Cannabis sales increased 67% last year, and more people support the use of the plant now than ever before. For business owners and security managers like you, you’ve spotted the potential to profit from this amazing opportunity. However, like with any industry, there are certain pitfalls that can tank a business venture before it even begins. If you’re moving into the cannabis space, avoid the following three costly mistakes commonly made by first-time Massachusetts cannabis company owners. With this boost in knowledge you can get your company off the ground as quickly and economically as possible.
Not onboarding an experienced and trusted security partner early
Cannabis manufacturers, retailers, and growers face strict security regulations when it comes to licensing in each New England state. For example, Cannabis Control Commission (CCC) outlines multiple steps you must take as a Massachusetts business owner in the cannabis industry before you are able to open and operate. While these steps are significant, they are not always clear.
Without a well-established, trusted security partner you are likely to improperly execute security plans, which leads to delays and more money-squandering pitfalls. However, a high-powered security partner can help you navigate these regulations in a systematic and comprehensive way.
Remember that you must bring in your security partner during the planning process of your project. They should be on board even before you secure your funding, as they will be able to help you to better understand your true budgetary needs.
Underestimating how long it will take to open
Oftentimes prospective cannabis company owners assume that they can get their project off the ground in 6-12 months. In reality, a timeline of roughly 2 years may be more realistic for many projects. This is because of the strict licensing requirements and inspections a cannabis company must endure before they can operate.
In these cases, some business owners are shocked to learn that their beautiful new facility (for which they’re paying the bills) cannot open for months after the leasing agreement is signed.
Additionally, 2021 has seen delays never before experienced. Equipment including product growing and manufacturing machinery, backup/emergency generators, and many electronic products like grow lights and security cameras are in high demand and low supply. COVID-19 has brought about supply chain challenges never before seen. These long lead times for some equipment can delay a project.
If your budget projections only include 6-12 months of lead time, consider realigning your budget to support what could be a much longer process. This will allow you to secure the proper funds so you have the cash flow available to see the project through to its completion.
Undervaluing the role of architects and engineers
Want to skip that substantial investment into a quality architect? Don’t. How about cutting the engineer budget? Think again.
Prospective cannabis company owners sometimes attempt to proceed with their project without an architect or engineer on board. If you do this, you will potentially leave yourself with a subpar design that will delay your ability to get necessary permits. You may also begin building your facility only to have to tear it down due to a design flaw.
Do yourself a favor and invest in a high-level architect and/or engineer that can provide you with what you need to move forward without delay. These two essential team members are an investment upfront, but they will save you big bucks in the long run.
- Contact us today to learn more about security needs for your cannabis company.
- Learn more about what business security means to us.
- Ask us to refer you to an experienced industry professional (such as an Architect or Engineer) in the New England cannabis industry.
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