As a cannabis entrepreneur, you know that achieving success requires taking control of how your local government and community perceive you. One crucial step in doing so is advocating or lobbying. As someone who has experienced this firsthand, I can attest to the role lobbying plays in the journey toward success. It allows you to test the waters, assess challenges, and evaluate the reception of your ideas before investing time and resources.
But did you know that every individual in the cannabis industry shares a common role, regardless of their position? That role is being a lobbyist. You might be thinking, “Why me? I’m not a politician.” However, lobbying involves seeking to influence politicians or officials on specific issues or votes. Whether it’s advocating for customer or patient access, pushing for improved policies and tax rates, or defending your business’s basic rights, everyone in the industry must take on the role of a lobbyist in some way.
As we wait for cannabis to become federally legal, advocacy and lobbying will continue to be crucial aspects of operating within the industry. In this blog, we’ll dive deeper into why advocating and lobbying are so important for entrepreneurs in the cannabis industry and how they can set you up for success.
Navigating the Cannabis Industry and Political Landscape
Today, I want to emphasize the importance of understanding politics and ensuring that politicians comprehend your business and mission. This understanding is crucial in determining how laws and policies will impact your business. Politicians are elected by the people to represent their interests, and they are responsible for supporting, rejecting, and creating laws that govern society.
However, representing millions of people is no easy task for a small group of politicians. So, how do they gauge the majority’s desires? Polls are one way, but as we know, they can sometimes be ignored. Another effective, albeit archaic, method is to directly contact politicians via phone calls and emails. When a consistent message is conveyed by a large number of people, it can have a significant impact.
For companies with financial resources and specific objectives, hiring and retaining a lobbyist is a common approach. This professional representation helps ensure that their interests are effectively communicated to the politicians who shape laws and policies.
How does the lobbyist have power?
The first source of power for lobbyists is their ability to raise substantial funds for politicians. The second source lies in the information they possess. Essentially, a good lobbyist is like a popular gossip from a 2000s movie, knowing everyone’s secrets and trading information as currency. This knowledge helps politicians plan their votes.
To illustrate this, imagine a hypothetical situation where your family owns a warehouse passed down through generations. The building has fallen on hard times with no tenants until someone comes along wanting to grow cannabis there. However, your building is just outside the zoning area for such businesses. Friends in high places might suggest hiring a lobbyist to either have your building rezoned or have your zone included.
In this scenario, a skilled lobbyist would start by making small talk with city staffers to gather information about the cannabis zoning process and decision-makers. They would then devise a strategy to address the issue with minimal resistance. It’s important to note that while there have been cases of bribery and fraud, merit-based processes still exist. By playing fair and clean, you can secure a permit based on your track record and submitted documents, ensuring a successful outcome without resorting to underhanded tactics.
Lobbying for Yourself vs. Lobbying for Others
There is a distinction between lobbying for yourself and lobbying for your business. Lobbying for yourself is an excellent approach when you’re an independent agent looking to partner with a larger company or secure funding. It involves presenting yourself as invaluable, knowledgeable, connected, and hardworking, essentially building your personal brand. I employed this strategy for my first dispensary, marketing myself as someone with insider connections at City Hall and an extensive network.
On the other hand, lobbying for a business is more suitable when you have a legal entity, such as an LLC or corporation, and want to maintain control. This approach is preferable when you already have investors lined up or when operating in a jurisdiction that values the perception of a larger, more experienced team. Knowing the difference between these two approaches is crucial in order to plan accordingly.
As you navigate the cannabis industry and its political landscape, remember to maintain a demeanor that is collaborative, not competitive, and relaxed yet professional. Being a cannabis business owner means fostering a long-term relationship with the local government, as they will be involved in nearly every aspect of your business, from licensing to taxation. It’s essential to remember that this is a marathon, not a sprint, and you will need assistance from various people along the way.
Understanding the political aspect of the cannabis industry and learning to navigate City Hall can greatly benefit your entrepreneurial journey. Familiarizing yourself with the key players at City Hall, from the front desk to the mayor, and cultivating friendly relationships with them can be advantageous for your business’s success.
How to forge valuable connections as a lobbyist in Cannabis Industry?
Show up early and stay late at meetings
When you see city staff or volunteers preparing for the event, offer your assistance in tasks like distributing papers, setting up chairs, or breaking down the room.
Even if they decline your offer or don’t seem to need help, simply asking will create a positive association between you and the people present. This also provides an opportunity for side conversations, allowing syou to connect with others on a personal level. Embrace any opportunity that portrays you as helpful and collaborative, as it will contribute to building a strong, positive reputation in your industry.
Making your interactions feel natural and easygoing is crucial in building rapport with others.
If the person you’re talking to receives a phone call during your conversation, let them know you can wait so they don’t feel rushed and provide them with some privacy as a sign of respect. These small gestures can go a long way and maybe reciprocated when you need assistance. As a cannabis entrepreneur, you will undoubtedly need help from city staff at various points in your journey, so it’s essential to start cultivating positive relationships early on.
Arm yourself with cannabis industry knowledge, facts, and data
Be aware that politicians and city hall staff, even when tasked with cannabis policy, may hold personal beliefs about its use. To address those who may not be as open to legalization, equip yourself with facts, data, and scientific evidence. This approach promotes effective, professional, and non-offensive discussions without getting emotional while conveying your point.
For example, I once met a councilwoman who believed cannabis was a gateway drug, which was unfortunate since she was involved in policy and application decision-making. After she expressed her opinion, I replied that it’s a common belief, but the Drug Policy Alliance released a paper in 2017 indicating that data does not support the gateway drug theory. In fact, studies suggest that cannabis can be an effective treatment for those trying to overcome addiction to illicit substances like heroin and fentanyl.
Standing behind science is the best approach when dealing with naysayers, as science is on our side. You can’t argue with data, and cannabis research supports reasonable taxation and regulation.
Give them your time
It’s no secret that politicians often seek financial support for their campaigns and the nonprofits they endorse. But what if you don’t have the funds to contribute? The answer is simple: give them your time. Every campaign needs volunteers for tasks like signing people up, registering voters, knocking on doors, and setting up events. By showing up and pitching in, you can make a difference and build connections.
Consider volunteering for fundraisers and other events to expand your network—you might even find your next investor. Alternatively, try raising money on the campaign’s behalf, as collecting donations from multiple individuals demonstrates broader support and translates into more votes.
Don’t forget the power of social media, either. Many campaigns lack a strong online presence, so creating content to positively promote the candidate can be invaluable.
Consistently sharing posts that highlight their core policy issues or endorse the nonprofits they support can generate goodwill and get you noticed.
In summary, never underestimate the impact of volunteering and leveraging social media to build credibility and forge relationships with council members who could support your business.
You can support multiple candidates
When faced with multiple candidates and unsure who to support, consider backing them all. There’s no rule against supporting multiple “horses” in the race, especially when the outcome is uncertain. Use your best judgment and, if appropriate, divide your time and effort between the candidates.
With social media, alternate your messaging to highlight different candidates and encourage voter participation. By volunteering for multiple campaigns, you not only avoid putting all your effort into a single candidate who might not win, but also expand your network across various community groups. This can be particularly beneficial when rallying community support for your own endeavors later on.
Attending fundraisers for different candidates can also open up valuable opportunities for meeting potential investors. So keep an open mind and remain actively engaged with multiple campaigns to maximize your networking potential and build valuable connections.
Schedule meetings with relevant city staff, council members, the mayor, and their aides
Remember that as city employees, they work for the citizens, and it’s their duty to engage with the public. Don’t hesitate to introduce yourself and your business, discuss your intentions, and, most importantly, listen to their concerns and ideas for improving your venture. Feel free to ask for advice or insights.
Mention that you’re exploring cannabis opportunities in their district and want to understand their priorities to see if there’s a strategic alignment between their agenda and your business. This information can be invaluable for adding detail and relevance to your application. You can also ask for recommendations on nonprofits they support, allowing you to incorporate that support into your application.
Once you have a focused vision and feel it’s aligned with your core values, be ready to share it with everyone. Clearly articulate your business objectives, how you intend to serve your community, and the impact you aim to make.
When you have that passion, it’s time to schedule meetings and share it with others
Even if you’re the underdog in these situations, engaging in conversations with elected officials can keep you at the forefront of their minds as they interact with larger companies.
Occasionally, a politician, council member, or city staffer may suggest connecting different groups, recognizing your passion and understanding of the process from attending meetings. This can open opportunities for negotiation, allowing you to seek equity without bearing the entire burden.
In essence, there’s no harm in trying. So, go for it, shoot your shot, and put your best foot forward.
To learn more about Effective Lobbying, Check out this High Class Podcast Episode:
In conclusion, by following these steps, you can confidently build strong connections at City Hall and become the best advocate for yourself and your business. There’s no need to hire anyone, as nobody can represent your interests better than you. Embrace the process and watch your professional relationships grow, ultimately benefiting your endeavors.
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.
