How to Find the Best Cannabis Business Consulting Company

Change is the one constant in the current cannabis industry. Both recreational and medical cannabis companies need to stay on top of the exciting and, often complex, cannabis developments. From licensing applications and regulations, to supply chain management, to variable government regulations, most cannabis companies could use a little help navigating the shifting current.

Keeping your marijuana business compliant requires vigilance, particularly in the retail operations sector. That’s why many marijuana consultants and cannabis companies seek the expertise of cannabis consulting firms to keep things running smoothly. Unfortunately, there are plenty of uninformed opinions being voiced on cannabis best practices. Follow these tips to find the right cannabis business consulting company to steer you in the right direction.

WHAT CANNABIS BUSINESS CONSULTANTS DO

Cannabis cultivators and merchants face unique challenges in operational and financial arenas compared to other businesses. State laws and federal laws are frequently changing, which requires keen attention. Regulations make the process of hiring employees and engaging investors more layered than in some other industries. Keeping you compliant while maximizing cultivation and sales is a full-time job, and one best left to a cannabis consultant.

Some cannabis business consulting firms claim a vague range of services, while others specialize in a specific sector, such as accounting, retail operations, or human resources. Some also practice in niche categories, such as cultivation, manufacturing, or food safety. Before you seek out a consultant, consider what your individual needs are. Then you can source a consultant with expertise in your field. Since the title can mean a broad range of things, it’s important to outline what you are looking for, so you’re both on the same page. Some things a consultant can advise you on are:

• Food safety implementation
• Cultivation optimization
• Manufacturing
• Transportation
• Business licenses
• Legal issues
• Accounting
• Compliance
• HR guidance
• Hiring
• Payroll
• Safety protocols
• Training and support

QUESTIONS TO ASK A CANNABIS BUSINESS CONSULTANT

The most important step in interviewing a consultant is to ask probing questions and seek thorough answers. Gaining insight into their particular expertise and depth of experience is essential to making a solid choice. Questions should also include any topics that might present a conflict of interest in how you do business, such as relationships with other cannabis companies or competing retail operations. Be sure to seek proof of any certifications or credentials they hold, as well as client references or referrals.

It’s imperative to spell out how much time they plan to devote to you and what their fees include. Depending on where you live, you may have to hire a consultant from out of state, so make sure they’ll meet you in person as needed. It’s also helpful to establish upfront what they would charge for any additional services you may need as your business develops. Part of figuring out how much time they would spend on your business is constructing a timeline of when they will start, deliver results, and complete the transaction of service. Should you decide to enter into the business relationship, clear and frequent feedback will create long term success in the partnership.

THINGS TO AVOID IN A CANNABIS BUSINESS CONSULTANT

There are some signs that help alert you to an unqualified consultant. Most consultants are not experts in all areas, so avoid one who claims to be, without proof of experience or access to current and former clients for insight. A horticultural background, for example, is helpful in a consultant who claims to boost cultivation. A relationship with contractors should be evident in a consultant who plans to optimize your facility design. Whether it’s lack of experience or expertise, these behaviors might signal trouble in a consultant.

• Lack of references
• Vague answers
• No method of invoicing or itemizing services
• Seeking equity in your company
• Not listening to your goals and ideals
• All talk and no proof of concept
• Refusal to meet in person
• A price that seems too good to be true

WHAT A CANNABIS BUSINESS CONSULTANT WILL COST

Some consultants will ask to be paid by equity in your company. This might sound appealing at first, but remember that regulations require you to list all equity holders with your business including their licenses and business documents. Equity also gets sticky with consultants who work for your competitors, as it might cause a conflict of interest. Ultimately, it’s up to you to decide if you will “pay” them in equity, but consider the possible pitfalls. Consultants can determine their price whether that’s hourly, or by the project. Some price fairly, while others charge exorbitant sums with no proof of results.

Do your due diligence on the consultant to make sure they’re worth their salt. Then compare their pricing against competitors and your budget to determine your return on investment. Keep in mind that while it may be cheaper initially to go it alone, it dramatically increases your chance of compliance failure, bankruptcy, lawsuits, or lost revenue. The most trustworthy consultants will prove their worth by offering perks like a free demo.

THE RIGHT CANNABIS BUSINESS CONSULTANT FOR YOU

The right cannabis business consultant for you is one who sees your specific needs. Some consultants overpromise and under-deliver in an attempt to gain your business. But no consultant is a jack-of-all-trades, so ask questions that will help you determine their skillset. One of the most important divisions of your company is human resources. While this encompasses the traditional elements like hiring, employee benefits, management, payroll, and taxes, the government has a particular interest in compliance with marijuana businesses.

For some industries, compliance involves a fairly static set of guidelines. But for cannabis companies, compliance is a fluid topic. You need HR and payroll solutions designed specifically for you. Partnering with a cannabis consulting firm with HR expertise will keep you afloat during the tidal shifts of cannabis compliance. Greenleaf HR is the leading cannabis HR management company, headquartered in the heart of the industry in central California. We’ve simplified human resource management for cannabis companies for over two decades, and we can do the same for you. Let us tackle the back-office complexities, so you can do what you love to do. Call us today to learn more!