• Competitive landscape: Identify existing operators, market gaps, and opportunities for differentiation. 

This research sets the context for all other preparation and ensures your strategy aligns with likely regulatory priorities. 

Building a Team You Can Count on 

While cannabis licensing applications often place significant weight on the experience and qualifications of owners, investors, and proposed business representatives, operators will also want to build a team they can rely on. Even if you don’t yet have a license or a confirmed site, having a capable, well-documented team ready to contribute to your application will save time later. Team experience in the following areas could make or break your application: 

• Cannabis 

• Compliance 

• Security 

• Operations 

• Finance 

Ultimately, early team building gives applicants flexibility and credibility when a licensing round opens. Having experienced leadership, clearly defined roles, and trusted advisors in place allows you to move quickly, respond to evolving requirements, and present regulators with a cohesive, execution-ready organization. When details are still emerging, a strong team becomes the anchor that supports every other part of the application. 

Identifying Potential Pre-License Properties 

One of the greatest challenges during the cannabis application process is typically real estate. While we rarely recommend securing a property before a license (unless the application calls for it), we do recommend beginning your search as early as possible to understand the market landscape and identify zoning requirements. Starting early can also help operators plan financially, discovering properties that meet basic size, power, and security needs and their costs. Having a shortlist of viable sites ensures that you’re ready to move quickly when the application opens. 

Financial Planning for Your Cannabis Business 

Financial readiness is often a key component of cannabis licensing applications, even when full details haven’t been released. Pre-license financial planning should start with building a realistic picture of startup and operating costs, including real estate, buildout, equipment, staffing, compliance, security, and professional services, as well as ongoing expenses like payroll, utilities, testing, and taxes. These early estimates don’t need to be exact, but they should be thoughtful, defensible, and based on current market conditions rather than optimistic assumptions. 

At the same time, applicants should begin outlining their capital strategy and revenue model. This includes identifying funding sources, clarifying equity structures, and demonstrating how the business will remain financially viable during its ramp-up period. Even preliminary financial models help ensure consistency between the business plan, operations plan, and licensing narrative. Starting this work early allows applicants to refine numbers quickly once final rules are released and present regulators with a clear, credible financial story. 

Why Pre-License Prep Matters 

The time before a licensing round officially opens is a unique opportunity to get ahead. Regulators reward well-prepared applicants, and the more you can demonstrate a ready-to-operate, compliant, and financially sound business, the stronger your chances of success. Waiting until the application is live often means scrambling to meet requirements and leaving points on the table. 

Pre-license preparation isn’t about guessing the exact rules — it’s about building a foundation that allows you to respond quickly, accurately, and confidently once those rules are published. 

How Does Canna Advisors Help 

Canna Advisors helps cannabis entrepreneurs get ready before the licensing round opens, providing guidance on business strategy, operations, compliance, and application readiness. By starting early, you increase your odds of submitting a competitive, complete application and getting licensed on day one. Contact our team of experts to see how we can help you get ahead.