Cannabis dispensaries and related businesses have proven to be lucrative here in California. The prospect of earning a nice income in a field with ample room for growth attracts many to the cannabis industry.
The industry indeed promises the possibility of success for those willing to work hard. However, cannabis and most of its derivatives remain illegal under federal law. That means you may need to manage your finances differently than you would with a non-cannabis business.
3 money management solutions to consider
Since cannabis is not yet federally legal, you might have trouble finding banks that will work with your business. Most financial institutions strive to avoid partnering with an operation that functions outside of federal law. That makes it challenging to conduct business, cover expenses and prevent employee theft.
The tips below can help cannabis businesses address complicated financial issues.
#1. Research financial institutions. You might find a bank to work with if you are willing to put in the effort. Reach out to smaller banks and credit unions in your region to see if any are agreeable to a relationship.
#2. Protect your cash. Cannabis businesses are essentially cash operations, meaning you must manage and protect large amounts of currency. Consider investing in a sturdy on-site safe with two-factor authentication or similar security technology.
#3. Cash-handling procedure. Create a standard procedure employees must follow when handling cash. For example, have them do till counts and reconciliations at specified intervals. Such steps deter theft and help workers exercise care when handling currency.
These are only a few things to consider when forming a marijuana business in California. Someone familiar with state and federal cannabis laws can give you additional insight into potential hardships and their solutions.