Marijuana Business Magazine October 2019

Marijuana Business Magazine | October 2019 78 F or Plus Products co-founder and CEO Jake Heimark, planning for his family-owned business’ future is based on advice from his grandfather, who was a U.S. Navy commander during World War II. “He always said you never go to bed on the ship without someone else as captain while you’re asleep,” Heimark said. That philosophy, Heimark said, holds true with any business, so the San Mateo, California-based edibles manufacturer has identified people who can fill key positions in the event of a disaster that would prevent either him or his father, Plus Products Chair Craig Heimark, from running the company. “You can say, ‘It’s never going to hap- pen to me,’ or you can plan around it,” Heimark said. “The best companies plan around it in case something does happen.” Plus Products has a list of goals and responsibilities for each of its executives and has identified people who would be qualified to step into those roles. The list, which is in the possession of the company’s board of directors, is re- viewed every six months. The company also gives its employees equity so they have a stake in the business and are more likely to stick around. “What’s really important is to have a specific plan,” Heimark said. “You have to be brutally honest about what people are capable of and what they’re not capable of. The plans themselves are conversation pieces about how people are performing.” MAP OUT A PLAN Having a plan for replacing the leadership at any business when existing executives retire or leave the company is critical—and probably even more so in the rapidly changing cannabis industry. But in the excitement of building a marijuana business, many entrepreneurs don’t consider who will run the company when they decide to leave. “In cannabis, more often than not, they don’t have succession planning,” said Kara Bradford, CEO of Seattle-based Vir- idian Staffing. “I’m very happy if I can get them to do general workforce planning for six months out, let alone looking at three to seven years down the pipe hiring with succession planning in mind.” Several strategies can help companies prepare for the future. First, identify key positions such as CEO, chief financial officer and top sales and marketing positions. Then, identify key people who can be groomed to fill those positions. Jake Heimark, CEO of edibles manufacturer Plus Products, maintains a list of staffers who could step into executive roles, if necessary. Courtesy Photo Having a plan in place for who will take over your business is critical to ensuring a company’s longevity. Here are some tips for creating a succession plan for owners and executives when they leave their companies: • Identify key positions, such as CEO, chief financial officer and top sales and marketing positions. Then identify people who can be groomed to fill those positions. • Give employees an incentive to stay with the company by drafting employment agreements that outline incentives such as profit- sharing or equity in the business. • Look at the long-term potential your employees have to move into roles with greater responsibilities. • Cross-train existing employees on other roles and identify new hires who may be suitable candidates for high-level positions down the road. • Create a work environment that allows employees to grow and feel valued.