As a member of the cannabis industry, whether you are a producer, processor, or retailer, it is important to recognize the needs that your business has are akin to any other industry, despite having some specific traits that need to be addressed. Even if you’ve already secured your facilities for production or retail, and then gone through with the legal process to make your business legit with employees are are qualified, you are still going to need to find ways to manage the business operation on a wide-scale level that deals with the specifics of day-to-day processes.
Due to the emergence of new technology, businesses are able to move incredibly fast, today. In order to remain competitive, your business should move quickly, as well. To do this, you’ll need to utilize tools and a software infrastructure that enables your business to transition through multiple levels of growth and effectively navigate existential business threats. Here are several ways the cannabis industry needs business solutions…
Although marijuana has officially been legalized in a multitude of states, both for medical and recreational purposes, there are still a myriad of regulations and red tape that emerging cannabis businesses will need to navigate. Despite the fact that cannabis is currently only of the fastest growing industries in the United States, nearly half of all upstart cannabis businesses fail, due to compliance failures.
For this reason, it is incredibly important to find ways to automate your compliance processes with the utmost precision. Typically, this should be implemented into your software infrastructure (indeed, it is a necessary feature of any well-implemented ERP software). Ensuring that your organization can quickly adapt to the ever-changing wave of regulations is crucial to protecting your company’s growth and ensuring survival.
As we stated above, due to the recent wave of marijuana legalization, cannabis is one of the fastest growing industries in the United States. For example, the sales of cannabis in the U.S. in 2015 was $5.7 billion, while it was only $4.6 billion in 2014. By 2020, the cannabis industry is expected to reach $22 billion in legal market sales. Should it hit this margin, the industry would have nearly quadrupled over 5 years.
Because of this rapid growth, all emerging cannabis businesses should seriously inspect if their business operations will be able to sustain continuous growth. Ensuring that you have the infrastructure and oversight for cash management to double your business in a short amount of time is the only way that you will be able to expand your business in an effective way, without leaving revenue on the table, due to insufficient business practices.
A business in the cannabis industry, just like a business in any other industry, needs to have streamlined solutions to manage each aspect of their operation. The cannabis industry has many steps in the process to get its product to the customer, from growth and production to dispensing at retailers, which all need to be heavily monitored for compliance.
Being able to manually operate a business of this size at each stage in the process is simply not an effective solution. For this reason, developing the software infrastructure to observe and manage each aspect of your cannabis business, from inventory, to supply chain, to billing is a crucial part of making an efficient business operation. Enterprise resource planning software (ERP) allows companies to combine all of these needs into one simplified system, rather than wastefully across multiple systems, which can be costly and over-complicated.