Standard Operating Procedures in the cannabis industry should not be a one and done document…

Standard Operating Procedures (SOPs) are a critical part of any cannabis operation. They are the documented procedures that outline how things are done within an organization. These procedures ensure that employees know what to do, how to do it, and when to do it. SOPs help to maintain consistency, improve quality, and ensure compliance with regulations. SOPs are also, more times than not, a requirement for operation in markets across the US. Limited license states like Illinois, Missouri, Ohio, Pennsylvania, and New Jersey require the company’s SOPs to be pre-approved by state regulatory agencies prior to operation. Other states like California, Nevada, and Colorado still require SOPs but do not require the state regulatory agency to pre-approve them prior to operation.

That being said, SOPs are not stagnant documents. They need to be updated regularly to reflect changes in regulations, industry best practices, and the evolution of your own organization. In this blog post, we will discuss why SOPs in the cannabis industry are not stagnant documents and why your processes should always be optimized.

Regulations are constantly changing

One of the main reasons why SOPs are not a stagnant document in the cannabis industry is due to the constantly changing regulations. As the cannabis industry continues to grow and mature, regulators are always updating and refining the rules and regulations that govern the industry. This fact alone is why each licensed cannabis company should have a dedicated compliance position on its staff. Konopé Compliance offers Fractional Compliance Officer services to any small to medium-sized business that can’t afford to have a full-time compliance position on staff.

For example, in the United States, each state has its own set of regulations that cannabis businesses must comply with. These regulations cover everything from licensing and security requirements to cultivation and production standards and testing. As these regulations change, your SOPs need to be updated to ensure that your business remains compliant.

Additionally, as the industry continues to grow, regulators are becoming more stringent in their enforcement of regulations. This means that businesses need to have robust SOPs in place to demonstrate compliance and avoid penalties. The best way to show your intent to comply is to have updated SOPs and proof that your employees have been trained on them.

Industry best practices are constantly evolving

Another reason why SOPs are not stagnant documents is that industry best practices are constantly evolving. As new technologies and techniques are developed, the way that cannabis is grown, processed, and sold is changing.

For example, the use of automation in cannabis cultivation is becoming more common. This allows growers to optimize their operations, mitigate pests, and increase yields and quality. However, implementing automation requires changes to your SOPs to ensure that the equipment is used correctly and safely each time by each employee.

Similarly, as new extraction methods are developed, your SOPs need to be updated to reflect these changes. For example, if you switch from butane extraction to CO2 extraction, your SOPs need to be updated to reflect the new equipment and processes.

For any newly licensed cannabis business, it’s imperative to the long-term success of your organization to always ensure products, and production batches, along with customer service and education, are consistent, compliant, and sustainable. Everyone wants to grow their business; however, most don’t realize that it takes getting your business out of your head and putting that information down on a piece of paper or digitally with help from Konopé in order to achieve year-over-year growth. Every year, we, as an industry, learn something new. No one is reinventing the wheel, but a lot of us are making a better and better wheel as fast as we can, and because of that fact, implementing and evolving SOPs is necessary for brands to expand to new markets, or prepare for acquisition. Evolve or die!!

Your processes should always be optimized

Finally, your processes should always be optimized. Even if your SOPs are up to date with the latest regulations and industry best practices, there is always room for improvement.

Optimizing your processes can help to increase efficiency, reduce waste, and improve the quality of your products. This can lead to cost savings and increased profits.

For example, if you are a cannabis cultivator, optimizing your watering and fertilization schedules can help to increase yields and improve the quality of your plants. Similarly, if you are a processor, optimizing your extraction methods can help to increase the potency and purity of your products. Better products = better sales.

In conclusion, SOPs in the cannabis industry are not stagnant documents. They need to be updated regularly to reflect changes in regulations, industry best practices, and the evolution of your own organization. By keeping your SOPs up to date and optimizing your processes, you can ensure that your business remains compliant, efficient, and profitable.

Contact Colin at Konopé Compliance today to learn more about how we can help you take your existing SOPs and digitize them into an online training manual that you can use to expand to other markets or add value to your next potential acquisition valuation.

Colin@konopeconsutling.com or call 720-955-2777 today!