Hi there, everyone, im jj ramberg and welcome to your business. What was once unthinkable has become a reality and a very profitable one at that. The Legal Marijuana movement is gaining traction with the Editorial Board of the New York Times recently advocating it nationwide. For entrepreneurs, the opportunity to cash in on a new and evolving industry is hard to resist. As states like colorado and washington normalize the market regulating marijuana similar to alcohol. But for anyone interested in getting into the business, the stakes are high. This is no longer a world inhabited by stoners donning tie dyes and taking bong hits, this is a Serious Business that involves time, money and smarts to succeed. This business is pretty much unmerging market, its high risk, high reward. This is a story about change, changing laws, changing attitudes an an everchanging land escape for a bran new business in america. Marijuana. Its a very young industry, chock full of entrepreneurs from all over the country that want to build their lives and their careers and their businesses in marijuana. We went to colorado, the first state to legalize marijuana for Recreational Use to see how entrepreneurs are faring in this brave new world. Its a brand new industry emerging out of a black market scenario. So regulation helps streamline the system and puts all the pieces in place for us to maneuver through this safely and allows the consumer to get a safe, sound product as well. But the product is pot. And under federal law, selling, producing, possessing and consuming marijuana is still a crime. That makes for a very complicated Business Model when you live under the constant threat of a federal crackdown. The cannabis industry is the most challenging industry ive ever been involved with. I describe it as Crisis Management by hour. Tripp keeper, ceo of Dixie Elixirs and edibles has a widely varied resume, including a stint in the reagan administration, a big believer in the free market economy hes a serial entrepreneur whos been called the Ronald Reagan of reefer. This is not for individuals who are not willing to commit time, money and intellectual horse power. After spending time in colorado, we found the entrepreneurs in this business were nothing like the stereotypical counterculture hippies we see in the latenight punch lines. Tonight well be taking a look at the pros and cons of owning a pot store. Pro, getting a lot of repeat customers. Con, mostly because they forgot they were just in your store five minutes ago. I think i need some weed, man. Check your right pocket. Oh, yeah, thanks. We visited the first ever colorado cannabis summit in denver and found a very professional group of entrepreneurs. Many of whom were women, networking and coming together to talk seriously about cannabis. We like to think of ourselves as marijuana mavens. Brook gerring was working in commercial banking and real estate before taking that leap of faith and getting involved in the cannabis business in 2009. There are a lot of educated people that had left their jobs in Corporate America or, you know, left other Business Ventures that they had successes in because they saw or felt a sense of opportunity. Meg collins also saw an opportunity in pot. In her case, to help shape public policy. Before taking the job as the executive director of the cannabis business alliance, she had spent most of her career in the oil and gas industry. So i like to say ive gone from gas to grass. And i thought, what a phenomenal opportunity to be on the ground floor of building the legal and Regulatory Framework for a new industry. And this is an industry that has a lot of rules. Like the requirement to grow and sell your own cannabis instead of sourcing it from somewhere else. I met jan cole, a former teluride spa owner and mother of two. She decided she wanted to take her experience in that industry and translate it to the emerging cannabis business. We met her at one of her seven growth facilities outside of bolder. The state of colorado would like us to track every plan the from seed to sale. From every plan the we put into dirt to every plan the that we harvest and turn into medicinal or recreational bud needs to be tracked. Theres a lot that goes on behind the scenes with this industry it sounds like. It is not just a matter of put something seeds into the ground, growing it and selling it. No. We then followed her to the brick and mortar side of her business called the farm. This is not what i expected and this is not what a lot of other Cannabis Stores look like. I imagine thats very deliberate. We have been referred to as the whole foods of cannabis. And because we appeal to i guess a customer that cares about what theyre putting into their bodies. Youre going after upscale moms basically. Yes. People like us. But the biggest issues that jan and other Company Owners in the cannabis industry are facing now have to do with all the money coming into their businesses. Banking is a huge issue for the industry. Nationwide. Because it is illegal at the federal level, banks are not comfortable in jeopardizing their federal insurance. We are treated like every other business except when it comes to financial matters and then were still treated as a criminal function. With big issues like banking that still need to be sorted out, states like colorado and washington are taking the lead on setting policy. While other states and the federal government sit back and watch very closely to see how their implementation works. I really think all eyes of the world are on our state, really focusing on how this is going to happen. And as more and more states legalize pot in some way, shape or form, its clear that there is a major shift in attitudes happening in the u. S. With a recent poll showing 54 of americans in favor of legalization. If the tide keeps moving in that direction, that means the marijuana market is going to increase exponentially. Entrepreneurs from across the country are coming here. It is the green rush 2. 0. This is pikes peak or bust 21st century style. Casey stark has had several businesses related to cannabis in colorado. He also teaches a sort of cannabis 101 to people interested in learning more about the business. So they, too, can become gonjaprneurs as he calls it. We make it easy. Come to colorado, learn the rules and change your future. As the legalization of pot comes online in more places, there are serious concerns about new and potent strains of marijuana and the new breed of edibles that are highly concentrated. What happened here on the fourth floor of this denver hotel has beth investigators and medical experts asking questions. The group decided to try marijuana cookies. The autopsy report lists the death as an accident. In the past five months, the state of colorado dealt with two significant tragedies where it would appear that marijuana in some form was involved. I will say that dixie was quick to stand in front of the camera and really get out in front of the issue and make sure consumers understand that these products have to be consumed in moderation. With the industry still in its infancy, its a future that is totally unchartered. Speculative and at the same time, potentially very lucrative. With one study predicting a billion dollar a year industry by 2018. Im delusionally confident in this industry. I believe that there are going to be companies that will succeed and be able to potentially compete with big alcohol and potentially compete with big tobacco. There is no end to what marijuana potentially can do for the american economy. What has it done for us in colorado . Raise millions, created tens of thousands of jobs, almost literally overnight. As you can see, it is not aging hippies or cheech and chong types. It is soberminded Business People who want to cash in on this new cash crop. Lets get our board of directors to weigh in. Brendan kennedy is the president and ceo of privateer holdings, a private equity firm that invests in the cannabis industry. Hes the president of leafley, a company that helps consumers and patients learn about different cannabis strains and products. Jessica eaves matthews is the founder and ceo of the leverage legal group, an intellectual property and business law firm. Its so good to have you guys. Thanks. Thank you. You are in the center of this right now. When i was there, it was its fascinating to see this unfold, because the regulations are changing every single day. And so its incredibly hard to be a Business Owner in this industry. It is. The regulations in colorado are changing on a daily, weekly basis. Its one of the things theyre doing really well there. Theyre constantly refining the regulations to keep tight control over the industry as it transforms from an area of prohibition to a legal market. But as a Business Owner, its so hard, right . Some of the people we talked to said, this was legal yesterday, and its not legal today. I have to change my logo, move this, change my packaging. How do you keep on top of everything thats happening . Well, so we have an internal legal team, external legal team. We have people who are focused on lobbying and staying in contact with the regulatory boards. To ensure that everything we do complies with local and federal regulations. What do you say to people who want to jump into this industry . I mean, in some ways its exciting. Im an entrepreneur as well as a lawyer. This is the ultimate entrepreneurial experiment, right . Entrepreneurs love to be nimble and they love to have to react quickly and so, its ripe for innovation, which is exciting. As youre saying, there are some real pitfalls, as a Business Owner going into business with somebody is like a marriage. You have to make sure you are aligned in lots of different ways to have a good working relationship. Thats a huge one. Negotiating Good Business terms, buyout provisions, all of those types of things, is critical to the success of any business like that. As youre saying its all moving so quickly that a lot of these people arent having time to consider the issues that they should be considering before they go into business together. The whole thing is fascinating. Fascinating to see whats happening. Again, how things are changing every single day. And attitudes are changing. Jj, the way i look at it, theres a phenomenal tune beginning on here. It is the gold rush turned green. There are lots of regulations, going to be very difficult business. But thats where the opportunity is. There arent that Many Companies supplying the product. Demand is big. Youll have great pricing power, big margins, lots of cash, lots of profits. Thats why this is the business everybody is talking about. Everybody is rushing into it. Its still very, very young. This is a brandnew industry. Have you seen breakouts of people that will be successful and a bunch of people shut down already. Were seeing the establishment of brands. That will be the big difference over the next five to ten years. For the first time youll see trusted professional brands in this industry. Are you starting to see some breakouts already . I think as you covered in your segment, dixie is one that is really interesting in that theyre talking about cannabis in a mainstream, professional way. Thats really how americans think about this product. And thats what we saw 54 of americans think it should be legal. Its a mainstream product. Thats what we saw over and over again, people are treating this as a business. There are latenight jokes about it but this is a business. The people that were seeing are very successful are the ones working very closely with the regulators and talking to the lawmakers every single day. Right. Jj, its important to treat this as a sophisticated business. If youre not a sophisticated Business Owner but you happen to be fortunate to be in this business, you have to align yourself with business partners. The financiers. You may not be able to work with banks. It doesnt mean you cant work with angel investors, or people like brendan. After the show i want to meet with brendan, maybe invest with him. The federal statutes and whats happening in the states right now, as a Business Owner, this is not for the feint of heart. You dont know how the federal government will come out on this. The controlled sub stans act is unequivocal as far as, this is a class one drug, which is interesting that it is. And thats not changing. We dont see that mpg chaingcha time soon. Maybe it will. And the banking issues are incredibly complicated. Its a cash business for a lot of these people. It is. Ive been in dispensaries, rooms that had a Million Dollars of cash lying around. Its not a comfortable feeling. No. We dont violate any local, state or federal laws, yet weve been kicked out of three banks in the u. S. So everything in this industry is harder, whether its banking or payroll or hiring a marketing and branding firm. Everything is more difficult. Boy might there be a big payoff at the end. Brendan made the point. Hes sitting with a Million Dollars of cash, that obviously came from profits. Its not such a bad problem to have. There are security issues, too. Thats right. It is infinitely interesting to me to see how this industry grows. Thanks so much for taking the time to chat about it. Like this burgeoning marijuana industry, breweries are grappling with government rules and regulations that have a major impact on their business, from new york to South Carolina to utah, microbreweries are lobbying their lawmakers to ease laws to make it easier for them to operate. One minnesota brewer is just now getting ready to open a second brewery for fighting two years to get the law in that state changed. It was a pretty small change but its still a little piece of legislation that made a big difference for us. Its good for the state. Its good for business. Why wouldnt we want to do it . Omar, ta brewery owner has plans foreign xpading his business. We never thought wed experience this type of success. Its been fantastic. The beer is so popular, theres a waiting list for new customers. With so much demand, omar had to focus on increasing his supply. He decided to open a second location. Simple, right . Well, not in this case. Because of this decision, omar had to become the driving force behind a change in state law. Minnesota is one of those states where you could not sell someone a glass of beer at a production brewery. In other words, surly could sell his beer in bars, restaurants and Liquor Stores but that was about it. When someone comes in for a tour, we give them beer. Its all free. Its not legal for us to charge them for that glass of beer. The second brewery omar wants to build would have a restaurant and a bar. He wants to sell his own product. Thats what put him on a collision course with the law. If we can somehow manage to change this law that breweries can sell a glass of beer, were building a destination. He recruited a team to take his cause to capitol hill. I realized what exactly he wanted to do and realized it was a 78yearold prohibition law and said this is going to take some this isnt going to happen in two weeks. Despite some support, omar felt resistance from the start. There are a lot of people that didnt want to see that change happen. Just thats the way politics works is usually when the laws are there, theres someone that wants to keep them that way. Thats why he had to prove that his campaign wasnt just about selling pints of beer. We made it more about Small Business, big idea. Free market, this guy wants to grow his business. Why is anybody standing in his way . Let alone the government . Omar argued that surly wouldnt be the only brewery to benefit. His message was focused, hundreds of jobs could be created with a minor legal change. It kind of became a jobs bill. We have a lot of opportunity to do stuff here. Lets do it here as opposed to another state. This state representative was one of the sponsors of the surly bill. She believed it was an toon to the give the local economy a boost. What he was seeking was a very minor change, in my opinion, to kind of our liquor statutes in the state of minnesota. Representative loone says the law put businesses at a disadvantages. Thats how most businesses start, somebody with an idea. We have to make sure we arent putting road blocks in their way. Were here to create opportunities and create jobs. Omar and his team took their plight public. The fight had to be taken outside of the capitol doors. The people were going to have to help us out and support us. Fans of surly brewing, better known as surly nation were mobilized and they quickly took action. Facebook and twitter turned into base camps of information for surly supporters as the surly team spent hours making its case. It was a way to rally our troops but also bring everybody together and say heres what theyre saying, heres what that means to this project. Heres what we need to know for the next step. The support never wavered, lawmakers got a constant stream of e maim emails and phone ca people started to take it more seriously, surly nation. It was about Small Business, beer and the evolution of a company. Legislators took notice an a process that can take years turned into just months. With overwhelming support in the minnesota house and senate, the surly bill became law in may 2011. The result breweries like ourselves can get a tap room license. What that means is we can sell beer that we make here at this facility, we can sell that beer in a tap room. Only our own beer. With a win in the surly column, the company is finalizing plans for expansion. Omar says the fight was worth it, because the bill has opened the door to growth for everyone. So well see a lot of other breweries open up now with this law changing. And its just going to make the beer scene here a better and better place. When we return, well have some important advice to help you run your Small Business, including how to keep tabs on the competition and how entrepreneurs can stay focused in a world of smartphones and technological overload. If i can impart one lesson to a new Business Owner, it