Marijuana Business Magazine - May-June 2018

out of the position,”Williams said. Deciding when to go is just the first step for any CEO.The next step is find- ing the right successor. “You’ve got to be thinking about it when you start the business,”Williams noted. “You have to identify talent and mentor them.” Knowing When It’s Time Tripp Keber, the co-founder and former CEO of Dixie Brands, a Denver-based edibles company, began thinking it might be the right time to pass the baton in late 2016, while read- ing an article in the Harvard Business Review titled, “Why Entrepreneurs Don’t Scale.” “All of us have a little voice in the back of our heads that tells us the truth,” said Keber, who stepped down as chief executive in December after having co- founded Dixie in 2010. “That was in the back of my mind for most of 2017. We were dealing with lots of growth and expansion. We had trials and tribula- tions along the way, and I really started to do some soul-searching about my skill sets and professional experience.” That soul-searching allowed him to have open and honest conversations with the Dixie team that were predi- cated on trust and ultimately determine that Chuck Smith, who co-founded Dixie with Keber, would be right person to take the company to the next level. “Chuck is far more analytical than I and has a strong financial background,” Keber said. “We own more than two- dozen companies together. Dixie became the shiniest object in our portfolio and required more than my attention.” Keber said he remains actively involved with Dixie.The business licenses remain in his name, and he has a seat on the board. But he knows it’s important to step aside and let Smith run the company. “I have as much – if not more – to lose than anybody,” he said. “I’m still actively engaged, which is a delicate dance of ballet, because Chuck is extremely competent and a very capable leader. I have to be respectful of any- body who sits in that role.” Finding a Successor Once a CEO has determined it’s time to go, the next step is finding the right person to run the business. Susan Heathfield, a Michigan human resources management and employment expert who writes for TheBalance.com, said handing a com- pany over to a family member is often more comfortable for a business owner, because there’s already a relationship that’s been built on trust. But if passing the company off to a family member isn’t an option, she said it’s critical that you’ve hired the right people. “The key thing is to make sure you’ve hired the appropriate people that can actually build their talent and skills to replace whoever the current CEO is,” Heathfield said. “If you haven’t built that leadership, you’re going to have to seek a buyer or talent outside the company.” If you have to look outside the com- pany, Heathfield added, it’s best to stick to people already in the industry. “With every industry, it’s know- ing who the players are, knowing who has the experience and who has been successful,” Heathfield said. “Your best candidate is going to be somebody who is successfully working at another com- pany in the job you are hiring to fill.” Because the legal marijuana industry is so new, however, it’s often difficult to find someone in the industry who is qualified Serial entrepreneur Andy Williams of Denver starts thinking about who will take over the business from the time he starts a new venture. Photo courtesy of Medicine Man Michigan human resources consultant Susan Heathfield says it’s often more comfortable for a company’s founder to hand the business over to a family member. Photo courtesy of Susan Heathfield EXECUTIVE SUMMARY As the cannabis industry matures, more entrepreneurs who founded companies in the early days are recognizing it’s time to step aside and let someone else run the business. Here are insights into ceding control and letting someone else take the reins: • Giving control of the company to a trusted family member is often the least stressful way to hand off the job. • When launching a company, look for people who can take on leadership roles when you’re hiring. • When it’s not an option to give the chief leadership spot to a family member, look for someone who is doing the same job at another company within the industry. • After you’ve picked someone to become the new CEO, get out of the way and let that person run the company. 104 • Marijuana Business Magazine • May-June 2018