CBD may be stepping up from the black market, but it faces new challenges as it begins to embrace the work involved in running a legal business. This is where it relies on the benefits and ease that they can get from technology.
Nick Kovacevich of Kush Bottles relayed in an interview how crucial data is in various industries, especially cbd oils. The plant goes through a cycle before it gets ready to be sold, and growers have to learn about the important software products they can use at each step they take.
The Roots of Confusion
They can only earn in the process when they gather data. Growers must learn to adapt to the so-called white-collar business practices to succeed in the venture. This is something new, and understandably, many of them find it intimidating.
To date, it is estimated that around 75 percent of legal cannabis suppliers come from the black market. While they are experts in planting and growing seeds, crop rotation, delivery, and profit margin, they lack knowledge on the other vital things to thrive in the industry. They include auditable paper trails, such as purchase orders, balance sheets, tax records, and other documents crucial in monitoring business supplies.
The problem lies in the lack of knowledge of these growers about what papers to accomplish and how. They may know CBD by heart, but they suddenly find themselves in the shadows once the substance is legalized.
This is strange and confusing to many of these growers. They used to conduct business in a straightforward manner – give the supplies to a local market whenever the stocks ran low. But this simple routine no longer works at the current setup. They have to deal with everything, including the assurance that the products are safely placed in medical-grade packaging.
Getting Help from the Cloud
According to Kovacevich, the business structure may seem complex to many CBD growers. This is where the software companies could help.
By entering the cannabis market, these technology-based companies can help CBD business owners to get their tasks fully automated and find their niches. Many companies have already stepped up to the plate to provide cloud services, compliance software, and traceability. Some of them include BioTrack, Metrc, MJ Freeway, and Greenbits.
However, it can sometimes be a tough sell to make many growers understand why they need to work on their accountancy and supply chain management. Many of them find the changes uncomfortable.
The industry has a long way to go, and growers need to learn about the ins and outs of the business to thrive and earn. For now, Kovacevich understands the complexity since going legitimate is expensive but something that they need to prepare for.
Growers are still required to pay profit taxes since Congress refused to remove cannabis’ Schedule 1 drug classification. Kovacevich is now working as a middle man for growers who are still in the dark and for technology-based companies to connect them.
His company provides consulting services to make growers understand the situation. He also helps them find suitable cloud and software providers to boost their businesses.