If we know not how to hire now why is the staffing plan in point, we’re going to recruit the right personnel to fit your skillset in the needs of your business where we going to hire the right employee. Let’s say this takes one month for you to hire and you pay your manager thirty-six thousand dollars a year, which is an average salary here in that space? That’s going to cost you about three thousand dollars in labour cost, put in a sponsored ad, price to visit someone and interview them at Starbucks you know potentially get some coffees.
So there’s you know an additional cost that should be expected for that you know to make sure to budget costs for equipment needs for you know for taxes that you know you again you’re not I’m able to deduct a lot of expenses. So you’re going to end up paying a higher income tax expense effectively making sure that your inventory as well budgeted. So essentially the biggest challenge is all of the above that I have never owned a business before which I think all of us can feel that pain, so Karina takes it away. How are you okay so some accounting considerations Scott had mentioned earlier about 280e so that’s one of the subjects that will cover some background on our firm I started this in 2016.
When you have five people, six people, ten people kind of go into these meetings and talking about micro businesses at the public comment period. So we’re hopeful that that’s going to create a lot of opportunities and that you guys will all help us create opportunities for everyone so with that you know that’s my team there’s hydrafacial before and after acne scars Luna again, and I believe. We’ve run into that too, but it’s generally the cultivation side. Still, I will say what we’ve experienced is some of those rural municipalities are more likely to prefer that model because then. You’re not so you don’t have your business so much out in the open it’s on your property.
It will fall into your communication plan under sponsorships or in your HR plan under hiring which is where you really can make a difference to do that, and I think it’s important to be creative and sincere. Are you local to where you’re living things like that are critical thinking about those key differentiators. You’re going to define some objectives which are sort of micro-goals about when you want to get stuff done and how to do it. You’re just spending money, and you’re not reaching your goal, so I encourage people to work on a plan. Tactics are all just unfocused and random, and you’ll get sucked in by people with great ideas and vendors with products and all of a sudden. It’s like hey, I’m going to get my business we’re going to go to cannabis cup.
So you know again you can’t just throw receipts in a shoebox and hand them to your tax preparer at the end of the year, and you understand and say here you go and expect to be compliant for what’s needed for a marijuana business. So you know one thing you can do is look at your building square footage take your floor plan and do an exact allocation of the square footage that is comprised for the cultivation and processing areas versus. Where you know you’re growing or making your product for sale. Those costs would generally be deductible but once that product is ready.
The state statute is a workers’ compensation, cargo, cyber, and also health, dental and vision. Once you know the rules of your Micro Buddery location, make sure that you have all the correct state, county or city licenses and permits. These include licenses for cannabis cultivation, processing and retailing.
We’ve seen a lot of people in the news like that the media is hungry for cannabis stories and they are happy we just saw Anthony was in cranes the other day. We’ve seen all kinds of different stories when provisioning centres open, and we saw director Brisbane Ann Arbor hand out licenses. So, how about from Josh can you clarify the expenses involved in cultivating in the cultivation of products, such as equipment grow media nutrients utilities and labour are those deductible or not those are generally deductible.
We’re going to have special events I’m going to buy this great billboard that’s right by my office. There’s no I always say flex before your shoes so planning your brand strategy or your communication plan you need to think about. What your goals are you need to start with a goal in mind I want to either make this amount of money. I think that’s just an essential thing for the look of your company.
So you do have to go through and submit a full application package or a micro business. The amount of money you need to start a Micro Buddery will vary depending on how much property. The smallest Micro Budderies are in single location residential homes.
The first thing to know about Micro Budderies is that they are not legal in all cities and states but are operating illegally if they choose to stay within those laws. Sorry it’s so tight real quick you know in terms of inventory management with that microbusiness you know caregivers have the experience to manage you know 72 plants and a lot of scenarios. You’re looking at either 100 or 150 but the microbusiness, in particular, is going to come down to how well. When it comes to cannabis and while the state might not ask for a lot your local municipality will and we saw this in Muskegon. You know again as Scott mentioned the where businesses run into trouble isn’t because they’re selling marijuana or are complying with its state regulatory requirements. So make sure you know as part of that overall tax planning in knowing what costs are affected by – ad and what are make sure that you have appropriate record-keeping behind that you know.