The demand for cannabis products has risen over the years, making the cannabis business quite a lucrative venture. However, it wouldn’t be wise to let this fact sweep you off your feet.
In addition to the usual problems small businesses face, you should consider the dynamic regulatory landscape surrounding cannabis. Failure to comply with the rules could land you in jail or force you to part with thousands of dollars in fines.
You could also lose your license. Let’s look into various mistakes you ought to avoid in your cannabis business.
Mistakes to Avoid in Your Cannabis Business
1. Skimping on employee training
By the time you launch your cannabis business, you will be fully aware of all the rules and the importance of remaining compliant. However, an ignorant employee who doesn’t understand the gravity of the legal situation could run your business to the ground.
Therefore, we can’t emphasize enough how important it is to invest in employee training to ensure they always do the right thing.
2. Poor record keeping
Even though record-keeping requirements vary from state to state, keeping poor records is not the way to run a cannabis business. Your internal records should include details concerning inventory, orders, and seed-to-sale movements.
If you are also a grower, it would be wise to indicate the pesticides you used and the care routines for the plant. Ensure you don’t fall behind or omit any important detail that could jeopardize your cannabis business.
3. Not investing in digital marketing
As you ensure you remain compliant with all the state regulations, you still need to spread the word about your business. How else can your potential clients know you exist?
If you haven’t considered cannabis seo, it is high time to get started.
Find the best digital channels for promoting your cannabis business including the likes of social media, blogger outreach and more. You can try to test new marketing techniques that will help you build brand awareness for your business.
4. Exceeding the selling limit
Every state has rules and regulations surrounding the upper limit of grams you can sell to a client daily. Exceeding this limit is one of the worst offenses you could commit and is punishable by the law.
You could also fall victim to clients who purchase the maximum dosage and then return later to make a massive purchase for resale. This phenomenon is known as looping and could land you in hot soup.
It would be best to leverage technology specifically tailored for use in the cannabis industry to mitigate these risks.
5. Not checking employee work permits and licenses
Licensing requirements ensure that everyone involved in cannabis production and distribution is legally authorized to do so.
If you allow retailers and distributors to continue operating with expired licenses or none at all, the authorities could shut your business down for good.
It would be wise to conduct regular internal audits to ensure all licenses are up to date and per state laws.
Wrapping up
Running a business has never been easy. You are also bound to make numerous mistakes along the way. However, you can use the tips discussed above as a guide to help you avoid certain mistakes and increase the chances that your business will emerge successful.
