Extraction is in high-demand, making this vertical a very profitable segment of the cannabis industry. But before you embark on your new cannabis calling, there are important factors that will determine how successful your extraction operation will be. So we enlisted our experts, Seth Dewberry, Operations Consultant, and Ed Schwarz, Infused Products and Concentrates (IPC) Operator, MJ Platform Support Technician/Operations Consultant, to share tips for building a successful operation.
Build a Foundation
- Do your research! Know what is required by your state. Understanding Seed-to-Sale compliance is important for everyone in the cannabis industry.
- Develop relationships with local commerce groups and other community agencies to get the proper licenses and permits.
- Understand zoning and secure a location that the city and state have approved.
- Find a space that can be easily modified as the extraction process constantly evolves. Your lab may need to expand to accommodate business volume and expanded safety precautions.
- Seek a team or consultant with prior expertise who can help you make the best decisions for your business.
Determine Extraction Method
You are probably already thinking about yields, quality, profitability, and consumer preferences. But what about the extraction method? Simply selecting a solvent or non-solvent method is not the best course of action. Your state’s rules and regulations may decide for you. For example, some states have regulations that don’t allow hydrocarbons, while others restrict operators to the CO2 method. Know your options and what your local regulators require.
Best Practice Operating Procedures for Success
Extraction can be volatile, or even dangerous, even when you are offsite. Keep you, your employees, customers, and your investment safe with best-practice operating procedures like product intake and outtake, conditions, procedures for making the extract, safety, quality control documentation, and more.
Procedures like the ones above ensure profitability and safety for employees and consumers. Ensure these procedures are in writing and put in place for future inspections or unplanned hiccups. In addition, have an exit strategy for a bad product. Like any manufacturing business, something will go wrong, and an absent exit strategy puts you at risk of losing a lot of money. Minimize your loss by planning ahead.
Standing Out
Today patients/consumers seek out concentrate innovations, live resins, and terpene content. Consumers are savvy about how cannabis works in your system and seek out their favorite terpene profiles. Know what customers in your geography want. Don’t build an operation on gut feel; use current patient/consumer buying data to make educated business decisions.
All of these tips will get you moving in the right direction, but for a more in-depth discussion on how to build a successful extraction operation, continue to follow our blog here. Connect with our team today if you have questions, you’re interested in enhancing an existing operation, or you need help getting your cannabis extraction dream off the ground.
