Marijuana Business Magazine May-June 2020

Marijuana Business Magazine | May-June 2020 94 Whatever method you use to manage money, minimizing cash on hand is essential, said Ramstad, who recommends keeping no more than two times daily sales in cash on-site. “In my opinion, it is best practice to have a checking account and pay vendors and employees using that account. Checks create a paper trail, so you don’t have to worry about proving to someone that you paid them. More importantly, they allow you to greatly reduce the cash on hand.” Jerry Millen, owner of The Greenhouse cannabis store in Walled Lake, Michigan, estimates banking costs him $20,000 per year. He also invested in a smart safe with built-in security features to protect his business and employees. Cash-focused businesses from casinos to quick-service restaurants to Costco stores use smart safes, which offer features such as automatic bill counting and sorting as well as counterfeit detection. PIN-secured logins, electronic connections and touch screens let owners keep an eye on the balance and reporting while protecting privacy. And these safes are very secure: They’re bolted to the floor with anti-drilling locks. Makers such as Hyosung, Loomis and Tidel offer smart safes starting around $8,500 for a basic version and priced as high as $35,000- $45,000, depending on options. When moving cash, security practices are vital. Whether you use a smart safe or a drop safe similar to those found at a 7-Eleven, executives at Denver-based Helix Security recommend that businesses schedule cash pickups at least every other day. Retailers should hire an armored service to transport cash. These services charge a fee of 3% to 6% of the amount of cash being moved, according to Helix Security. Fees vary, however, with one industry executive in Michigan putting the figure at 1%. BUILDING BARRIERS Physical security is any barrier between a business and those who would harm it. That includes walls, fences, guards and cameras. “The level of security starts with your doors—egress, ingress and locks—and how that’s monitored,” NCRMA’s McBath said. “You need to have cameras in place; there are requirements for What About Guards? An armed guard can be a theft deterrent and a valid source of protection, but some industry executives believe guards have as many drawbacks as advantages. Bob Ramstad, owner of Seattle’s OZ. Recreational Cannabis, noted that Washington state doesn’t allow armed guards. If it did, he’d still steer clear. “I don’t like guards, period, as they are targets,” he said. “I would feel terrible if a guard was hurt in a robbery.” Jerry Millen, owner of The Greenhouse inWalled Lake, Michigan, agreed he’d rather not have armed security. “I don’t want a big guy with a gun sitting at my door, because to me, that’s intimidating. I’d think, ‘Is something going to happen here?’” But Grant Whitus, president of Denver-based Helix Security, holds a different view. “After the rash (of 2019 robberies in the Denver area) …we saw a group of bandits hitting over half a dozen places, going in with handguns or long weapons. What these bad guys are looking for is a location that is an easy target. They can walk in, pull out a weapon and take what they want.” John Orloff, senior vice president of security risk management for Jensen Hughes, a global safety, security and risk-based engineering and consulting firm, also sees value in guards—including armed guards. “Guards receive de-escalation training as state requirement in most states, and that allows them to intercede in a developing situation rather than having the employees have to do it.” But, he pointed out, “Sometimes there’s an overreliance on the idea that the guard has security covered. Employees assume the guard has it, but security has to be owned by all the employees.” Similarly, Orloff cautioned that guards can become complacent over time when they work in one place without being involved in any activity, so they should have recurring training. “Human guards are expensive,” he added. “There may be a high turnover rate. And a client still may be attached to a lawsuit that could be attached to a guard’s actions, whether the guard acted properly or improperly.” – Susanna Donato Tamala McBath Security cameras at The Greenhouse in Walled Lake, Michigan, can spot movement in any area of the property or across the street. Courtesy Photo Beyond the Vault