Operating a successful cannabis business requires more than just passion and dedication, as daily demands require strict adherence to regulations and standardized best practices. Unfortunately, many operators unknowingly make high-risk compliance mistakes that can lead to severe repercussions from state and local agencies. Here are 3 critical compliance errors you must avoid in order to protect your business:
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INADEQUATE EMPLOYEE TRAINING & SOPS
Improper employee training standards can quickly spell disaster in more ways than one. Without thorough training, employees may inadvertently violate regulations, compromise product quality, or incorrectly handle sensitive tasks. Clear standard operating procedures (SOPs) are imperative for ensuring compliance, consistency, and efficiency across all aspects of cannabis operations. Failure to prioritize the development and implementation of effective SOPs and high quality employee training programs can directly result in massive pitfalls. From inadvertent regulatory violations like underage sales, to potential product recalls and financial losses due to mishandling cash, the consequences are extensive and severe. Engaging a cannabis compliance and training expert is not just beneficial—it is essential.
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INSUFFICIENT SECURITY SAFEGUARDS
Lacking adequate security measures in your cannabis business poses a multitude of risks. Theft, whether from external or internal sources, leads to financial losses and erodes stakeholder trust, including customers and investors. Moreover, lax security procedures jeopardizes employee and customer safety, putting them at risk of harm or injury. Prioritizing robust security and compliance protocols is vital for preserving your cannabis business’s integrity and viability
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UNPREPAREDNESS FOR LOCAL AND STATE INSPECTIONS
In every state and local municipality, inspections of all types by government agencies are routinely conducted to verify compliance with regulations and ensure public safety. Being caught off guard during an inspection can have serious ramifications for your business. Fire inspections, state regulatory audits, and public health inspections are just a few of the types of inspections you should anticipate happening throughout the calendar year. Issues including insufficient record-keeping, inadequate security measures, or improper storage practices can result in fines, license suspensions, and damage to your business’ reputation. Proactive preparation, including regular internal and third party audits and thorough documentation for all business related activities, is essential for passing inspections and ensuring the continued and successful operation of your business.
AVOID MASSIVE CONSEQUENCES FOR YOUR BUSINESS
Ready to avoid these pitfalls with your business? Canna Business Services can support you with a team of compliance experts for a lower cost than engaging one exclusively for your business. Take action now. We get a lot of clients who come to us after they have been issued violations by the state agencies – these violations can cost a cannabis business thousands of dollars. By bringing an expert in compliance early, you can avoid costly mistakes. Don’t wait to protect your business, its reputation, and ensure compliance. Investing in comprehensive employee training, establishing clear SOPs, and engaging with experienced industry specialists helps protect your business from huge fines, license suspension, and even license revocation.
Are you a cannabis business navigating compliance challenges or looking to get ahead of them? Book your free 15 minute consultation with our experts today to ensure your operations meet regulatory standards while maintaining quality and integrity.
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