Shine has two major concerns. They want to ensure they stay compliant. The owners of Shine heard about two other dispensaries in their area who just underwent surprise audits. One was shut down. The other one had to pay $10,000 in fines. Being in an already federally illegal industry, compliance keeps them up at night.
The other major concern is they wanted to maximize their ROI. California is becoming more competitive and they need to cut cost in other areas in order to spend more on marketing.Shine Dispensary knew that their current process for reconciling data between the state system and their inventory was slow, labor intensive, and unreliable. For this mid-size cannabis businesses, they had at least 2 people for 12 hours every month dedicated to reconciling data. They paid them $14/hour, that’s $4,032 for one location. They were growing rapidly and needed a more efficient and goof proof compliance process.
They knew if the manual reconciliation was not complete, or was completed inaccurately, they could face fines of up to $10,000 or a complete shut down.
They were introduced to Platform and decided to give it a try. Immediately, they started using the Compliance Reconciliation tool, which looks at your inventory and the state’s record of your inventory and alerts you to discrepancies between the two. In a matter of minutes, not hours, the compliance reconciliation feature makes it easy to identify where any discrepancies might be. They were able to reconcile in mass and make individual changes for each discrepancy.
Without this feature, Shine was wasting money and time monthly on compliance. Plus, they were leaving the most important part of their business open to human errors. Every month, someone had to count inventory and line item match it to the state record.
Using Platform saved them time, energy, potential auditing fines, and puts $4,000+ per year back in their business. An added bonus is they no longer have to wait until the end of the month to catch errors. They can correct compliance issues daily if they choose. This gives them peace of mind and enables them to invest more time and energy into opening that second location they’ve been dreaming about.
Platform takes a 24-hour process and shaves it down to under an hour process with Instant Reconciliation. Take a look at the only generation 2 software built specifically for the cannabis industry.
Having a cannabis business can be stressful. One day the industry is booming, and the next some politician is keeping the stigma alive. We’re here to help. Here are 5 tips to help you do the right thing in your business and avoid interference.
1. Be compliant.
From the top-down, everyone should model compliant behavior as well as an attitude of rejecting behavior that is non-compliant. Adopt clear and concise rules that govern employee behavior that includes a detailed explanation of consequences for behavior. This ensures both the management and employees are responsible for transparently upholding the rules. Run a software, like MJ Platform, that blocks non-compliant transactions and alerts you to potential non-compliance when behavior or results differ from the norm.
Your business is most vulnerable at transfer points – from vendor to retailer or from retailer to customer. Pay particular attention to following compliance rules and stepping up your compliance practices. Consider adoptions pratices that you know to be best practice, even before your state or municipality requires it. Watch our compliance webinar for more compliance tips.
2. Being a good neighbor
This means considering the impact of the company’s practices on the neighborhood, including traffic patterns, parking situations, times of operation, enhanced security, controlling odor, and noise. In some jurisdictions, there are compliance requirements in these areas. Consider going above and beyond the local requirements. As well, consider how you can improve the neighborhood through landscaping, increased lighting, and adopting a highway (bonus: advertising on the adopt-a-highway sign).
3. Reduce operational risk.
It may sound crazy, but involve the local police department, fire department, health department, and city officials to tour your facility. The more familiar the people of these organizations are with your facility, how it operates, and the people who operate it, the better.
4. Conduct your own audits or hire compliance consultants to audit for you.
Don’t wait for the state to inspect your business. Audit yourself on a regular schedule. This is a great way to test your business and discover where you need to make adjustments. By developing a regular schedule of testing and tweaking, you’re taking preventative measures to avoid penalties.
Until the law is changed, there’s no guarantee your business will be safe. Everyone in our industry needs to play an active role in politics. Get involved with local organizations that advocate for the cannabis industry. Now is the time to communicate to our federal representatives and to lobby like our
futures depend on it. If you haven’t, please join our national trade association, National Cannabis Industry Association, and manifest this change with us.
MJ Platform’s consultants have 30+ cumulative years of cannabis business experience. We have worked in every vertical and every stage of the cannabis businesses development. Contact us today and we can help you make the best decisions for long-term business success.
Do you have questions about how to maintain compliance? Would you like to learn best practices for staying up to date of local laws or passing an audit with flying colors?
We have just what you need.
Watch this FREE webinar recording for tips and best practices on adhering to local regulations.