So, you were awarded a Minnesota Mezzobusiness License? Now what?

Congratulations on securing a Minnesota cannabis Mezzobusiness license! 

Minnesota’s new adult-use market is projected to boom – with annual sales potentially hitting $1.5 billion by 2029 and over 700,000 consumers expected to participate. Holding one of the state’s first Mezzobusiness licenses means you’re poised to ride this wave.

You got the license — now what? We’ve been down this road before, and trust us, there’s a lot to think about. This guide covers the essentials: what your Mezzobusiness license lets you do, how to get your facility built and approved, and what it takes to actually open your doors (and raise the money to do it right).

From License to Launch: Navigating the Startup Process

Once you have the license in hand, it's time to build the foundation for your business. Step one is finding a compliant location that meets zoning rules and distancing requirements. Whether it’s a cultivation site or one (or all) of your retail shops, you’ll need to work closely with local officials to get the necessary approvals. Keep in mind: cities can opt in or out of cannabis retail, so building local support early is key. And while your cultivation site and dispensaries can be in different places, they don’t have to be — and shouldn’t be, if each part of your business needs different kinds of real estate to thrive.

Next, you’ll prepare final documentation for the Minnesota Office of Cannabis Management. This includes updated floor plans, security and operations plans, and evidence of local compliance. If anything has changed since your application, now’s the time to report it. Be ready for background checks, capital disclosures, and site inspections.

The facility buildout comes next. Your operation needs to be code-compliant and cannabis-ready – with secure access points, camera coverage, and environmental controls in place. Lighting, plant racking, HVAC, odor mitigation, dehumidification, and fertigation systems need to be selected and installed. The layout should support efficient workflows and adhere to Minnesota's operational regulations. Planning now for future expansion can save you headaches down the line – but building only what you need for initial launch is a good way to control costs and risk.

Once the infrastructure is in place, it's time to source and install the right equipment. HVAC, cultivation lighting, irrigation equipment, cultivation racks and benching, security systems, extraction and post processing equipment (if applicable), packaging equipment and materials, and retail tech all need to be ordered, delivered, installed and commissioned. Each item should be compatible with Minnesota’s compliance and seed-to-sale tracking requirements. By this point, your capital should be allocated wisely and your construction timeline carefully planned and managed.

Of course, none of this works without strong Standard Operating Procedures. Your SOPs are your playbook for running a compliant and efficient cannabis business. Think inventory tracking, cultivation methods, packaging and labeling, quality assurance, security protocols, and employee training. These should be well-documented and clearly communicated to staff. Regulators will want to see them, and your team will need them.

The final hurdle is the state inspection. Officials will walk your facility, check your systems, verify SOPs, and ensure that everything matches what you submitted. If you’ve done your homework, this step can be smooth. If you haven’t, it can delay your opening.

Raising Capital for Buildout and Operations

Let’s talk numbers. Standing up a vertically integrated cannabis business takes serious investment. From real estate and construction to specialized cannabis equipment, licensing fees, inventory, and payroll, the early-stage burn rate is no joke. Many Mezzobusiness operators will find they need over $5 million, just to open their doors.

Start with a strong business plan and a super tight financial model. Potential investors will expect to see your use-of-funds, projected financials, market research, and risk strategy. They’ll also want to see how you came to those numbers and expect a level of detail that can be close to impossible to achieve without prior commercial cannabis ownership/management experience. You need to demonstrate how you’ll stand out in Minnesota’s market and how you plan to achieve profitability.

One of the first questions we ask when we get on an intro call with a newly licensed operator is: “Do you have a detailed financial model and a realistic idea of how much this will cost?” In most cases, after a quick review of those forecasts, we end up recommending our financial model development services. Next Big Crop has created literally hundreds of start-up operational financial models and pro formas for newly licensed cannabis operators and our experience forecasting the costs and revenue potential of these businesses, and executing on those plans is unmatched. Hiring an expert to help you present accurate numbers to potential investors is short money.

Your fundraising strategy might involve a combination of friends and family, private investors, debt financing, and vendor or equipment leasing. Be thoughtful about when and how you give up equity. Many operators build their facilities in phases, starting with one dispensary and a portion of their allowed canopy and expanding later using early revenue or a second capital raise. If you’re a social equity licensee, look into available state grant and loan programs — while some are Microbusiness-specific, others may expand or evolve.

No matter your approach, be conservative with cash. Build in a buffer for delays and unexpected costs. Prioritize the things that move you toward revenue: inspections, compliance, and core infrastructure. Be leery of expensive, unproven or overly complicated equipment, systems or operational techniques. And know, that the better your understanding of the numbers, the more confidence investors will have.

Acquiring Genetics and Planning Your First Crop

Cannabis cultivation starts with genetics. Getting quality starting material in a new market can be tricky. Most cultivators begin with clones or unrooted cuttings, which are easier to source across state lines under hemp regulations. Others may secure seeds or tissue culture plantlets from licensed operators or breeding partners.

Choosing the right strains is part art, part science. Start with a mix of staples and new hype. Reliable yielders with known performance can anchor your grow, while rotating a few new or buzzworthy genetics  help generate hype and differentiate your brand. Consider your goals: are you going for potency, terpene-rich flower, solventless extraction quality, or high-yield biomass? Will you be growing outdoors? Tailor your choices accordingly.

One proven resource to explore is The #ipartywithjarret Collection — our curated lineup of top-tier genetics designed for commercial cultivators looking to stand out. We offer seasonal drops of new and exclusive strains, as well as a strain subscription service that ensures ongoing access to elite cultivars throughout the year. Each release is guaranteed free of any pests or pathogens (including Hop-Latent Viroid (HLVd)), vetted for commercial viability, yield potential, and market appeal, helping you stay competitive in a fast-moving industry. New operators can achieve first flower revenues 3-6 months ahead of competition by beginning operations with a complete crop of cuttings or rooted clones (rather than starting with seeds or mother plants).

Plan your cultivation cycle carefully. Think about how many flowering rooms you need, how you'll rotate harvests, and what support systems (like mother rooms and curing areas) need to be in place. The number of flower rooms you operate at once will dictate your production/harvest schedule, so be sure your design will work with your intended production cycle time. Be sure you’re offering an exciting variety of strains out of the gate. Your first harvest is your introduction to the market — make it count.

Ready to Grow? Next Big Crop Can Help

Building a cannabis business from the ground up is an epic undertaking. There are a lot of moving parts, and mistakes get expensive fast. But you don’t have to do it alone.

Next Big Crop has helped operators all over the US and internationally launch and scale cultivation, manufacturing, and retail operations. We’ve seen what works, what doesn’t, and how to avoid common pitfalls. Whether you need help with financial planning, facility design, equipment sourcing, compliance docs, genetics, SOPs, or a solid fundraising strategy — we’re here for it.

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Get in touch if you’re ready to turn your license into a thriving business. Minnesota is wide open right now. Let’s build something that lasts.

Want to learn more? Check out our blog on How to Design the Perfect Cannabis Microbusiness Facility in Minnesota (and Beyond) or Elite Genetics for the Minnesota Market.