How an ERP Can Help Your Cannabis Business Run More Smoothly
If you’re interested in starting a dispensary, you need an ERP system.
ERP companies have been around for as long as computer programs have been around. They’ve developed systems that allow businesses to grow, but many people are unaware of how they work.
There are several advantages of ERP systems when it comes to running a dispensary. Whether it’s financial management or market research, an ERP can do it all and essentially guarantees the success of a dispensary.
Read on to learn more about the advantages of ERP systems and how they benefit cannabis dispensaries.
What Is ERP and How Does It Work?
Enterprise Resource Planning (ERP) is a type of software designed for businesses to simply a variety of processes. If you consider how many things are required to run a business, it can be difficult to come up with an effective way to manage all of them. That’s where an ERP system comes into play.
ERP systems come with several features that allow you to manage inventory, accounting, human resources, and customer relations. The core of an ERP system is a shared database that can be used by employees from different divisions. This shared data makes doing tasks simpler because you won’t have to spend as much time acquiring data.
Challenges That Cannabis Businesses Face
All cannabis companies, whether a dispensary or accessory store, face a variety of challenges. The laws surrounding cannabis makes it much more difficult to run a cannabis business, so business owners need to prepare themselves before starting one.
There are four main obstacles that a dispensary will face:
There are many states where marijuana is legal, but the regulations vary depending on where you’re at. Although cannabis may be legal in a state, the local laws may call for different guidelines. Some regulations can be difficult to interpret, so you’ll need to work with someone that knows about the law.
Without a proper system to track everything involving the cannabis industry, you could risk facing fines and other penalties. The problem with the cannabis industry is that the laws are most likely to continue changing because the industry is new, so having a system will make it simpler to monitor everything.
Working in the cannabis industry is exciting because the industry is much newer than others. However, you need to have a variety of skills to properly work. When it comes to a dispensary, you’ll need to know how to grow, harvest, and handle cannabis, all of which can be challenging.
Those that work in a dispensary are known as “budtenders,” and they typically require specific training and certifications to legally work. Because of this, business owners can’t simply put up a sign that says they’re hiring. Whenever you do get employees, you’ll need a system in place that ensures they stay around.
Several regulations force cannabis companies to limit their options when it comes to working with a financial institution. For example, many dispensaries can only operate with cash. You need to have transparent documentation and financial reporting, which can be properly done with an ERP.
Marijuana is a highly controversial topic and is under constant scrutiny, so many dispensaries have a hard time keeping business. However, as marijuana is legalized recreationally in more states, dispensaries should have an easier time operating.
The Advantages of ERP Systems
Choosing the right ERP system will be an important part of the process because you’ll need something that can do everything you need. Most ERPs share a variety of features, but some are designed with dispensaries in mind. For example, you can look into something like Epicor Scheduling for a dispensary.
Here are some of the advantages of ERP systems:
An ERP can provide business owners with analytics that can capture and report data about the business. It will allow you to understand what your dispensary is good at and where you need to make changes. You can also study the market to determine what people are interested in and what will make the most money.
Meeting compliance is all about having a business that follows all of the guidelines put in place by the federal, state, and local governments. An ERP can monitor the regulations throughout different areas, so it would be easier to transition from one area into another should you decide to open another dispensary.
Most dispensaries cultivate cannabis and crop management is one of the best benefits of ERP systems. During the cultivation process, you can track the production, growth, and revenue of the cannabis. You can also monitor individual strains to see which ones work for your business.
Financial management is one of the main reasons why dispensaries invest in ERP systems. Several ERP finance features allow business owners to monitor the growth of their business and see where their money is going. You can keep track of transactions and see the value of your products, making it easier to file taxes.
Invest In ERP Today
The many advantages of ERP systems are why you should invest in one. An ERP system would allow you to better manage your dispensary, ensuring that you meet compliance. With the help of analytics, you can effectively grow your business.
We encourage you to invest in an ERP system if you’re interested in starting a dispensary. Because there are many regulations surrounding cannabis, you should have a system that lets you see everything without having to go out of your way to research.
Browse our articles if you’d like to learn more about dispensaries and how to start one.