Seed to Sale 101
Starting a cannabis business is far from easy. Ensuring you’re following compliance rules and avoiding risks, while staying ahead of regulators is not a one-person job, or even a two-person job.
To stay in compliance, government regulations require you to track and report all of the activities of your operation, from initial plant to final sold product. That’s where seed to sale tracking comes in. Seed to sale is the lifecycle of the marijuana plant from the time the plant is planted until the final product is packaged and sold to the customer. Visually speaking, it starts with growing the plant, harvesting it, lab testing it, processing it, and packaging it, until it ultimately reaches the consumer.
To ensure compliance, seed to sale tracking guarantees every gram of cannabis stays legal throughout its lifecycle. This assists state and local governments by enforcing regulations, collecting taxes, and preventing illegal cannabis from sneaking into the supply.
When you add up all the plant life-cycle stages, plant processing, testing, selling to retailers and then to the end user, you could be talking hundreds of data points to report.
Ready to learn more?
It’s time for some technology
Seed to sale software is a digital inventory control system that state regulators use in marijuana programs to track the cultivation, processing, and sales of cannabis to consumers. With seed to sale software, data is sent in real-time to the state compliance systems or the software generates the reports you need to send into the government to stay compliant. This helps manufacturers track their inventory and manage production, all while staying legally compliant.
The benefits of using seed to sale software
Whether you’re a grower or a manufacturer, there are multiple benefits of using seed to sale software for your cannabis business:
- Legal compliance: Most importantly, it ensures your business remains compliant — giving you peace of mind that you’re following state regulations across all areas of your business.
- No more manual tracking: Seed to sale software systems with intuitive visual workflows save you time and effort, which ultimately, leads to more money saved. Digital inventory tools also let you leave the days of manually updating excel documents or tracking paper inventory sheets long behind you.
- Invoicing makes order fulfillment simple: These software systems can also help manufacturers save time on order fulfillment processes with automatic pull sheets and invoicing features. Many seed to sale softwares also integrate with other business softwares you already use, like QuickBooks.
Many states continue to debate and vote on cannabis legalization, which means this is only the start of the cannabis boom. To stay ahead of the game, you need to choose the right seed to sale tracking software for you and your cannabis business.
Step 1: Understand the Licensing Types
Cannabis licenses are typically divided into two main categories:
- Medical Cannabis Licenses: For dispensaries serving patients with medical marijuana prescriptions.
- Recreational Cannabis Licenses: For dispensaries serving adults over 21 years old.
In addition to these, states may offer other license types, including:
- Cultivation Licenses: For growing and producing cannabis plants.
- Manufacturing Licenses: For creating cannabis products like edibles, oils, and concentrates.
- Distribution Licenses: For transporting cannabis products between businesses.
- Testing Laboratory Licenses: For conducting quality and safety testing on cannabis products.
- Microbusiness Licenses: For small-scale operations that combine multiple activities, such as cultivation, manufacturing, and retail sales.
Step 2: Research State-Specific Requirements
Each state has its own cannabis regulatory body that oversees the licensing process. It is essential to familiarize yourself with the specific requirements for your state. Below are highlights for select states. For more details, visit the relevant state page linked below.
California (CA)
The licensing process in California involves compliance with both state and local regulations, requiring detailed documentation and proof of residency to operate legally. Learn more about California cannabis licensing.
Regulatory Body: Department of Cannabis Control (DCC)
Application Requirements:
- Detailed business and operations plan.
- Premises diagram that includes all operational areas.
- Compliance with local zoning and building codes.
- Evidence of compliance with the California Environmental Quality Act (CEQA).
- Labor peace agreement for businesses with 20 or more employees.
License Fee: The licensing fees vary based on the license type and business size, ranging from $1,205 to $77,905.
Colorado (CO)
Colorado’s licensing process is well-structured, focusing on owner background checks, financial stability, and local government approvals. Learn more about Colorado cannabis licensing.
Regulatory Body: Colorado Department of Revenue’s Marijuana Enforcement Division (MED)
Application Requirements:
- Background checks for all owners and key individuals.
- Proof of financial stability, including financial statements.
- Local government approval and compliance with zoning laws.
License Fee: $2,500 to $14,000 depending on business size and location.
Illinois (IL)
Illinois places an emphasis on social equity, requiring applicants to present plans that benefit disadvantaged communities while adhering to strict security and inventory requirements. Learn more about Illinois cannabis licensing.
Regulatory Body: Illinois Department of Financial and Professional Regulation (IDFPR)
Application Requirements:
- Social equity plan demonstrating benefits to disproportionately impacted communities.
- Detailed security and inventory control plans, including 24/7 video surveillance and inventory tracking.
- Non-refundable application fee of $5,000.
License Fee: $30,000 upon approval.
Massachusetts (MA)
Applicants in Massachusetts must engage with the community through outreach meetings and agreements, with an optional equity program to promote inclusivity. Learn more about Massachusetts cannabis licensing.
Regulatory Body: Cannabis Control Commission (CCC)
Application Requirements:
- Host Community Agreement (HCA) with the municipality.
- Conduct a community outreach meeting.
- Participation in the Social Equity Program (optional but provides fee reductions and guidance).
License Fee: $1,500 application fee, $10,000 annual fee.
Michigan (MI)
Michigan’s process includes a two-step application system, requiring prequalification checks and approval from both the state and local municipalities. Learn more about Michigan cannabis licensing.
Regulatory Body: Marijuana Regulatory Agency (MRA)
Application Requirements:
- Prequalification application, including background checks and financial disclosures.
- Proof of capital sufficient to sustain operations.
- Local government approval and zoning compliance.
License Fee: $6,000 application fee. Annual regulatory assessments range from $10,000 to $66,000, depending on license type.
New Jersey (NJ)
New Jersey prioritizes comprehensive business planning and social equity, with a scalable licensing fee structure to accommodate businesses of various sizes. Learn more about New Jersey cannabis licensing.
Regulatory Body: Cannabis Regulatory Commission (CRC)
Application Requirements:
- Comprehensive business plan.
- Social equity program eligibility documentation.
- Security plan.
License Fee: $100 to $50,000 depending on the size and type of operation.
New Mexico (NM)
New Mexico’s licensing emphasizes detailed planning and compliance with building codes, alongside an affordable fee structure for smaller operators. Learn more about New Mexico cannabis licensing.
Regulatory Body: Cannabis Control Division (CCD)
Application Requirements:
- Background checks for all key personnel.
- Detailed floor plan of the proposed dispensary.
- Proof of water rights if applicable.
License Fee: $2,500 initial fee plus $1,000 per licensed premises.
New York (NY)
New York’s licensing process strongly supports social equity initiatives, encouraging community engagement and providing opportunities for disadvantaged groups. Learn more about New York cannabis licensing.
Regulatory Body: Office of Cannabis Management (OCM)
Application Requirements:
- Emphasis on social equity applicants.
- Detailed security and transportation plans.
- Evidence of community engagement.
License Fee: $2,000 non-refundable application fee.
Oregon (OR)
Oregon’s process is streamlined, focusing on financial stability and zoning compliance to maintain an efficient and secure cannabis market. Learn more about Oregon cannabis licensing.
Regulatory Body: Oregon Liquor and Cannabis Commission (OLCC)
Application Requirements:
- Background checks.
- Zoning compliance.
- Proof of financial stability.
License Fee: $4,750 application fee.
Washington (WA)
Washington requires a detailed operational plan and stringent security measures, ensuring that applicants maintain compliance with the state’s established cannabis regulations. Learn more about Washington cannabis licensing.
Regulatory Body: Washington State Liquor and Cannabis Board (WSLCB)
Application Requirements:
- Detailed business operations plan.
- Zoning compliance.
- Security measures.
License Fee: $250 application fee, $1,381 annual fee.
Step 3: Prepare Your Application
Once you understand the requirements for your state, prepare your application package. This may include:
- Business Plan: Outline your operations, marketing, and financial projections.
- Security Plan: Detailed measures to protect your premises, inventory, and staff.
- Financial Disclosures: Provide proof of capital and financial stability.
- Zoning Approval: Verify that your location complies with local zoning laws.
- Community Engagement: Demonstrate how your business will benefit the community.
Step 4: Submit Your Application
Follow these steps when submitting your application:
- Review the application checklist provided by your state’s regulatory body.
- Ensure all documents are complete and accurate.
- Pay the required application fee.
- Submit your application online or in person, as directed.
Step 5: Prepare for Inspections
Step 5: Prepare for Inspections
- Once your application is reviewed, most states require a site inspection before granting the license. Ensure that:
- Security systems are installed and operational.
- The premises comply with health and safety standards.
- Inventory management systems are in place.
Step 6: Receive Your License
After passing the inspection and meeting all requirements, you will be issued a dispensary license. Keep in mind:
- Licenses often need to be renewed annually.
- Ongoing compliance with state laws is mandatory.
Conclusion
Obtaining a dispensary license can be a complex process, but with careful planning and attention to detail, it is achievable. Research your state’s specific requirements, prepare a thorough application, and ensure compliance with all regulations. By following this guide, you’ll be well on your way to launching a successful cannabis dispensary.
Each state has its own cannabis regulatory body that oversees the licensing process. It is essential to familiarize yourself with the specific requirements for your state.
Staying up to Date
A big part of being an entrepreneur in the cannabis industry is staying on top of the laws, rules, and regulations for your state in order to stay in compliance.
Challenges
The licensing process in most states requires a large amount of capital, a lengthly application process, and a little luck
Steps
- Understand the licensing Types
- Research State-Specific Requirements
- Prepare your Application
- Submit your Application
- Prepare for Inspections
- Receive Your license
Step 1: Understand the Licensing Types
Cannabis licenses are typically divided into two main categories:
- Medical Cannabis Licenses: For dispensaries serving patients with medical marijuana prescriptions.
- Recreational Cannabis Licenses: For dispensaries serving adults over 21 years old.
In addition to these, states may offer other license types, including:
- Cultivation Licenses: For growing and producing cannabis plants.
- Manufacturing Licenses: For creating cannabis products like edibles, oils, and concentrates.
- Distribution Licenses: For transporting cannabis products between businesses.
- Testing Laboratory Licenses: For conducting quality and safety testing on cannabis products.
- Microbusiness Licenses: For small-scale operations that combine multiple activities, such as cultivation, manufacturing, and retail sales.
Step 2: Research State-Specific Requirements
Each state has its own cannabis regulatory body that oversees the licensing process. It is essential to familiarize yourself with the specific requirements for your state. Below are highlights for select states. For more details, visit the relevant state page linked below.
California (CA)
The licensing process in California involves compliance with both state and local regulations, requiring detailed documentation and proof of residency to operate legally. Learn more about California cannabis licensing.
Regulatory Body: Department of Cannabis Control (DCC)
Application Requirements:
- Detailed business and operations plan.
- Premises diagram that includes all operational areas.
- Compliance with local zoning and building codes.
- Evidence of compliance with the California Environmental Quality Act (CEQA).
- Labor peace agreement for businesses with 20 or more employees.
License Fee: The licensing fees vary based on the license type and business size, ranging from $1,205 to $77,905.
Colorado (CO)
Colorado’s licensing process is well-structured, focusing on owner background checks, financial stability, and local government approvals. Learn more about Colorado cannabis licensing.
Regulatory Body: Colorado Department of Revenue’s Marijuana Enforcement Division (MED)
Application Requirements:
- Background checks for all owners and key individuals.
- Proof of financial stability, including financial statements.
- Local government approval and compliance with zoning laws.
License Fee: $2,500 to $14,000 depending on business size and location.
Illinois (IL)
Illinois places an emphasis on social equity, requiring applicants to present plans that benefit disadvantaged communities while adhering to strict security and inventory requirements. Learn more about Illinois cannabis licensing.
Regulatory Body: Illinois Department of Financial and Professional Regulation (IDFPR)
Application Requirements:
- Social equity plan demonstrating benefits to disproportionately impacted communities.
- Detailed security and inventory control plans, including 24/7 video surveillance and inventory tracking.
- Non-refundable application fee of $5,000.
License Fee: $30,000 upon approval.
Massachusetts (MA)
Applicants in Massachusetts must engage with the community through outreach meetings and agreements, with an optional equity program to promote inclusivity. Learn more about Massachusetts cannabis licensing.
Regulatory Body: Cannabis Control Commission (CCC)
Application Requirements:
- Host Community Agreement (HCA) with the municipality.
- Conduct a community outreach meeting.
- Participation in the Social Equity Program (optional but provides fee reductions and guidance).
License Fee: $1,500 application fee, $10,000 annual fee.
Michigan (MI)
Michigan’s process includes a two-step application system, requiring prequalification checks and approval from both the state and local municipalities. Learn more about Michigan cannabis licensing.
Regulatory Body: Marijuana Regulatory Agency (MRA)
Application Requirements:
- Prequalification application, including background checks and financial disclosures.
- Proof of capital sufficient to sustain operations.
- Local government approval and zoning compliance.
License Fee: $6,000 application fee. Annual regulatory assessments range from $10,000 to $66,000, depending on license type.
New Jersey (NJ)
New Jersey prioritizes comprehensive business planning and social equity, with a scalable licensing fee structure to accommodate businesses of various sizes. Learn more about New Jersey cannabis licensing.
Regulatory Body: Cannabis Regulatory Commission (CRC)
Application Requirements:
- Comprehensive business plan.
- Social equity program eligibility documentation.
- Security plan.
License Fee: $100 to $50,000 depending on the size and type of operation.
New Mexico (NM)
New Mexico’s licensing emphasizes detailed planning and compliance with building codes, alongside an affordable fee structure for smaller operators. Learn more about New Mexico cannabis licensing.
Regulatory Body: Cannabis Control Division (CCD)
Application Requirements:
- Background checks for all key personnel.
- Detailed floor plan of the proposed dispensary.
- Proof of water rights if applicable.
License Fee: $2,500 initial fee plus $1,000 per licensed premises.
New York (NY)
New York’s licensing process strongly supports social equity initiatives, encouraging community engagement and providing opportunities for disadvantaged groups. Learn more about New York cannabis licensing.
Regulatory Body: Office of Cannabis Management (OCM)
Application Requirements:
- Emphasis on social equity applicants.
- Detailed security and transportation plans.
- Evidence of community engagement.
License Fee: $2,000 non-refundable application fee.
Oregon (OR)
Oregon’s process is streamlined, focusing on financial stability and zoning compliance to maintain an efficient and secure cannabis market. Learn more about Oregon cannabis licensing.
Regulatory Body: Oregon Liquor and Cannabis Commission (OLCC)
Application Requirements:
- Background checks.
- Zoning compliance.
- Proof of financial stability.
License Fee: $4,750 application fee.
Washington (WA)
Washington requires a detailed operational plan and stringent security measures, ensuring that applicants maintain compliance with the state’s established cannabis regulations. Learn more about Washington cannabis licensing.
Regulatory Body: Washington State Liquor and Cannabis Board (WSLCB)
Application Requirements:
- Detailed business operations plan.
- Zoning compliance.
- Security measures.
License Fee: $250 application fee, $1,381 annual fee.
Step 3: Prepare Your Application
Once you understand the requirements for your state, prepare your application package. This may include:
- Business Plan: Outline your operations, marketing, and financial projections.
- Security Plan: Detailed measures to protect your premises, inventory, and staff.
- Financial Disclosures: Provide proof of capital and financial stability.
- Zoning Approval: Verify that your location complies with local zoning laws.
- Community Engagement: Demonstrate how your business will benefit the community.
Step 4: Submit Your Application
Follow these steps when submitting your application:
- Review the application checklist provided by your state’s regulatory body.
- Ensure all documents are complete and accurate.
- Pay the required application fee.
- Submit your application online or in person, as directed.
Step 5: Prepare for Inspections
Step 5: Prepare for Inspections
- Once your application is reviewed, most states require a site inspection before granting the license. Ensure that:
- Security systems are installed and operational.
- The premises comply with health and safety standards.
- Inventory management systems are in place.
Step 6: Receive Your License
After passing the inspection and meeting all requirements, you will be issued a dispensary license. Keep in mind:
- Licenses often need to be renewed annually.
- Ongoing compliance with state laws is mandatory.
Conclusion
Obtaining a dispensary license can be a complex process, but with careful planning and attention to detail, it is achievable. Research your state’s specific requirements, prepare a thorough application, and ensure compliance with all regulations. By following this guide, you’ll be well on your way to launching a successful cannabis dispensary.
Each state has its own cannabis regulatory body that oversees the licensing process. It is essential to familiarize yourself with the specific requirements for your state.
Staying up to Date
A big part of being an entrepreneur in the cannabis industry is staying on top of the laws, rules, and regulations for your state in order to stay in compliance.
Challenges
The licensing process in most states requires a large amount of capital, a lengthly application process, and a little luck
Steps
- Understand the licensing Types
- Research State-Specific Requirements
- Prepare your Application
- Submit your Application
- Prepare for Inspections
- Receive Your license