Firm Management
October 2018 Firm Management Channel
Oct. 15, 2018
Why Accounting Firms Should Niche in the Medical Cannabis Industry
By Richard Roppa
In case you haven’t noticed yet, the medical marijuana industry is growing fast. No matter your position on the medical and recreational use of marijuana stands, you should be paying attention to the explosive growth and needs of this industry because… the times they are a changin’.
All medical marijuana growers and dispensaries have very specific accounting requirements and are need of qualified Accountants and Bookkeepers to help them stay compliant as well as stay on top of their cash flow, inventory management, and Point-of-Sale just to name a few areas of operations.
As of August 2018, there are 31 legal medical marijuana states in the United States plus the territories of Guam, Puerto Rico, and the District of Columbia. Now, that’s over half of the amount of states in the US that have loosened previously tight regulations over this medicinal plant. There are 9 states where marijuana is legal for recreational use.
What exactly does this mean to Accountants and Bookkeepers?
- There’s a very strong and growing niche that has formed before our eyes.
- There are “riches in the niches”, as they say, and with “more dispensaries in Colorado than Starbucks, McDonald’s, and 7-Eleven’s combined”, it’s safe to say that there is no lack of clientele here.
- There’s an increase in demand for qualified Accountants and Bookkeepers that understand this industry’s nuances and needs.
Defining a niche positions your firm as the expert and “go-to” resource for clients. It also opens the door to important collaborations with fellow industry leaders. When clients need accounting help, which they all do, you’ll be top of mind as the industry specialist.
Niching also comes with the advantage of partnering with apps and software developers to better serve your clients. So, instead of having to learn 10 or more various industry apps, you can specialize in, let’s say, 3. You’ll not only save hours of research and learning time, but you’ll be able to offer clients great prices on these apps while possibly earning affiliate income through partnerships.
If you support this industry and choose not to explore it as a niche, you may be missing out on a big opportunity for the growth of your firm!
So, you’re interested in the medical marijuana industry, but where do you start?
- First, gather your resources!
- The National Cannabis Industry Association is the go-to for advocacy, education, and community resources.
- Ganjapreneur is your source for industry news, resources, and insights.
- FindLaw has compiled a nice list of states and their requirements to open and operate a dispensary.
- Next, reach out to other accounting firms that have specialized in this niche and get to know them. They’ll be a valuable resource to you as you start.
- Finally, begin with one dispensary and dive in! Hands-on experience is always the best way to learn and refine those skills. Or, you can start by learning directly from MJBizCon here.
The statistics are out there… the marijuana industry is not going anywhere. As Lester Black of The Stranger says, “If 2012 was the year we punched a hole in the green ceiling, 2018 will be the year that whatever remains of that ceiling is burned to ash like a freshly packed bowl.”
Let’s be ready for this industry’s needs! They need you.
Do you know fellow Accountants and Bookkeepers that could use the resources listed here? Share on social and let’s connect!
What are your thoughts and concerns around niching for the marijuana industry? Leave your comments below!
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Richard Roppa is the founder of Quasar Cowboy Consulting, where he helps accounting firms and their clients with technology, workflow, engagement process, sales, marketing, and long-term planning.
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