Are you interested in pursuing a career in the cannabis industry, but not sure where to start?
Let me introduce you to Marcy, a cannabis industry expert who has co-founded and consulted for businesses in California, Colorado, and the East Coast. She has even helped clients get licensed and established in the industry!
The cannabis industry is still evolving, but Marcy believes that it offers many opportunities beyond just owning or working at a cannabis store. Affiliated industries such as marketing, advertising, security, waste management, packaging, architecture, and insurance can all benefit from having a cannabis arm.
So, whether you’re interested in starting your own cannabis business or pursuing a career in one of the affiliated industries, the cannabis industry offers a lot of potential for growth and success. And with Marcy’s insights and guidance, you’ll be on your way to making a name for yourself in the industry in no time.
How Marcy gets started in Cannabis Industry
According to Marcy, she co-founded the Green Door in Oakland, California in 2003, which moved to San Francisco after a year and operated for around 20 years in the South of Market area. She was involved in operations until 2010, but personal matters forced her to move out of state to Colorado, where she began consulting for businesses in the newly established medical cannabis market.
She helped these businesses with operational efficiencies and staffing, and eventually with their transition to adult use. After working with clients, she was headhunted by a national cannabis consulting agency, where she spent two years focusing on licensing and competitive markets in over a dozen states. She then decided to move back to her home state of New York to get involved in its cannabis market, where she has been working with clients in different East Coast states and has had three people licensed in the first justice-involved card application process in New York. She also has a pending application for a dispensary in New Jersey.
What does Marcy do?
Marcy clarifies that when she refers to having clients licensed, she means that she is responsible for writing the applications, gathering all the necessary data and submission materials, and putting everything together in a cohesive package to be submitted. If the submission is successful, this typically leads to a partnership where Marcy helps with startup and management.
Through this process, she becomes deeply involved with the applicants, gathering all the information and documentation needed, and essentially functioning as a cannabis guide. Once they successfully obtain a license together, it often leads to a long-term working relationship fueled by a sense of synergy and shared success.
What’s it like to go through the Request For Proposal Process?
Marcy explains that each license application process is unique and nuanced, with some consistent requirements such as inventory control processes, waste management, and security. However, there are also key differentiators that must be highlighted, such as the team’s qualifications and relevant experience, as well as their plans for the community. In New York, the process was different as they wanted to know about any arrests or issues with cannabis leading up to the application and then assessed whether the business qualifications outside of cannabis showed the applicant to be a savvy operator.
Marcy submitted applications in September 2022, and New York announced the first round of winners in November, making it one of the faster decision-making processes. For Marcy personally, she was working with individuals who were justice-involved and a nonprofit organization that provides vocational opportunities for justice-involved individuals. She was thrilled to have the first-to-market opportunity in what promises to be one of the biggest markets in the country and admits to jumping up and down in her living room upon hearing the news. It’s an exciting time for all involved.
What’s going on behind the scenes?
Marcy explained that outside of regular business qualifications such as financial preparedness and dialed-in processes, cannabis is a social enterprise that aims to give back to the community and effect social change. This goes beyond cannabis-related issues and encompasses the stigma and associated impacts of cannabis-related arrests.
She uses the example of Urban Upbound, which won in Queens and provides tax triage, resume preparation, and vocational services to economically disadvantaged areas, including those who have been arrested for cannabis and other crimes. They also provide vocational training to demystify what a cannabis career or business looks like.
She notes that, unlike a regular business, cannabis businesses must think about how to make a positive change in the community and de-stigmatize cannabis by being a good neighbor and making other positive impacts outside of safe access to cannabis.
Marcy talks about marketing her brand
Marcy admits that despite having consulted for a long time, she has never had a website or business card, and instead relied on word-of-mouth as a valuable tool for her business. She credits meeting incredible people, such as her interviewer, who has referred her to equally incredible people. Her attorney from California, who she worked with for a long time, referred her to an organization that she describes as incredible and is excited to see enter the cannabis market.
The organization has a huge platform with political connections and a focus on giving back to the community, which Marcy believes will be a great asset in the cannabis industry. She believes that this marriage between cannabis and community involvement is something that New York is getting right with their cannabis program. It’s an exciting time for the industry and for those involved in it.
Community Involvement in Starting Your Cannabis Business
Marcy emphasizes the power of being recognized in your community and having others rally behind you. She notes that this can be achieved by simple acts such as attending meetings, volunteering time, and spreading information to the public. Over time, this can earn recognition as a committed individual with good intentions, which can be just as influential as someone who can make political contributions.
Additionally, Marcy points out that the local government’s goal is to have people involved, and cannabis businesses require involvement and consideration to understand the needs of the community and be recognized as conscientious and professional operators. She attends council meetings in the town in New Jersey where she has applied, sometimes speaking up to let the council know she will be involved and committed to making a difference, not just making money.
Marcy encourages others to do the same, even if it’s just a simple statement so that when they submit their application, the council will remember them as thoughtful and involved community members. Ultimately, it’s important to be recognized and involved in the community for a successful cannabis business.
What’s happening on the East Coast?
Marcy provides an overview of the cannabis markets in Rhode Island, Massachusetts, New York, and New Jersey, where she has experience.
Massachusetts is a mature market but very saturated due to the lack of limitations on canopy and licenses, making it difficult to succeed without a unique or proprietary product. Rhode Island has a smaller market but is less heavily taxed than Massachusetts, and because of its initial structure, it lacks big brand names but has strong local brands. In New Jersey, two-thirds of municipalities opted out of allowing cannabis businesses, which caused a conditional licensing process where approved businesses struggle to find a permanent location and funding. In New York, hemp cultivators and manufacturers got the first crack at the market, but the retail market just started in November, and three businesses have gotten online.
There are issues around setting up a fund for the build-out of retail locations, and many landlords are reluctant to provide space. Additionally, New York has a large illicit market with an estimated 1,400 illegal dispensaries just in New York City alone. Despite these challenges, Marcy notes that New Jersey and New York are working to move things forward, and she is hopeful that eventually, they will be successful in establishing regulated cannabis markets.
Taxation
She also talks about the challenges in the cannabis industry, one of which is the high taxation that can go up to 20%. This makes it difficult for regulated businesses to compete with the unregulated market that does not have any taxation. She hopes that the industry will move towards fewer barriers to entry and lower taxes to allow for more traction on the regulated side and to undermine the black market. Marcy thinks that high taxes are the biggest chokehold to the industry, and she is waiting for a state that is visionary enough to lower taxes to a more reasonable rate like a regular sales tax of 7%.
She believes that this would bring in more new consumers to the market and make up the difference in revenue. However, she acknowledges that there are NIMBY (Not In My Backyard) voices who need to hear about the revenue to sign up. Marcy hopes that the industry will continue to evolve and move in the direction of fewer barriers to entry and lower taxes to better compete with the unregulated market.
Is there a winner?
According to Marcy, New Jersey has done a good job of simplifying the process of entering the cannabis industry, making it more accessible for smaller businesses. The straightforward and easy-to-follow rules make it easier for new operators to understand the requirements without needing to spend a lot of money on consultants. The state process is just a formality, and once you receive a letter of approval, you can start operating provided you can extrapolate the rules enough to make good procedures.
Marcy notes that people who have pre-existing relationships with municipalities and operate businesses in New Jersey have an advantage. They can leverage their experience as business operators and good actors to get approval for their cannabis businesses. Marcy hopes that other states will follow New Jersey’s example in creating a more straightforward and accessible process for entering the regulated cannabis market.
What advice would you give someone who’s just starting out?
In the cannabis industry, it is important to educate yourself and read the regulations, as boring as it may seem. This will help you understand what you are getting into and what the expectations are for the business.
Researching other businesses in the marketplace can also be helpful, especially if you are trying to enter the adult-use market and the state already has a medical market in place.
Visiting those businesses or contacting them to ask questions can provide valuable insights. Networking is crucial in this industry, and attending events and meeting people can expand your Rolodex and make you more nimble.
Even if you are 20 years into the business, saying yes to almost every meeting can still be beneficial. By growing your network, you increase the likelihood of finding valuable connections and opportunities.
The Current State of the Cannabis Industry
Based on Marcy, The goal of many businesses in the cannabis industry is to create a recognizable East Coast brand that can mirror the process of gaining traction across the country, much like the brands that gained popularity in California and Colorado. However, there are still major issues that need to be tackled before the industry can fully change the national dynamic. It’s crucial to educate oneself about the regulations and to network in the industry. One of the biggest issues is that people are unclear about what is and what is not allowed. New York’s enforcement policy is to educate, and confiscate if necessary, but not incarcerated.
The narrative surrounding marijuana needs to change in order to make it a legitimate business, and the benefits of regulated cannabis need to be more widely understood. In states with robust marijuana programs, there have been 23% fewer deaths from opiate overdoses, yet there is still a lot of misinformation and confusion surrounding the industry. Getting people to understand the benefits of regulated cannabis and how it mitigates many of the dangers is an important part of the national conversation.
Words from Marcy
Here are Marcy’s words of encouragement to aspiring Cannabis entrepreneurs: The cannabis industry offers many opportunities beyond owning or working at a cannabis store. The various affiliated industries such as marketing, advertising, security, waste management, packaging, architecture, and insurance can all benefit from having a cannabis arm.
Thus, it is essential to be open-minded and flexible when pursuing a career in the industry. Being open and nimble is crucial to success, as cannabis is still a moving target, and things can change quickly. Adopting a mindset of “everything happens for a reason” and letting go of past failures is also important in maintaining sanity and achieving success. It is also essential to be willing to pivot and change plans when needed. The cannabis industry is still evolving, but there are definite highs and lows, and pursuing a career in it can be worth it if one is passionate about it.
Connect with Marcy on Linkedin: https://www.linkedin.com/in/marcy-leventhal-10340a149/
I hope this has been helpful for you. Follow me on Instagram @highsalwa and visit highsalwa.com to learn more, access some downloads, and sign up for the email list. Listen to the High Class Podcast and leave a comment or suggestions for upcoming episodes. Thank you!
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If you’re competing, or you’re thinking about competing for a license, but you don’t know where to start, I went ahead and cleaned up all of my application material, and updated a lot of it and you can get your own copy here: https://highsalwa.com/business-downloads. It is what I use to win licenses in multiple different markets. I have cultivation, production and retail that’s currently available and I’m looking forward to adding more to give you a head start.
