As our world and society evolves and moves into a more conscious and intentional direction. More natural, fair trade, organic, and alternative products, medicines, and foods are begining to hit the market shelves. The hemp and cannabis industry is pioneering this push in the holistic revolution. Regardless of your thoughts on Mary Jane and her friends, the hemp industry is changing the way people manage their health and diets, care for their pets, choose their skin care and cosmetics, present their fashion styles everyday on the sidewalk runway, decorate their homes and more. Due to this innovation, there has been a major influx in hemp based businesses and career opportunities, such as retail and e-commerce sales, farming and cultivation, holistic health and medicine, and more. Each business having their own set of business financial needs that due to "stigma" have continuously gone unmet.
Why is it harder for hemp based businesses to outsource?
Many people still don't understand the differing needs for a bookkeeper vs. accountant. Let me break it down quickly as all businesses need both, even hemp based businesses. Trust me this will be relevant in a moment.
A bookkeeper's full focus is to appropriately categorize business related financial transactions, manage accounts payable/receivable, reconcile bank and credit accounts, and track cash flow, giving the business owner up to date insights on business performance. An accountant's focus is on taxation, filing the correct IRS tax forms and documents, and auditing the business's financial data.
Most accountants look at bookkeeping tasks as a means to an end rather than an essential duty to the business, since they make the majority of their income from filing taxes. The hemp industry and it's new aged "legal" status makes filing taxes and auditing the business's financial data difficult and something new for many accountants. This learning curve is the major reason many hemp based businesses have a harder time outsourcing their business financial needs to service professionals.
It's all about appearances!
Another reason hemp based business's struggle outsourcing their financial service needs is because the financial industry is all about appearances. As someone who spent nearly a decade in corporate finance, I know reputation is everything to the big money industry. This not only makes outsourcing difficult, but also getting the basics such as bank accounts, business loans, lines of credit etc. Typically banks and credit unions will have a board of directors or a corporate committee who decides the changes and offers of the institution. Though, the world of finance is an ever changing ecosystem, the mindsets of corporations and voting boards are those typically of old conservative white men. Not a racist or sexist remark just simply a noticeable fact. So don't come at me. Making the change in business practices not as rapid as the ever changing industry rates.
Riding the curve.
Currently the hemp industry is on fire, so to speak, and stocks are expected to continue rising over the next several years. The industry already surpassed $10 billion in the US in 2019 and is expected to increase even further, meaning the hemp industry is quickly becoming big business. With the rapid growth of this industry comes increased local and state revenues. Benefitting far more than just the stock and share holders, business heads, employees and consumers. The heavily inflated tax dollars that come from the hemp industry have supported communities, education, sporting programs, local job markets, and even aided in reducing crime rates. Just to mention a few.
With this being said, along with my previous statements, many financial service professionals aren't willing to grow and advance their knowledge or skill base, risk their squeaky clean reputation, or accept the doubtful but always possible loss in current clientele, by taking on a client in an industry many still consider controversial. Leaving a lot of opportunity on the table.
Edj Consulting Group is always willing to grow, learn, and evolve as a boutique firm and as a team. We have a strong dedication to conscious sustainability in our remote practices and incentivize eco-friendly new clients with lower service rates. Going from zero representation to affordable financial service solutions. This is our way of rewarding businesses who take a little less from and give a little more to our planet. In turn making the world a better place.
Potential clients within the hemp industry
There are two main types of businesses within the hemp industry:
Plant-Touching: these businesses work directly with plants and are responsible for growth, processing and distributing yields, while following strict regulations and licensing processes.
Service Providers: these businesses include retail and e-commerce sales and manufacturing. While service providers must also follow strict regulations and guidelines to maintain business operations, they are able to avoid some of the more strict policies and procedures.
Potential Hemp Industry Client Products
This industry has become a catalyst for environmentally conscious alternatives to traditionally manufactured and consumable everyday products including but not limited too:
Skincare & Cosmetics
Health & Wellness Supplements
Food & Beverage
Pet Goods & Consumables
Furniture & Home Goods
Stationary & Office Goods
Clothing & Accessories
Rubber & Plastic Alternatives
and so much more.
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