Business

As governments respond to the evolving coronavirus pandemic, the global cannabis industry is navigating a constantly changing landscape. Many businesses must adjust operations or update policies, typically on short notice, to comply with changing regulations. More often than not, these changes can be executed with the help of advanced technology solutions that cater specifically to the complex needs of a cannabis business. The legal cannabis industry is coming of age in the middle of a technology revolution. 

COVID-19 case numbers in the US are at record levels and many market commentators are talking about the potential for a second shutdown to control the outbreak. Although we do not expect to see the country shutdown like it did the first time, we expect to see some states take action (i.e. closing bars and limiting the amount of indoor dining) to try and curb the spread of the outbreak.

Carving your own path to success will take time. However, bootstrapping instead of raising capital from investors has massive advantages in today's cannabis marketplace.

One of the many ongoing dilemmas that young entrepreneurs with a new business face is acquiring the startup capital to make an impact in their respective industries.

Cannabis is no different.

Regardless of where you are on your hemp farming journey, financial planning is as important as your cultivation strategy. Launching a new business comes with a significant degree of risk: About 20% of startups with employees fail within their first year and 50% fail within 5 years, according to the Bureau of Labor Statistics, Business Employment Dynamics. The biggest risk factor? “Running out of money …,” according to Investopedia.

That’s the biggest single-month tally since recreational sales began in 2014

Cannabis sales in Colorado set a new monthly record in May, hitting their highest level since recreational sales began in 2014.

Dispensaries sold $192,175,937 worth of products in May, according to data from the Department of Revenue’s Marijuana Enforcement Division. That’s up about 29% from April and an increase of 32% from May 2019.

One cannabis storefront's executives reported that, at $100,000 a day, sales were only half of what they had been before the lockdown.

The gigantic Planet 13 dispensary in Las Vegas was conceived as a tourist destination as much as a store.

During the nearly two years of federal legalization in Canada, no single cannabis brand has earned more than 41 percent recognition among consumers.

The bill could limit these companies’ ability to use social media in the same ways

At this moment, the entire country is engaged in digesting the daily chaos of multiple crises. With everything that’s going on, it’s easy to miss some impactful changes. These changes could lead to difficult outcomes for those in the cannabis industry. In order to fully understand how to adapt, it’s important to understand the backstory.

Marijuana legalization in Idaho had to bear the brunt of the coronavirus pandemic. The lockdown forced the state to suspend its medical marijuana campaign. The group responsible for the campaign, the ICC (or the Idaho Cannabis Coalition), failed to collect the required signatures before the May 1 deadline. However, a recent federal court ruling for a separate initiative in the state might have sparked some hopes.

Since mid-March, Cannabis stocks have rebounded 79% from the record low set by the New Cannabis Ventures Global Cannabis Stock Index, yet they remain down 28% in 2020 and 83% since early 2018, days after California legalized cannabis for adult-use.