"As marijuana grows into industry, new tips for would-be entrepreneurs"
By Stephen T. Watson | News Staff Reporter | @buffaloscribe | Google+
on December 7, 2014 - 6:47 PM
A retired Buffalo police officer has started an online business that sells hundreds of products made from hemp. A truck driver is thinking about getting into the marijuana industry once he gets too old to stay on the road.
And a former cosmetics and fashion executive wants to offer advice to companies making pot-infused skin care and beauty products, or develop the items herself.
With more states legalizing marijuana for medical and recreational purposes, more people are looking for a way into the marijuana industry. “I want to be the East Coast’s largest retailer of hemp products,” said Steven M. Kellerman, the retired police officer, who carries his money in a hemp wallet and raves about the durability of goods made from the plant.
Kellerman and the other would-be entrepreneurs are eyeing the business because New York is poised to put in place a medical marijuana program next year.
But people who want to set up a marijuana-related business have to navigate a host of financial and regulatory hurdles, and familiarize themselves with the numerous ways marijuana can be smoked, eaten, rubbed into the skin and vaporized.
That’s why the marijuana industry has spawned another growth industry: consultants who explain the ins and outs of the business to people who want to make money from legal marijuana but who don’t know where to begin. And that’s why the three prospective entrepreneurs joined a dozen others Sunday in a Cheektowaga hotel for a forum hosted by the Cannabis Career Institute on how to get started in the marijuana industry.
“That’s what you’re here to do is to figure out how am I going to fit into the industry, what’s my contribution going to be and how do I create a niche that’s going to be profitable?” said Robert F. Calkin, president of the institute, who was conducting his third class in the area.
California, a trailblazer in medical marijuana, and Colorado, the first state to allow marijuana for recreational purposes, have shown the effect of legalized marijuana on the economy. Dispensaries and grow operations have sprouted up, driving the growth of businesses that support the production and sale of marijuana – everything from manufacturers of the product packaging to security firms that specialize in guarding marijuana companies.
Professionals such as electricians, accountants and lawyers also market themselves as experienced in the industry.
All told, the legal marijuana industry is expected to reach $21 billion in revenues by 2020, if the current rate of state-by-state legalization continues, or up to $35 billion if it’s allowed in all 50 states, according to a report from GreenWave Advisors.
In New York, Gov. Andrew M. Cuomo signed a medical marijuana law this year, but the state Health Department has not yet announced details on how the program will be put into place.
Some people getting into the industry have a lifetime of personal experience using the drug. But others have little firsthand knowledge of marijuana, or they feel overwhelmed by the complicated matrix of federal and state laws and business regulations in the industry.
That, Calkin said, is why he started the Cannabis Career Institute, which leverages his years of experience in the illegal and legal marijuana industries.
The institute isn’t the only organization offering a similar service. Daniel J. Humiston, founder of the local Tanning Bed chain, recently started the International Cannabis Association, which has hosted industry trade shows in Las Vegas and New York City.
Humiston initially envisioned turning each of his tanning salons into a marijuana dispensary. But after realizing that the idea was impractical, he decided to start the association as a way of educating people and encouraging networking. He has worked with the Cannabis Career Institute at his trade shows and attended Sunday’s forum at the Hampton Inn & Suites Buffalo Airport.
“It doesn’t have to be a dispensary. It doesn’t have to be a grow facility. There’s so many other opportunities. Find out what you’re good at,” Humiston said to the class.
Some of the business ideas shared by students in the class may not be allowed under New York’s relatively restrictive medical marijuana law. Some may hinge on New York approving the recreational use of marijuana, though Calkin also encouraged the students to think about licensing products in states where the drug is fully legal.
Kellerman told the class he was inspired to get into the business when he and his wife, Paula, a fellow retired Buffalo police officer, watched a CNBC program, “Colorado Pot Rush.”
He attended a previous institute class in Buffalo, a session that helped him launch his Hemp Utopia business, which he started in August. It’s legal to sell hemp products, which are made from varieties of the cannabis plant that have low levels of the chemical that causes the high for marijuana users.
The truck driver said he’s looking for something to do to help him save up some money once he gives up driving.
Don, who asked that his last name not be used because his employer doesn’t know about his plans, said he would like to do something with transporting marijuana or hemp products.
“I just figure it’s a good time to get in on the bottom floor of something good,” the Niagara Falls resident said during a break in the class.
During the morning session of the daylong class, Calkin talked about how to come up with a business plan and put together the right action team, including an accountant and lawyer, to help set up a company.
It’s important, he said, to structure the company to make sure that entrepreneurs and their assets are protected in case anyone connected to the company draws the attention of the police or the Internal Revenue Service. He illustrated this point by drawing a series of letters and circles, connected by arrows, on a page on an easel. “The whole point is you need to be savvy when making these decisions,” Calkin said.
At that point, he invited Luisa D. Johnson, an attorney with the law firm Rupp, Baase, Pfalzgraf, Cunningham & Coppola, to talk to the class. Johnson said the firm is available to help companies and entrepreneurs navigate the complex regulatory climate for marijuana. “We’re a young, innovative, emerging firm, and we’re always looking for new business opportunities, and this is a huge business that’s growing in New York,” Johnson said in an interview.
She’s trying to trademark the preferred name for her company, the Weed Lab, but despite its name said she wouldn’t directly sell the drug. “I don’t want to handle it at this point – it’s just too risky,” Cooper said. “I’ll let someone else do that.”
http://www.buffalonews.com/business/as-mariju...s-20141207
By Stephen T. Watson | News Staff Reporter | @buffaloscribe | Google+
on December 7, 2014 - 6:47 PM
A retired Buffalo police officer has started an online business that sells hundreds of products made from hemp. A truck driver is thinking about getting into the marijuana industry once he gets too old to stay on the road.
And a former cosmetics and fashion executive wants to offer advice to companies making pot-infused skin care and beauty products, or develop the items herself.
With more states legalizing marijuana for medical and recreational purposes, more people are looking for a way into the marijuana industry. “I want to be the East Coast’s largest retailer of hemp products,” said Steven M. Kellerman, the retired police officer, who carries his money in a hemp wallet and raves about the durability of goods made from the plant.
Kellerman and the other would-be entrepreneurs are eyeing the business because New York is poised to put in place a medical marijuana program next year.
But people who want to set up a marijuana-related business have to navigate a host of financial and regulatory hurdles, and familiarize themselves with the numerous ways marijuana can be smoked, eaten, rubbed into the skin and vaporized.
That’s why the marijuana industry has spawned another growth industry: consultants who explain the ins and outs of the business to people who want to make money from legal marijuana but who don’t know where to begin. And that’s why the three prospective entrepreneurs joined a dozen others Sunday in a Cheektowaga hotel for a forum hosted by the Cannabis Career Institute on how to get started in the marijuana industry.
“That’s what you’re here to do is to figure out how am I going to fit into the industry, what’s my contribution going to be and how do I create a niche that’s going to be profitable?” said Robert F. Calkin, president of the institute, who was conducting his third class in the area.
California, a trailblazer in medical marijuana, and Colorado, the first state to allow marijuana for recreational purposes, have shown the effect of legalized marijuana on the economy. Dispensaries and grow operations have sprouted up, driving the growth of businesses that support the production and sale of marijuana – everything from manufacturers of the product packaging to security firms that specialize in guarding marijuana companies.
Professionals such as electricians, accountants and lawyers also market themselves as experienced in the industry.
All told, the legal marijuana industry is expected to reach $21 billion in revenues by 2020, if the current rate of state-by-state legalization continues, or up to $35 billion if it’s allowed in all 50 states, according to a report from GreenWave Advisors.
In New York, Gov. Andrew M. Cuomo signed a medical marijuana law this year, but the state Health Department has not yet announced details on how the program will be put into place.
Some people getting into the industry have a lifetime of personal experience using the drug. But others have little firsthand knowledge of marijuana, or they feel overwhelmed by the complicated matrix of federal and state laws and business regulations in the industry.
That, Calkin said, is why he started the Cannabis Career Institute, which leverages his years of experience in the illegal and legal marijuana industries.
The institute isn’t the only organization offering a similar service. Daniel J. Humiston, founder of the local Tanning Bed chain, recently started the International Cannabis Association, which has hosted industry trade shows in Las Vegas and New York City.
Humiston initially envisioned turning each of his tanning salons into a marijuana dispensary. But after realizing that the idea was impractical, he decided to start the association as a way of educating people and encouraging networking. He has worked with the Cannabis Career Institute at his trade shows and attended Sunday’s forum at the Hampton Inn & Suites Buffalo Airport.
“It doesn’t have to be a dispensary. It doesn’t have to be a grow facility. There’s so many other opportunities. Find out what you’re good at,” Humiston said to the class.
Some of the business ideas shared by students in the class may not be allowed under New York’s relatively restrictive medical marijuana law. Some may hinge on New York approving the recreational use of marijuana, though Calkin also encouraged the students to think about licensing products in states where the drug is fully legal.
Kellerman told the class he was inspired to get into the business when he and his wife, Paula, a fellow retired Buffalo police officer, watched a CNBC program, “Colorado Pot Rush.”
He attended a previous institute class in Buffalo, a session that helped him launch his Hemp Utopia business, which he started in August. It’s legal to sell hemp products, which are made from varieties of the cannabis plant that have low levels of the chemical that causes the high for marijuana users.
The truck driver said he’s looking for something to do to help him save up some money once he gives up driving.
Don, who asked that his last name not be used because his employer doesn’t know about his plans, said he would like to do something with transporting marijuana or hemp products.
“I just figure it’s a good time to get in on the bottom floor of something good,” the Niagara Falls resident said during a break in the class.
During the morning session of the daylong class, Calkin talked about how to come up with a business plan and put together the right action team, including an accountant and lawyer, to help set up a company.
It’s important, he said, to structure the company to make sure that entrepreneurs and their assets are protected in case anyone connected to the company draws the attention of the police or the Internal Revenue Service. He illustrated this point by drawing a series of letters and circles, connected by arrows, on a page on an easel. “The whole point is you need to be savvy when making these decisions,” Calkin said.
At that point, he invited Luisa D. Johnson, an attorney with the law firm Rupp, Baase, Pfalzgraf, Cunningham & Coppola, to talk to the class. Johnson said the firm is available to help companies and entrepreneurs navigate the complex regulatory climate for marijuana. “We’re a young, innovative, emerging firm, and we’re always looking for new business opportunities, and this is a huge business that’s growing in New York,” Johnson said in an interview.
She’s trying to trademark the preferred name for her company, the Weed Lab, but despite its name said she wouldn’t directly sell the drug. “I don’t want to handle it at this point – it’s just too risky,” Cooper said. “I’ll let someone else do that.”
http://www.buffalonews.com/business/as-mariju...s-20141207
