From the outside, the legalized cannabis industry appears fairly straightforward: people grow cannabis, others sell it and their customers consume it.
But in such a highly-regulated industry, it’s actually much more complex.
Regulations vary by state, county and even municipal levels. For example, in Pennsylvania’s emerging medical market, “combustible” (smokable) products are not allowed. And in San Jose, California, all signs and labels must be written not only in English and Spanish, but in Vietnamese as well.
With a countless number of rules to follow in an ever-changing industry, how can industry members — from CEOs to budtenders — keep track of how they’re supposed to conduct business?
Denver’s MJ Freeway created a robust web platform meant to provide technological solutions for every part of the industry, from tracking the seed-to-sale process to creating loyalty programs for dispensaries and even using data to drive better business decisions.
“It’s a very tedious process to be a cannabis operator in any of the verticals,” said Heather Smyth, MJ Freeway’s product marketing manager. “We’ve really been able to keep a finger on the pulse of what’s happening in all these regulatory environments.”
Since its beginning in 2010, MJ Freeway has grown from an inventory tracking and traceability platform designed to help one of the first dispensaries in Boulder to a company with a team of more than 70, serving clients across the United States, Canada, Australia and parts of Spain.
“It’s been a whirlwind of growth,” said Smyth.
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The company’s cloud-based software has plenty to offer industry employees from all levels, across different verticals.
Cultivators working in grow operations can scan barcodes on plants; the grow manager could see how much they’re spending on nutrients and light on a plant-by-plant basis, along with how much time employees spend working with each plant.
In retail, a budtender would have access to a point of sale suite of options, scanning patient or customer IDs, taking payments and accessing loyalty points. The store’s manager can see which products are selling the most, access granular data like days and times that are most popular for certain products and even upload the store’s menu to the program, which integrates with popular consumer sites like Weedmaps and Leafly.
Investors can use MJ Freeway to get in on the action, too: business operators can choose to share certain reports with investors, displaying information like sales numbers and product flow.
Among the company’s various teams in the Daniels & Fisher clocktower building downtown is MJ Freeway’s regulatory team, which spends their days setting up alerts, reading industry news, attending events and more — all to stay on top of the industry’s regulations.
“It’s not an easy job because there are so many different governing bodies,” said Smyth. “But the way we all look at it is that if we can make this a little bit easier for all the companies trying to serve the industry, we’ll do whatever it takes.”
That includes helping companies get off the ground. Along with its software products, MJ Freeway also has a consulting wing that helps entrepreneurs understand regulations, complete paperwork, write standard operating procedures and create solid business plans. It’s a service that contributes to the company’s mission, but it’s a smart business play, too.
“We end up being your long-term partner in that once you get your license, we can help you with your technology needs,” said Smyth.
As the company grows its customer base, they’re also starting to work on custom solutions for government systems, too. They recently won a proposal to develop the state of Nevada’s seed-to-sale tracking system, and they’re weighing the possibility of going after other state contracts, too.
And while MJ Freeway’s main customer base is in the U.S., they’ve got their eyes on global expansion as public opinion and political tides turn in favor of cannabis legalization.
“It’s exciting to think about what else is happening around the world,” said Smyth. “And we’re staying cautiously optimistic about what’s happening at our federal level and hoping that if we continue to do business in a legitimate environment, that leadership will see that and let us be.”
Photo via MJ Freeway.
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