Beginning in October, Hawaii’s medical marijuana industry will be moving from a cash-only system to one that accepts a relatively new type of debit system. The state will be using a payment program known as CanPay that was created in an effort to fill a gap in the cannabis industry that major banks, Visa, MasterCard, Apple, and Google all left behind. Due to federal regulations these companies understandably have been extremely cautious about offering their services to the industry.
While the move for Hawaii would not be implemented without obvious benefits to both the consumer and the companies who operate within its system, it’s not an ideal payment system for everyone. While the exact ramifications may not be obvious until after the program’s roll-out, the known pros and cons have already been weighed and Hawaii is officially moving forward with its implementation. Here we’ll explore the pros and cons of using this type of system.
As marijuana laws across the country continue to change, particularly for recreational use, the prices will inevitably decline, some states have already seen prices decreases by as much as 90%. It’s not a matter of if, it’s a matter of when. Smart business operators must prepare for this reality. To be sure the market has tremendous potential for growth, but you need to know how to position your business properly to take advantage of it. Here are some steps you can take to setup your business for the long term:
While President Donald Trump has declared a national emergency over the opioid epidemic clutching the United States, there are glimmers of hope to aid its reversal. The Chicago Tribune has reported that a 2014 study published in JAMA indicates that amongst the states that have instituted medical marijuana laws, there is a 25 percent reduction in opioid overdose rates as compared to the states that have no such laws.
Uruguay will soon be opening its first adult-use cannabis dispensaries for its citizens. The opening of cannabis-specific dispensaries marks a shift from the original legal cannabis regulations in the country that only permitted sales through registered pharmacies. The Panam Post reports that the reason for this shift is that shortly after launching the program local banks received notices from U.S. banks saying that they would refuse to work with banks in Uruguay that provide services to pharmacies that distribute a Schedule 1 substance, i.e. cannabis. Lawmakers in Uruguay took action to solve the issue by creating the legal framework to allow cannabis dispensaries. The only caveat is that these dispensaries can not utilize the banking system and are therefore cash-only, similar to U.S. markets.
With the growth of the cannabis industry, it is important to your business to use many of the same techniques and analytics used by other major agricultural industries to maximize efficiency and profit. That is why it is vital that you collect an extensive array of data points each day to optimize your business. The data that you collect will help you to keep on top of the market trends, efficiency for your business and employees, improve the quality of your plants and determine your financial performance.
Branding is an important aspect of any business. Effective branding establishes a harmonious visual experience that engages customers and portrays the story of your business. Consistent and engaging branding can create loyal customers and drive brand equity. From a business standpoint, branding is a vehicle for helping your customers understand your product and what sets it apart from the competition.
But for the emerging legal cannabis industry, professional branding may also play a critical role in influencing public perception about the product itself. As the industry expands out of the illegal market, branding has the potential to elevate industry standards, foster credibility among the public, and influence the way society perceives marijuana.
In conventional and hydroponic agriculture chemical fertilizers are used to provide the basic elements necessary for plant growth; Nitrogen, Phosphorus, and Potassium (NPK). While NPK fertilizers have proven effective in growing plants there is more to optimal plant health than NPK. Over many thousands of years plants have developed intricate relationships with soil microorganisms to provide necessary elements and adequate water for healthy plant growth.
Following the approval of Proposition 64 last November, legalizing the adult use of marijuana, lawmakers in California have approved a regulatory foundation for the cannabis industry. The statewide regulatory framework, known as the Medical and Adult Use Cannabis Regulation and Safety Act (MAUCRSA), establishes 20 license types available for cultivation, manufacture, distribution, and transportation.
The state will begin issuing licenses for cannabis businesses in 2018 and, while there are still some unknowns, we recommend that business owners become familiar with the license types and associated regulations as they take shape.
The growth of marijuana startups since legalization has skyrocketed, but with this, so has the business costs. Due to the federal government still classifying marijuana as a schedule 1 substance, businesses are affected by tax code 280E. Tax Code 280E prohibits businesses from deducting expenses in which their primary service is “trafficking controlled substances,” federally this includes marijuana businesses. Here is how and what can be done to lessen the burden.
The world market for marijuana is growing at a record pace. As new countries legalize marijuana for medicinal and recreational use some countries are looking to foreign suppliers for their marijuana. Countries currently importing marijuana include Germany, New Zealand, Australia, Chile, Brazil and Croatia. It is estimated that the worldwide cannabis market will be worth upwards of $200 Billion once mature. Point being there are and will continue to be many opportunities for cannabis businesses to expand internationally in the coming decade.