As one of the newest legal cannabis states, New Jersey is also one of the hottest. With the New Jersey marijuana market expected to reach some $1.5 to $1.8 billion within a year of adult-use sales, there’s no shortage of well-funded ventures lining up to enter the fray. Given the intense competition to secure a New Jersey cannabis business license, it sounds like a challenging environment for small business entrepreneurs. With the right approach, the state’s cannabis microbusiness program may offer a “side door” to viability.
What’s the New Jersey marijuana microbusiness plan all about? Today’s post explores its concept and intent. If you’re a New Jersey small business person looking to enter this highly dynamic market, this article is for you.
NJ Cannabis Regulations: A Special Opportunity for Independent Players
Like many legal marijuana states, New Jersey regulations make accommodations both for social equity applicants and for those who, for various reasons, wish to operate a cannabis microbusiness. While different states employ various metrics to define such enterprises, the state’s guidelines are fairly conventional. A New Jersey marijuana microbusiness must:
- Employ no more than 10 employees at one time
- Have a physical plant of more than 2,500 square feet
- Possess no more than 1,000 mature cannabis plants each month
- Acquire no more than 1,000 pounds of usable cannabis each month
While in some states, such as neighboring New York, a cannabis microbusiness combines elements of cultivation, processing, and retail, a New Jersey micro business can be a cannabis cultivator, manufacturer, distributor, retailer, or delivery service.
What’s more, owners of microbusinesses are allowed certain dispensations. As we’ve reported previously, at least 35% of all cannabis licenses will be conditional, meaning that applicants need not be in compliance with every aspect of state regulations upon licensing, so long as the business plan provides sufficient indications their future operations will fall into complete compliance. Such licensees are expected to eventually convert to standard annual licenses, but microbusiness license holders may continue operating under conditional licenses.
And finally, applicants seeking conditional licenses must demonstrate that any financial stakeholder must have an adjusted gross income of no more than $200,000 ($400,000 if filing jointly). In the interests of spurring participation by those historically shut out of business ownership, this goes hand-in-hand with the state’s current policy specifying that at least 25% of the overall number of cannabis licenses issued will be earmarked for microbusinesses.
Marijuana NJ: Get Experience and Expertise on Your Side
New Jersey’s cannabis microbusiness program is a very special opportunity for entrepreneurs who lack access to significant capital, and it’s not at all assured that this opportunity will last. That’s why partnering with an experienced guide such as Bridge West is can be a game-changer during this especially dynamic moment.
Drawing on our deep knowledge of New Jersey’s regulatory and business environment, Bridge West guides our clients through all the necessary steps and potential hurdles. If you’re ready to join this fast-moving and exciting moment in cannabis history, we’d love to help you achieve your dreams. Reach out anytime.
We Can Help
If you own a cannabis business or are thinking about starting a cannabis business, we’d like to help. As a partnership of highly skilled and seasoned cannabis industry consultants and advisors, Bridge West Consulting is ready to guide you through this exciting and challenging landscape. Feel free to reach out to us anytime to schedule a consultation.