5 critical mistakes new cannabis growers must avoid

Added on 12 February 2025

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5 critical mistakes new cannabis growers must avoid

Source: Fluence

As someone who’s spent over two decades in the cannabis cultivation industry, I’ve seen countless new growers make the same critical errors that can derail their entire operation. Here are the top five mistakes you absolutely must avoid:

Regulatory Blindness: Ignoring Compliance Landscape

The number one killer of cannabis businesses is regulatory ignorance. I cannot stress this enough: if you’re not legal, you’re done. Each market has its own complex regulatory framework that dictates everything from how much you can grow to how you design your facility. Failing to deeply understand these regulations can lead to devastating consequences like fines, shutdowns, and complete business failure.

My advice? Either become an expert in regulatory compliance yourself or hire a legal advisor who understands the cannabis industry inside and out. The regulatory guidelines aren’t just bureaucratic red tape – they’re your roadmap for what’s possible in your specific market. Every state, every jurisdiction is different, and what works in California won’t necessarily work in Connecticut.

Financial Myopia: Underestimating Costs and Projections

New growers consistently underestimate the financial complexity of this industry. They create budgets that look great on paper but crumble in reality. My golden rule? Be conservative in your projections. If your conservative estimates work, any additional profit is a bonus.