The Importance of Procedures in Cannabis Businesses

The Importance of SOPs for Cannabis Businesses

Many businesses, both small and large, benefit from establishing Standard Operating Procedures (SOPs). SOPs provide better business structure and proper organization, as well as improve communication, workload efficiency, and quality control. Cannabis SOPs are crucial in establishing the business’ standards and expectations. 

What are Cannabis Business SOPs? 

SOPs are intended to set standards and/or improve operation routines in order to drive everyone within a company to work toward the same goals. Cannabis SOPs accomplish exactly this, but their procedures are tailored for handling cannabis products. This consists of policies that dictate what needs to be done, and procedures that show how the process must be completed.  

SOPs should cover the following topics:

  • Company standards 
  • Working conditions 
  • Work expectations 
  • Wages and benefits 
  • Performance reviews 
  • Termination Policy 
  • Administration

The SOPs can be used as a training manual for new employees as well as a resource for existing employees, so it is imperative to be as detailed as possible. Security SOPs, including security manuals, cash management, guard post orders, and a Culture of Honesty theft prevention programs are used by many companies as the industry standard. Senior members of management are usually well versed in the policies and procedures, but they need to effectively communicate to ensure that all employees are informed as well. 

There are many ways to write SOPs, but there are tried-and-true methods that offer clearer communication. The most common writing formats are writing step-by-step instructions, descriptive flow charts, and hierarchical steps for longer processes. Even though it is crucial to be as detailed as possible, shorter sentences are preferred in order to communicate instructions to employees. Writing in the active voice is also crucial to provide clear instructions. If you have never written a policy or procedure manual, you may want to get professional help from a consultant who is knowledgeable about best industry practices and specializes in writing policy and procedure manuals. 

Why are SOPs Important for Cannabis Businesses? 

Communication starts from the top, and SOPs are the foundation of how managers and supervisors can instruct their employees. If SOPs are not well written, senior employees will have a very challenging time being able to translate policies and procedures with clarity to other employees. This is detrimental for cannabis businesses since they require employees to follow strict regulations and laws at the federal and local levels. Even one robbery can have severe long-term impacts on a cannabis business’s chance at success. 

Operating a cannabis business involves many risks, and you and your employees must be prepared to tackle emergencies. This is only possible if your SOPs effectively addresses what to do in a situation of crisis.  

Since an SOP sets the company standard, all employees must abide by it which involves tracking employee performance and increasing accountability. If employees are able to recognize what standards need to be met, they are more likely to want to do a good job. This can foster a positive work environment that can lead to a culture of honesty and accountability across the company. 

A solid cannabis SOP is the bread and butter for any cannabis business’s long-term growth. Trained employees on average earn higher than those that are not well-trained because they are aware of the company’s losses if they choose to break rules, attempt theft, slack off, etc. If policies and procedures can be communicated effectively from owner to employee, the company will face a sense of teamwork and a positive work environment which becomes the formula for long-term success.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked to secure medical marijuana and recreational cannabis businesses in 36 states. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!