The entrepreneurship life can seem really easy and glamorous online, but how do you know if you’re really ready to make the jump from employee to cannabis entrepreneur? It can definitely be done, I’m proof of that, but I have some things you should consider first.
In this episode, I’m putting my cannabis auntie hat on and talking all about what it takes to become a cannabis entrepreneur (or really any kind of entrepreneur, the basics apply). I share what to consider, my list of signs to know if you’re ready for entrepreneurship or not, and final pointers on what your next steps should be if you do think you’re ready.
Remember that becoming an entrepreneur is more than just starting a business. You’ll need to sacrifice, and learn, and possibly even fail before your business will become successful. I hope this episode encourages you on your business journey.
If you’re a DIY cannabis hustler who is just getting into the industry, make sure to subscribe to my podcast, High Class, where I help you move past the frustration, hurdles, and red tape of the cannabis industry.
In this episode, you’ll learn…
- [01:12] Two things to consider first about being an entrepreneur: sacrifice and payoff
- [04:25] My list of how to know when it’s time to leave your job and pursue the entrepreneurial life, like taking risks, gaining industry experience, building credibility, and more
- [21:34] Reminder: entrepreneurship is not just about starting a business it’s so much more than that
- [22:05] If after listening, you feel ready to start your business, here are a few last minute pointers on finances, market research, mentors, adaptability, and legal considerations
If you want to know if you’re ready to become a cannabis entrepreneur, and want my advice on how to make it happen, be sure to tune into this episode:
Links mentioned in this episode…
Episode 24: How to Get Your Cannabis Brand on Dispensary Shelves with Daniel Chung
Stay Connected!
High Class Podcast Community on Facebook
Transcript for Ep 30: How to Know if You’re Ready to Become a Cannabis Entrepreneur:
[00:00:25] Salwa Are you thinking about getting into the cannabis industry but aren’t really sure how? I’m Salwa Ibrahim, your cannabis auntie, and I’m here to help you find accelerated success in your cannabis business. And I’m sharing all the details on how to get there. So get comfy as we dive in.
[00:00:48] Salwa Hi! on this episode of the High Class podcast, we’re going to talk about if you’re ready to take the plunge from being an employee and diving into the entrepreneurial life. So to get us started, have you ever heard the quote, “Entrepreneurship is living a few years of your life like most people won’t, so that you can spend the rest of your life like most people can’t”? I just love this quote because it highlights two things that I think are so important when considering making the jump into entrepreneurship.
[00:01:20] Salwa One, the all important sacrifice that just comes with the journey of entrepreneurship, because there will be sacrifice, whether it’s not spending money on extra pleasures you’re enjoying to save up for a website or a class or a C Corp or anything like that to not hanging out with your friends, to write that business plan or even moving back home with your parents or taking on a roommate so you can get a bit of extra cash to throw at creating or starting your business. Regardless of how you slice that pie, there will always be some sort of sacrifice up front if you want to become an entrepreneur. I can’t think of a single success story that doesn’t have some sort of hardship, failure or sacrifice on the front end. That being said, this quote also highlights the payoff of that sacrifice so that you can spend the rest of your life like most people can’t. The promise of a life of passion and freedom built by your own hands. You can have the ability to make yourself so proud. I mean, how cool would that be? The promise of freedom and getting to do what you love, which for me is helping connect people to this miracle plant and help them on their health journey is enough to make me want to pursue entrepreneurship.
[00:02:37] Salwa But before I even had that feeling or realization, I had so many jobs before I even knew what entrepreneurship was or that it was even an option. I mean, I come from a standard, get an education, then get a job type of household. As soon as I could, I started working, I walked dogs, I worked at Old Navy, Lids, Abercrombie and Fitch. I was a beer cart girl at Tilden Park Golf Course, which side note, was one of my favorite jobs ever. I worked auctions at fancy parties being a model for items that are getting auctioned off for charity. I’ve been a receptionist, a party planner, a fundraiser for elected officials. I’ve done so many jobs, and it wasn’t until I was working for an owner of a dispensary, that’s when I was started, like kind of watching and taking notes and thinking about how I could do things better or how I can innovate or create efficiencies. And I have to admit, a life of entrepreneurship was not always my plan. In fact, it took many years for me as a business owner to become even comfortable enough admitting I was an entrepreneur. There is something about that word that is intimidating for me. It’s funny because I felt way more comfortable saying like, Oh yeah, I’m just a license holder, or I just do this one thing, belittling my role in my business. And for many years I didn’t have the confidence to even say, Yes, I am an entrepreneur. But as the years went on and the responsibilities piled up and I only had myself to look to, I found comfort and camaraderie in it. But entrepreneurship is not for everyone. It takes so much resilience and tenacity and consistency in general, but especially in cannabis, in order to make it so.
[00:04:25] Salwa How do you know if it’s time to take the leap and leave your job and pursue the entrepreneurial life? Well, here is my list. I tried my hardest to keep it as concise as possible, but I have to admit, in writing this episode, I have lists inside of lists, so bear with me on this one. But here is my list to see if you are ready to make the plunge.
[00:04:45] Salwa Number one, we’re going to start with the obvious here. The first thing is you are thinking about it, like a lot. Maybe you’re a budtender and you’re just thinking and daydreaming and fantasizing about all the things you would do differently if this was your store. Maybe you’re in a cultivation and you’re consistently thinking of efficiencies that would help make a better product or how you would package your concentrates. You have to have a vision and maybe you’re even starting to speak about it to loved ones or anyone who will listen because you’re bursting with ideas and passion. That vision is becoming stronger and more vivid in is taking over your dreams. You can visualize what your day to day would look like if you were the boss and if you ran the show. That, in my opinion, is the first step to realizing your entrepreneurial dreams and change the dream into a vision. And I would argue to clarify and define your vision in your dream and really kind of shoot for the highest possible version of that vision or dream as you possibly can. I urge you to not limit yourself and set the goal as high as possible. What type of cannabis brand or dispensary do you envision for yourself? What type of impact do you want your store or your brand or your flower or your concentrate to have on your community? What legacy are you trying to make? Do you want to be statewide, countrywide or international? Do you want to go public or partner with a celebrity or become a celebrity? Whatever that looks like for you. I think this is a key part to making this become a reality. I know so many people who had a dream of a brand and they launched it, but they couldn’t get it into stores because they blended in with all the other brands. They didn’t have a specific vision or a specific goal in mind, or I know some people that they launched a store and there’s nothing unique about that store that drives traffic in. Dream your highest dream and vision yourself with purpose and clarity on what type of product, brand and impact you want to have. I remember when I first started working for Richard Lee and I got to oversee a lot of the different entities that we had. I would always question why he was doing it this way, or wouldn’t it be cool if? Those beginning fantasies of how my store would look like and what type of products I would have or the type of relationship I would have with my staff were really helpful to not only envision in my mind of something to shoot for, but also it came in handy when I had to solicit investors. I had a clear vision and I had been fantasizing about it for a long time. They could tell that I’ve thought about all the details. So when they came to question me on certain things, I could say, “Oh yeah, I thought of that. But I didn’t think that would work because,” and they realized that I had so much passion. Or dare I say, I was obsessed. But I don’t think that was a bad thing.
[00:07:52] Salwa All right. Number two, you’re okay with risk or at least have come to terms with the fact that risk is part of the equation and you’re ready for it. But also you recognize that you are worth the risk and you are down for it and you are going to give it your all. Like, really, you weren’t going to give it everything you got. For me, when I want to commit to a project, this may be controversial, but I tell people. I tell people about my project. I tell people about the thing I want to start. I share it with my peers and my colleagues. When I wanted my dispensary permit or when I had my vision for Grasslands and Outside Lands or this podcast, I told people simply because then it forces me to perform. If I tell my peers that, Hey, I’m going to do this thing and I don’t do it, I want to have a really strong reason, not just like, Oh, I couldn’t figure it out or it was too much work. When I tell my peers, I use it as a form of accountability to hold me to the work and to make sure that I get to the finish line and hey, maybe that’s just me. And I guess this is more of a tactic I used to just trick myself into completing and accomplishing the tasks needed along the way. Also, when I went after my first dispensary permit, Oaksterdam University had been raided and I lost my job because of it. And so my boyfriend at the time now husband ended up investing in me. Which side note ended up being a killer investment for him. But I digress. I felt so much pressure because I wanted his money to be well spent, and so I tried my absolute hardest to get that permit. He, on the other hand, would tell me, It doesn’t matter if you win this permit or not. The amount of learning and experience you’re getting is the equivalent of a college degree. And he was right. I was learning so much and I still value that knowledge to this day and that took all the pressure off. It didn’t matter if I didn’t get that permit. I went through that process and I networked, and I know that if my effort fell short, I would at least be closer to getting a job that I enjoyed with a salary that would sustain me. So I want you to look at it not as a risk, but as an investment into your education and experience. Because even if you don’t cross the finish line on your first try, you’ll be so much closer and set up to win on your second try. Armed with experience, knowledge, and your resources you built from your first effort. So if you put in 100% effort, there is no losing. At least that’s one girl’s opinion.
[00:10:41] Salwa All right. Number three, industry experience. This one’s important for so many different industries. But I think it’s slightly more important in the plant based medicine world. If you think you want to get into cultivation, retail, manufacturing, distribution, like any facet of the industry, you should definitely consider getting a job, internship or at minimum, a tour before jumping in. And I mean it. It’s so important to understand the actual work equipment, types of roles that need to be filled and the flow that’s just needed to run that company. And sorry if this is obvious, but I have seen a lot of people decide that they want to cultivate or do extraction and buy a bunch of equipment and raise a bunch of money for construction only to fall on their face and burn through the money without even starting. Also, they had no idea how to run the business or seeing people get into the industry and they don’t even like weed, which is insane to me. Imagine owning a horse stable, but you don’t like horses.
[00:11:45] Salwa Anyway. All right. Okay, let me get specific. It’s important to have industry experience to gain a handful of things. Number one, practical knowledge. Industry experience gives you practical knowledge about how a business operates in your industry. This knowledge is not taught in school or through books and can only be gained through hands-on experience. This is so critical for the supply chain. I think retail is a bit more generous to kind of figure it out while you’re building the business, but cultivation, extraction, making edibles are going to be brutal to figure out while you’re building the business. So gaining some hands-on experience is key.
[00:12:29] Salwa Two, network building. I ask a lot of my guests on the show, What is the one piece of advice you would give someone who’s just starting out? And majority of people said network and make connections. This is a huge, huge part of this game. Know as many people as you can and stay connected. It will come in handy. When you’re in the industry, you will have opportunities to meet and network with peers and professionals in the industry. And look, it’s a tight circle and a lot of people know each other and people change jobs and roles and positions and start new projects and move up and down and around the supply chain all the time. Make friends and keep them. These connections can be valuable when looking for job opportunities or advice, or even to get onto shelves or offload bulk. I cannot count how many times I had a problem, like I needed a ton of clones or to offload some trim or source some Rick Simpson oil and had a friend help me out or vice versa. I mean, I love being a resource to my friends and connecting people together. I take great pride in that. But I got to tell you, my friends have definitely saved my butt quite a few times.
[00:13:45] Salwa All right. Number three, understanding of industry trends. Gaining industry experience will give you a better understanding of the current trends and changes in the market. This can help you and your company stay competitive and make informed decisions. Being in the industry for a year will let you see when the slow season is and how long it really lasts. When peak season hits and what consumer behavior is like during summer versus winter. The holidays and our holidays like 420 and 710 understanding industry trends and the market may show you what demographics actually spend money and which demographics are not loyal to a brand, just loyal to the flower or a deal. Also, understanding industry trends can illustrate the best way to communicate your brand to a particular customer. Like do they understand the benefits of terpenes? Or is your target customer more comfortable with the intensity of a hybrid terminology? How much effort should you spend on teaching the consumer? Also, if the market is favoring fruity or gassy strains given a particular season. The point I’m trying to make here is that even if you have limited industry experience, it’ll give you knowledge to use for your business that will set you up for success and save you money.
[00:15:09] Salwa All right. Number four, credibility Industry experience can increase your credibility and value in the market. It shows that you have a deep understanding of the field and have successfully navigated the challenges in the industry market. I have an episode out with Mr. Daniel Chung. He started as a bartender at Harborside, and then he moved to be my buyer at Bloom, and he went on to start his own dispensary called Rooted. By the time he opened his doors, he was so far ahead because he had so much experience with buying and training staff and vendors and brands knew him, and I’m sure they gave him great terms on products because he had credibility in the industry before he became an owner. In this business, who you are and what you stand for goes just as far as anything else. If you have an opportunity to establish yourself and work hard to gain credibility in the industry before taking the plunge into full time entrepreneurship, do it.
[00:16:14] All right. Back to the list on if you are ready to make the plunge into entrepreneurship. Number four. And I honestly don’t even really know how to say this, but you’ve got to be okay with missing some things, like paid time off. Poof, that is gone. As a matter of fact, just not having a strict schedule can be really challenging for some people. You have to be a self-starter and you can’t get distracted. And unless you have very clear boundaries, you will work way more than you ever thought. You’re not going to get any feedback on your performance. And all of the goal setting and vision casting is on you. There’s pluses and minuses to that. I didn’t know if this project would resonate with anybody or if anybody would listen to this podcast until I spent the money and put in the effort and then launched it. But if you have a team that’s around you or you’re an employee, you don’t have to stress about those things. Another thing is the ability to just clock out and be done for the day is a huge blessing. Like this one hits home for me, honestly. Like, I kind of envy people who can just clock out at the end of the day, like just after 5 p.m.. No more work rattling around in your brain and that’s it. I mean, my husband is my work partner, so I’ve been on a 24 hour work cycle for about 13 years. So this one’s a big one for me. A sense of financial security, although in my opinion it’s a false sense of security. But when you’re an employee, you don’t have to worry about where your next paycheck is coming from. But in entrepreneurship, you are acutely aware of the finances and cash flow. And when times are tight, that stress on how are you going to make it all work and make payroll for your employees can cloud your every thought. If you’re hearing this and you’re like, Oh, whatever, I can handle it all, honestly, you might be ready to make the plunge.
[00:18:18] Salwa Okay, the next is more personal stuff. So five is alignment with your life goals. Ultimately, the decision to become an entrepreneur should align with your life goals and priorities. If you value autonomy, creativity, and the opportunity to make a positive impact in the world, starting your own business could be the perfect fit for you. But it has to be authentic to you and align with your desires. Entrepreneurship is challenging and rewarding, right? It needs a ton of time, effort and commitment. It’s not just about the money. It’s a personal investment in your life. So it’s important to make sure it aligns with your life goals. When I set off to start a new project, I measure it against five different things: motivation, passion, work/life balance, fulfillment, and long term success. So motivation for me is when my business ideas aligns with my life goals. It’s not just a job, it’s a mission, right? You’re not just hustling for cash, but it’s something that matters to you. That motivation helps you knock down any obstacles and setbacks that are part of the game. And in this game there are nonstop obstacles, but you have bigger motivation to keep you going. Passion. There’s a quote from Simon Sinek’s book Start with the Why that I really love that I think is really powerful: “People don’t buy what you do. They buy why you do it.” When you find a purpose in your work that is in sync with something greater than yourself and it aligns with your life goals, where you’re following your passions and interests, you’re not just starting a business, you’re chasing something that fires you up that can have impact. That passion will push you to work harder, think outside the box and make something truly unique and likely successful. People will understand that you’re motivated by something bigger and they’ll buy into what you’re doing and help you along the way. When I look at work life balance, I want to make sure that my business is aligning with my life goals, meaning I’m not just grinding without direction but working towards something meaningful. This helps me prioritize my time, making sure I’m putting in the hours for both my business and my personal life. With fulfillment, it kind of doubles up with passion, but a little different in the sense of when your entrepreneurial path aligns with your life goals and it brings a sense of fulfillment and purpose. You’re not just working for money, but you’re creating something that can make a real difference in the world. That feeling of fulfillment keeps you going strong, even when it gets hard. And then long term success. When you have alignment with your business, with your life goals, it means you’re planning for the long haul, not just like a quick buck. This long term view helps you make smarter decisions and focus on what really matters and keeps your eyes on the bigger prize.
[00:21:34] Salwa In a nutshell, entrepreneurship is not just about starting a business. It’s about making sure it vibes with your life goals. When you’re chasing something that matters to you, something that’s bigger than you, you’ll find motivation, passion and fulfillment. Plus, it’ll help you strike that work life balance and boost your chances of long term success. So before you dive headfirst into this wild journey, make sure your business idea aligns with your life goals.
[00:22:05] Salwa Okay, so at this point, I’m hoping you’re listening to this and are thinking, Oh yes, this aligns, this makes total sense. I am down. There’s nothing that’s going to stop me. I’m going to take the plunge. I’m totally ready. And if that’s you as your cannabis auntie, I have to give you a couple more pointers. All right. Number one, make sure you take your time to have a financial plan before diving into entrepreneurship. It’s crucial to have a solid financial plan in place, making sure you have enough savings to cover your personal expenses during the initial stages, understanding the costs involved in starting and running your own business, and develop a strategy for managing cash flow. In cannabis, there are so many hidden fees and taxes and licensing and all of that stuff. Just please do your research and have a plan.
[00:22:57] Salwa Number two, Speaking of research, do your market research. Don’t underestimate the importance of thorough market research. Take the time to understand your target audience, analyze your competition and gauge the potential demand for your product or service. Take the time to model out your ideal customer. This research will guide you in making informed decisions about your business model, pricing and marketing strategies.
[00:23:23] Salwa Three, find yourself a mentor and support. Seek advice and support from experienced entrepreneurs or join entrepreneurial networks like women employed in cannabis or other Facebook communities and think tanks. That can be invaluable for your success. These connections can provide you with priceless guidance, resources and contacts to help you navigate the challenges of starting any business. But also this business.
[00:23:53] Salwa Number four and I’m going to like plead with you on this one, okay? Please go into this with the mentality and willingness to be adaptable. The entrepreneurial journey can be unpredictable, especially in plant based medicine, because laws are changing every day. The competition is changing all the time. We are dealing with outside forces like Big Pharma pushing their agenda and so on. So it’s essential to be adaptable and open to change. Be prepared to adjust your strategies, be nimble, learn from your failures, and continuously improve your products or services based on feedback and market conditions.
[00:24:33] Number five go above and beyond in trying to understand the legal and regulatory considerations. Even if you have the money to hire an attorney to walk you through the do’s and don’ts of this industry, I strongly suggest you take the time to read the rules and regs, both local and state, even if you just force yourself to read a couple pages a day and get through the regs that way, reading them will give you so much power and understanding that will help ensure your success. So don’t forget to research and understand the legal and regulatory requirements for your specific industry, location and business structure. Make sure you obtain all the necessary permits and licenses that you can and are in compliance with local, state and federal as much as you possibly can.
[00:25:25] Salwa All right. By keeping these points in mind, you’ll be better prepared to make the decision to enter entrepreneurship and set yourself up for success. Okay, classmates, I hope that you come away from this podcast either ready to make the jump and are full of confidence or on the reverse, you walk away from this saying like, hey, you know what? This isn’t for me and I’m going to decide to go do something else. Either way, I hope you found value in this episode and it gave you some things to think about. If this was helpful, please head over to Apple Podcasts and leave me a review. I’d really appreciate it. I read every single review and your reviews actually help me keep this project going, so I really appreciate your feedback. Until next time, classmates keep on pursuing the high life.
[00:26:16] Salwa Thank you for listening to High Class. Please be sure to share the podcast and leave a review. If you’re ready to build a cannabis business that you can be proud of, start here today and head over to highsalwa.com to sign up for my newsletter. See you there.
