There is no doubt that the cannabis industry is poised for growth. As more and more states realize the use and benefits of various forms of marijuana both medicinally and for recreational purposes, it is only logical that many more will begin to legalize its sale as well. As this happens, more industry players will enter the fray. These companies will need sound business management tools such as plant tracking software to help them streamline production as well as finances.
Several things make the cannabis industry rather unique. For starters, it encompasses several typically independent industries such as distribution, health and wellness, agriculture, and production.
From the moment a marijuana seed is planted in the ground to the moment it’s sold in any form, it will have touched on every single one of these sectors, all of which have their own set of regulations with which industry players must contend.
This makes doing business in the cannabis industry rather challenging for those who don’t have the right business tools. Mostly because the industry is still in its infancy as far as legality is concerned. The associated laws and regulations are still evolving. That, however, doesn’t change the fact that the industry is very tightly regulated, especially as far as finances and inventory control are concerned.
Bear in mind that this was an industry that operated in the shadows up until not so long ago. It’s therefore only logical to assume that it still has some it’s “illegal aura” around it and as such, the responsible government regulatory bodies such as OSHA and the FCC are keen on maintaining compliance among the legally licensed traders. Maintaining that compliance calls for the use of a robust plant tracking software that keeps their transactions transparent and ensures efficient documentation and reporting.
Thankfully, seed-to-sale systems are currently available for those who need them. With the right software, not only can your cannabis business remain compliant but it can also grow in both efficiency and size. Let’s take a quick look at one of the best plant tracking software and how it can help your cannabis business grow.
How Nugistics Can Help You in Business Growth?
The right seed-to-sale software is a robust system that encompasses a great deal, if not all of the industry. Nugistics, for example, handles things like:
- Cultivation: Giving you insight and a better understanding of your plant, allowing you to track its progress, and helping you identify the practices that produce the most yield throughout the various cultivation phases.
- Manufacturing: Helps keep a close eye on your plant from extraction all the way to refinement and the final product. This allows you to closely monitor and manage your manufacturing process.
- Dispensary: Helps you manage your customers by identifying purchase patterns and addressing their specific needs. It also helps you build customer loyalty by enabling the provision of expert service.
It does all this all the while ensuring that you remain compliant by integrating with METRC.
Challenges that Could Hinder Your Cannabis Business Growth
The thing about the cannabis industry is that it has a unique set of challenges. Here are some of the most common ones that tend to hinder business growth in this particular industry:
- Regulatory challenges: This is perhaps the biggest challenge that most cannabis industry players face. While the sale and use of marijuana are legal in many states now, every one of those states has a unique set of rules that players within its jurisdiction must abide by. To make it even worse, those laws and regulations are constantly changing which means one must be on top of it all to remain compliant. Many of these regulations, being so new, are subject to misinterpretation, the consequences of which can be dire including hefty fines and the loss of license.
- Financial obstacles: While it’s true that most businesses face financing issues, the cannabis industry is unique in that it operates mainly on a cash-only basis. This means that they need quite a bit of capital to be functional and have very strict regulatory guidelines governing their bookkeeping. Industry players need the right system in place to ensure efficient and proper documentation to not risk legal, regulatory, and IRS scrutiny. Furthermore, investors tend to have issues trusting this kind of business that operates fully on cash.
- Staffing issues: The cannabis industry needs highly skilled workers who know all there is to know about strains, dosages, documentation, regulatory requirements, and so much more. The problem with finding such workers is that there aren’t many who are specifically qualified to fill these roles and, as such, poaching and employee turnover tend to be rather high within the industry. Finding the needed skilled labor involves much more than just hanging up a help-wanted sign as some states require your cannabis staff to be highly trained, qualified, and even licensed. Having the right system in place can help you minimize the number of staff you need and can all but eliminate this issue.
- Associated stigma: For a very long time, marijuana was illegal and its use was deemed as a preserve of outlaws and delinquents. That kind of stigma doesn’t just go away because it’s now legal in a majority of states. There is still much to be done in terms of public education but for now, there are still some people – even within the states where weed is legal – that still feel as though it shouldn’t be welcome in society.
These are complicated matters that need deep insight to solve. Highly sophisticated systems such as robust plant tracking software can help solve most of these issues from a technological standpoint. Let’s take a look at how the right system can help streamline your business and ensure its growth.
Ways a Plant Tracking Software Can Help Your Business Grow
The right system can help you navigate the complexities that come with this industry. Here are some ways that Nugistics can do that for you:
- Ensure compliance: Most regulators look for the monitoring, tracking, and recording of data meticulously. This isn’t something you can do without highly sophisticated cannabis-specific software. The right solution will help you maintain compliance by gathering insights from across the entire supply chain and linking up to systems such as METRC, which happen to be critical in the eyes of regulators.
- Crop management: Without the right kind of crop and end product, you really don’t have a business. The right seed-to-sale tracking software can help you manage your crop and give you insights on which practices will help give you the best possible yield all the while maintaining compliance.
- CAPA management: Since the cannabis industry produces products for consumption, they need solutions that are in line with Corrective Action/Preventive Action (CAPA) requirements. Buying the right system helps you track and manage any issues that may arise from the customer’s end as well as identify defective products, calculate the number of affected batches, and initiate the right corrective measures as per CAPA guidelines.
These systems also cover financial management and the right system will be able to account for the vast differences among states all the while ensuring compliance, stay in line with IRS guidelines, and keep you in the black. These are all highly complicated processes that require a keen mind for oversight and the right plant tracking system to execute.