Expanding or starting a cannabis business is easy.
We’re serious. In April 2020, businesses and entrepreneurs across the United States can take advantage of California’s first, truly dedicated cannabis co-working space and community.
Applicants will own a California cannabis manufacturing license in 1/10th the cost and time compared to traditional startups and with immediate access to the United States’ largest consumer market – Los Angeles.
There is limited availability due to California regulations.
If you’re ready, let's begin
1. Problems when Starting a Cannabis Business Idea
Our dream to turn our cannabis business idea into reality demanded us to overcome challenges that were painful, discouraging, and lonely.
We identified 6 problems blocking cannabis companies and entrepreneurs from bringing their fantastic cannabis ideas to life in our 6+ years of cannabis industry operations.
We also created the solution.
Starting a cannabis business costs at least $750,000
This is a fact. Each of our cannabis start-ups cost us $750,000 or more in non-refundable expenses before we could make our first product.
Some cities also require applicants to have $200,000 liquid capital or they can’t even apply.
Even if you raise enough money, the next problem can burn it all.
The cannabis industry is ultra-regulated.
Entrepreneurs, small and medium business owners, and established enterprises face incredible hurdles. State laws are confusing. Cities and counties set their own licensing rules with multiple phase, non-refundable applications. Legal fees alone range from $50,000 to $150,000. (Trust us, we have 2 cannabis lawyers advising us).
If you think it sounds complex, scary, and bureaucratic – you are 100% right.
But before you can even start on compliance, you need.
As the age old saying goes “Location, Location, Location”
Only 2 options exist to start a cannabis business
(1) Own a property in the cannabis zone outright, OR
(2) Rent from someone who owns a property in the cannabis zone.
The reality is, most owners don’t want to rent to a cannabis business. Those that do charge two to four times more as a “cannabis premium.”
This is made even worse by the next issue.
Time is a resource once spent you can never get back.
For cannabis businesses, time is of the essence and licensing takes 12 to 18 months on average.
During this time, a small business easily pays over $100,000 in rent for a 3,000 square foot property. A medium business in a 7,000 square foot property will pay over $250,000, and so forth. All before making their first product.
But your cannabis business idea may never become a reality because of experience requirements.
No business wants a failing business to be their partner. It would just be a waste of time and money.
A city is a business that generates revenue through taxes. Los Angeles is an incorporated city of California. California is a state of the USA. The United States is the world’s most profitable business.
Having no cannabis experience means there is no room for error, unless you have massive financial support. As a result, many California cities now require “cannabis business experience” for applicants.
Uncertainty plagues all of the previous problems making it unclear if you will even receive a license.
Did you raise enough money? Did you comply with all the laws? Did you obtain a property? How long will it take? Do you have the experience needed to succeed?
In one instance in California, 85 companies applied for 8 available licenses in a city charging $10,000 in non-refundable application fees. As of today, those 85 companies are still in the licensing process since January 2019.
California cannabis business ideas face all these challenges before becoming a reality.
But the solution is simple.
2. California’s “Type S” License
The “S” stands for “share.” The California Department of Public Health (“CDPH”) calls it “shared-use.”
We call it true cannabis co-working.
The idea is that an experienced cannabis manufacturer can rent a compliant shared-use station to others. Those businesses receive a “Type S” cannabis manufacturing license from local and state authorities and become a “Type S Licensee.”
Type S Licensees can conduct the following cannabis manufacturing activities:
Packaging and Assembly
Extractions with butter or food grade oil
Type S Licensees require exclusive use of a shared-use station during their time. This means limited availability per station.
CDPH realized that under the current laws, starting a cannabis business idea would be virtually impossible for 95% of the population.
Cannabis co-working helps all cannabis business ideas from entrepreneurs to established enterprises avoid the cannabis start-up problem.
But the question still is:
How much did CDPH’s shared-use manufacturing solution really help?
3. The Benefits of Cannabis Co-working
The answer? – CDPH completely changes how we can start a cannabis business idea.
Since we’re the first Type S license in Southern California (yes, you heard that right) and we are the only fully dedicated, manufacturing cannabis coworking space in California (if not the entire country) – we’ll use ourselves as the prime example.
Absurd STARTUP ADVANTAGES
We used absurd because its pretty much crazy what the differences are.
|Traditional Cannabis Startup||My Green Network Cannabis Coworking|
|STARTUP COSTS||$750,000 before making your first product.||$75,000 or less to make your first product and sell it.|
|COMPLIANCE||Responsible for all city, county, and state compliance during licensing AND operations.||Responsible for 3 things – clean workspace, contaminant free products, and meeting THC limits.|
|PROPERTY||We took 13 months, 16 cities, and 43 properties to find ONE perfect location.||Register My Green Network facility as your cannabis coworking space.|
|TIME||Average 12 – 18 months from finding a property to being able to finally use your space.||~1 month from applying for city and state to producing and selling your first product.|
|EXPERIENCE||1 Year+ cannabis experience as a business owner/manager||No experience needed|
|UNCERTAINTY||Everything is uncertain.||Guaranteed licensing.|
We honestly don’t think CDPH realized how their laws would benefit the industry until true cannabis coworking spaces stepped in.
But there’s still more.
TYPE S LICENSEES OWN THEIR CANNABIS MANUFACTURING LICENSE
With cannabis coworking, you own a license issued by the city and state. This means complete control over your cannabis business idea.
You keep your secret manufacturing or infusion formula. Coca Cola never sold their secret recipe – why should you?
TYPE S LICENSEES OWN THEIR BRAND
Think of cannabis coworking spaces like an art class.
We provide you a canvas, ingredients, tools and everything you need to paint your vision. At the end of the day, you own what you create and sell to whoever you want.
You maintain complete control over your brand.
TYPE S LICENSEES HAVE PRIVATE USE OF CANNABIS COWORKING STATIONS
Type S Licensees have exclusive use of their station during their time.
We thought it wasn’t enough.
So, we took it a step further and also optimized our spaces for convenience, efficiency, and lifestyle by building an amazing community.
TYPE S LICENSEES GAIN QUALIFYING LICENSED CANNABIS EXPERIENCE
Cannabis coworking is an incubator.
Remember, California cities will require proof that you have operated a cannabis license for at least a year.
The Type S license counts as irrefutable evidence that you are a legal, experienced cannabis operator.
TYPE S LICENSEES CAN SELL UP TO $1,000,000 ANYWHERE IN CALIFORNIA
That’s a lot.
Wholesale edibles and manufacturing products usually sell between $7.50 to $12.50. You do the math.
If that’s not enough for you – We’ll empower you to scale your business through our “MyGN Seed Accelerator ” program.
But the biggest kicker .
4.Type S Licensees Can Sell All Cannabis Products
We’re going to let you in on an insider-only secret:
Owning a California Manufacturing License allows you to sell every cannabis product in the industry
But wait, you read that you can only do infusions, packaging, assembling, and extractions for self-use?
Let’s list a bunch of cannabis products and you’ll see what we mean.
|INFUSION Covers anything you can put THC into and mix it.||PACKAGING Covers packaging of any THC/CBD product.|
|Edibles (gummies, chocolates, mints, cookies),|
Beverages (soft drinks, health drinks, green juice)
Topicals (Lotion, creams, sunblock, shampoo, sprays)
|Edibles, Beverages, and Topicals|
Vape Pens & Cartridges
Flower (pre-rolls, artisan flower, kief)
Extracts (shatter, resin, distillate, butter, oil )
That’s not all though. For CBD enthusiasts – you can also create pure CBD products! Full spectrum, isolate, or any other CBD compositions are all available from the cannabis plant.
This leads into the next question.
5. Who Benefits the Most from Cannabis Co-working?
The short answer is – everybody.
Whether you are already a licensed cannabis business, an aspiring “cannapreneur”, or maybe you were just curious – Cannabis Co-working provides the perfect solution.