Safety & Compliance

Total Approach: How To Avoid Costly Mistakes when Starting a Cannabis Extraction Laboratory

Written by Antonio DeRose

Cannabis extraction is a highly lucrative business. The start-up costs for a new cannabis extraction laboratory can be quite costly. There are the initial investment costs in the location, as well as designing the facility. Then there’s acquiring and maintaining extraction equipment, meeting rules and regulations, and hiring top-tier talent. All of this leads to a high upfront investment cost but the ROI can be even higher.

At the same time, there are many costly mistakes you can make when starting a cannabis extraction laboratory. These mistakes seem to be the same across the board for extraction labs across the country. Many of which can be avoided. This is why we put together the top 3 most common costly mistakes you can make when starting a cannabis extraction lab.


Mistake #1: Buying The Wrong Equipment

Many people have tried to get into cannabis extraction and failed. That leaves a lot of used extraction equipment on the market. Just because it’s a good deal, doesn’t make it a good business decision. Make sure the equipment you purchase is up to current regulations in your market area, is built to serve your extraction purposes, and can manage your intended output capacity. Consider purchasing new equipment, from reputable manufacturers, for these reasons.


Mistake #2: Hiring The Wrong People

This may seem like an easy mistake to avoid, but it happens more often than you’d imagine. Make sure you vet your potential employees. Conduct background checks, speak with references and do your due diligence. Hiring the wrong people for the job can set your business back months behind schedule.


Mistake #3: Overlooking New Regulations

Fines for not being up to code can add up quickly. Don’t get caught off guard by changing regulations. You can avoid this costly mistake by having a compliance specialist that stays on top of this for you or doing it yourself. Make sure you are signed up for notifications from your area’s local governing authority to be immediately notified when regulations change and conduct regular inspections of your facility to make sure everything is up to current codes.

About the author

Antonio DeRose