Member Blog: Unleashing the Green Revolution – Empowering Cash Management in the Cannabis Industry with Automated Bliss

For most cannabis business owners, the abundance of cash poses a never-ending cash management challenge. Owners, staff and financial teams must navigate the complexities of managing and securing large cash volumes with limited access to banking relationships due to the federally illegal status of cannabis. Most dispensaries resort to manual cash handling and counting, however, every time cash is counted manually – typically around six times a day – dispensaries face the risk of miscounts, theft and security threats as well as challenges in tracking volumes, reporting changes and supporting audits.

Handling cash manually is inefficient and unsustainable for new and established dispensaries. Forward-thinking cannabis retailers are turning to automation solutions that transform the collection, counting and reconciliation of cash volumes in a retail setting. Cash automation offers a solid, systemic alternative to the typical cash handling processes.

One medical dispensary in D.C. incorporated cash automation to help with the time-consuming manual counts and to improve productivity. This dispensary, the largest and oldest in Washington, D.C., accounts for 54% of the cannabis sales in the city and accepts multiple payment methods. Cash comprises 40% of sales and is a major pain point for the dispensary’s managers and associates.

Since implementing cash automation solutions last year, the dispensary has improved count accuracy, reduced discrepancies and saved time for its staff, who now can service the 400 – 900 patients who visit each day instead of counting cash for hours on end. Additionally, automation has been a game changer for the dispensary’s accounting team. The finance team can view the exact volume of cash on hand remotely and in-store, informing important business decisions for cash planning, including leveraging available cash on hand for product and services payments and optimizing change order and deposit schedules to reduce armored security and bank costs. Real-time reporting and visibility empower the finance teams to manage cash operations with confidence.

Other benefits include:

User-friendly dashboard with cash flow visibility integrated with accounting software.
Notifications on urgent needs, including hardware performance issues, deposit capacity and placing change orders.
Easy, mobile access to cash balances and transaction history across multiple locations.
Customizable reporting capabilities for auditing, vendor-specific transactions and overall analysis of every transaction by user/payee, amount and date.
Security measures to ensure efficient cash counting, balancing to POS and securing cash with high-speed recyclers.

With automation capabilities, cannabis businesses can focus on operational efficiencies, bolster inventory management and systemically ensuring process compliance instead of the time-consuming counts that typically overwhelm employees. As the cannabis industry continues to evolve and expand in 2023 and beyond, embracing cash automation allows dispensaries to thrive while reducing costs and labor and maintaining control over their cash ecosystem.

Member Blog: 6 Key Strategies to Succeed in Cannabis Retail

The cannabis industry has seen significant growth in North America since the legalization of recreational cannabis in Canada in 2017. Currently, medical cannabis is legal in 37 US states, while 21 states allow its recreational use. As the cannabis retail industry matures, there are opportunities galore for entrepreneurs, but not every cannabis business will thrive. Opening a dispensary can be a profitable venture, but many businesses also fail because they don’t necessarily follow the secrets to success outlined in Cova’s whitepaper on why some cannabis retailers fail. To grow and flourish in this highly competitive industry, one must follow the following six key strategies used by successful cannabis retailers.

Use Cannabis Retail Data

Successful cannabis retailers leverage data analytics to inform their business decisions. They track inventory metrics such as top-selling categories and products, profit per product, inventory aging, inventory turnover, and shrinkage. These metrics help them buy and stock the right merchandise mix, optimize operations, and reduce capital locked in cannabis inventory.

With AI-powered data analytics, cannabis retailers can collate customer data, including product preferences, eCommerce search history, shopping patterns, and spending habits, and design more successful marketing and engagement strategies to increase sales.

Maintain Strong Relationships

Building good relationships with the community and customers is extremely crucial for success. This includes educating the community about safeguards in place at your dispensary and steps taken to keep cannabis out of children’s hands. Your budtenders must listen to customers and communicate effectively to elevate the customer experience and build brand loyalty.

Employee loyalty is equally important, and they must be treated well. Employee retention promotes deeper product knowledge and stronger customer relationships. Profit-sharing plans at your dispensary can also create a sense of ownership, which encourages everyone to invest more heart and soul into the business.

Manage Finances Efficiently

Effective financial management is essential for the success of any cannabis retail business. This includes budgeting for unexpected circumstances and avoiding common pitfalls, such as failing to research market conditions or regulatory changes. Successful retailers anticipate market conditions and adapt strategically to any industry changes rather than following others or discounting products heavily.

Modern technology can help you make wise business and financial decisions. You can monitor your costs, sales, and profit trends at a glance with the best dispensary management software. If you need a complete financial outlook, you can integrate your cannabis POS with a financial tool such as QuickBooks online or an ERP system.

Optimize Dispensary Operations

Operational efficiency is critical in the cannabis retail industry. Successful retailers invest in advanced technology to simplify operational processes, maintain compliance with regulations, and avoid common failures, such as internet outages, power interruptions, and system crashes.

A POS system with offline mode can prevent sales from stopping when the internet is down and sync inventory information when it comes back online. Automation in seed-to-sale tracking eliminates human error and catches compliance problems that can lead to license forfeiture. Invest in sophisticated technology to coordinate order fulfillment and inventory while maintaining a consistent customer experience across all your sales channels.

Curate Great Customer Experiences

Providing excellent customer experiences is vital to the success of cannabis retail businesses. Successful retailers educate their customers about the products and listen to their needs. They also ensure the safety of customers, especially in high-crime areas, by implementing appropriate security measures.

As consumer behavior evolves, dispensaries are increasingly providing their customers the convenience of buying cannabis online. Also, offering cashless dispensary payments will increase your overall revenue and profits, as most consumers have become used to contactless payments and don’t necessarily carry cash on them these days.

Have a Strong Brand Vision

Having a clear business plan and brand vision is essential for the success of your cannabis retail business. This includes avoiding common pitfalls and adapting to industry or regulatory changes. Successful retailers navigate market fluctuations and master dispensary operations to achieve their goals and support their local community.

In conclusion, the cannabis retail industry offers significant opportunities for entrepreneurs willing to navigate the challenges and risks of strict regulations and compliance requirements. Download Cova’s e-book, “Why Some Cannabis Retailers Fail and The Secrets of Those Who Succeed”, to learn more about applying the principles and best retail practices to grow your dispensary business.

Gary Cohen is the CEO of Cova, the most trusted cannabis POS brand in North America. Having met with nearly 2000 dispensary operators from coast to coast, he leverages expert knowledge to offer cannabis retailers the support they need to get a license, pass inspection, launch a store, assess tech tools, and scale operations. Gary leads seminars on retail technology, compliance, business operations, and cannabis banking laws at the industry’s largest events including NCIA, CannaCon, and MJBizCon.

Member Blog: How to Prepare a Winning Dispensary License Application

by Gary Cohen, Cova Software

The cannabis industry has come a long way in the U.S. Although we still await federal legalization, many new states have recently jumped on the bandwagon, and legacy states are awarding more social equity licenses. While New Jersey and Mississippi will be opening their first dispensaries by the end of 2022, New York has started accepting applications for CAURD licenses from justice-involved individuals. But scoring high points on your dispensary license application can be challenging, especially with all the stringent requirements. Here are some quick tips to help you stand out and prepare a winning dispensary license application.

Follow your State Cannabis Authority’s Guidelines

Every state in the US has different guidelines and regulations for a cannabis dispensary license. Do a thorough review of all the information available on your state cannabis authority’s website, and keep a look out for when they will start accepting applications. Most states accept only electronic applications, and you will likely have to create an account online on a designated website and link your company’s official information. For an application to be deemed complete, a response to each criterion specified must be included, along with the required documents.

Ensure You Qualify and Apply for the Right Category

To be eligible to submit a cannabis dispensary license application, you must reside in the state where you are applying or must be registered to do business in that state. Many states are awarding conditional cannabis business licenses to social equity applicants first or prioritizing applicants impacted by the war on drugs to build an equitable cannabis industry. If you qualify for any of these categories, ensure that you apply for the right one to expedite the processing of your dispensary license application.

Connect with the Community Where you Plan to Operate

Some states require your dispensary to be located in the municipality you live in, and you will be awarded a license only for a particular zone. Community reach and impact are also criteria laid down by some cannabis authorities, and you must establish connections with not just local and state officials but also other people who can help you understand the bigger picture better. For example, New Jersey and New York want you to explain the positive community impact your dispensary business will have. If you don’t connect with the community, you won’t be able to align your vision with their needs in your dispensary license application.

Fortify Application with a Business Operations & Security Plan

After familiarizing yourself with the license requirements and structure, you must dive into how you can prepare the best possible application to score higher points on every measure. For example, to obtain a conditional dispensary license in New Jersey, 40 out of 100 points are for your dispensary business plan, and another 50 points are for a regulatory compliance plan. One of the most crucial aspects of this is a dispensary operations plan that you must include in your application. This plan helps authorities understand how your dispensary business will comply with all cannabis laws and regulations and ensure safe access to cannabis for your customers.

Compliance is the Name of the Game

The detailed plans included in your cannabis dispensary license application must also mention the technology provider you intend to partner with, and choosing a compliant cannabis retail platform will help you fortify your application further. Prepare a winning dispensary license application by downloading Cova Software’s free template, Dispensary Operations and Security Plan, which will serve as a comprehensive guide to writing a winning plan for a successful cannabis retailer license application.

Gary Cohen is the CEO of Cova Software, the fastest growing technology brand in the cannabis industry. Cohen’s focus has been driving the company’s overall strategy, including its vision, go-to-market plan, and strategic development. Since joining the cannabis industry in 2016 and launching Cova commercially in 4q17, Cohen has led Cova to dominate the enterprise sector for dispensary Point of Sale, while forging client relationships with hundreds of single-store retailers across North America.

With Cova’s cannabis POS and its excellent integrations with eCommerce and delivery services, the online order automatically pops up for the budtender to tender the sales, and the POS system updates inventory once payment is approved. Cova offers multiple eCommerce solutions to choose from, as per your needs and budget, and you can legally sell cannabis online stress-free while staying compliant with strict government regulations.

Service Solutions | 7.13.22 | Scarcity Shouldn’t be Scary – How to Fund Your Growth

NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.

In this edition originally aired on Wednesday, July 13, 2022 we were joined by e2b Teknologies whose team of leading integration & technology experts discussed some easy steps to prepare your business for funding and accelerated growth. As you all know, competition was stiff for funding prior to 2022 but with the current economy and rising interest rates, capital is much harder to acquire today. You should be taking steps get noticed and get the MONEY you need to grow your business now.

Presentation Slide Deck: [View Here]

After viewing you’ll walk away with a better understanding of:

• How to leverage a team properly
• What’s most important – It may not be what you think.
• What’s necessary in terms of reporting, compliance, and record-keeping
• Evaluating potential technology partners

Sit back and settle in for an informative and timely program outlining the challenges facing operators and how you can position yourself for success with the right tools to help succeed at scale.

Panelists:

Joshua Gilstrap
Marketing Manager
e2b Teknologies

Mary Jo Mahood
Practice Manager
e2b Teknologies

Lynne Henslee
President
e2b Teknologies

Tyler Evinsky
Sales Manager
e2b Teknologies

Sponsored By:

Want to know more about the products and services offered by e2b Teknologies? Head to https://thecannasuite.com/ to learn more today!

Member Blog: Key Metrics to Track & Mistakes to Avoid for Cannabis Retail Success in 2022

by Gary Cohen, Cova Software

Despite the pandemic, the cannabis industry has proven to be recession-proof and has grown exponentially over the past few years. Cannabis retail sales in the US are projected to top $30 billion in 2022, and as more states jump onto the legal bandwagon, competition will intensify. As such, dispensary owners must ensure that they are using data and analytics strategically to measure the health of their business. Many cannabis retailers fail because they don’t track crucial dispensary metrics or make avoidable mistakes.

Cannabis dispensary metrics are the data points that you must track regularly to help in better decision-making. Business intelligence reports generated via these metrics help you monitor your daily dispensary operations and create projections for future sales and required inventory. A robust cannabis POS system with advanced analytics and reporting capabilities collects information from various sources and unifies them into a single repository so that you can extract maximum insights for the growth of your retail business. By tracking some of the following important metrics, you can implement strategies to increase dispensary profits, enhance employee productivity, forecast inventory, and elevate the customer experience.

Cannabis Sales & Profits Metrics

Number of Products Sold per Transaction
Average Sales Value
Total Sales for a Period

By tracking the average basket size and transaction value, you can evaluate your customer buying habits and ideal price points and create your marketing and promotional campaigns or upsell opportunities accordingly. Implementing strategies will help you increase these metrics, manage inventory and employees efficiently during your busiest sales periods, and thus, grow your dispensary profits.

Staff Productivity & Dispensary Traffic

Individual Budtender Sales
Busiest Sales Days/Hours
Discounts and Refunds

Tracking individual budtender sales on your POS system will help you determine your top performers and aid in staff scheduling. Those employees who have higher sales per transaction must be scheduled during your busier hours of the day, and those who may not be performing can be offered training on strategies like deals, upsells, cross-sells, and bundles. Also, potential fraud can be identified by tracking discounts or refunds offered by employees.

Target Market & Customer Retention

Customer Demographics
New vs Returning Customers
Customer Lifetime Value

Segmenting your target market helps design a more customized experience based on age, location, values, buying behavior, etc. By tracking each customer’s average number of transactions over a period of time, you can determine their lifetime value and better tailor your dispensary’s promotions and upselling strategies through targeted marketing campaigns. These metrics help curate an enhanced shopping experience and increase customer retention.

Inventory & Product Performance

Inventory Turnover
Shrinkage
Top-selling Product Categories

Inventory turnover measures the number of times you sold through your entire inventory in a given period and allows you to determine how much of your cash flow is tied up in inventory. Shrinkage is the difference between the inventory you have on paper and the actual inventory in stock and helps you identify theft. Also, tracking your top-selling and lowest-performing products or categories can help in crafting strategic promotions and better inventory planning decisions.

Keep up With Changing Times

Successful cannabis retailers track top-selling products, profit per product, and all other metrics highlighted above, and use this data to make business decisions. If you have a robust and flexible cannabis retail platform that offers you these detailed data insights and can scale and adapt when needed, your dispensary will always stay ahead of the curve.

Learn in detail about all the mistakes to avoid and secrets to succeed in the cannabis retail industry by downloading Cova Software’s e-book, “Why Some Cannabis Retailers Fail”, which presents cautionary tales of what not to do if you want to thrive in the dispensary business.