What the Pandemic Means for the Future of the Cannabis Industry

Make no bones about it, Covid flipped the world we all knew upside down. Your cannabis business likely saw a huge uptick in demand, which came with a slew of growth-related changes. From new business procedures, protocol, and more, you’re curious what long-lasting repercussions your business will face from the pandemic.

If you saw exponential growth, you’re not alone. Many in the industry are facing challenges ranging from:

  • Keeping a closer eye on expenses
  • Learning how to navigate running a business with tons of added precautions
  • Adjusting to procedures and protocol to keep your employees and customers safe
  • And more

In this guide, I’m discussing what you need to know about how your business may continue to be affected, what you can do to continue to see growth, and how outsourcing for accounting services can be a game-changer in your cannabusiness. 

Do You Have A Crisis Management Plan? 

Although many states deem cannabis businesses essential, federal law still sees cannabis as a schedule I narcotic and considers it illegal. Because of this, cannaprenuers weren’t granted federal funding from the Coronavirus Aid, Relief, and Economic Security (CARES) act or the Paycheck Protection Program (PPP). 

Prior to the businesses being deemed essential, a COVID shutdown put many dispensaries at risk of closure. And there are several large lessons in this, so take a few minutes to ask yourself a few questions:

  • Do you have procedures in place for emergencies in the future? 
  • Have you looked at your budget? 
  • What guidance do you have when it comes time to make important decisions about your business? 

If you haven’t already, start preparing for future emergencies and adjusting to what the industry looks like, the time is now. 

The New “Normal” of Your Marketing Strategy 

The reality is, no matter your industry, there is no returning to “normal” anytime soon, which could be an excellent opportunity for cannabis businesses, big and small. 

Now more than ever, consumers want to shop small and local. How can you use this local focus to connect with your community, streamline your processes, and find growth opportunities? There are many ways you can network with your potential customers and your community, including: 

  • Social groups
  • Chambers
  • Coworking spaces
  • Hosting online events 

The key to a successful marketing strategy is showing up and staying consistent. But you’re already busy enough trying to run your business…if you add in taking time to market your business, and handle your finances…let’s just say it’s a lot to take care of. 

Automating bookkeeping with a cannabis accounting expert can help keep your business on track and help you build a stronger marketing plan and strategy. After all, marketing your business takes time and money. Your accountant can go over budgeting and cash handling issues to help you figure out what you can spend building your marketing strategy — like increasing your digital and e-commerce marketing —  and enhancing customer experiences. 

Post-Pandemic Cash Management 

Cannabis businesses need to monitor expenses now more than ever.  

Compliance with COVID regulations is enough to keep any business owner overwhelmed with work, but it’s important not to lose sight of your financial responsibilities. 

Without proper guidance, it’s easy to:

  • Have improper cash management procedures 
  • Lose profits by not maximizing Cost of Goods sold expenses 
  • Fail to have proper inventory management procedures
  • Lose sight of state and federal tax obligations
  • Risk financial fraud or theft — automated accounting systems and hiring a cannabis accountant can help minimize the risk of fraud occurring 

Add in the changes that come with social distancing guidelines, and now cannabis businesses have to consider curbside pickup, online ordering, and contactless payments. 

Unfortunately, access to capital has become increasingly difficult for entrepreneurs in the cannabis industry, due to the fact that the federal government considers it a schedule I narcotic.  For this reason, many banks will not work with cannabis businesses. But there is hope for the future. 

SAFE Banking Act

With the SAFE Banking Act increasingly likely to pass in 2021, cannapreneurs remain hopeful. If the act passes, it will provide a “safe place” for financial institutions to provide services to cannabis businesses.

Although there is no guarantee that the act will pass, it’s a step in the right direction towards policy reform.  

Until the SAFE Act is put into place, many in the cannabis industry are feeling stuck. Running a business in all cash is next to impossible, especially if you’re experiencing growth. 

Unsure of where to go from here or what future changes mean for your company? Bookkeepers offering accounting services to cannabis businesses are knowledgeable about policy changes, relief packages, and more. 

New Standards for Retail Sanitation and Safety

New policies and procedures are in place for every business because of the pandemic. Professionals working in the cannabis industry are no strangers to following rules and regulations that are constantly evolving. 

Now, the importance of adhering to CDC guidelines is intensified. Your crops are at risk if a worker tests positive to COVID, consumers’ ways of shopping have changed, and business owners have to keep both their workers and their customers safe. 

What’s this mean for businesses?

To start with, here are two key takeaways: 

  • Adapt to alternative ways of shoppingcan you start a delivery or drive-thru system? Contactless pay? An e-commerce website? Consider speaking with your accountant to see how this will affect your business budget. 
  • Keep up with supply inventory — sanitation efforts have intensified across the board. Access to masks, gloves, sanitizers, and more may be increasingly difficult to come by. 

How are you planning to stay on top of the ever-changing policies and procedures that are affecting your business because of the pandemic? Are you prepared financially to overcome the changes to the industry? 

Our Accounting Services: Choosing an Expert in The Cannabis Industry Matters

According to an interview by Forbes, the cannabis industry is expected to grow substantially in 2021, upwards of 24 billion dollars. 

Are you ready to scale your business, adjust to the changes being made to the cannabis industry’s layout, and change lives amid a crisis? Connect with a cannabis accountant to learn how outsourcing your bookkeeping and accounting services can help your business grow — while saving you money and time — in the upcoming years. Book a free call with us to learn more.

Make no bones about it, Covid flipped the world we all knew upside down. Your cannabis business likely saw a huge uptick in demand, which came with a slew of growth-related changes. From new business procedures, protocol, and more, you’re curious what long-lasting repercussions your business will face from the pandemic.

If you saw exponential growth, you’re not alone. Many in the industry are facing challenges ranging from:

  • Keeping a closer eye on expenses
  • Learning how to navigate running a business with tons of added precautions
  • Adjusting to procedures and protocol to keep your employees and customers safe
  • And more

In this guide, I’m discussing what you need to know about how your business may continue to be affected, what you can do to continue to see growth, and how outsourcing for accounting services can be a game-changer in your business. 

Do You Have A Crisis Management Plan? 

Although many states deem cannabis businesses essential, federal law still sees cannabis as a schedule I narcotic and considers it illegal. Because of this, cannaprenuers weren’t granted federal funding from the Coronavirus Aid, Relief, and Economic Security (CARES) act or the Paycheck Protection Program (PPP). 

Prior to the businesses being deemed as essential, a COVID shut down put many  dispensaries at risk for closure. And there are several large lessons in this:

  • Do you have procedures in place for emergencies in the future? 
  • Have you looked at your budget? 
  • What guidance do you have when it comes time to make important decisions about your business? 

If you haven’t already, start preparing for future emergencies and adjusting to what the industry looks like, the time is now. 

Update Your Marketing Strategy 

The reality is, no matter what your industry, there is no returning to “normal.” And this could be an excellent opportunity for cannabis businesses, big and small. 

Now more than ever, consumers want to shop small and local. How can you connect with your community, streamline your processes, and find growth opportunities? There are many ways you can network with your potential customers and your community, including: 

  • Social groups
  • Chambers
  • Coworking spaces
  • Hosting online events 

The key to a successful marketing strategy is showing up and staying consistent. But you’re already busy enough trying to run your business, add in taking time to market your business, and handle your finances? It’s a lot to take care of. 

Automating bookkeeping with a cannabis accounting expert can help keep your business on track. 

Marketing your business takes time and money. Your accountant can go over budgeting and cash handling issues to help you figure out what you can spend building your marketing strategy — like increasing your digital and e-commerce marketing —  and enhancing customer experiences. 

Cash Management 

Cannabis businesses need to monitor expenses now more than ever.  

Compliance with COVID regulations is enough to keep any business owner overwhelmed with work, but it’s important not to lose sight of your financial responsibilities. 

Without proper guidance, it’s easy to:

  • Have improper cash management procedures 
  • Lose profits by not maximizing Cost of Goods sold expenses 
  • Fail to have proper inventory management procedures
  • Lose sight of state and federal tax obligations
  • Risk financial fraud or theft — automated accounting systems and hiring a cannabis accountant can help minimize the risk of fraud occurring 

Add in the changes that come with social distancing guidelines, and now cannabis businesses have to consider curbside pickup, online ordering, and contactless payments. 

Unfortunately, access to capital has become increasingly difficult for entrepreneurs in the cannabis industry, due to the fact that the federal government considers it a schedule I narcotic.  For this reason, many banks will not work with cannabis businesses. But there is hope for the future. 

SAFE Banking Act

With the chances of the SAFE Banking Act passing in 2021, cannapreneurs remain hopeful. If the act passes, it will provide a “safe place” for financial institutions to provide services to cannabis businesses.

Although there is no guarantee that the act will pass, it’s a step in the right direction towards policy reform.  

Until the SAFE Act is put into place, many in the cannabis industry are feeling stuck. Running a business in all cash is next to impossible, especially if you’re experiencing growth. 

Unsure of where to go from here or what future changes mean for your company? Bookkeepers offering accounting services to cannabis businesses are knowledgeable about policy changes, relief packages, and more. 

Sanitation and Safety

New policies and procedures are in place for every business because of the pandemic. Professionals working in the cannabis industry are no strangers to following rules and regulations that are constantly evolving. 

Now, the importance of adhering to CDC guidelines is intensified. Your crops are at risk if a worker tests positive to COVID, consumers’ ways of shopping have changed, and business owners have to keep both their workers and their customers safe. 

What’s this mean for businesses?

To start with, here are two key takeaways: 

  • Adapt to alternative ways of shoppingcan you start a delivery or drive-thru system? Contactless pay? An e-commerce website? Consider speaking with your accountant to see how this will affect your business budget. 
  • Keep up with supply inventory — sanitation efforts have intensified across the board. Access to masks, gloves, sanitizers, and more may be increasingly difficult to come by. 

How are you planning to stay on top of the ever-changing policies and procedures that are affecting your business because of the pandemic? Are you prepared financially to overcome the changes to the industry? 

Our Accounting Services: Choosing an Expert in The Cannabis Industry Matters

According to an interview by Forbes, the cannabis industry is expected to grow substantially in 2021, upwards of 24 billion dollars. 

Are you ready to scale your business, adjust to the changes being made to the cannabis industry’s layout, and change lives amid a crisis? Connect with a cannabis accountant to learn how outsourcing your bookkeeping and accounting services can help your business grow — while saving you money and time — in the upcoming years. Book a free call with us to learn more.