The whole world faces unprecedented challenges in its attempt to wage war against an invisible COVID-19 virus. Forcing companies to keep workers has resulted in the shut-down of entire markets, stalled businesses, and deteriorated demand and supply of some products and services.
One of the many industries affected by the virus is the cannabis market. According to a 2019 report, the legal global cannabis market was valued at $ 17.7 billion and expected to increase significantly in the coming years. Due to the coronavirus pandemic, the industry is now facing the aftermath of a global epidemic.
Take a look at how cannabis industries are affected and trying to manage their growth during the COVID-19 crisis.
How has the cannabis industry been affected by COVID-19?
The coronavirus impacts every industry sector and the circumstances are rapidly changing over time. In the cannabis industries, even large, multi-state operators are laying off workers and shutting down facilities to cut costs. Recreational sales demands are challenging to predict while disrupted supply chains, restricted movement, and the general economic slowdown have resulted in lost revenues.
Many states have declared cannabis as an essential business during the pandemic, but the federal government has yet to include cannabis businesses from receiving low-interest financing or grants according to the new economic recovery plan. These factors make an already tricky legal cannabis industry even more uncertain.
Cannabis companies also face distinctive tax implications, such as banning standard business deductions and the lack of consistent state-to-state regulatory guidelines. These challenges mean that industry, like so many others, will have to rely on government legislation, whenever that may come.
How can cannabis companies handle the crisis?
Right now, cannabis companies are trying to improve their approach in these categories:
- Finance functions
- Supply & demand
- Production management
- Inventory management
- Data-driven insight
Operators are adopting a new way of connecting and selling to customers. Business owners who improve their engagement with customers generate more income, build brand loyalty, and thrive in these difficult times. The creative and collaborative use of technology is what will enable this new approach.
Have a post-pandemic plan
What must be done to get operations through this crisis? The COVID-19 pandemic is a humanitarian crisis and every precaution needs to be taken to eliminate its spread in the workplace – employers need to provide sanitary working conditions. Understanding where the legalization process stalled at the onset of the pandemic is key to reigniting those initiatives once restrictions are lifted.
Cannabis companies should assess their preparedness for the new normal and ensure the tools are available to accomplish the goals set for a post-pandemic market. Organizations that have shifted to remote work will slowly transition back to the office – or will they?
All this data?
Cannabis companies become more efficient by integrating business functions and operating from a single source of data. Cannabis ERP solutions provide seamless communication between different departments as well as throughout the supply chain and retail operations.
By operating from the cloud, cannabis ERP allows users access to real-time data, reports, and information from anywhere in the world. The ability to share data between various departments from any device ensures greater collaboration.
The global pandemic is affecting the world, and the cannabis industry is no exception. When companies are capable of transforming their approach to production, distribution, and sales, the business can thrive through tough times.
Contact us to learn more about how a cloud-based cannabis ERP and accounting solution can improve your business performance.