by Confia Development | May 25, 2022 | Blog
The United States cannabis industry needs a constant influx of product for retail sales and the production of concentrates and edibles. This demand is only expected to keep increasing as new laws are passed that allow more recreational consumers and medical patients to legally obtain and use cannabis.
With this in mind, it’s no wonder that an increasing number of Americans are looking to get into cannabis cultivation. Whether you’re a veteran of the industry or are only now dipping your toe in it, understanding the biggest challenges growers face is key to protecting your investment and ensuring a bountiful harvest.
In the following article, we’ll help cultivators take their operation to the next level by discussing four of the largest cannabis growth challenges and providing guidance on where to obtain essential cannabis commerce services for their businesses. Read on.
What are the biggest difficulties for cannabis cultivators?
According to the State of the Cannabis Cultivation Industry Report from Cannabis Business Times, the four largest challenges for cannabis cultivators in 2022 are declining prices and competition, prevention and control of disease and pests, ensuring desired cannabinoid and terpene levels are consistently met, and boosting overall yields.
Another common problem cultivators face that isn’t directly related to cultivation, but is nonetheless an important issue is the difficulty of navigating compliance laws and obtaining the financial services they need to run their business.
Here’s a quick breakdown of these challenges:
1. Insect, pest & disease
Nearly 1 in 3 cannabis growers cite pest, insect, and disease prevention and control as their biggest problem. What’s surprising about this is that over half of these cultivators (54%) are indoor growers.
This indicates that many indoor cultivators need to place a greater emphasis on establishing a safe and clean indoor cultivation environment. It’s in every grower’s best interest to carefully assess their operation and make the required adjustments and investments to address this issue as soon as possible.
2. Achieving target cannabinoid/terpene content
As the industry matures and consumers become more savvy about legal cannabis products, they develop increasingly specific preferences and expectations. Cultivators need to keep up with and even exceed these evolving needs in order to present products that stand out from the competition.
Learning how to consistently “hit the sweet spot” in terpene/cannabinoid content will likely require extensive research, experimentation, and strategic thinking on the part of the cultivator, but the ones who manage to do it will reap the benefits for years to come.
3. Ensuring greater yields
The global delays and shortages in the supply chain caused by the COVID-19 pandemic have impacted many industries, and cannabis cultivation is no exception. With crucial supplies such as perlite, coco, and peat becoming harder to come by, increasing yields without significantly boosting expenses has become a major challenge for growers.
The only way to alleviate this problem and ensure more favorable yields is to think out of the box, optimize existing processes, and adapt to the current situation as best as possible. Cultivators who are able to do this will not only enjoy greater yields in the short-term, but are also likely to increase their long-term Return on Investment (ROI).
4. Competition & declining prices
As the cannabis industry grows and the legal market becomes more open, prices are expected to decline even as competition grows. Cultivators will have to increasingly optimize their expenses and processes to ensure higher quality and yield, and learn how to ask the right questions and identify inputs that ensure the highest ROI.
5. Obtaining financial services
Despite the passing of the SAFE Commerce Act 2021, which enables financial institutions to take on cannabis business clients without fear of sanctions, many cannabis cultivators still find it difficult to get the financial services they require.
Luckily, there are now specialized financial institutions that help cannabis cultivators ensure legal compliance and obtain access to quick payment processing and affordable commerce services.
Who offers support with cannabis commerce services to cultivators & other operators?
Confia provides cannabis cultivators and other operators with effective financial solutions that include the complete range of advisory and commerce services. Whether you need assistance in navigating obstacles such as ensuring compliance for cannabis cultivation, setting up a secure and intuitive consumer payments system, or gaining access to funding, we’re the ones to call.
Reach out to us to learn more about our membership options and kickstart a partnership that will help you drive your business to success.
by Confia Development | Apr 28, 2022 | Blog
Cannabis operators have many important tasks to tackle, but staying compliant with the law is the one that can truly make or break your business. Companies in the cannabis sector are more harshly scrutinized than those in other fields. This is why you need to watch out for all the potential legal setbacks.
By keeping track of the latest changes in cannabis regulations, you can make sure you’re always on the right side of the law. This will allow you to do great business without hindrances, not to mention spare you hefty fines and other legal difficulties.
You already know that partnering with a reliable cannabis dispensary commerce service is one of the ways to maintain your legal status, but there are other considerations too. Read on to discover the newest trends in cannabis regulatory compliance.
What are the newest regulatory compliance trends to look out for?
Cannabis startups begin their journey with a stringent licensing process and the struggle to stay compliant with the law only gets tougher from there. The cannabis industry is undergoing tremendous growth as well as constant shifts. Being complacent when you should be alert to ever-changing rules can lead to bigger issues down the line. Operators who lose track of the new legislation can fall behind the competition and get in trouble with the law.
To run a successful company, you have to stay in the know when it comes to the latest developments and apply this knowledge to your everyday operations. Here are some of the industry’s current news and predictions for 2022.
More states are moving toward legalization
The tide is turning in favor of cannabis legalization in the United States. The latest surveys suggest that more than half of Americans support it. The push for legalization is taking the USA by storm and, in 2021, adult use of cannabis was made legal in New York, New Jersey, Virginia, New Mexico, and Connecticut. Other states may be about to follow suit. For example, medical use of cannabis is legal in Rhode Island, Oklahoma, and Delaware, and there’s a strong possibility of adult use being legalized this year.
The SAFE Commerce Act may usher in changes
While cannabis use hasn’t been legalized at the federal level, which will likely continue to create significant hurdles for operators, there may be big changes in sight. The SAFE Commerce Act could give operators better access to commerce services as well as reduce the high tax rates they’re currently subject to. There’s a likelihood of this bill being passed in 2022.
There are different policies in every state
Since states are autonomous when it comes to cannabis-related laws, each has its own set of regulatory and compliance standards. This creates an additional layer of difficulty for cannabis operators, particularly those that operate in multiple states. The National Cannabis Industry Association provides resources on state-specific policies so you can check the legislation in your particular location or determine what you need to branch out to another state.
Where can I find a compliant cannabis dispensary commerce service?
Since cannabis is still a federally illegal substance and banks are unwilling to offer their services to companies in the industry, maintaining legal compliance in financial matters is a constant challenge for operators. Confia helps entrepreneurs overcome these problems and stay on top of all the regulatory complexities of cannabis commerce services.
Rely on us to avoid the common hurdles cannabis operators encounter as well as increase your profit and drive growth. We’ll be your trustworthy ally, supporting you throughout your success story!
by Confia Development | Apr 11, 2022 | Blog
Leading entrepreneurs know that they can’t stand still even when business is booming. If you’re always on the lookout for new opportunities to branch out and expand your business, you can hope for longevity in the market. Because the cannabis industry is rapidly changing and growing, operators have to be ready to adapt and transform to new circumstances.
A forward-thinking mindset can push you to the top of the industry. From having a dependable cannabis dispensary commerce account to attracting top talent, read on to learn what tactics you can use to drive growth.
How to grow your business as a cannabis operator?
The goal of every entrepreneur is to boost profit and stay ahead of the competition. Even after you’ve set up a solid foundation for your business, there are always areas for improvement to watch out for. With an increasing number of ambitious go-getters joining the industry, thinking outside the box is more important than ever.
Here are some ways to increase your profit margin and do even better financially.
Cut down on operational expenses
While some costs are indispensable, operators often find that others can easily be reduced once they look into their expenditures more closely. Make sure you monitor your expenses and re-assess the need for each of them. By identifying the instances of overspending and finding strategies to reduce these inefficiencies, you may be able to save up a considerable amount and invest it more effectively.
Avoid running out of stock
If you run out of a product, you have to disappoint an eager customer who’s coming to you to purchase it. This could prompt them to jump ship and abandon you for good. Thankfully, these situations can be prevented altogether if you keep an eye on your inventory, identify sought-after products, and focus on them when restocking.
Diversify your products
To keep customers interested, provide products from different categories, including edibles, oils, and beverages, and release new product lines from time to time. It’s also advisable to offer a broader spectrum of price points, from affordable to high-end, so that you can cater to a broader range of customers.
Offer promotions and discounts
Everyone loves freebies and they’re an especially powerful tool for attracting and retaining customers. Gift cards, bundles, and discounts demonstrate your willingness to please your customers and can be a great incentive to encourage them to purchase more.
Build brand loyalty
A customer who trusts you is your best asset. Not only do they always come back for more but they’re also an excellent source of word-of-mouth recommendations. Show your customer base that you care about their satisfaction at every turn. From thoughtful in-store recommendations to promotional bundles, consider ways in which you can keep your customers happy.
Take advantage of all marketing opportunities
Creating a marketing campaign that showcases your brand in the best possible light is a crucial part of doing business in the cannabis industry. This includes taking full advantage of digital marketing and carefully curating your online presence. For example, interacting with customers on social media portrays you as an approachable, down-to-earth business that cares.
Use dependable commerce services
Cannabis operators still have limited access to financial services as banks refuse to work with them due to federal regulations regarding cannabis. However, specialized providers of financial services make it possible for these companies to stay compliant and keep their financial operations in order.
Confia helps cannabis dispensaries & other operators get a reliable commerce account
Growing as a company and garnering additional profits is only possible if you have access to streamlined financial services. Confia protects you from the common issues that plague the industry by offering targeted, affordable, and efficient solutions. Contact us to explore our membership options and enter a fruitful partnership that will move you to the forefront of the industry.
by Confia Development | Apr 1, 2022 | Blog
Since cannabis operators have to follow rigorous rules, juggle multiple legal frameworks, and handle the complex demands imposed on them, it’s unsurprising that many of them crack under pressure.
It helps if you have a few tricks up your sleeve when you’re starting your cannabis dispensary or another business. These include reliable commerce services, strict compliance procedures, and access to funding.
To make it in the cannabis industry, it’s vital for you to know what mistakes to watch out for. This way, you’ll find your way around the legal intricacies, gain a solid footing on the market, and create favorable conditions for your company to thrive.
What are the reasons new cannabis operators fail?
Many cannabis operators fail because they don’t consider one of the important aspects of running a business in such a highly regulated, competitive industry. Here are a few potential problems to keep in mind.
Ineffective leadership
Cannabis entrepreneurs often come from other industries, so they have experience with running a business, but they may not have a deep understanding of cannabis products. Others have a background in cannabis cultivation or sales but haven’t had a chance to run a business before. Managers need to integrate the knowledge of both fields so they can lead successful, well-rounded operations.
Disregarding compliance
Because cannabis is still considered illegal under federal law, operators face a multitude of unique regulatory obstacles. These rules are difficult to keep up with as they’re very susceptible to change. To complicate things further, banks also refuse to work with cannabis operators, denying them access to adequate commerce support. To avoid penalties like paying fines and having your license taken away, you’ll need to put maximum effort into staying compliant with the law. Reliable providers of financial services can assist with this.
Lack of staff training
Since cannabis is still a developing industry, entrepreneurs haven’t had time to develop structured procedures for onboarding and training their staff. This means many teams lack resources and support to do their job right. This can generally create issues in your daily operations as well as high employee turnover.
Failing to develop a good company culture
Cannabis operators can be so engrossed in compliance issues and other obstacles that they ignore the importance of creating a positive work environment. Your employees are the face of your company, and establishing a healthy atmosphere where they can thrive can’t be emphasized enough.
Not having a vision for the future
Planning for the future means preparing for the worst-case scenario while also being able to spot advantageous opportunities and growth potential. Even if business is booming right now, it’s your responsibility to think ahead and predict prospective developments. You can do this by keeping an eye on the market, attending industry events, and communicating with other entrepreneurs. The ability to spot future trends is what can set you apart from the competition.
Who offers support for my cannabis dispensary & other commerce services in the industry?
To dodge mistakes and succeed in the cannabis industry, you’ll need to work with a trusted provider of financial services. This is especially important for businesses that are just starting out. Confia brings you the ultimate solution to the uncertainties and intricacies of the industry. Our system merges reliability, financial expertise, and cutting-edge software to provide you with extensive support.
Gain access to comprehensive financial assistance and speed up the growth of your business and revenue with our help. Reach out to us today to choose the membership package you need and get the best chances for success.
by Confia Development | Feb 15, 2022 | Blog
From eye-catching marketing to establishing a relationship of trust with your clientele, a lot goes into running a successful dispensary. For example, having access to a dispensary commerce account is vital to streamlining your financial dealings and securing legal compliance. However, offering consumers high quality products probably tops all of the other requirements. Without this element in place, you’ll have trouble retaining customers and growing your business.
If you’re interested in where dispensaries obtain their products and how the supply chain works, read on. You’ll find out how to manage supply more effectively and boost your profit.
Where do dispensaries get their products?
Show-stopping products are the crux of every retail operation and selling cannabis is no different. Dispensaries generally acquire theirs in one of these two ways.
1. Cultivating their own plants
Some operators both run dispensaries and cultivate cannabis on their own. They only sell products manufactured from the plants they grow. This gives their offer an air of exclusivity, which can give them a competitive edge over other retailers.
These dispensaries typically cater to high-paying clients and the customer experience is above par. The products usually come in sophisticated packaging and the retail spaces are curated to reflect their unique brand image. While their goods come at a higher price, many consumers value having a one-of-a-kind brand experience. Cannabis connoisseurs also appreciate the chance to find out in-depth information about the product, such as its CBD percentage and cultivation process, which these dispensaries are able to provide.
Because they merge cultivation and retail, they’re perfect destinations for cannabis tourism. Visitors can learn more about growing the plant as well as sample and purchase it all in one location. This has proven to be a successful business model.
2. Buying products from cultivators
Since cultivation and retail require very different skills and resources, most cannabis operators focus on either one or the other. The majority of dispensaries actually purchase products from manufacturers. However, this option isn’t without its challenges. They have to select the right supplier in order to meet the needs of their consumers.
Dispensaries need to determine how a grower’s product fits in with their consumer base. They do this by keeping in touch with cultivators and manufacturers, exploring samples, having the product tested in a laboratory, and taking other steps. It’s also important to keep an eye on your consumers’ feedback and take it into account in the future.
While dispensaries that sell their own products are typically high-end, those that get them elsewhere can have varying pricing and product quality. These features often depend on the source of their products. For example, those sourced from organic farms tend to be pricier.
After a while, most dispensaries establish lasting connections with cultivators and producers and this mutual relationship facilitates operations on both ends of the supply chain. This can also give the dispensary access to multiple perks, like lower prices and a better insight into product details.
Where can you open a reliable dispensary commerce account?
Apart from knowing how to identify the best products, dispensaries also need to make their brand experience as streamlined and enjoyable as possible for the consumer. Maximize your customers’ satisfaction by giving them an easy and hassle-free way to purchase their favorite products. With Confia’s secure POS payments, you’ll be able to increase your sales and enjoy a financial boom.
We’ll offer you three versatile packages to choose from. Reach out to us to explore your membership options and make the right decision for your business. We’ll be your trusted ally on your way to the top!
by Confia Development | Feb 7, 2022 | Blog
Getting started in the cannabis industry takes courage and commitment as well as access to the right information. If you’ve been toying with the idea of venturing out into the field of cannabis, now is definitely the time as industry forecasts are very promising. There are plenty of advantageous opportunities for entrepreneurs to jump at.
No matter which direction you decide to go in, you’ll need adequate support, such as streamlined dispensary and other cannabis commerce services. Fortunately, there are now more and more possibilities when it comes to cannabis financial services, so you can find a reliable partner to maximize your operations.
To take a closer look at the different routes you could take in the cannabis industry, read on for a rundown of the paths you could explore.
What are the types of cannabis businesses?
While the lines may seem blurred to an industry novice, every cannabis operator has a clear role in the supply chain, which is reflected by each of their licenses. Firstly, there’s a broad distinction between two major categories of cannabis operators: plant-touching and ancillary. Here’s how they differ and what businesses fall under each category.
Plant-touching businesses
Plant-touching businesses handle the plant itself from its cultivation to its ultimate delivery to consumers. They also have to deal with multiple regulatory complexities and may have trouble finding funding and financial services. These operators are:
- Cultivators: These operators plant, grow, and harvest hemp plants, which are then either distributed to dispensaries to be sold raw or sent to manufacturers to be made into different products. They need to develop effective SOPs, strictly follow propagation schedules, implement stringent quality control, and take other measures for successful cannabis cultivation.
- Labs: They conduct testing and research to analyze the composition of hemp-based products. For example, they may test for the quantity of CBD and THC in a product. Also, they could evaluate the quality of a product to confirm that it’s safe for consumption. They need to adhere to strict protocols to get precise results.
- Manufacturers: Manufacturing facilities process hemp to create a wide range of products, including tinctures, topicals, edibles, vape pen cartridges, beverages, and more. This requires access to modern equipment as well as extensive knowledge of production processes and packaging guidelines.
- Distributors: Cannabis plants and products go through several checkpoints before they reach the consumer and this requires timely and streamlined transportation. Distributors cover this part of the supply chain by connecting cultivators, labs, and manufacturers.
- Dispensaries: These businesses sell the goods to consumers. They’re either run as stores or delivery services. They have to make sure that the consumer has a seamless customer experience as well as rigorously manage their inventories and stock up on top-quality cannabis products.
Ancillary businesses
Ancillary businesses provide services and products that help products reach the consumer in an indirect way. Some of these are:
- Packaging
- Legal advice
- Accounting
- Software
- Accessories, like stash boxes, bongs, and pipes
Because they don’t handle the hemp plant directly, they don’t face the same legal hurdles as plant-touching businesses.
Who provides cutting-edge dispensary commerce services?
Whether you go into cultivation, manufacturing, distribution, or retail, Confia offers a robust suite of financial services that cater to the specific needs of your business. Since plant-touching operators often have difficulty finding proper support, our comprehensive services can provide you with much needed relief.
Based on your requirements, you can choose between three targeted membership options. For example, if you run a dispensary, our POS payment system will help you make a favorable impression and allow your consumers to purchase products effortlessly. Enhance the efficiency of your business operations by contacting us today!
