Risks of the California Cannabis Industry

California’s cannabis industry offers a new and exciting opportunity for investors, entrepreneurs and workers to thrive in an emerging marketplace worth $5 billion. But the legalization of cannabis has also brought with it a new set of complex problems.

California cannabis businesses not only have to contend with the standard risks associated with cultivation, manufacturing, distribution and retail operations, they must also comply with a new set of complex regulations AND mitigate the risks associated with a high-risk product and cash-based business.  

Failure to manage these risks properly will eventually lead to:


Any one of these risks exposes the business to: