Blogs & Articles

Cannabusiness - How to Handle the Growth

The "Green Wave" is coming whether you like it or not. So many companies and professionals are still hesitant to accept the inevitable and are still unwilling to associate themselves with the industry. The "M" word is scary to associate with, right!? You may have noticed it is referred to as Cannabis more widely in the business space.If you haven't looked into how your business or profession can benefit from this industry...you should probably start looking into it at a High Level...no pun intended! This industry is gaining traction at such an epic pace. If you want to be on top of it and not get swept up in it, then you need to do your do diligence.Those in the Cannabis Space are involved in a whirlwind right now. This past weekend ended with over 30,000 business people attending a very successful MJBIZ Con at the Las Vegas Convention Center. This was the largest CannaBusiness Expo in the world! You had one man businesses/entrepreneurs rubbing elbows and getting exposure to the big players in the Cannabis Industry such as Trulieve , Surterra, and many others. Connections made for these entrepreneurs could lead to huge product contracts that can change their life over night. Guess what...you now have to EXPAND!!! But how do you effectively manage that at that quick of a pace?There are many options for POS systems, card processing, and financial offerings that have realized the need to jump into this marketspace that can help and be beneficial. This is all helpful in expansion, however these business owners will need to focus on the aspects of their business that have gotten them to this point. They will need extreme help with the back office duties such as trying to figure out how to run payroll whether in a bankable state or unbankable state. With it still being illegal on the federal level, this can be quite tricky.With hiring more employees comes the need for assistance with inevitable Human Resource dealings. We aren't taught best practices for this kind of thing, you need to make the right decisions depending on situational problems to protect your business. This typically requires an extra paid salary for someone to solely handle the HR aspects.What about the ever-changing regulatory compliance issues? That is a full-time job all in itself! Keeping up on compliance is a stressful position to have as your business could be drastically affected because of it.Then lets add in the insurance side of it. Hiring employees requires Worker's Compensation coverage. There are few standard market carriers that have opened up to covering Cannabusinesses, however they are typically charging much higher than normal premiums because of the supply and demand reality. Not to mention, requiring up front percentages of premium! This can be detrimental to your businesses cash flow!Sounds like a lot to take in. But don't worry there is help, there is a great option and solution that covers all of these problems! The PEO model! PEO is a Professional Employer Organization that operates in a Co-Employment relationship with the business owner. The business owner controls all aspects of their business but outsources Human Resource dealings, Pay-As-You-Go Worker's Compensation insurance, and payroll to the partner PEO. This relationship allows the business to take away audit risk as the PEO will handle all of the tax filings and reporting. They work symbiotically in nature. This allows them the necessary time to focus on what matters most about their business. Growth.For Cannabusinesses this is the perfect model. It helps alleviate the supply/demand elevated large premiums and push it to a Pay-as-you-go payment plan. No audit risk is a huge deal, and to help with providing a means for employees to receive live checks/direct deposits, ensures they are able to prove and show income! Human resources are handled. Even better...I have a market that has a Compliance Department to keep your business up to date on any changes that may directly affect you!Your business is growing at a rapid pace...focus on that. Allow yourself the piece of mind to be able to apply your skills to the right areas. This is an exciting time to see what is transpiring. If you aren't involved, you need to be. It has a trickle down affect, and I intend on riding this "Green Wave" regardless.Brett Arthur - (813) 460-9166Legacy Employer Concepts www.legacyemployerconcepts.com
OLCC’s “Good Harvest” Produces Promising Results
Canada’s Grand Cannabis Experiment Has Set Scienti...