Craft Cannabis Revolution: 3 tips on getting started in the cannabis industry
Author and cannabis activist Jonathan Colier
DISCLAIMER: please make sure to consult with the appropriate parties, such as local and state regulatory bodies, business lawyers, etc. before entering into any business venture. Also note that cannabis is still a Schedule 1 narcotic according to the Drug Enforcement Administration. I make no claim as to being an expert on state and federal law on this subject.
In the interest of full disclosure, I receive royalties for any audiobook purchases of this project.
One of the first audiobooks I ever narrated was The Craft Cannabis Revolution by Jonathan Collier, and I’m eternally grateful that he chose me for the project. It was an actually fun “business” book to read, and was written by someone clearly with a passion for the industry.
With New Jersey (my home state!) and Arizona being the newest states to legalize the recreational use of marijuana (though it seems as those aficionados and those in the know prefer the term “cannabis”, so in deference to their knowledge and passion on the subject, I shall henceforth do the same), it means that there is going to be a lot of opportunity for people to jump in on a new industry.
Jonathan Collier was the chair of the Nevada County California Growers Association and a long-time activist for the legalization of cannabis. He is also an entrepreneur in a family of entrepreneurs, and knows his way around starting a successful business. He brought these two passions together in 2018 to write his book, and with the new ballot measures passing in several states, it makes sense to revisit this work.
For those who are bitten by the entrepreneurial bug, here are 3 tips on how to get started.
1. Make sure owning a business is something you really want to do.
Do you really want to do this? As raconteur, marketing pioneer and business tycoon Gary Vaynerchuk has said, “Entrepreneurs are the new rock stars.” Everyone wants to be one because it’s the new “cool”. But what’s left out of all of the Instagram and Twitter posts is the day-to-day grind and hard work that comes along with starting or owning a business.
You really need to make sure that this is something you want to do. Are you willing to put in the long hours, deal with navigating all of the red tape that comes along not only with starting a new business, but starting one in an industry that is still technically illegal by federal standards and has an uphill battle locally despite it being legal in certain states.
If you’re only thinking of starting a business because of the social posts you’ll be able to make, or because of the oodles of money you’ll be able to do a Scrooge McDuck dive into, you may want to re-adjust your expectations and reconsider your reasoning behind it.
Resource: I would highly, highly recommend listening to the Gary Vee podcast…has has some great “real talk” about entrepreneurship.
2. Know the local laws.
Just because cannabis is “legal” in your state, it doesn’t mean that it is all-the-way legal. In Jonathan’s book, he mentions that at the time of publishing, California still had some pretty stringent rules around cannabis growing and production, such as who could do what with the product, what the end use could be, the size of the farm, etc. This is very important information to know.
Are you allowed to sell edibles? Are you allowed to make your own product, or do you have to purchase it from a separate entity? Are you allowed to have a Starbucks-like experience, or does it have to be carryout? Where are you allowed to open a storefront? Are you allowed to ship within the state?
You will also need to know how you will accept payment. As Jonathan mentioned in his book, most credit card companies won’t get involved here because of the federal implications; banks aren’t allowed to be involved with illegal activity, which at a federal level (where banks all operate if they are tied to the FDIC or the Federal Reserve), which means they can’t loan money to or be involved in transactions with a business that sells a federally-prohibited drug.
This is where you need to consult with a lawyer who knows this industry and the new laws in your state so that you don’t run afoul of regulatory bodies or law enforcement.
Also, don’t be surprised if counties and townships start passing ordinances that prohibit cannabis establishments within their borders. Sure, you could be first to the table in your area, but within a year you could find yourself persona non-grata and have to pick up and leave town.
3. Be a neighbor.
Remember, if you do get through all of the other regulatory rigmarole, there is still the perceptions of the local populace to deal with. Cannabis has been at the receiving end of decades of the war on drugs, and while there is a shift happening in terms of opinion on the subject, there is still plenty of baggage that comes with the subject.
You will undoubtedly run into lots of NIMBY (“Not In My Back Yard”) opinions and voices, citing the litany of reasons given since “Reefer Madness” as to why your shop is a bad thing for the community.
The key here, according to Collier, is to not be adversarial. It only locks people in to their position. These are people with concerns, and they need to feel heard.
And you won’t win everyone over. It’s just not a thing. But as long as you are approachable and willing to listen, and even compromise when appropriate, it will go a long way to easing those issues in the long term.
Conclusion
So ultimately, you need to do a gut check to make sure that owning any business is in your DNA, and you need to take care of navigating these new and, frankly, sometimes confusing laws that many states and localities are still trying to figure out themselves. The best thing you can do now is to arm yourself with as much knowledge as possible.
Why not start by picking up a copy of the book by the expert?
