Your cannabis business MAY live or die by your or your consultant’s understanding of cannabis compliance, especially in the states. With no federal legalization program currently in place, each state has created its own legalization program.
In our blog, we’ll talk about cannabis compliance, non-compliance, why compliance matters, and how your business depends on cannabis compliance.
Why your Business Depends on Cannabis Compliance
Cannabis is a developing industry in the commercial market. From administrative to operational there are a few things business owners must consider when keeping their business running smoothly. Cannabis Compliance is the most important consideration for your business model. Cannabis Compliance is essential for every marijuana business at any stage.
Whether you are in the application process or actively operating cannabis compliance is vital to ensuring the longevity and success of your business. In this post we are going to dive into what is compliance, why is it important, and what you can do to ensure your business’ future.
What is Cannabis Compliance?
Compliance is the backbone of any cannabis business. Each state creates its own rules for regulating cannabis businesses. Compliance means your business follows the rules and regulations for your type of cannabis business. You must know and follow the rules required of your business whether you grow, process, transport, test, or dispense. Regulations also differ between medical and recreational cannabis and CBD.
To illustrate, operating a recreational dispensary in California has a different set of rules to that of New York. Big or small, compliance is essential to your business operations. And if you are a multi-state operator (MSO) cannabis compliance is a necessity for your business model. Keeping track of the different regulations in each state you are operating in is a huge undertaking. A cannabis compliance consultant on your team keeps your license in good standing to avoid non-compliance issues.
Now that we have gone over what cannabis compliance is we will discuss why it is important. In a heavily regulated industry such as cannabis, non-compliance can be costly. Non-compliance could mean anything from correction orders to expensive fines or losing your license. And depending on the violation you may be forced to shut down until the issue is corrected. For instance, fixing non-compliant packaging can result in significant financial losses and delays. For many, the cost of shutting down operations is too high and is not a risk best worth avoiding.
Why does Cannabis Compliance Matter?
Cannabis remains a Schedule 1 Controlled Substance and protecting public health is the number one priority when it comes to cannabis. Regulations are in place to protect the health and safety of the consumer.
The movement of cannabis is tracked through every step in the supply chain (seed-to-sale) to ensure each product meets quality and safety standards for consumption. And the protection of minors is of utmost concern. As such, businesses must follow strict rules when it comes to marketing packaging and labeling standards.
What are the top 10 benefits of using a Cannabis Compliance Consultant?
Using a cannabis compliance consultant in the USA for state licensing can offer several benefits to cannabis businesses looking to navigate the complex and highly regulated cannabis industry. Here are some of the key advantages:
Regulatory Expertise: Cannabis compliance consultants are well-versed in the ever-changing state and local regulations governing the cannabis industry. They can help businesses understand and comply with the complex web of rules, ensuring that they meet all requirements for licensing and ongoing operation.
License Application Assistance: Consultants can assist with the preparation and submission of license applications, which often involve a detailed and complex process. This includes helping businesses complete the necessary paperwork, develop comprehensive business plans, and ensure they meet all eligibility criteria.
Risk Mitigation: Consultants can identify potential compliance risks and provide strategies to mitigate them. By staying up-to-date with regulatory changes and industry best practices, they can help businesses avoid costly mistakes and legal issues.
Cost Savings: Failing to meet compliance requirements can result in fines, penalties, or even the revocation of a license. Cannabis compliance consultants can help businesses avoid these costly setbacks by ensuring that they are in full compliance with all regulations from the start.
Operational Efficiency: Consultants can help businesses establish efficient operational processes that align with compliance requirements. This can include inventory tracking, security protocols, and employee training to ensure that the business remains in compliance on an ongoing basis.
Access to Industry Networks: Experienced consultants often have extensive networks within the cannabis industry. They can connect businesses with relevant contacts, including attorneys, accountants, and other service providers who specialize in the cannabis sector.
Adaptation to Regulatory Changes: Cannabis regulations are subject to frequent changes and updates. Compliance consultants can help businesses stay informed about these changes and adjust their practices accordingly to remain compliant.
Quality Assurance: Compliance consultants can assist with implementing quality control and testing procedures to ensure that products meet regulatory standards, helping to maintain product consistency and consumer safety.
Peace of Mind: Hiring a compliance consultant can provide business owners with peace of mind, knowing that they have a knowledgeable partner to guide them through the intricacies of the industry’s regulations, reducing the stress associated with compliance management.
Competitive Advantage: Maintaining strict compliance can enhance a business’s reputation and build trust with customers, investors, and partners. It can also be a competitive advantage when seeking investment or partnerships.
In summary, a cannabis compliance consultant can be a valuable asset for businesses seeking state licensing in the cannabis industry. They offer expertise, guidance, and support to ensure that businesses meet regulatory requirements, reduce risks, and operate efficiently and successfully in a highly regulated market.
How to Keep Your Cannabis Business Compliant
Regulations change frequently. Staying up to date on regulatory changes and keeping track of important deadlines are essential. That is why hiring a cannabis compliance consultant is the best thing you can do to ensure the longevity and success of your business.