But most entrepreneurs see challenges as well worth it to be part of a movement
By Al Olson and John Brecher | Â Published in MSNBC.com
Ask any entrepreneur about the challenges to his or her business and you will get an earful: zoning laws, tax regulations, employee retention, and the list goes on.
Now imagine being an entrepreneur in the $1.7 billion medical marijuana industry. You have the same struggles as any run-of-the-mill small business. But you also have to consider:
- Insurance may be expensive and hard to get.
- Banks might refuse to offer credit.
- The IRS could refuse your application for business tax breaks.
- State and local regulations are murky and constantly changing.
- Law enforcement could seize your inventory.
- Drug cartels might view you as competition.
- You could be arrested and sent to federal prison.
Why on earth would any business owner put themselves through this torture?
“I wouldn’t call it torture, but the headaches are frequent and throbbing,” says Bob Carleton, 66, CEO of Herbal Connections, a Denver-based medical marijuana dispensary.
Carleton got into the cannabis three years ago after a long career as an international business consultant.
“I’ve spent many years helping businesses in developing countries. You want to talk about torture? Our industry, in some ways, reminds me of the work I’ve done in Africa, South America and eastern Europe,” Carleton says. “But a good businessman has to have patience to deal with the bureaucracy and the confidence of the marketplace.”
Some, like attorney Lauren Maytin of Aspen, Colo., have a strong activist streak. For others, like photographer-turned-ganjapreneur Juan Diaz of Denver, it was a matter of economic survival.
Aaron Smith (Photo/John Brecher)
Aaron Smith, 32
Executive Director, National Cannabis Industry Association
Phoenix, Ariz.
As a teen, Smith found himself in trouble with the law for possessing a small amount of marijuana.
It proved to be a painful experience for him, but it also served as his motivation to become active in the marijuana movement.
After graduating from college, Smith went to work for a couple of marijuana advocacy groups before going out on his own.
In December, Smith formed the NCIA in order to give the emerging cannabis industry a voice.
“We are fighting to give these businesses equal access to banking services and tax benefits and other basic needs the industry currently lacks.”
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