Navigating the Curveballs in the Cannabis Industry

As a consultant going on 16 years of working in the Regulated Cannabis Industry, there is one thing that the industry is never short on, curveballs. Curveballs can be anticipated into the unforeseeable future in Cannabis, as the industry will go through many iterations, morphs, re-structuring, more regulation, and non-stop changes. Anticipating curveballs is a good thing. It’s better to be prepared than to be caught off guard and be reactionary - that is one of the most important skills working in this industry has taught me as a consultant and a business owner, to adapt, and be proactive versus reactive. 

Every owner and operator should have their own tool kit when it comes to running a regulated business. There are things that should naturally be in the tool kit right out of the gate and other tools are picked up along the way and come with growth and experience.  A vital tool every operator should have, is understanding the importance of having systems and structure in place. Systems and structure can sound like a bunch of overused jargon and can fall on deaf ears at times, but it’s one of the most important steps when building the foundation of compliance. Having a strong foundation of compliance will help manage the curveballs more effectively. 

For example some operators have structure and systems in place, this is something that begins to take formation during the licensing phase. We see a lot of systems and structure on paper, to win the application and to get operational and then it seems to fade off, and slowly fall to the waist side. 

Where is the disconnect? 

A lot of the time, the processes, systems and standard operating procedures need to be updated to reflect the live operations. A lot can change from the license application to the launch of the business. Processes can change within hours of opening your door. The problem is by the time the launch happens the owner is too busy, and is overwhelmed from the amount that needs to be done. They go from working on the business to working in the business all at the same time. At this point some owners settle for what they have, and what won the license, and see it as a box that has already been checked off when they have so many more boxes to check.

A few examples of curveballs new and/or existing operators may face

• Bank accounts get shut down or payment processing gets canceled, or even assets frozen. 
• The launch date gets pushed back due to a variety of reasons, like construction, inspection delays. 
• The business gets tied up in a recall - inventory getting put on lockdown and causing a temporary profit loss.
• Employment turnaround and staffing shortages.
• Cannabis being rescheduled, and how that will affect your business and the cost to be in compliance with potential Federal standards. 
• Crime affecting the business such as theft, burglaries and/or robberies. 
• Point of Sale Software crashing on the busiest day of the year at your retail locations costing the company thousands of dollars and customer losses. 
• New Emergency Rules go into effect that drastically impact your business financially. 
• The supply chain has struggles due to lack of product, inflation cost on the rise, or oversaturation of product in the market place. 

The list could go on and on, of the thousands of challenges an operator will face in order to operate compliantly in the cannabis industry. These curveballs are not unknown, and can be anticipated that they might happen. However, are you prepared to encounter the onslaught of non-stop changes Regulated Cannabis is continually dishing out? 

Being prepared, proactive and fully engaged in all the processes through the entire span of the business including the maintenance of implemented systems and structure is one way to tame the curveball blitz. 

Create a solid footing by hiring a fractional compliance officer or an employee that has the capacity to retain a lot of regulatory information, have strong skills in systematic organization, and can monitor compliance systems, policies and procedures to ensure their effectiveness. 

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.