Cannabis has experienced a surge in popularity. From Pineapple Express to Billions, we've seen cannabis firms evolve from a seedy underbelly to a viable business model over the last decade. Cannabis sales are predicted to surge from $10.6 billion in 2018 to $97.3 billion by the end of 2026. Companies that assist individuals get their hands on it, from seed to sale, recognise that getting a piece of the pie requires a greater level of knowledge.
In this tutorial, we'll look at how the cannabis industry has evolved over the previous century, how technology helps them meet today's demands, and what technologies you'll need to flourish in today's cannabis sector.
The Evolution Of The Cannabis Business
A patchwork of producers and agriculturists, distributors, and recreational and medical retailers supplied the cannabis market. It has served from the 1937 Marihuana Tax Act, through the 1970s and 1980s Drug War, and the first attempts at new legislation and regulation. In 2009, Attorney General Eric Holder paused raids on dispensaries, allowing legal cannabis businesses to move forward with their expansion now that they understood they could operate openly.
What are some Problems Cannabis Owners Are Currently Facing?
It's not all black and white, especially given the cannabis industry's explosive growth. There are blue, grey, and other categories within the industry. The following is a summary of some of the most common obstacles that cannabis businesses face.
Regulatory Adherence
It's important to remember that the legal cannabis market is still in its infancy. In the United States alone, cannabis policies range from state to state. As a result, compliance requirements are continually evolving. Recreational cannabis is banned under federal law, to begin with.
Banking And Financing
For cannabis entrepreneurs, banking is a significant headache. Because cannabis is still illegal under federal law, several banks are unwilling to fund or open a business account.
Marketing And Advertising
Another issue that cannabis businesses must solve is how they market and sell their products.
Stigmatization Of Cannabis
Despite the fact that cannabis and its derivatives are legal in all 50 states, they are nonetheless stigmatised. These products are tied to the "stoner culture." Business owners must show that they are contributing to and helping the community in a favourable way.
How To Solve Problems Using Technology?
The cannabis sector today is similar to any other. It is continually churning out new variations and formats of a tightly controlled physical product. It is then tested for health and safety regulations before being transported across a country with glaring gaps where the product is legally permitted to exist—in other words, it is unlike any other.
Cannabis Technology: A Critical Requirement
Emerging markets have appeared out of nowhere, necessitating the creation of new supply chains and the management of new regulatory changes. Other organisations have created a patchwork of disparate solutions to manage the intricacy of the seed to sale process, similar to the cannabis industry in the past; worse, other businesses still rely on antiquated or awkward technology, such as spreadsheets, to carry out very complex administrative procedures.
Enterprise Resource Planning (ERP)
The cannabis market is unique, but it is also large and chaotic. As a result, cannabis enterprises must guarantee that their business management system satisfies both industry and personal regulations.
Human resources, accounting, marketing, sales, procurement, inventory management, supply, and cultivation tracking are all common areas for cannabis businesses that require an easily integrated solution like cultivation software or tracking software.
How Does A Cannabis ERP System Work?
Cannabis ERP software combines critical back-office tasks with the primary seed-to-sale capabilities you utilise on a daily basis.
The back office is where the active parts of your business, such as bookkeeping, order processing, supply, and transportation, are located.
Essential Functionalities Or Components Of An ERP System
Users may develop customised dashboards with the data to make strategic decisions. A comprehensive cannabis ERP system benefits cannabis firms in the following ways:
Recognize the true production costs.
Visualize data with Microsoft Power BI.
Make audits easy by demonstrating compliance.
Maintain a high-quality assurance system.
Keep track of the outcomes and procedures in your lab.
Plan ahead of time.
Determine the custody chain.
To track and trace, integrate with state tracking systems.
Benefits Of Using An ERP System
While it may seem scary to invest in a full-stack ERP system before you've built your firm, there are various ways this new technology in the cannabis market might help a small business.
Customer Relationship Management (CRM)
Rather than the traditional drug addicts of the past, today's cannabis users are a sophisticated group. With CRM software, you can keep track of all you need to know about your customers, like where they live, what they buy, if they're a medicinal or recreational user, demographic data, and so on.
Business Intelligence/Analytics (BI)
Companies can use business intelligence (BI) software to collect data from all elements of their operations in order to spot trends and extract insights. BI solutions can help cannabis firms collect data from all elements of their operations, including purchasing, growing and producing, shipping and logistics, sales, consumer insights, and more. It can also make the reporting process easier by measuring critical compliance data automatically.
Ecommerce And Point Of Sale
Because of the COVID-19 pandemic, most cannabis businesses rely on foot traffic to their physical sites to boost revenue. Many cannabis businesses have been forced to switch to online sales as a result of the pandemic, and they have been urged to do so in a compliant and legal manner. Your cannabis business is no longer geographically confined to its customer base if you provide an ecommerce platform. Allowing customers to shop online can help you reach a larger audience and generate income.
How To Select The Right Cannabis Technology Partner?
If you're a small firm attempting to satisfy customer expectations or spending more time on administration than strategic growth, it's time to consider a better option. Cannabis ERP software may make it easier to access and manage data, maintain relationships, increase efficiency, improve communications, and, ultimately, make data-driven decisions that propel your small business forward.
At Evince Development, we recognise that the appropriate technology can help your company expand more efficiently while also making things easier for you and your employees. Our technology and business process experts can help you analyse your business needs and determine which technology will best suit your firm, its employees, and its goals.
Source: https://evincedev.com/blog/how-can-technology-help-your-cannabis-business-succeed/