The development of the cannabis industry has reached a turning point. Many cannabis companies do not accurately calculate profits, instead relying on a steady stream of customers to keep business running smoothly. A sustainable long-term business model requires a sophisticated approach to financial services that include:
- Evaluating budget and return on investment to ensure long-term profitability.
- Procuring goods at competitive prices from preferred vendors to minimize cost.
- Filing tax returns that comply with state and municipal regulations.
CMC provides each canna-business the opportunity to develop a long-term strategy for growth with the help of dedicated financial consultants. Each of our recommendations feeds into the success of your business and overlaps with other areas such as operations management. We encourage potential customers to contact us for a free consultation to find out how we can best serve your business needs.
Budgeting & Capital Expenditures for Long-Term Profitability
Without the right tools for evaluation, your profitability can quickly dwindle and limit your potential for long-term growth in the rapidly expanding cannabis market. Two of the most common reasons for business failure in this industry are:
- Cash-flow issues–not having enough money to cover immediate operational expenses and
- Growing too fast–not be able to service your debt obligations.
CMC’s financial consultants will help you to organize and interpret your costs and optimize the profitability of your production model to increase your ROI and keep your business profitable over the long-term.
Filing Taxes for a Canna-business
Cannabis-businesses are unique in that they are legal in select states and municipalities, but federally illegal. Completing a canna-business tax return requires a specialist who understands the opportunities and potential pitfalls associated with the industry.
CMC offers the services of a dedicated cannabis tax specialist to ensure that you remain compliant yet see the most favorable representation of your tax settlement.
Our Strategy for Long-Term Profit
Each cannabis market is unique and beholden to state and local regulations that are changing constantly. At CMC, we begin by evaluating your business for opportunities for improvement within the context of the existing legal framework. This includes developing:
- Item-specific cost models
- Operational budgeting
- Capital expenditure budgets
- Budget reconciliation process and mechanisms for management accountability
- Investing in expansion opportunities that comply with zoning, licensing, and other legal obligations.
Safeguarding your fast-growing businesses means you must actively monitor costs and revenue and continuously adjust your business management plans. CMC will give you the tools that you need for long-standing success that allows for you to expand operations while remaining compliant with current legislation and any new regulatory developments that arise at the municipal, county, state, and eventually federal level.
Contact (415) 269-8015 for a free consultation to find out how our knowledgeable representatives can help your business succeed in the emerging legal cannabis market.