• Home
  • About
  • Contact

The Phat Startup

The Ultimate Lifestyle Blog for Entrepreneurs

  • Blog
  • Blogger Lifestyle
  • Money & Finance
  • Motivation
  • Personal Growth

Blog

How To Keep Your Cannabis Cultivation Business Legally Safe

The cannabis market has made immense progress since its legalization in the country. The consumer base is growing, while the number of businesses entering the domain is also increasing. The pandemic has pushed the growth even further during the last couple of years. It seems like the best time to start with a cultivation business. But before diving, you must ensure that you know the imperatives of keeping your commercial grow legally safe. Despite the law opening the markets, things aren’t as simple as they appear on the surface. Here are some measures you need to implement to keep your business on the right side of the law.

Understand the legal situation of cannabis

The introduction of the 2018 Farm Bill was a big event for the industry. It legalized cannabis with less than 0.3% of THC content on a federal level. But there is much more when you scratch the surface. You must understand the complete legal situation because violating the law can still lead to severe penalties. Cannabis is legal on a federal level as per the bill, but states can decide for their territories. So if you are in one of the states that still consider cannabis illegal, you cannot start with cultivation. It is vital to confirm whether you can operate legally in your location. Likewise, you also need to understand the rules and regulations even in a legal state because they vary.

Be honest with banking transactions

Apart from following the federal and state regulations, you also need to stay a step ahead of the banking norms. It is tempting to transact in cash just to conceal the industry you operate in, but you must open a bank account. You may have to pay a higher fee, and some banks may reject you, yet the effort is worthwhile. Operating without a bank account can lead to grave implications down the line. You may face penalties if you get hefty cash payments because the authorities will eventually trace them. It can lead to an investigation, and you can land into trouble even if operating legally. It is also crucial to understand that credit card payments are not an option in the industry, so steer clear of them.

Cultivate discreetly

Taking care of your cannabis cultivation area is not just important from a business perspective. It is also a legal requirement, so you must ensure it with steps like access control, video surveillance, and system documentation. Having an indoor facility is a good idea if you want to keep things discreet. You require basic infrastructure like a greenhouse, temperature control, and lighting to make the crop thrive. Experts recommend 150w led grow light for best outcomes. Pest control and humidity management are also important. Although you may have to invest in infrastructure, it is worthwhile because your farm is secure and attracts less attention.

Prevent employee thefts

Employee thefts apparently have nothing much to do with keeping your business legally safe. But you must keep track of people in your workforce as they can get you into trouble by stealing and selling cannabis illegally. Conducting detailed background checks before hiring employees can keep your business on the safe side. Ensure that only the most trustworthy workers have access to sensitive areas, information, and products. Maintain an inventory tracking and management system to stay one step ahead of dishonest employees. If you can deal with internal threats, there is one thing less to worry about.

Manage transport and delivery

Being legally safe extends beyond cultivation. You also have to manage transport and delivery as a part of operations. Some states have regulations against allowing transport providers to handle cannabis. In this case, you will have to manage transport yourself, which is easier said than done. You will require a fleet of vehicles with GPS and trained drives you can trust to transport supplies safely. Documentation is equally crucial if the authorities happen to check the vehicle on the way. Transporting cannabis across state borders is also illegal, though regulations may vary. Confirm it with a professional to avoid legal issues down the line.

If you run a cannabis cultivation business, staying legal should be a priority at all times. It is easy to think that you are not liable because you do not transact directly with consumers. But cultivators are as much under the lens as retailers are. Luckily, keeping your business on the right side is easier than you think. Just follow these measures, and you can prevent hefty fines and lawsuits for the long haul.

 


« Dentists as Entrepreneurs: 5 Ways To Start a Dental Clinic Chain
Six Tips for Finding the Best Learning Management System »

About The Phat Startup

The Phat Startup was created by Mike McOwen to create a space where entrepreneur lifestyle could be focused on. We tend to live a different lifestyle than most. Entrepreneurs tend to be interested in maximizing their life, not only their profit.

Connect With Me

  • Email
  • RSS
  • Twitter
  • YouTube

Twitter Feed

Mike McOwenFollow

Mike McOwen
PhatStartupsMike McOwen@PhatStartups·
29 Dec 2017

Why is content marketing so important? Find out here: http://thephatstartup.com/money-finance/why-your-business-needs-a-content-marketing-strategy-in-2018/

Reply on Twitter 946751505146707968Retweet on Twitter 946751505146707968Like on Twitter 9467515051467079681Twitter 946751505146707968
PhatStartupsMike McOwen@PhatStartups·
9 Oct 2017

http://yescincinnati.com/

Reply on Twitter 917521630162759681Retweet on Twitter 917521630162759681Like on Twitter 9175216301627596811Twitter 917521630162759681
PhatStartupsMike McOwen@PhatStartups·
25 Sep 2017

Wow, interesting

Forbes@Forbes

Millennial men are more likely than women to default on student debt http://on.forbes.com/60148NudC

Reply on Twitter 912458136849698816Retweet on Twitter 912458136849698816Like on Twitter 9124581368496988162Twitter 912458136849698816
PhatStartupsMike McOwen@PhatStartups·
25 Sep 2017

I LOVE Toronto! Miss that place

GO Transit@GOtransit

Explore Toronto’s art scene with GO! Enjoy special late night service during Nuit Blanche on Sept 30. https://cards.twitter.com/cards/v2l8b/4ttwx

Reply on Twitter 912458028355670017Retweet on Twitter 912458028355670017Like on Twitter 912458028355670017Twitter 912458028355670017
Retweet on TwitterMike McOwen Retweeted
BuffaloSabresBuffalo Sabres@BuffaloSabres·
25 Sep 2017

Batter's up! ⚾️ Spending quality time with our friends at @MiracleLeagueWN.

4
Reply on Twitter 912457252057034754Retweet on Twitter 91245725205703475454Like on Twitter 912457252057034754319Twitter 912457252057034754
Load More...

Blog Ideas That Make Money

Reduce the risk of car accidents and stay away from critical injuries

The Pros and Cons of Buying Bitcoins with Cash

Top 5 Celebrity Endorsements That Actually Worked

Search

Copyright © 2023 · The Phat Startup

Copyright © 2023 · Divine Theme on Genesis Framework · WordPress · Log in