The cannabis industry went through more dynamic growth in 2019 than in any previous year in a trend that looks to continue into and beyond 2020. Every year sees expanded legalization of medical and recreational cannabis products in the United States, and with each new legalization comes a flood of new cannabis businesses to meet freshly legitimized consumer markets.
To compound the challenge of ever-stiffening competition, the evolution of the legal landscape also means new regulatory guidelines that must be managed in order to operate in new markets.
Cannabis ERP is one of the most powerful tools a cannabusiness can adopt to compete in such a dynamic industry which is why we have created the 2020 Cannabusiness Toolkit for how to approach your specific challenges and opportunities.
This toolkit will empower you, the cannabis operator, to identify weaknesses in current operations, understand what cannabis ERP is and what it isn’t, identify the differences between various software solutions to their pain points, comprehend how cannabis ERP reinforces compliance with robust seed-to-sale tracking, and nurture scalability within their business.
Perhaps the greatest challenge to your cannabusiness in 2020 and beyond will be ensuring compliance with the changing legality of cannabis on state and federal levels. ERP systems are designed for the kind of micro-level tracking necessary to maintain compliance in the cannabis industry, and the most successful cannabis operations have used them to streamline cannabis regulatory job processes and save money.
Not all ERP systems are created equal when it comes to implementation in the cannabis industry. Because of the complexity of compliance strictures and how quickly they change with shifting legalization from state to state, generalized ERP solutions simply do not offer the kind of niche features necessary to stay on top of your regulatory needs. A cannabis-specific ERP is designed to not only track every component of cannabis products throughout their entire lifecycle but will automatically update with new regulatory requirements as they are enacted in different regions. By comparison, a standard ERP will not proactively update to keep your business in compliance.
‘What about seed-to-sale software?’ you might ask. Seed-to-sale tracking software may seem to be an all-in-one solution like cannabis ERP, but it’s not. Simply stated, seed-to-sale tracking is a compliance component to a comprehensive cannabis solution, and opting for seed-to-sale software alone will require cobbling together a piecemeal set of solutions for the rest of your operational needs. While it might be enticing to spend a bit less on off-the-shelf solutions like basic accounting software, seed-to-sale software, and a cannabis POS system for retail sales, the truth is that a cannabis-specific ERP will perform each of these tasks at a higher level and with improved integrations, which will ultimately streamline processes and save you operating costs in the end.
Most cannabusinesses that are serious about competing in today’s marketplace recognize the benefits of a cloud accounting partner for their growth, but what specific features should you look for in selecting the right one for you? The right cannabis ERP partner for your business will offer you features to support the kind of data integrity, accessibility, user support, scalability options, and software integrations you need. Importantly—and often overlooked—the right cloud accounting partner will also reinforce your ownership of your data.
All of these tooltips are ultimately about keeping up with your competition in the cannabis space. Here you’ll get a good summary of the considerations you need to keep in mind in order to develop and maintain a competitive advantage in the challenging cannabis industry. How will cannabis ERP impact your operations and help you grow your business? With the kind of real-time data access offered by cannabis ERP, leadership in your business will be equipped to make the best possible decisions in steering the organization into the black in 2020 and beyond.