The Top 3 Legal Mistakes Cannabis Businesses Make (And How to Avoid Them)

By Henry Baskerville

The cannabis industry has attracted many creative, innovative entrepreneurs. And while they’re often skilled at cultivation, production, extraction or brand-building, sometimes, they aren’t as knowledgeable about business legalities and navigating the myriad risks inherent in running a cannabis company.

Entrepreneurs in other industries often have an MBA and strive to build their business for years before it ever hits $5-10 million in annual sales. But in cannabis, it’s not uncommon for an unseasoned entrepreneur’s company to rocket from zero to $10 million in its very first year of operation! While that success is phenomenal, the downside is that less-experienced business owners don’t always put forth the level of attention to detail required in this intensely regulation-ridden category.

I’ve advised many cannabis clients on litigation, employment, regulatory, licensing, corporate, securities and M&A matters. In a recent piece for Green Entrepreneur, I shared the top three legal mistakes I see cannabis entrepreneurs make—and how to avoid them. Click here to read more.