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.
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.