While many people think of the cannabis industry as a new and emerging industry, its rapid growth is pushing the industry towards maturation. As new competitors emerge, cannabis executives face a tremendous amount of pressure to find ways to innovate and compete. Strict government regulations pose additional challenges as executives try to gain a competitive advantage.
Cannabis Business Times revealed the three biggest business-related challenges for cannabis cultivators in their “State of the Cannabis Cultivation Industry Report.” As leading experts in the cannabis industry, we offer ways to overcome these top business challenges to create a competitive advantage in the cannabis market.
Here are the top three challenges that cannabis cultivators face:
Competition takes the top spot with forty-four percent of executives saying this was one of their primary business challenges. This challenge comes as no surprise as the rapid growth of the industry means the rapid addition of new players. Basic economic principle dictates that more competitors mean lower prices for customers and lower profits for companies.
A hidden challenge with cannabis companies is their inhibited growth opportunities due to strict government restrictions. Unable to spread across multiple states, cannabis companies find their growth is stunted.
How can cannabis executives increase profits and create a competitive advantage when their growth is inhibited by regulations? Analytics and optimization.
Executives must get a 360-degree look at their business with analytics. Knowledge is power and it takes connected, consolidated, and contextual insights to capitalize on opportunities. Once these areas for improvement are clear, they can eliminate inefficiencies that are preventing them from creating a competitive advantage.
End-to-end organizational efficiency isn’t something specialty software alone can do. That is why cannabis leaders are investing in a fully integrated cannabis management solution built to streamline, automate, and connect their business.
Compliance with Local and/or State Regulations
When you are in one of the most regulated and monitored markets in the world, compliance is complicated, risky, and time-consuming. It is no shock that thirty-nine percent of executives listed it as a primary concern. It gets particularly difficult when companies are operating in multiple states, provinces, or countries.
A cannabis management system should help companies:
- Stay compliant with regulatory entity integration.
- Protect data with cloud security and disaster recovery.
- Eliminate human errors and delays.
Our team prioritizes automated compliance and leverages our development and integrations expertise to help you automate compliance and minimize risk in multiple ways. Make sure your solution vendor does the same.
Twenty-five percent of respondents listed financial management as a top business-related challenge. This topic refers to issues associated with banking and accounting, such as the Tax Code Section 280E.
Again, this is where software comes into play. Fully integrated systems offer robust GAAP-compliant financial management for multiple entities, with automatic intercompany transactions. When accounting is connected to the rest of the business’ operations, executives can accelerate their quote-to-cash and procure-to-pay processes, reduce monthly close times, expedite approvals, and track and manage costs across processes in real-time.
Get all the info
At MaxQ Cannabis, giving cannabis businesses a competitive edge is our specialty. With our team of cannabis industry experts backing you up, you can feel confident you are getting the maximum performance and value from your investment. We stay ahead of the latest technology trends and innovations so you can spend more time growing your business and less time running it.
Learn how to gain a competitive edge and position your business as a market leader by creating a scalable foundation and sustainable approach for the future of cannabis. For more information about how to overcome these challenges, download our ebook, The Cannabis Executive’s Guide to Competitive Edge.