Marijuana Business Magazine October 2019

Marijuana Business Magazine | October 2019 82 is passionate about cultivation and wants to learn how,” Bradford said. “It’s smart to provide opportunities to explore other areas of the company.” Cross-training existing employees also will help the company if an employee unexpectedly quits, said Liesl Bernard, president and CEO of San Diego-based executive search firm CannabizTeam. If you don’t cross-train people, hiring a staffing firm that can provide talent on an immediate basis while you’re looking for a permanent replacement is another alternative. “Having a very open discussion regarding succession planning can be a positive strategy to have,” Bernard said. “It could motivate younger employees who are looking to advance. Career-progression vision and being open with where the company is headed could be a retention strategy.” TARGETINGMILLENNIALS Millennials, who will make up half the workforce by next year, like to be promoted quickly. Other options for grooming millennial employees: job titles, a flexible work schedule and the opportunity to be creative and have input into the business. To attract and retain these workers, it’s important to create an environment that is fun and allows people to grow and feel valued, because those are the things that keep employees in an organization. “It’s not always money,” Bernard said. “Millennials want flexibility, con- stant feedback on how they’re doing and quick promotion. Sometimes even just a title change without a salary raise goes a long way with millennials because they want to be recognized.” Boulder, Colorado-based Canna Advisors, a cannabis business consulting firm, has helped several of its clients with succession planning. Founding partner Jay Czarkowski said entrepreneurs, which includes most company founders in the cannabis industry, should always be working to replace themselves. Finding a person who is better than themselves should be every entrepreneur’s goal. Czarkowski also said hiring people who fit in with the company’s culture is crucial. “We’ve hired key people to replace ourselves on the management level,” he said. “People have to be a culture fit or it will totally screw up your exit plans. Our culture is based on hard work, integrity and, most importantly, it’s based on loyalty and people who support each other.” Succession Planning Made Easier? With Colorado’s marijuana industry soon to open to outside investors, it may become easier for business owners to exit their companies and have someone else ready to take the helm. In May, Colorado Gov. Jared Polis signed legislation ending the ban on publicly traded marijuana companies, opening the state’s cannabis industry to outside investors for the first time since recreational MJ use became legal in January 2014. The law is slated to go into effect Nov. 1. “The change will impact how ownership is held,” said Mike Weinberger, chief operating officer of Denver-based One Cannabis. “We’re seeing the evolution of where exit can be easier. For now, their hands are still being tied.” Even though it might be easier in the future to sell to an outside investor, cannabis companies still need to do succession planning, said Weinberger, a franchise attorney and former CEO of Maui Wowi Hawaiian Coffees & Smoothies, which was acquired in 2015 by Kahala Brands, the operator of restaurant concepts such as Cold Stone Creamery. One Cannabis, founded about a year ago, franchises marijuana dispensaries. “If you’re going to go into business, you should know when you want to get out of business,” he said. “The only way I can help a franchisee or anyone I work with is knowing where they want to end up.” Sometimes, owners will want to pass their businesses along to family. Other times, they may want to put an operator in place but not exit the company completely. And, in some cases, owners just want to sell. Whatever path they choose, it’s critical that they understand their true motivation, whether it’s about timing, money or legacy. If they want to sell, they should spend at least six to 12 months getting ready to put the company on the market. Hire good attorneys and accountants and get your documents in order, Weinberg said. “Selling a business is not for the faint of heart,” he said. “Even if you’re transferring internally, there’s a path to go down.” – Margaret Jackson Cross-training employees can make unexpected vacancies less stressful on staff. Courtesy Photo