Today’s interview is with Belinda Smith and Sarah Sanger, creators of the Permit Pros course on how to get a cannabis permit for your business.
Whether you’ve been thinking about opening a dispensary, selling your products to dispensaries, or starting a grow operation, this course will walk you through every step of the cannabis permit and licensing process, saving you thousands of hours and dollars you’d burn while trying to figure it out yourself. Keep reading to learn more about how Sarah and Belinda first got into the industry and what they want you to know before you apply for your cannabis license.
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Tell me a bit about yourselves and how you first got into the cannabis industry.
Sarah: I live in San Diego with my husband and two young daughters. My background (prior to the cannabis industry) is very traditional – studied Economics at Duke, MBA from UCLA, and was on a normal corporate/management career path until 2016. In 2016, for a variety of reasons, I decided to make a change and the cannabis industry posed a very intriguing opportunity. Why?
- I’m a contrarian and am comfortable doing things that go against the grain. I’m a type-A rule follower, so I thought my involvement in the cannabis industry would help break down the stereotypes that have plagued the industry.
- I have family members that have legitimate medical needs that are met with cannabis and I wanted everyone in our country to have safe access to this medicine.
- I worry a lot about product safety, keeping cannabis out of the hands of kids (hello, gummy bears?!), and public safety. I figured the best way to address these concerns was to involve myself in the transition to legal cannabis in CA
- I’m an economist – there was a distinct shortage of capital (operators needing funds, and no traditional capital sources available due to federal illegality) and a shortage of human capital (folks not willing to give up their traditional corporate jobs for this risky and controversial industry). Both of these shortages meant that opportunities should abound…
Belinda: I too live in “America’s Finest City,” AKA San Diego. I have only known Sarah for about 2 years, but I liked her as soon as I met her. We met when I was selling my license because she had a client that was hoping to purchase it to break into our local market. I am not as polished as Sarah, who has all the right credentials, plus she is one sharp cookie. I am much more of a hustler — it’s a mentality, I guess. I have been working since I was 14 (babysitting, girl-Friday type stuff), then full time since I was 17. After high school, I went to a junior college, and then ultimately I got a degree in Literature because I like to read and analyze. I minored in Spanish Language and Culture. I guess you could say I like communicating and travel! That said, what can you do with those degrees? Not a lot, but I am a born entrepreneur, and I really enjoy solving problems. It turns out solving problems is a great skill to have if you want to go after a cannabis license!
I got into the cannabis industry in 2015 because it presented a lot of opportunities. I was intrigued to work on something new and interesting after spending decades in sales, marketing, tech, and manufacturing. In 2015 I took a giant leap and went after a cannabis license for a retail store. I have not looked back.
How difficult was it trying to GET your first cannabis permit?
Sarah: It is hard…expensive…and takes a long time. I have two partners on the real estate and licensing projects that I’ve pursued, and we have failed just as often as we have succeeded. It’s hard to predict what the curveball will be.
Belinda: We always say it’s not rocket science, but it is complex. There are a lot of moving parts, and you need to be able to juggle. Looking back I’d say it was actually pretty easy. OK, I’m fibbing, it was extremely challenging, but technically, it was easy once I got everything in order. I know everyone has heard stories about how hard it is and I would agree to a certain degree, … but now that I know what I know, I’d say there’s actually a formula to getting a cannabis license and this is why we developed our course. So to start, do your homework and research everything you can about your city’s license requirements and process. Research the players, your competition, any industry organizations, etc. Figure out what your biggest challenges will be, and this is important, because what’s difficult for you might be easy for someone else. Consider teaming up with someone to help you with the difficult areas. Find your real estate, and work out the lease/purchase before you begin the licensing process. If you need to raise money, start raising it while you are looking for your real estate, and going through the administrative part of the license. People struggle with all of this but we teach you our process and timing in our course.
What’s the biggest thing you wish you knew when trying to get your permit?
Sarah: PATIENCE. These cities take forever. They are bureaucratic, slow, and the processes are very intense and involved.
Belinda: I agree it takes patience. It also takes a lot of money to get started, more than you realize, but so many people are interested in the industry that it’s not hard to raise money. We actually teach people how to raise money in the Permit Pros class, and provide a list of VCs.
Also, only speak to an attorney once you have your business plan worked out, and never pay an attorney to get your license for you. I recently heard of a Father-Son grower team who paid an attorney to “write their application”. The attorney charged them his hourly rate to do the work, and as you can imagine, it cost thousands of dollars, when they could have written it themselves. In fact, last I heard, they had spent $50K, and the application still wasn’t complete. The problem-solver in me says, even if you think you can’t write an essay of 300 words about a security plan, I bet you can find someone who can write, like a cousin or a friend, and you can sit with them and talk about how your security plan will work. Again, we go through a lot of this in the class — solving problems. Save your hard-earned money and spend it on inventory or something that makes you money. Don’t blow it on an attorney before you’ve even started.
What inspired you to create a course on the cannabis permit process?
Sarah: We get asked all the time “how do you get a cannabis permit?” and “Should I get a permit?”. We decided to take the time to formalize our knowledge and make it accessible since we know this information is hugely useful to those considering pursuing the cannabis industry.
Belinda: Yes, as Sarah said, the first question everyone asks us, is how we did it. Then they ask us how much it costs. And then their final question is usually, “how did you even get into the industry?!” Anyway, based on peoples’ questions, we figured there was an appetite for more information about the cannabis industry and its license process. Almost all states have copied each other so the process is near-universal. Pretty much everyone has heard a story about how hard it is, or a city that made it so difficult to comply … these stories put people off. We do not want to perpetuate that — we want to see people try to navigate the path we took, and help them create success stories. We want to demystify the process, teach people what to expect, and how to identify and solve their challenges, and yes, help them get their permits! Cannabis permits are life-changing, and if you’ve ever wanted to work in the industry, acquiring one is your ticket.
Would you say it’s a common occurrence that people want to buy your license off you once you’ve done the legal and bureaucratic legwork?
Belinda: Yes, essentially, lots of people on the sidelines are watching you go through the process, and wondering if you’ll take an offer on it when you get it. Seemingly out of nowhere, people start reaching out. Many times it is an opportunity to sell, or take on investors. That’s why we say not to worry about funding too much in the very early stages. Once you’ve won your license, it creates a lot of leverage.
What do you think is the biggest challenge for aspiring cannabis entrepreneurs now and in the future?
Sarah: Think about how hard it is to start a small business in a traditional industry (Spoiler: It’s hard!). Then add on the fact that you likely won’t be able to get a bank account, almost certainly won’t be able to get a loan, can only use very specific real estate, and may not be able to speak openly about your plans with friends and family (for fear of judgement or worse). It’s hard!!
Belinda: Yep, everything Sarah said is correct. Add to that, even cities and states who have legalized cannabis still don’t have it figured out. The cities and states, and by extension their employees, are still busy writing the rules, and then re-writing them when their rules don’t work. So, be prepared for ever-changing rules and changes. Like anything though, you just meet the new requirements head-on, and make the changes you need to make. Once you understand it’s new to everyone, including city staff, you realize you’re all in it together, and if you build the right relationships, you can influence your city on what course to take, or change to make.
Who should take the Permit Pros course?
Sarah: If you’re considering pursuing a cannabis permit, or if you’ve decided to get a permit and don’t know where to start, this course will be extremely useful and valuable on your path! There are downloads that will help you build your plan, figure out the financial plan, raise money, and find real estate.
Belinda: Anyone who wants to get a cannabis license for a retail store, a grow operation, or a production facility. It’s an intimidating process, so let us tell you everything we encountered and learned on our individual journeys. It could be the best investment you make when starting out in this industry. Sarah and I often joke that if someone takes our course, and then decides against pursuing a license, it was probably money well spent!
What would you like to see change in the industry the most?
Sarah: I’d like to see access to financial services, and an overall upgrade in the integrity and ethics with which cannabis companies are operating.
Belinda: Yes, I agree with Sarah. Financial services are long overdue to this exploding industry. Going forward, we really can only elect politicians that support legal cannabis. Every state needs to legalize cannabis consumption and provide safe banking. I actually think it’s immoral for states to legalize cannabis, yet not provide a safe and efficient banking experience. It’s really irresponsible when you think about it. And yes, we need more players who have basic business experience to join us in the legal marijuana world. Anyone with basic business experience can be very successful in this industry.
What kind of plans does your company have for 2021?
Sarah: We hope to expand the reach of our course so that the hundreds of people that need this information can have access. We continually use feedback from our students to improve our content and production value.
Belinda: Yes, like Sarah said, we want to reach more people. We may also start offering group coaching depending on demand. It’s helpful for our students to bounce ideas off of each other, and help keep each other motivated. Many face the same challenges but in different cities or states. Leveraging what worked for one, to work for others, is key.
What are your favorite ways to consume cannabis, if you do partake?
Sarah: I don’t smoke or do anything inhalable, so I prefer edibles and yes I do partake. Since I was young, its been a great option for me to allow me to relax, slow down and enjoy experiences, and has always been a much better option for me than alcohol.
Belinda: I love all of it. There is nothing like smoking a joint with good friends sitting around a campfire under the stars.
Where can we find you?
You can read our latest blog posts, watch our free webinar training, and take the cannabis permit course on our website, Team Permit Pros.
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