Understanding Cannabinoids: CBN vs CBD
While there are many cannabinoids that may enhance the therapeutic effects of hemp products, the most common renowned product is the phytochemicals in the Cannabis genus that contain the tetrahydrocannabinol or THC. This is the substance that is responsible for all of the psychoactive effects of cannabis. CBD has long been associated with the variety that offers up the best help benefits without offering up the high that the THC gives to users.
While the CBD may not be the feature that is in all of the hemp products, it’s a by-product of the THC. Hemp Genix, Wholesale CBD Oil in Wagener, has 80% purity compared to competitors at 17%-40%. The CBN doesn’t bind to the body’s cannabinoid receptors like the THC does. It’s long been known to give a stronger sedative effect when it’s used in combination with the THC.
At Hemp Genix, all of our products are made with 100 percent USA, Zero THC and 80 percent purity Wholesale full-spectrum CBD oil in Wagener. This is carefully derived from a variety of cultivars of hemp which contain an abundance of cannabinoids.
A lot of people are very familiar with CBD or Cannabidiol. This is found in highly concentrated amounts in a variety of products. However, there are lots of cannabinoids that are found in hemp. These have shown a variety of benefits in studies. All of our products offer you full-spectrum hemp oil. This also includes all of our cannabinoids that are found in the plant. We don’t want you to miss out on any of the benefits.
Wholesale Cannabidiol CBD in Wagener
This is the most abundant cannabinoid in the hemp oil. It makes up 90 percent of the content of cannabinoid. It’s non-psychoactive and the focus is on how it benefits the body via the hemp oil. It has minimal affinity for CB1 or CB2 receptors. The main focus on interaction is in the endocannabinoid system and it acts as an indirect antagonist toward the cannabinoid antagonists. This, in turn, may allow the CBD to temper the high that is caused through the THC. Wholesale CBD Oil in Wagener from Hemp Genix are over 80 percent pure and CBD makes up the majority of the Oils weight. Industry averages and nearly all of the other products with cannabinoids and brands average in at 17 to 40 percent purity.
What’s The Difference Between CBD And CBN?
Cannabis has a number of cannabinoids in which the most abundant are the levels of THC. There are 9 tetrahydrocannabinol as well as CBD and CBN. This is the active ingredient that makes you high. The THC is in the plant and the CBD is the precursor and the CBN is the metabolite of the THC. As the cannabis ages, the THC level breaks down into the CBN.
This also leads researchers to believe that the CBD might give some protection against ecstasy-derived neurotoxins or long-term depletion of the serotonergic receptions. While this is still speculation, it’s investigating further. The CBD is usually present in significant enough quantities in such products as hashish or cannabis resins. However,r it’s also in the herbal cannabis referred to as skunk in smaller amounts.
Overall, the CBN is a great cannabinoid that offers up a varied range of therapeutic applications that work together with the rest of the “team” in order to offer up the best possible results. Clearly, more clinical trials are required to see how else it can benefit patients.
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There's an old adage about business that "cash is king" and, if that's so, then cash flow is the blood that keeps the heart of the kingdom pumping. Cash flow is one of the most critical components of success for a small or mid-sized business. Without cash, profits are meaningless. Many a profitable business on paper has ended up in bankruptcy because the amount of cash coming in doesn't compare with the amount of cash going out. Firms that don't exercise good cash management may not be able to make the investments needed to compete, or they may have to pay more to borrow money to function.
"Despite the fact that cash is the lifeblood of a business -- the fuel that keeps the engine running -- most business owners don't truly have a handle on their cash flow," says Philip Campbell, a CPA and former chief financial officer in several companies and author of Never Run Out of Cash (Grow & Succeed Publishing 2004). "Poor cash-flow management is causing more business failures today than ever before."
Academic studies over the years have found that cash flow problems can be one of the leading causes of failure for businesses. A study reported in August from Equifax, the credit reporting agency, found that bankruptcies among the nation's 27 million small businesses leaped by 81 percent between June 2008 and June 2009. While the U.S. Small Business Administration (SBA) estimates that about 600,000 new small businesses are launched each year, a 2007 study reported in the U.S. Bureau of Labor Statistics' Monthly Labor Review indicates that two-thirds will only survive two years, 44 percent survive four years, and 31 percent survive for at least seven years. Scholars have found over the years that insufficient capital is one of the main reasons for small business failure, coupled with lack of experience, poor location, poor inventory management and over-investment in fixed assets, according to the SBA.
The following pages will help you understand what cash flow is, how it impacts profits, and tips on how to improve your cash flow.
Cash Flow Basics
What is cash flow? It's basically the movement of funds in and out of your business. You should be tracking this either weekly, monthly or quarterly. There are essentially two kinds of cash flows:
• Positive cash flow: This occurs when the cash funneling into your business from sales, accounts receivable, etc. is more than the amount of the cash leaving your businesses through accounts payable, monthly expenses, salaries, etc.
• Negative cash flow: This occurs when your outflow of cash is greater than your incoming cash. This generally spells trouble for a business, but there are steps you can take to remedy the situation and generate or collect more cash while maintaining or cutting expenses.
Achieving a positive cash flow does not come by chance. You have to work at it. You need to analyze and manage your cash flow to more effectively control the inflow and outflow of cash. The SBA recommends undertaking cash flow analysis to make sure you have enough cash each month to cover your obligations in the coming month. The SBA has a free cash flow worksheet you can use. In addition, most accounting software packages geared to small or mid-sized businesses – such as Quickbooks will help you produce a cash flow statement. There are also other websites offering free templates, including Winsmark Business Solutions and Office Depot.
Profit versus Cash Flow
Profit does not equal cash flow. You can't just look at your profit and loss statement (P&L) and get a grip on your cash flow. Many other financial figures feed into factoring your cash flow, including accounts receivable, inventory, accounts payable, capital expenditures, and debt service. Smart cash-flow management requires a laser focus on each of these drivers of cash, in addition to your profit or loss. "There is a secret that very few business owners have discovered (and the accounting community has not done a good job revealing): knowing whether you earned a profit (or created a loss) is not the same as knowing what happened to your cash," Campbell says. "Profit, as defined by the rules of accounting, is simply revenue minus expenses. Invoicing a customer for products or services you sold to them creates revenue. Actually collecting the money on that invoice is what creates cash."
A positive cash flow is actually needed to generate profits. You need enough cash to pay your employees and suppliers so that you can make goods. It's the sale of those goods that helps generate a profit. But if you don't have the money to make the goods, you don't end up with the profit. So you really need to structure your business to have a positive cash flow if you want your business to grow and increase profits.
"Growing your business puts a huge strain on cash," Campbell says. "You almost always have to make investments and bring certain expenses on ahead of achieving the higher revenue and cash flow that comes with successful growth. Maybe you want to open an office in a new city so you can build the business there. Or, you need to build a new facility so you have the capacity to sell to larger customers. Those scenarios (and others) require cash up front."
How to Improve Cash Flow
Most business owners see growth as the solution to a cash-flow problem. That's why they often achieve their goal of growing the business only to find they have increased their cash-flow problems in the process. Plan for growth and the related cash outlays in advance, so they do not come as a surprise. In the meantime, the SBA recommends that you take the following practical steps to better manage cash flow, especially for the growing business:
• Collecting receivables - To speed up the receipt and processing of receivables, the SBA suggests several steps. Spring for a lockbox service, post office boxes serviced by banks so that customers in far flung locations can mail payments there and the checks will be processed by the banks more quickly. Ask customers to preauthorize checks so that banks can draw against their accounts at timed intervals. Centralize your banking at one bank. Ask customers to pay with depository transfer checks, a relatively cheap fund transfer. You can also try offering discounts to customers if they pay bills quickly.
• Tightening credit requirements - Businesses often have to extend credit to customers, particularly when starting out or growing. But you have to do your research beforehand to determine the risk of extending credit to each customer. Can they pay their bills on time? Is their business growing or faltering? Are they having cash-flow problems? The SBA recommends getting a Dun & Bradstreet report on potential customers and asking them to fill out a credit application. You should also check references. Another option to extending store credit is to accept credit cards. This will cost you a percentage, generally from 2 to 5 percent of the sale, but it may be a safer bet for getting paid on time.
• Increasing sales - If you need more cash, it seems like a no brainer to go out and try to attract new customers or sell additional goods or services to your existing customers. But this may be easier said than done. New customer acquisition is essential to a growing business, but it can take time and money to convert prospects into sales. Selling more to existing customers is cheaper and you may be able to do this by analyzing what they're buying and why - information that may even lead you to increase your profit margin and, hopefully, generate more cash. But the SBA warns businesses to be careful when increasing sales because you may just increase your accounts receivables and not actual cash if these sales are on credit.
• Pricing discounts - One option to increasing cash flow is to offer your customers discounts if they pay early. While this practice may impact your profit margin, it may help your management of cash flow by incentivizing customers to make payments earlier than billing cycles typically require. Your company may also take advantage of this with suppliers and others that you owe, but be careful that your early payments of debt don't leave you with a cash flow shortfall.
• Securing loans - Short-term cash flow problems may sometimes necessitate a business taking out a loan from a financial institution. Some possible types are revolving credit lines or equity loans, according to the SBA. Most of the time this type of borrowing accomplishes its goals, although during the financial crisis many banks were canceling credit lines and calling in loans. Another option is a long-term amortized loan which includes interest and principal until the loan is paid off.
Getting Control of Your Cash Flow
Campbell suggests asking yourself the following two questions to get a sense about whether you have your business' cash flow situation under control:
1. What is my cash balance right now?
2. What do I expect my cash balance to be six months from now?
"If you can't answer these two questions, then strap yourself in for a wild ride," he says. "You are on a roller coaster ride that's about to become really frightening. You don't have your cash flow under control."
One way to keep that situation under control is by tracking your cash flow results every month to determine if your management is creating the type of cash flow your business needs. This also helps you get better and better at creating cash flow projections you can rely on as you make business decisions about expanding your business and taking care of your existing bills.
Inc.'s Guide to Cash Flow Basics
The Secret to Formatting Cash Flow Projections
The 10 Absolutely Must-Follow Cash Flow Rules
Cash Flow Projections Made Easy
http://www.neverrunoutofcash.com - Philip Campbell's book and the companion audio CD sets out the detailed approach to taking control of your cash flow.
http://www.score.org/60_guide_managing_cash_flow.html - This site features a quick guide to managing cash flow.
http://easy.staples.ca/en/work/articles/startyourbusiness/Pages/manage_your_cash_flow.aspx - The office supply chain has a run-down of cash-flow management tips.
http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_capgrowth.doc - This document discusses cash flow management as part of the SBA's financial management series.
http://www.sba.gov/idc/groups/public/documents/sba_homepage/pub_fm4.pdf - Small Business Administration -- This government brochure is full of cash-flow management tips.
http://www.nfib.com/tabid/56/Default.aspx?cmsid=49882&v=1 - Tips from the trade industry association for small business on how to manage cash flow.
How To Manage Cash Flow
Down the dirt roads on the hills of Northern California, where small farmers have been growing marijuana and evading the authorities for decades, the anticipation before election day, when the state will vote on a recreational marijuana ballot, is high. But many of the farmers will vote "no" on Proposition 64, the statewide ballot measure that could legalize marijuana for adults over 21. The farmers want marijuana to be legal, but they think the proposed law puts big business interests ahead of the small farmer.
Ruby Steinbrecher, a lawyer and the chair of the Sonoma County Growers Alliance, an advocacy and educational group for marijuana cultivation businesses in California, says many long-time marijuana farmers from Sonoma and up to Humboldt County will vote no on 64, which will propose the passage of the Adult Use of Marijuana Act (AUMA), on Tuesday.
"There is a big fear that the big interests are about to come in and crush the small growers," says Steinbrecher. "We know consolidation is coming, we know things will change, but we don't want the small businesses that have been around for a long time to go away completely because this is the culture of who we are and what we do. We need to protect it."
The main complaint about the Adult Use of Marijuana Act (AUMA) is that it is not as friendly to the small farmers as the medical marijuana laws are. If passed, the California state government will issue unlimited growing licenses in five years time, which means big companies will be able to buy as many licenses as they want to create mega-marijuana farms.
Another issue, says Steinbrecher, is that farmers in Northern California, most of whom have been cultivating marijuana long before the laws started to change, are just learning how to deal with the new medical regulation laws passed under the Medical Marijuana Regulation and Safety Act in 2015, which gave the industry a much needed clear and robust framework to support a legal industry. The new recreational laws add confusion to that process, she says.
"We are just wrapping our heads around the new medical laws passed last year," says Steinbrecher. "We are busy focusing on that and throwing in new regulations for a recreational market adds a thick layer of complications and issues to the huge paradigm shift of legalization."
California has long operated in a gray market. In 1996, voters passed Proposition 215, which legalized medical marijuana but did not offer a framework or regulatory body to manage the industry. As California's industry becomes legitimate, the farmers need to change the way they have done business for years.
"Many people never kept business records as a precaution [in case of a police raid]. If you were cultivating cannabis, you'd keep business records on scraps of paper and burn them after the harvest," says Steinbrecher, who is also the president of Madrone California, a collective of small marijuana farmers who have come together to help each other stay compliant under the new laws. "Legalization is overwhelming; we need more time to adapt."
According to polls, Proposition 64 is likely to pass in California. If it does, that means marijuana would be legal for recreational use in every state along the west coast of the U.S. The ArcView Group, a network of marijuana angel investors, says if California passes a law for recreational use, the national marijuana market could go from $7 billion last year to $22 billion in four years. There are similar measures in Arizona, Nevada, Maine, and Massachusetts. As for medical marijuana, Florida, North Dakota, Arkansas, and Montana are voting to legalize medical use. But as California is estimated to grow the bulk of the country's marijuana, all eyes are on the state to see what happens. If California legalizes recreational use, there is a good chance that many other states will follow in the coming years, which will in turn put more pressure on the federal government to change federal law.
Hezekiah Allen, who grew up on his family's marijuana ranch in Honey Dew, California, sold the land and started lobbying for small marijuana farmers and businesses in 2014, with his group the California Growers Association. He has fought to get many concessions for small businesses included in the medical regulation laws passed under the Medical Marijuana Regulation and Safety Act in 2015. He says if AUMA passes he will have to start working to get farmer-friendly regulations amended into the new law. The group has a neutral stance on 64, but he says he will vote no.
"Is the goal to make marijuana millionaires? Or to make all these criminals in the hills small-business owners? We want to make business owners out of the farmers who have been working in the shadows for decades," says Allen.
He is also against the rule that allows companies to buy unlimited number of licenses in five years, as he believes it will beget mega cannabis corporations that will threaten the livelihoods of small farmers.
"Small farms are good for California. Right now, the state is home to a diverse group of boutique and craft farms, but 64 will accelerate consolidation," says Allen. "It's going to be messy, it'll be a fight, but I am not discouraged. We will just work to put amendments in that will support small business."
Another aspect of AUMA that Allen believes goes against small businesses is a flat tax structure across the industry; multimillion-dollar businesses will be taxed at the same rate as a boutique grower. The taxes under AUMA will be imposed at harvest, so cultivators will have to pay before getting it inspected for quality and potency, which could end up hurting farmers if the yield doesn't turn out as planned or if mold or pests infest the flowers. This could hurt a small-business owner who lives harvest to harvest, says Allen.
Allen says AUMA does have positive aspects, including the fact that most people will not go jail for marijuana offenses. But much of the work he did to help support small businesses got undone as the campaign raised $20 million to get on the ballot and pay for ads, Allen says.
Another aspect of legalization that farmers will have to get used to, Steinbrecher says, is a shift in culture and attitudes towards the government. She grew up around marijuana cultivators and says she is excited for the industry to become a legitimate part of the economy. But the farmers, who have been persecuted by drug agents dropping out of helicopters to cut down pot crops and arrest the owners since the start of the domestic drug war, are just learning how to trust and deal with the government and regulators, she says. The isolated communities of the hills, the main producers of marijuana sold in retail shops in San Francisco and Los Angeles, want to be licensed and regulated, but in order for it to work, she says, all the farmers need to be on board. But since 64 has been divisive, she says if California doesn't move into legalization slowly, many farmers will just continue operating in the black market.
"We need to show that legalization works and that the government isn't this big, scary man," says Steinbrecher. "Once the farmers all have their licenses and know they will not be busted anymore, that's when it's time to expand to recreational. This will take time."