If you are the owner or manager of a cannabis retail store, you likely oversee a lot of different operations at the same time, from keeping an eye on fluctuating regulations to managing staff and inventory.

The good news is that dispensaries can employ a couple of structures and establish systems that can help them reduce cost, increase productivity and protect profits.

In this article, we outline four strategies and systems that successful dispensary owners leverage to streamline their stores, and keep more profit in their pockets.

I. Clever inventory management strategies

A  significant challenge for dispensary owners is managing inventory.  If too much or too little is ordered – money will be lost. And how do you know what is going to sell?

Luckily, with good habits, they can prevent stockouts and under-profiting due to misappropriation, as well as run multiple outlets and maintain efficiency. Some great strategies we have found successful dispensary owners use include:

• Using inventory tracking software to keep track of inventory.
• Using inventory tracking software that integrates with your POS system.
• Investing small amounts in different strains.
• Not overstocking.
• Applying promotions that coincide with stock levels. 
• Choosing promotional deals and discounts that play into the current stock levels.
• Not establishing inventory management from sales data alone
• Not using outdated business systems such as using Excel spreadsheets for inventory management.
• Using forecasts and trends. 

Some examples of using forcases or trends could be if a dispensary is located in an area where people have been exposed to chemicals or radiation.  If that is the case, they may request more indica-heavy products to help with chronic pain.

Dispensaries can also work towards inventory quality review. This is another helpful inventory management habit that can ensure quality control, avoid loss, and yield more earnings.

II. Leveraging technology to save time and money.

Smart dispensary owners cut expenses by leveraging technology. When you cut down on time used for trivial or manual work, you can do the more impactful work that generates the real income. This can be done using cannabis software systems including: 

• Employee self-serve onboarding: With ESS, businesses reduce the cost of running the company by cutting out the printing of papers and memos. These self-serve systems save your business considerable time and resources that would otherwise be used to access and update employee data. Every employee can access necessary data and information on the go. 
• Time tracking software: With this software, employees can clock themselves in and out using facial recognition.  These tools can be set up to only approve clocked hours for approved schedules, saving employers from managing any extra administration work.
  

• Integrated payroll: Payroll that is integrated with time tracking software streamlines employee paid hours to payroll, so dispensary managers don’t have to do any manual calculations.
  

• Automated software: Some payroll software automates things like overtime or stat holiday pay, so managers don’t have to take any time manually calculating or adjusting the payroll rates.
  
• Integrated POS and workforce management software: With an integrated workforce management and POS system business owners can pull up sales vs labor reports and make smarter business  decisions. 
• POS software that is integrated and compliant: Having a good dispensary POS system is huge when it comes to running a compliant dispensary.  Make sure you choose a solution that offers integrated inventory tracking, compliance features and analytics and reporting to manage your dispensary with ease.

III. Investing in staff training.

Every business is only as strong as its weakest link. By investing in staff training, a business can mitigate against underperformance and increase staff commitment. Getting the best out of your workforce is always possible if they first see that you care enough for them through the training programs you provide or encourage them to participate in. 

Investing in staff training is an upfront investment that will eventually allow you to save on scheduling costs and run leaner down the road. Ill-equipped and ignorant employees can cause your business to go into a downward spiral. Rather than focusing on customer satisfaction, you will have to divert resources to  correcting the mistakes of untrained staff.

A poorly-trained staff reduces productivity and can make mistakes that can cost a business a pile of money. A team of well-trained staff under inexperienced management will consistently outperform a team of ill-trained staff led by an experienced manager.

Poorly trained staff can also lead to careless use of equipment, or worse, breaking the law. Businesses then have to choose to spend money on replacement or managing without leading to more loss of time and profit.

IV. Using standard operating procedures.

Do it once and do it right. Standard operating procedures are detailed, comprehensible steps by which a business performs its activities.  They direct both longstanding dispensary employees and fresh recruits on how to carry out routine tasks.  Dispensary SOPs give the workforce step-by-step instruction on how to maintain consistency and quality throughout business operations

By creating a detailed SOP, cannabis retail owners can predict the outcome of every process and also have an estimate of the expected profit. With a proper SOP, cannabis retailers can easily integrate new staff while letting go of redundant ones, thereby saving money and reducing waste. 

Conclusion.

There is a lot to know when you run, or are planning on opening a dispensary – we hope these 4 strategies and tools will serve as a helpful guide to help you have your best business year yet.