In mid-September of 2021, The U.S. House of Representatives approved an amendment to its National Defense Authorization Act, pushing cannabis banking reform to protect banks from federal law in operating with state-legal cannabis businesses.
As these banking services grow to become more cannabis-friendly, dispensaries and other businesses in the industry will be able to keep up with their operations much more efficiently.
Currently, they are being told that they can’t bank the traditional way, yet still being taxed the same – if not, more. There is extra scrutiny around anything related to money, making it incredibly difficult for cannabis businesses to find lending opportunities or fulfill basic operating necessities, such as payroll.
In fact, most cannabis businesses – including ancillary ones like ours at Cannabis Creative – typically need a DBA without “cannabis” in it to prevent banking institutions from freezing incoming payments.
With more classic banking services becoming available, dispensaries can more easily pay vendors and staff on time through traditional channels, such as ACH, wire, or check, as opposed to having to hold and move their money through more non-traditional and even outdated methods.
Moreover, different states have different rules, which means multi-state operators currently have to comply with varying degrees of banking regulation and, therefore, obtain separate bank accounts for each state in which they operate.
With these new services, industry players can choose to bank simpler through large institutions like Chase or Bank of America and ultimately centralize their finances to better manage their operations – including their marketing efforts.
Improving Cannabis Marketing Campaigns
As our Co-Founder and Managing Partner, Seth Worby, told MarketScale, this SAFE Banking bill will allow cannabis businesses to invest more in “areas that people can see the authenticity of the brands.”
The key for any business investing in marketing is to build a meaningful relationship with its customers. This is especially important for those in more restrictive industries, such as cannabis, sexual wellness, dating apps, alcohol, and more.
Seth says, “It all comes down to quality, experience, and ultimately, branding.”
By far, the biggest obstacle we see with cannabis businesses in their marketing campaigns is tracking and analyzing data. Tracking is a key component of measuring success, but we often see a real lack of data attribution and true ROI of specific campaigns.
For more information on some strategies you can use to craft more trackable cannabis marketing campaigns, watch our feature in MarketScale. If you’re looking to plan and execute marketing projects for your cannabis or CBD business, contact us today.