Medical Cannabis and Technology – A Phenomenal Business Combo
Cannabis is on its way to legalization in the entire US. Apart from 10 states which allow recreational use, 33 states including inhabited territories allow extended medical use as well. Moreover, 14 of rest of the states allow controlled medical use by limiting the percentage of THC content. Limitation varies as some states allow more percentage than others. In essence, medical cannabis business is growing with increased flexibility of state rules.
BDS Analytics and Arcview Group in a combined study estimate that the spending on cannabis will grow as high as $47.3 billion in the US by 2027. Consequently, the interest of investors is also growing rapidly.
Medical Cannabis Business Opportunities
Medical cannabis offers a wide range of opportunities for entrepreneurs. The advancement and commercialization of technology in the past two decades equip business owners to multiply profits. Following are some of the business ideas which can bring remarkable returns.
IoT Software for Cannabis Pharmacies
Although cannabis business returns significantly, yet it is a sensitive one considering the legalization issues. Nevertheless, you do not need to look elsewhere for another business model. The contemporary technologies ensure that cannabis is as safe as any other earning source.
The cultivators can attach NFC tags so that receiving party can retrieve all relevant information from the manufacturer. One of the most convenient ways of data retrieval from tag is to use a smartphone app. Once the smartphone camera tracks the chip, it displays all stored info on screen.
Moreover, medical cannabis business owners also use RFID tags and barcodes for verifying the product. This ability takes excessive significance in the cannabis industry owing to the increased surveillance from authorities.
Every pharmacy requires point of Sale software and associated hardware to keep track of transactions. The scope of such a system varies depending on the business objectives.
Info App to Guide Customers and Businesses
The laws regarding cannabis sale widely vary from state to state. Most variations occur in scope of cultivation, transportation, and extent of medical and recreational use. New companies, as well as customers, are unaware of legal challenges. By passing laws, whether intentionally or accidentally, may end up in termination of business and felony charges.
Therefore, the stakeholders try to stay up-to-date with political, administrative, and technological development in cannabis industry.
You can be the source of information for such individuals and groups. A purpose-built application can keep industry dealers with relevant pieces of information.
There are success stories from industry about organizations which serve as a bridge between customers and pharmacies. Leafly is a company which enables customers to find the most appropriate distributor based on ratings. Besides, some companies also serve as mid-men between distributors, manufacturers, and legislators. Weedmaps is successful in this domain.
B2B and B2C Cannabis Distribution
The success of logistics and rideshare apps like DHL and Uber respectively indicate the potential of on-demand transportation. You may choose one or both the distribution models mentioned below if you intend to start cannabis transport business.
B2B distribution is the model where your company serves as a channel between manufacturers and pharmacies. Thus, you are acquiring cannabis from one business party and supplying it to another. This model is similar to the wholesale dealing in clothing and confectionery industries.
The other choice is a B2C distribution. This on-demand logistics model ensures the home delivery of cannabis to end users. Eaze and GreenRush are companies which drive their revenues on this on-demand model.
Research with Data Analytics and AI
Companies need to find out the reason behind customer’s attraction toward their websites and mobile apps. This reasoning enables them to run predictive analytics for user modeling and hence, for business intelligence. Medical cannabis business can also be a telemedicine app which recommends appropriate medication.
GrowLife and Motorleaf use AI to control the production rate. This ability enables them to prevent excessive drug manufacturing. Moreover, they also allow cultivators to monitor environment where crops grow.
Big data for cannabis is also significant for researchers. Owing to the limited use of drug and lack of information about results of cannabis drugs, researchers are unable to determine effectiveness of various medications. Some companies are assisting researchers by providing clinical data. They collect data by surveying patients online and rewarding them in return. Global Cannabis (GCAC) uses this medical cannabis business plan.
Besides digital marketing, patients can benefit from AI too. PotBot app is an example. This app has sophisticated AI algorithms integrated to recommend the patients with appropriate amount of strain considering their health condition. Such a company does not only allow owners to earn massive profits through customer subscription. It enables them to acquire official sponsorship as well like PotBots which raised at least $5 million.
Broaden the Vision with AR
If you are cannabis cultivator, an augmented reality app can serve your business big time. An AR app for monitoring crops will be a decent solution if crop premises have cameras. However, the absence of cameras is still not a problem as one can utilize a smartphone camera. The app can share the information about current health of crops and corresponding suggestions to improve it.
You can also use this software as a resale product. Cultivators are always looking for devices and software systems which can alarm them as soon as leaves start developing a disease.
How to Start a Medical Cannabis Business
You may consider following points while planning for cannabis business:
- Cultivation and drug manufacturing businesses require going through a lengthy licensing process. Contact the cannabis regulatory body in your state to acquire a license.
- On-demand cannabis delivery is the easiest medical cannabis business model. You can collaborate with distributors and manufacturers for delivering the product to customers. However, partnership is not essential. You can take orders from customers and deliver the product after acquiring it from the nearest licensed dispensary.
- You do NOT need to be a subject matter expert to offer a business like GCAC. Your app developer should be sufficiently capable of incorporating such service in an app.
ODTap loves to be Your Technology Partner
You might have already picked the business model which can work for you. ODTap proudly carries years of experience in empowering startups. We have pre-built framework for on-demand services which can be rebranded as per your business requirements.
We love to build business relations and grow with ambitious entrepreneurs. Share your business model with us, and we will make sure that you become a prodigy in medical cannabis business.