Marijuana Business Magazine - May-June 2018

and willing to move to a new company, said Paul Seaborn, an assistant profes- sor of management at the University of Denver Daniels College of Business. “What I see happening is these firms looking outside the industry for someone who’s had success in an unrelated field,” said Seaborn, who’s been teaching the course Business of Marijuana. But convincing someone to jump from mainstream corporate America into the cannabis industry can be a challenge. “What I hear often is companies feel WHEN TO RELINQUISH THE REINS F ounders of marijuana-related companies often don’t have much traditional business experience. So as a company grows, and the task of running it becomes more complicated, the prudent thing for many owners to do is step aside as CEO and let someone with business experience take the helm. But that’s easier said than done, said Paul Seaborn, an assistant professor of management at the University of Denver Daniels College of Business. He recommends establishing an advi- sory board that can offer advice when trying to decide whether it’s time to turn over the company. “It’s hard for any of us to see ourselves as objectively as possible,” said Seaborn, who’s been teaching a course titled Business of Marijuana. Seaborn said the signs it’s time for a business founder to relinquish control of the company include: • Being so loyal to the original team that it’s impossible to expand the managerial group. • Being too focused on day-to-day tasks and not looking at the bigger picture. • Being single-minded and not seeing other opportunities. “Often, these are people who are good at working in isolation; it’s them against the world,” Seaborn said. “Suddenly, their job is to be a connector of customers, investors and suppliers. That can be a hard transition.” — Margaret Jackson Tripp Keber, co-founder and former CEO of Dixie Brands, stepped down as CEO from the Denver edibles company in December. Photo courtesy of Dixie Brands like they’re missing out on a big pool of talent because people aren’t interested in taking the risk,” Seaborn said. “To some extent, there’s still a stigma about being associated with the industry.” Nurturing Talent Since Medicine Man, Andy Williams has started three other cannabis-related companies, which he has since turned over to other people who were pro- moted within the business: • Albert Gutierrez is CEO of MedP- harm Holdings, a Denver developer and producer of cannabis-based pharmaceutical products. • Brett Roper is CEO of Medicine Man Technologies, a Denver consult- ing firm that licenses its cultivation and dispensary operating solutions. • Paul Dickman is managing partner of Breakwater MB, a company in Fort Collins, Colorado, that invests in cannabis-related businesses and takes them public. Williams admits it can be tough to relinquish control of a company, but it’s the only way to get quality people to step in. “It’s a leap of faith,”Williams said. “You have to give them the vision and direction, but for the most part, you have to get out of the way.” Williams said he likes to promote from within, so he’s careful about the people he hires and keeps an eye out for talented individuals who can take on leadership roles. He then mentors them to develop those skills. When he’s hir- ing, he looks for intelligent people who have a good work ethic. “You want somebody who is comfort- able with chaos and has a level head, somebody who is able to deal with dis- comfort and uncertainty,” he said. “And you have to trust them.” ◆ Paul Seaborn, an assistant professor at the University of Denver Daniels College of Business, says it can be tough to find qualified people within the cannabis industry to take over a company. Photo courtesy of the University of Denver Daniels College of Business 106 • Marijuana Business Magazine • May-June 2018