The recent wave of cannabis legalization initiatives that hit jurisdictions across Europe and the Americas has had many investors excited about the ROI possibilities of this exciting new market.
But while product shortages and record sales indicate that there is a durable domestic market for cannabis products in countries like Canada and Uruguay (not to mention states like Colorado and Washington), building a smart cannabis business requires careful planning and forethought. Cannabis remains a controlled substance, and producers who want to cash in on this exciting market need to make sure they do so in a responsible and sustainable way.
In most cases, this means adopting bespoke tech solutions designed to help cultivators stay compliant with government regulations. If you are interested in entering the cannabis market but are leery about the red tape involved in producing legal cannabis, here are three ways new tech can help you grow your business in an efficient and economic way.
1. Seed-to-Sale Platforms Make Record Keeping Easy
The cornerstone of most cannabis regulation is the need to keep detailed records for every plant from seed to sale. If you want to take your grow to the next level you can get a custom designed digital platform that uses barcodes and wireless scanners to ensure that every graft and move is automatically entered into a central database.
With a seed-to-sale platform, you don’t need to worry about manually entering huge volumes of data, and you don’t run the risk of having human error endanger your business’s regulatory compliance.
2. Cannabis Software Helps You File Accurate, Timely Reports
In markets where cannabis products are regulated by the government, producers need to file regular reports on their activities to show that they remain compliant with the regulations. Preparing reports can be an immensely time consuming — not to mention stressful — process, and seed-to-sale tools are often designed specifically to help streamline reporting.
Given how particular cannabis regulations can be, many platforms are designed to work with a specific regulatory regime, so when deciding which platform to use, check to see whether it is compatible with the regulatory system you operate in.
3. Integrated Sales Solutions Makes Reaching the Market Easy
Of course, the end goal of any cannabis producer is to sell their product on to the market. Many seed-to-sale platforms have integrated sales tools that can help you connect with medical patients and with licensed dispensaries.
Having an integrated solution not only saves producers time, it also makes bookkeeping easier as all the information required for compliance with the regulations is available on a single platform.
In 2018, Canada became the second country worldwide, the first G7 nation, and the largest jurisdiction to legalize cannabis for recreational use. Many investors are watching Canada to see how legalization will play out in the short term, which means that this is the perfect time for investors and cultivators to enter the market where it is legal to do so.
If Canada’s decision triggers a worldwide wave of cannabis liberalization, it is the companies that start investing now that will benefit the most. With tools like seed-to-sale platforms making it easier than ever to enter the market, there are plenty of reasons to do so.