In 2008, Michigan voters voted to legalize marijuana for medicinal use. Since 2008, dispensaries have been regulated for operation on a city or township level, and the city of Detroit was more welcoming to the cannabis industry than any other city in Michigan. On the busy street of 8 Mile in Detroit it seems like the neon green cross is on every other building for miles. The dispensaries have not been allowed to apply for a business license and so were not paying state taxes. This put the dispensaries in a gray area with the state. Legal or not, the cannabis industry in Michigan and especially in Detroit has been very lucrative.
In September of 2016 a bill was passed to grant licenses to dispensaries, cultivators, labs, extractors and transporters. Due to this bill, the Licensing and Regulatory Affairs (LARA) is accepting applications on December 15, 2017 for business licenses. The state passing a bill to accept licenses is great news for both the dispensaries and the state. The dispensaries will no longer have to look over their shoulder in fear of being shut down due to operating without a license and the state will receive tax revenue from the industry. However, the honeymoon came to an end when LARA also required dispensaries to shut down their operations effective on that same date of December 15, 2017 or risk being denied a business license. Even still with this plan the licenses will not be granted until the first quarter of 2018. This leaves a potential 3 month gap where the dispensaries will not be generating any revenue and more importantly patients can’t get their medication.
A number of dispensaries have shut their doors already in an attempt to curry favor with the state. Most dispensaries are remaining open to try and make as much revenue as they can before being out of business for an undetermined amount of time. While being out of commission for a few months will temporarily hurt Michigan’s cannabis industry, it is very important that if you are looking to re-open or start a cannabis operation that you fully understand the regulations. Unfortunately many cannabis operations may not be granted licenses and for some dispensaries December 15th will be their last day in business.
On September 21, 2017 the state did answer a big question that many in Michigan’s cannabis industry has been asking since 2016 when the state passed the bill to grant licenses: can one location have multiple licenses?
LARA made the decision that a location is allowed to operate multiple licenses if it meets the following criteria;
The Department authorizes the licenses to operate at the same location
The facility must have separate working areas, entrances, exits, point of sale operations and record keeping systems in place for each license.
The co-location is in keeping with local ordinance or zoning regulations.
The licensees comply with all local and state regulations for building inspection, fire safety and public health standards.
This is great news for Michigan’s cannabis businesses. This means a business can buy just one building and as long as it fits the above requirements their whole operation with multiple licenses can be ran out of one location instead of multiple locations. This will reduce cost and increase profits making the industry more attractive to businesses and investors.
As the December 15th deadline approaches, it is slowly being revealed and realized how the future of Michigan’s cannabis industry will look. As chaotic and uncertain Michigan’s cannabis industry is presently, I am excited about the direction it is headed and the possibilities and opportunities it can provide to my home state.
Please be prepared and don’t wait until the last minute to enter into this exciting new chapter of Michigan’s cannabis industry!
If you are to apply to any of the five licenses, please make sure you review House Bill 4209.
Kefentse Mandisa is a broker at Mandisa Risk Advisors.MRA is an insurance agency and risk management consulting group that provides superior service and products to their clients.
As a specialized insurance agency they provide services to the cannabis industry. This includes dispensaries, cultivators, processors, landlords and physicians to name a few.
MRA being narrowly focused on the industries they have a strong expertise, allows them to better serve their clients.
Survey: Employee Engagement in the Cannabis Industry
Needle Consultants, LLC, presents the Cannabis Industry Employee Engagement Survey
With thousands of employees working in the cannabis industry, the industry has become a significant employer in the states that have legalized cannabis production, processing, and consumption. Ensuring that the industry is creating a satisfying work environment and a fulfilled workforce is key to attracting and retaining top talent and provides certainty to business planning.
Workers today not only seek this sense of purpose within their places of work, but have also been known to accept less compensation, if fulfilled in other ways, offered “nontraditional” benefits, and/or opportunities to engage in authentic community activities.
Marc Ross, Chief Instigator at Needle Consultants
As the leading cannabis industry organization, NCIA desires to see our member businesses thrive, with tens of thousands of satisfied and fulfilled workers, eager to participate and add their talent and passion to our work. We also seek to be an industry that improves the lives of not only our members’ patients, clients, and customers, but their communities.
“I’m really excited to have this opportunity to do a deep dive into employee engagement as it pertains to the cannabis industry” says Marc Ross, Chief Instigator at Needle Consultants, LLC. “It is my belief that by gathering a baseline of this data and identifying opportunities for improvement, we’ll be able to help create a healthier and more satisfying environment for the industry’s workers, which in turn, will elevate the industry overall.”
· Overall Worker Satisfaction
· Worker Needs and Desires around Benefits
· Worker Desires around Community Engagement opportunities
Who should take this survey?
Employees of direct-to-plant cannabis companies, including cultivation, retail, and processing and manufacturing from MIPs and concentrate companies, with a heavy focus on Colorado-based companies.
The survey is anonymous.
Cannabis companies that self-report participation of over 90% will receive recognition by NCIA in the future report. One lucky participant will even win a complimentary Seed To Sale Show 2018 registration.
How long does it take to complete the survey?
The survey takes approximately 5 to 10 minutes to complete.
How long is the survey open? The survey will be open for collecting anonymous responses between now and December 1, 2017.
We believe the results of this survey will provide immeasurable value as companies within our industry seek to build happy and fulfilling work environments. The results will be analyzed and compiled into a comprehensive report which will be shared with the cannabis industry at large.
NCIA visited the Palm Springs & Desert Hot Springs communities in September 2017 to meet and greet with current and future members. At this Member Drive networking event, cannabis industry professionals connect at the local level and reaffirm the importance of staying plugged in to a larger, national voice of thousands.
Member Blog: 3 Typical Challenges Associated with Cannabis Marketing
Although the world is beginning to wake up to the benefits as well as the drawbacks of marijuana, stigma still remains. For that reason, then, businesses who are trying to market the nowgrowing and improving marijuana industry can find that it’s more of a challenge than they would have expected. While some people are happy to look beyond the stigma, many others area little less capable of doing so. This poses particularly unique problems in terms of strategy for the cannabis marketing industry.
What, then, should newbies trying to promote cannabis and marijuana appreciate about the challenges ahead?
The Regulation Challenge
The first problem stems from the challenges of regulation. Given that many government authorities have yet to legalize marijuana, it can still be a challenge to get spotted on search engines. Many marketing programs such as pay-per-click marketingtry to forbid such content, and thus it can be hard to make a push through traditional marketing means when it comes to marijuana.
Some areas are lax, but FDA regulation – amongst other government authorities-still say no. As such, the regulation issue makes it hard to use the most powerful channels to market the message properly.
Brand Identity
In such a specific topic and market, it has become increasingly challenging for people to build what would be a normal brand identity. This means that for most businesses in the cannabis industry, following the typical accepted wisdom of marketing is not quite as easy as it may have once seemed.
It’s hard to get a development and a design that is going to help make sure a cannabis business can grow people outside of those already looking for the topic. The main challenge isn’t so much being spotted, but being able to appeal to people who don’t already use the plant.
One way that is possible is by maintaining ahigh quality blog, where all types of questions are being answered. Another must is having a good “about us” page to show that you are a real company, just like other companies that people might be more familiar with. Lastly, you could always start a museum and work on reaching a bigger audience from there.
Lack of Traditional Opportunity
Another major issue is that the selling of cannabis is hardly a suitable connection to the likes of B2B marketing, direct mail programs, e-mail marketing, broadcast media and various other popular forms of marketing. For that reason, it has become a rather complex battle for businesses to try and overcome. At the moment, there is a major lack of traditional marketing opportunity for those who are looking to try and make their mark as time goes on.
Unsure how to make that stick? The challenges are going to exist for some time. It’s recommended that anyone looking at making themselves part of the thriving cannabis industry realizes that the typical modern forms of marketing have not yet caught smoke in this part of the industry.
It’s very hard to offer the kind of marketing arm that you would expect when it comes to promoting a product with such a splintered history and past. While possible, there is a huge amount of work, planning and preparation needed before those looking to make their first steps into the marijuana industry can ensure their message is both heard and taken seriously.
And, let’s keep in mind: If it’s hard, it means that not many people can make it work, so if you succeed, you’re one of the lucky few and you truly stand out.
Daniel Ramirez is the Chief Marketing Officer for Belladonna Growhouse, a fully licensed i502 producer/processor in Washington State. In addition to his work with Belladonna, Daniel owns and operates a marketing company specializing in online PR, social media marketing, branding and lead generation. Daniel is a graduate of San Diego State University with a bachelor’s degree in Business Management with a focus in Entrepreneurship. Daniel is passionate about normalizing the responsible use of legal cannabis and shedding the stigma associatedwith the plant.
Member Spotlight: The Arcview Group
The Arcview Group, with CEO Troy Dayton
Member Since:
December 2010
Industry Sector:
Professional Services and Consulting, Investment and Asset Management
Tell me a bit about your background and why you launched your company?
Steve DeAngelo and I started Arcview in 2010 because we believed that business would ultimately become the single biggest factor in leading the end of marijuana prohibition — but there was a lack of leadership, professionalism, and scaling knowledge in the sector. We didn’t have all the answers, but we both knew a lot of the right people, so we surmised that if we structured a way for these parties to come together in a curated community around facilitating investment in the sector, we could ignite the power of free enterprise and aim its tremendous power towards political progress and the development of a new kind of industry.
I got my start in cannabis when I was a freshman in college at American University where I was one of the Marijuana Policy Project’s first volunteers in 1995, the year it was founded. I went on to intern for the Drug Reform Coordination Network at the dawn of the internet age where I helped start a project called U-net, which was a list-serve of college drug reform activists. Obvious thing to do now, but then it was revolutionary because it was the first time college activists could find each other and communicate easily. We rallied hundreds of activists behind a fellow student who was being kicked out of college for starting a marijuana policy chapter. It wasn’t long before we realized that it was time to start a more robust student drug policy organization. That began Students For Sensible Drug Policy which is now on hundreds of campuses nationwide and is a major force for political change.
Over the years, I helped start a digital video media company that was a cross between Youtube and Facebook. We raised millions of dollars but ultimately went “dot bust” because we were about 7 years too early with exactly the right idea. Then a few of us from that endeavor started a renewable energy company called Renewable Choice Energy, which was recently acquired by Schneider Energy 15 years later. I spent 3 years working with religious leaders and religious denominations helping them advocate for various drug policy reforms where I could. I spent two years as the Director of Development for the Multidisciplinary Association for Psychedelic Studies (MAPS). Just before I started Arcview I was the lead fundraiser for the Marijuana Policy Project.
I always felt like I had to choose between being part of the next business boom or fighting for what I believed in and remaining poor. I never in a million years believed that my work to end marijuana prohibition would have led to the next business boom. It didn’t occur to me until 2009.
What unique value does your company offer to the cannabis industry?
Arcview is the largest source of investment deal flow in the sector, and the publishers of the most trusted and best-selling market information. Our 600+ high net worth investor members have placed north of $150 million into 160+ cannabis related companies. We are the launch pad for companies seeking capital and mentorship, and for investors figuring out their investment thesis and developing relationships with the people they will need to make the most of this rare economic opportunity. As more investment conferences and pitch contests develop for the sector, and as more traditional investment gatherings start looking at cannabis, I think our biggest differentiator is our incredibly generous community. I’m astounded everyday buy the blood, sweat, and tears that our members put in to help each other and help these companies succeed. Unlike most investment conferences where almost everyone is there pretty much for their own self interest, at Arcview we’ve created a unique environment where people are also there for the benefit of the community, and for the love of the game. And we have a ton of fun.
Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?
At every event we have a non-profit working to change the laws give a pitch to the members, and then I ask people to make commitments on the spot. We’ve raised more than $3 million for the cause during these efforts. And when people make their commitments they often say a few words about why. We make it clear at Arcview that if you are investing in this industry, you also need to be donating to the cause. It’s not just good for the soul, but it also make great business sense.
We are also a key place for organizations like NCIA and others that are advocating for good business practices and diversity in the industry. Steve DeAngelo and I both serve on the board of NCIA, and I serve on the board of the Marijuana Policy Project.
I also think that our unique community culture at Arcview helps create a new kind of industry, where people hug instead of shake hands, where they look into each others eyes instead of each others pockets, and where people get to bring their whole selves to their business and not just this plastic old school version of “professionalism.”
What kind of challenges do you face in the industry and what solutions would you like to see?
The very rapid reduction in the wholesale price of cannabis is both a huge opportunity and a huge challenge depending on where you sit and how you look at it. It’s going to be great for consumers, agricultural product creators, landlords and for the legal markets competing with the illicit markets. It will not be kind to small boutique growers and to the amazingly rich culture that has been built around small scale cultivation. There are some great companies helping people transition and coming up with cooperative models that will help boutique farmers compete. There are also efforts to brand those growers and maintain consumer support for more expensive cannabis where they feel connected to the cultivator.
Another big challenge we face is severely limited licensing that only benefits a few. This is particularly a problem in the Northeast, but also in some countries as legalization spreads. Limiting licenses is not a terrible idea if it’s within reason, but there are a few examples where it’s way too lopsided into just a few operators controlling a market. Many people think this is temporary, and that after federal prohibition ends these regulatory structures will loosen up. I’m not as optimistic. When only a very few benefit hugely, they are incentivized to hold on to that structure for dear life, particularly if it is helping to uphold unnaturally high pricing. We could see the federal government leave it up to the states and those states maintain those oligopolies. In fact, I think that is most likely.
But the biggest challenge we face is that people think we have already won and so they are not donating to change laws and they are forgetting that they are right now committing actual civil disobedience and are subject to arrest and imprisonment. Wake UP! If you are already “woke” on this point, then please go “woke” some other people. An industry with a 27% Compound Annual Growth Rate and a ton of enemies needs to be building a powerful and well-funded lobbying effort on the order of the gun, tobacco, alcohol, gaming, and pharmaceutical industries. But we aren’t even close. The fact that we have made so much progress with the tiniest fraction of those industries lobbying budgets is testament to just how right we are and what amazing advocates we have. But we are in the big leagues now and we need to swing like we are in the big leagues.
If you are not donating at least a percent or two of your revenue or amount invested, then you are riding coat tails and you are the reason we have not made additional progress. As the Beastie Boys said so eloquently, “You’ve gotta fight for your right to paaarrrrtaay!”
Why did you join NCIA? What’s the best part about being a member?
I was a founding board member of the NCIA because I believe we need a strong lobby advocating for our interests. I also wanted to make sure that we set the tone that this is not just an industry, but a political movement with social justice aims. NCIA is the perfect expression of those ideals. My favorite part of being a member is being on the board and getting to marvel at the amazing, quirky, fun, and incredibly accomplished women and men that lead this world-changing industry. It’s a true honor to serve along side them as we create jobs, wealth, tax money, health, and freedom.
Kefentse Mandisa is a broker at Mandisa Risk Advisors. MRA is an insurance agency and risk management consulting group that provides superior service and products to their clients.
