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Learn whether a cannabis nursery is the right investment for your business. 

• Nurseries are a great way to diversify your cannabis operation.
• Nurseries can be quite lucrative if you focus on perfecting a strain. 
• Cannabis cultivation, excise, and sales taxes apply differently to ...

To grow sustainably, evolve your cannabis business by centralizing certain business functions at headquarters to create economies of scale and specialization. 

• Outsource inventory management, purchasing, accounts receivable and payroll to a central headquarters to take administrative...

Last month, the California Department of Tax and Fee Administration announced an increase in the cannabis excise tax. Starting January 1, 2020, the new markup rate will be 80%, an increase from the original markup of 60%.  

A functional interview can help make sure you have the right employee working in the right role for their skillset. 

• A functional interview assesses an employee’s knowledge, skills, and experience.
• After a business combination, use functional interviews to determine what each employee...

Investments in real estate, licensing fees, and partnership agreements offer the opportunity for new revenue streams – here's how. 

• Lease a bigger space and invite other operators to open a business under your license, and use space in your location. 
• You may not sub-license cannabis...

The short answer: no. But there are other options.

• Federal regulations outlawing the sale of cannabis mean cannabis operators can’t file for bankruptcy.
• Garvin v. Cook and the case of Way to Grow, Inc. indicate the courts won't change their mind. 
• Cannabis and hemp operators facing...

Learn what expenses to prioritize and ways to optimize your cash flow to stay in business. 

• Pay your cannabis taxes first, and rent and utilities expenses thereafter. 
• Know your inventory restock cycle to plan ahead for unforeseen expenses. 
• Build a rainy day fund with any extra cash...

Investing in an opportunity zone is a great way to support the community while taking advantage of tax credits.

• Opportunity zones are those where the poverty rate is at least 20% or median family incomes are no greater than 80% of those of their surrounding areas. 
• The IRS offers...

IRS Tax Form 8300 must be submitted by any business that receives $10,000 or more in cash in a single transaction or multiple related transactions.

• The IRS has been auditing cannabis businesses that do not submit Form 8300.
• This form needs to be filled out any time a business collects...

This post is the second in a two-part series on mergers and acquisitions in the cannabis industry. Read the first part, “Mergers & Acquisitions in the Cannabis Industry - Due Diligence” for things to know about performing due diligence on an M&A deal between two cannabis operators.

• There...