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Committee Blog: Time to Hire

The road to opening a licensed cannabis business is a long one. You have managed to navigate through a competitive and complex licensing process. You have convinced your local community to give your company a shot. You have beautified the area surrounding your business. You have secured your supply chain, and you even opened a special account at a cannabis bank to deposit all that cash. You have hired armed security, and even though you are paying the company 3X what you’re making, it’s okay because you and your staff are safe. You even survived the facility build-out, and hopefully, you have about six months of capital. What an accomplishment. Bravo! You did it! Wait… you need a team to help you operate this beast. Time to hire!

I heard someone say, ‘Great things in business are never done by one person. They’re done by a team of people.’ I would guess that if you have made it to the finish line, you’re likely to already have a team. Now it’s time to expand that team. As if the odds aren’t already stacked, in the fast-paced world of cannabis retail, turnover rates are hitting a staggering 55% within a year, per headset.io as of November 2023. I learned about this very early on when I began my research. I needed to know why and what I could do to avoid more than half my staff quitting within the first year. There were some common factors that led to employee attrition. I was a bit surprised to hear that pay wasn’t a top factor. What I learned was budtenders, in particular, didn’t feel the company provided any kind of staff development. Many instances described a poor management staff, and many felt unappreciated and overworked.

When we started this thing, it was important to make sure we could create opportunities for others. I’ve worked for both big and small businesses, some corporate and some non-corporate. I have had some good managers and some bad ones. I learned something from each job I’ve held. I vowed to make sure my staff never looked at our managers and our company and put us in the bad category. Trust is earned, and leadership can never be forced. I opened doors on April 22nd, and we hired 21 part-time employees. I will follow up in 12 months to see if I beat the odds. I’ve done it before.

It was through the NCIA network I met Carlo, and he had me go through a workshop. What I learned was, first, we needed to ask ourselves: What are our principles at Banyan Tree? My team is amazing, and we have been together so long we trust in each other’s expertise to maintain a harmonious environment. We want to make sure the staff feels the same way. So collectively, we created a list of principles. Next, we posted the job position. The response was overwhelming. Within 24 hours, we had close to 500 applications. We narrowed that down to 50. We scored the candidates based on their work experience and the video response they provided, aligning with our principles. Next, we scheduled the interviews. We called each candidate to share what they could expect during the interview. We sent them the list of our principles. We would be conducting the interview using the S.T.A.R. method: Specific, Task, Action, Result. That means the questions we ask will all be related to their work experience. We expect the answers you give to describe an experience that uses the S.T.A.R method response. It really helps us get to know the candidates during the interview, and you can tell someone is being genuine when they can recall an experience they had while working at previous jobs. There were about 21 of those interviews that went on for a full hour. We hired 21 amazing people. They all feel like they are part of something special. It’s my job to keep my promise.

It’s important to continue developing and educating the staff to help them get better at their skill. It is necessary to provide them with the tools they need to perform their job. Stuff like scanners and POS systems and card readers need to work. Technical issues disrupt the flow, but that’s controllable. Communication and trust are key. Without it, you’re doomed. Appreciation and praise go a long way. We need customers to stay in business, but we can’t do business without staff. My philosophy is that my employees are everything. As long as they love their job, our guests are going to reap the benefits.

Member Blog: 5 Things You Need to Do Before You Launch Your Cannabusiness in New York

Cannabis was legalized in New York in 2021, and now the market is starting to fully open up for all types of cannabusinesses across the state. Despite a rocky start to rolling out new licenses, it’s almost time for the general public to dip their toes in and start their own dispensaries.

New York’s legal cannabis market is projected to be worth $4.2 billion by 2027, making it the country’s second-largest recreational cannabis state. It won’t be long before cannabis businesses have hundreds of locations across New York.

Curious about how to open a New York dispensary? Here are five things you need to do to get ready for your blossoming cannabusiness.

Conduct Market Research & Choose a Location

Since many cannabusinesses will be opening up in New York in the next few years, you need to ensure that yours is set up for success from the start. The best way to secure success is by selecting a high-demand area with minimal competition. You can identify lucrative locations by exploring different neighborhoods and conducting market research.

Visit prospective spots in person, instead of just looking at them on a map. You’ll get a much better sense of the feel of the area, the type of people walking through, the surrounding businesses, and more. And if feasible, talking to residents and local business owners will help you to really understand the market.

It is also important to be mindful of the New York zoning laws before securing a location. According to statewide zoning restrictions, a cannabis dispensary can’t be on the same road or within 500 feet of a school and 200 feet from a house of worship. Cities may have additional restrictions to limit the number of cannabis dispensaries in a certain location. Do your research before you get married to a location that won’t work out for logistical reasons.

Apply for a License

You’ll need a license to open a cannabusiness in the state of New York. However, as of October 2023, the path to applying and receiving a cannabis license in the state is a little up in the air.

When applications for the first licenses opened up, New York legislators wanted to ensure that people who were negatively impacted by the state’s previous criminalization of cannabis could apply first. This included people who were convicted of a cannabis offense in New York or were affected by a loved one’s conviction. 

Now, starting on October 4, 2023, New York will start accepting license applications from a much broader pool of entrepreneurs. Applications are open to everyone over the age of 21 who does not already have three licenses. This is exciting news for many aspiring cannabusiness owners who were not eligible the first time around.

However, these licenses may not be issued as soon as prospective owners hope. When the state legalized cannabis, its goal was to award half of the retail licenses to people with previous cannabis convictions, racial minorities, women, and veterans disabled during service. Several veterans have filed a lawsuit stating that veterans were unfairly passed over for the early licenses. The judge in the case ordered that the state wait to award any new dispensary licenses until the case continues.

Keep an eye on the New York Office of Cannabis Management’s website for updates on the next round of licensing applications.

Secure Funding for Your Cannabusiness

Opening a dispensary in New York will be expensive. While profits will likely be high once you open, you need to find a way to secure the funding needed to get your cannabusiness operational — which experts say could cost between $500,000 to $2 million.

This figure accounts for a variety of expenses for your cannabusiness, including:

  • Licensing and application fees
  • Lawyers and consultants
  • Real estate
  • Dispensary design and construction
  • Staffing
  • Business equipment
  • Surveillance and security system
  • Marketing and advertising
  • Products and inventory

Many cannabis entrepreneurs take out loans to cover these up-front costs, either from credit unions or cannabis-friendly banks. Some are able to partner with others or enlist investors to start their businesses. However, you should do your due diligence and research before taking on a loan or going into business with an investor. Unfortunately, there has been some predatory lending occurring in the market because of the inability to lend from large banks. Make sure that you do this research before you get too far in the process of creating your cannabusiness.

Understand Cannabis Laws & Regulations in New York

There are hundreds of laws and regulations that apply to cannabusinesses in New York. While this can feel overwhelming, it’s important to follow them carefully, especially when you’re setting up your dispensary.

There are some regulations that apply to your customers that you’ll need to adhere to, including:

  • Customers must be over the age of 21
  • Customers can only buy 3 ounces of cannabis flower per day
  • Customers can only buy 24 grams of cannabis concentrates per day

Others regulations apply to your business location, including:

  • Installing a 24-hour commercial-grade security system
  • Installing a perimeter alarm
  • Conducting video surveillance in every part of the store with cannabis products
  • Products cannot be visible from outside of the store
  • Maintaining minimum staffing levels (depends on business plan submitted with application)
  • Training staff on local ordinances, laws, and cannabis safety

It’s vital to take these rules seriously from the beginning. Neglecting even a single law could result in your dispensary getting shut down. You can consult an extensive overview of the New York cannabis laws and regulations here. 

Invest in the Right Team

You need to hire a team of high-quality employees who will help your business succeed from the very first day. Your budtenders can make or break your entire business model, so you need to vet them carefully and train them well.

Your budtenders will be interacting directly with clients. They’ll answer their questions, suggest products, and upsell items. Hire these employees carefully, and make sure they’re happy in their positions by offering great pay and benefits.

To streamline training, create training manuals and SOPs (standard operating procedures) so that every employee is trained in the same way. This will limit mistakes and increase efficiency and customer satisfaction. 

Final Thoughts on Launching Your New York Cannabusiness

Cannabis is expected to become a booming industry in New York. If you’ve always dreamed of opening a cannabusiness, now’s your chance to get in as early as possible and make your impact on the market!

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