Managing Cannabis Compliance Effectively in a Turbulent Marketplace

 

Written by Jenny Germano

The Cannabis Industry is no stranger to riding the ups and downs of the marketplace. Each State faces this when there is compression, consolidation, and maturation in the legal market. It almost seemingly continues to contract and expand depending which State you’re in. It’s been a natural occurrence since the regulated market began over a decade ago. 

With the current downturn, we’re seeing companies begin to invest in more federal standards compliance and systems in the face of what potential rescheduling could mean for the industry as a whole. People are still investing in compliance, but in different and creative ways. During this compression of the overall industry on a national scale, we’re seeing employee and company downsizing occur, the dumping of unnecessary and burdensome assets, people are leaving markets that no longer hit the mark for the bottom line - and lately we’ve seen the in-house compliance role begin to shrink or be removed completely. 

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Now is the time to be more diligent than ever to work with vetted companies who are either certified in their service offerings, and or qualified experts in their field. When companies begin to feel the squeeze they start cutting costs, even ICS has had to cut down on costs to adjust to the current condition of the market. Companies tend to go the cheaper route, or panic and then begin to cut corners out of necessity to stop the bleeding which can lead to costly mistakes and fines. 

Here are just a few examples of areas we’re seeing companies cut costs:

  • Compliance officer roles and or departments
  • Security officers and departments
  • Key high level employees
  • Cannabis associations or paid organizations
  • High-end ERP software and or POS systems
  • Compliance software
  • Safety managers and or departments

Here are a few ways to still remain a leader in compliance when it comes to operating in a regulated market, even in the face of a downturn in the market:

The Team

If you expect greatness from your team, then exemplify the same greatness expected out of them, even if you downsize to a smaller team. Hard work pays, and employees will put in the work if you put in the work. Create a vital and thriving work environment.  

Budget for Compliance

Not having a plan in place on how every penny is being spent, can lead to overspending in unnecessary areas and leave compliance on the floor slowly dying. Know your numbers, gains and losses - know your budget. 

Have a Clear Compliance Roadmap

A lot of money gets wasted on the fact that there is no real clear plan in place. Structure, Strategy and Systems are game changers when it comes to mapping out the plan - they allow you to pivot when the industry throws curveballs. This industry is notorious for curve balls. 

Fractional Compliance

If you’re going to cut key compliance components or whole departments, utilize third-party compliance specialists to support the current team with compliance. Keeping the checks and balances working properly is the key to mitigating fines. Avoid having employees stuck in the never ending cycle of putting out fires all day long. 

Streamline Processes

Embrace the automation tools available in the Cannabis Industry. Find the right compliance tool to help streamline certain aspects of compliance and provide much needed support to team members, where compliance plays a big part of their daily roles

Maximize Compliance

Take full advantage of the free tools offered in each State your cannabis company operates in. More and more regulatory agencies are working to provide different compliance resources to operators. 

When cutting areas that are heavily dependent on compliance, get creative but still ensure you manage the risks, and rethink the overall approach to compliance. With the right training, expanded job role descriptions, and staff support - cannabis companies can still have both feet in the compliance game and adhere to the rules and regulations, managing their risks. For the compliance role, pick an employee who excels with skills such as in organization, systems oriented, and adaptability.

ICS Consulting specializes in Compliance based services, such as Third-Party State Regulatory Audits, State and Local License Application Support, Technical Writing, Standard Operating Procedures Development, Worker Safety, QMS, OSHA Compliance, Metrc Seed-to-Sale Support, Compliance Operations Training, Employee Retention Solutions, and Employee Onboarding. For more information on how ICS Consulting Service can help your Cannabis Business, book a free 30-minute consult and we'll help you map out your next steps to be successful in the Regulated Cannabis Industry