Operating a cannabis company can be highly profitable, but it carries some considerable risk exposure. Developing a comprehensive risk management plan will help you safeguard your business.
Plan for Losses
Every business owner’s mindset is geared towards gains, but you also need to consider the consequences of things not going your way. Consider what may happen if a new venture doesn’t pan out or if you sustain a loss in revenue. Simply identifying your limitations and what you can do to remedy losses will go a long way towards supporting a positive trajectory.
Insure Your Operations Thoroughly
You’ll need an insurance policy that meets every aspect of your company’s potential exposure to liability and losses. In addition to general liability, you may need additional protections such as property insurance, business interruption insurance, or an environmental pollution policy. Work with an insurance company that is knowledgeable about the cannabis industry and understands cannabis grower risks. It can help you build a commercial insurance package that meets your business’ needs at an affordable price.
Ultimately, recognizing and working with risk will make you prepared to handle whatever the future brings while growing your business. Establish good internal controls, secure your operations, and work with businesses who are experienced in serving clients in your industry.