entrepreneur Archives - Canna Communication

A Canna Communication Case Study

Early last summer we were contacted by a cannabis entrepreneur that was facing opposition to a medical marijuana grow business in Egelston Township, Michigan. He realized he needed professional communication assistance with this issue and we jumped right in.

Background:
The elected officials in Egelston Township opted-in for medical marijuana businesses in late 2017. Soon after opting in, the entrepreneur/grower who had already purchased property in the township started construction on buildings for greenhouses and a provisioning center. In the spring of 2018, a resident of the municipality who is also a developer that owns a subdivision adjacent to the two greenhouses under construction began circulating a petition to upend medical marijuana zoning in the community. The petitions were validated by the township clerk, and the proposal would appear on the mid-term ballot. If the vote didn’t go the grower’s way, he would lose the opportunity to have any cannabis business in the township.

We were asked to create a campaign to persuade voters to keep medical marijuana zoning in the township.

We provided the client with a full political campaign proposal and he chose to rely on web, social media, direct mail, and yard signs. Our messaging focused on providing accurate information and guiding conversations while helping people understand two issues: zoning and medical marijuana.

Strategy:
After a discovery meeting with the client, his horticulturist, attorney and a business colleague we wrote a set of key messages that went to the heart of the zoning issue.

The messages focused on:

The township has done its due diligence in creating medical marijuana zoning and the work should be respected.
The township work was done with multiple opportunities for public input and within the open meetings act.
Ensuring people knew this was a medical marijuana business issue. Adding to the complexity was that Michigan voters were going to vote on recreational marijuana, too. This was a separate issue, but also on the ballot. This was a point of confusion for people.
Voting yes for medical marijuana zoning.

We created a theme for the campaign and began work on developing a website and a Facebook page. We presented Egelston Grows Green as the theme because it spoke to the idea of growth in the township, not only cannabis itself but jobs and tax revenue. We wanted to include the township name in the theme to create a sense of place, identity and pride.

The key messages were used to create website content, to launch the Facebook page and to provide content throughout the summer. As it came closer to election time, we promoted the vote and ended each post with a Vote YES for medical marijuana zoning message.

photo of the egelston grows green facebook page — Facebook cover photograph

Significant challenges and opportunities for execution:
One of the most significant challenges we faced was the convoluted language that was in the petition and on the ballot. We knew that the best thing we could do was to make it simple for voters to understand and accurate to the ballot. We chose: vote yes for medical marijuana zoning.

In May of 2018, Facebook put restrictions on two essential parts of our campaign: political advertising and marijuana pages. The platform required anyone wanting to conduct political advertising to supply a physical mailing address and a copy of a photo ID like a driver’s license. We did this but were thwarted by another new policy that made marijuana pages unsearchable. Cannabis pages and groups that had been easy to find for years had disappeared from the search tool, and Facebook was denying requests to boost to create ads for all marijuana businesses regardless of what they did, i.e., law firms and accountants were being denied promotional space. This made launching the site and promoting content a challenge, especially for a new page. We relied on a network of advocates to share our daily posts and a popular community-centric Facebook page, Wolf Lake World News. We posted our information on that site and engaged in multiple conversations there, too.

We created the website egelstongrowsgreen.com for key messages and details about the growing operation, that people had an interest in. They wanted to know how this business could potentially affect them: everything from the smell, to security, to job creation, to compliance, water use and plant waste. We posted two informational videos to the page as well. All the time we are reinforcing the message about voting yes for medical marijuana.

One month before the election we helped the client with a succinct, clear message for yard signs and designed a postcard for voters. These collateral materials reinforced the singular importance of voting yes for medical marijuana zoning. The postcards were mailed to the 7500 voters in the township. The client also held a yard sign pick-up event with principals on-site to answer questions.

postcard that was mailed to voters to encourage them to vote yes for medical marijuana — front of the postcard

In the days before the election, one of the business partners secured a video interview with a hyperlocal indie news channel, and we were able to share that interview and clear up some of the misconceptions that the opposition was promoting.

Outcome:
Great news! The voters of Egelston Township approved the zoning ordinance 1921 to 1751 votes.

cannabis business

May 21, 2018May 21, 2018Roberta King

Cannabis Businesses: The Future is Female

Last week I attended the MJBizConNEXT conference in New Orleans for cannabis entrepreneurs and professionals. This was my first marijuana
conference and I wasn’t quite sure what to expect. The structure was the same as other conferences I’ve been to, keynote speakers and specialized sessions, and of course networking. But what made this one different was, I was surrounded by other professionals who are in my industry—cannabis. It gave me much needed context and perspective on what’s going on in North America, other than my microcosm of West Michigan.

One overwhelming topic from the conference was the importance of women in cannabis businesses.

Irie Selkirk, with Emblem Cannabis in Ontario, gave a great presentation about engaging not only female consumers, but female leaders. She thinks it’s crucial that we establish an industry with strong female leaders, and I couldn’t agree more.

According to a 2015 survey from Marijuana Business Daily, women held 36 percent of leadership positions in the cannabis industry. MJBiz conducted an updated survey on the topic in August 2017, and the number of women in leadership roles had dropped to 27 percent of executive roles. Women need to continue to not only represent in this industry, but to lead this industry. And if we don’t want to see continued drops in women leadership we have ensure that women have power and voice in this industry.

Ms. Selkirk reflected on her first cannabis conference and how she and other women there felt left out. They felt more comfortable sitting outside the building to network, than the expo floor. This brought up a great discussion about how women feel outnumbered on the expo floor, and how men (the vast majority of the vendors are men, with a few booth babes) interact with them. Several of the women in the session felt intimidated by the overwhelming presence of men on the expo floor and didn’t interact as much as they normally would. Ms. Selkirk encouraged women to speak up and take control of what you want to accomplish in cannabis. If you can’t find what you want, create it. Can’t find other women in cannabis to network with? Create your own network. Want a more balanced expo floor? Get some booth space. Make your voice heard and lobby for change.

Kevin O’Leary on ABC’s “Shark Tank.” (Bob D’Amico)

The keynote speaker was Kevin O’Leary from the hit TV show Shark Tank. Mr. O’Leary, or Mr. Wonderful, as he’s fond of calling himself, said he prefers to invest in women-led businesses because he gets better returns. O’Leary found that about 95 percent of the women-led companies meet their financial targets, compared with just 65 percent for businesses with male leaders.

He has a couple of theories about why female-led businesses outperform male-led ones:

Women are better at time management
Women set more achievable goals

He also talked about how when goals are achieved, company morale goes up, which can help create a great culture, which obviously leads to less employee turnover.

In short, his largest returns have been from women-led businesses.

Women—we make up over 50 percent of the US population, yet according to the Institute for Women’s Policy Research, we made only 80.5 cents for every dollar earned by men, a gender wage gap of 20 percent.

The cannabis industry represents the future—a chance to enter a growing industry with relatively low barriers. It is an opportunity to help make medicine available to people who desperately need an alternative to opioids and other over-prescribed drugs. And we have a chance to shape the future of this industry into a more equitable and inclusive environment, where women can make their mark, and open doors of opportunity for future generations.

After all, the future is female.

reading glasses and some content for a new marijuana business that might need a cannabis investor

cannabis business

May 17, 2018Roberta King

How to Win Over a Cannabis Investor: What Entrepreneurs Need to Know

You’ve got your cannabis startup going: the license is in process, your business plan completed, marketing plan written, site plan done, security and operations are all there. Things are looking good, except for the money part. You need a cannabis investor or two to help make it happen.

Before You’re Ready to go to The Dance, Make Sure You Know The Steps.

We talked with Eric Seifert about the relationship between investors and cannabis entrepreneurs and what startups need to know when seeking an investment partner.

Eric has been working with investors and startups outside of cannabis for a decade at the Michigan SBDC and since leaving the SBDC has been helping bridge the funding gap in the cannabis space. His company, Left Coast Capital works with investors looking for solid businesses, in cannabis and other businesses as well. Here are ten things Eric says cannabis entrepreneurs need to know before opening themselves up to an investor.

1) If you know how to grow marijuana, but don’t know much about business, find a partner who does. “Investors look for business sense and experience.” Having a passion for cannabis goes a long way, but so does the idea that you will succeed in business. “If you need to, bring in someone to help your business, to supplement what you really don’t know or what you recognize as a weakness. Show how you can mitigate that.” You need a solid business plan and it’s smart to give an investor several scenarios for outcomes—one that’s modest, another that shows what you believe to be reasonable growth and another that blows the roof off of all expectations of how the business will grow if things go well.

2) One of the hardest parts for cannabis entrepreneurs is that they don’t have the kind of documentation that other businesses might have as proof of prior success. “Even a caregiver can show what they’ve done already and how they’ve tracked income and expenses. When you’re scaling up a business, you need to point to your past success, even if it is just a year or two.”

3) Find great legal and accounting representation. “Compliance is going to be a major issue, if you successfully launch, but then are audited and shut down, that will make for a dissatisfied investor. You need to have your attorney draw up investment documents that protect you.”

4) You’ll want to work with an accredited investor, someone who can produce a signed affidavit that they have at least $1 million in net worth, an annual income of at least $200,000. It documents that they are an SEC accredited investor.

What a Cannabis Investor Wants From You

5) Every potential cannabis investor is looking for one thing: making more money than they might in the market. “In your business plan and pitch deck, you need to be able to show profits that are greater than the stock market.” Investors want to get their money back in about 3-4 years and they’ll want a portion of the profits beyond the investment. “They want a big return because they’re taking on so much risk.”

6) Most cannabis investors want something beyond a return on their investment, and you should expect they would negotiate a percentage ownership of your company for the long or short term. “Investors tend to like hard assets, so the first lien on your building might be an option. If there’s a failure, the investor has something to sell to recoup their losses.”

Show the Investor Your Passion for Cannabis

7) The entrepreneur, rather than the cannabis industry is where an investor will focus his or her attention. “Investors look for people who are in business for something bigger than making money.” They want to see a passion for the medicinal value of the plant, either personally or for a family member, so make sure you have a relatable story.

8) You must be able to talk about how you’re going to handle cash and mitigate the risk involved with it. “Investors want to know that their investment won’t be lost at gunpoint. Know what you’re doing to handle cash and security.”

9) Create a great pitch deck and practice your presentation. “No more than 20 minutes from start to finish, followed by 20 minutes of Q&A.” Investors don’t need to hear every detail about your business—don’t drown people in details until they ask for them.” Investors who want more will ask for it. Stick to the regional view when you’re pitching—don’t worry about national picture yet. “Until cannabis is legal across the U.S. there’s not much point in spending time talking about it. You need to get the investor’s attention, high-level summary information.”

10) Don’t underestimate your knowledge and skill in the cannabis marketplace. “You need to show passion and expertise for the industry. It’s an 8 or 9 on the scale of importance.”

marijuana plants are part of any new marijuana business

cannabis communication

May 9, 2018Roberta King

Fire Up! PR Musts Your New Marijuana Business Needs

If you are the owner of a new marijuana business, you’re probably thinking about a lot of things: compliance, human resources, inventory, customer service, security and how to handle all those twenty dollar bills! We hope you’ve given some thought to your marketing communication plan, too. Like most pursuits, taking the first step is the hardest part. To make that first step a bit easier, we suggest getting things underway with these six simple-ish things.

Develop Your Story.

People want to know how and WHY you got into the cannabis business, they want to hear about your vision and values around your business, too. These are vital parts of your company story. You’re in the medical marijuana business and it’s important, outside of making money, to tell people why you’re doing what you’re doing. Some of it’s personal, like fighting cancer or helping a family with an epileptic child; some of it might be business-related, as in you want to create jobs and contribute to the economy. Whatever your reason for being in the cannabis business, start forming a relatable story. Every successful company has a story.

Be an Expert About Cannabis.

Take time every day to read/watch/listen to cannabis news, especially regarding Michigan and cannabis as medicine. You expect expertise from businesses you patronize and your customers expect the same from you. You need to be able to help people understand the business of cannabis, too. Be accurate with your information and data, you don’t want to be the source of bad information. This acquired expertise will also help you as you connect with the media where your business is located.

Reach Out to The Media.

Media relations begins with getting to know the media. The newspaper reporters, radio personalities and TV journalists in your own community need to know who you are and what you’re doing in the medical marijuana industry. Reach out to them and make sure they know you are available as a resource for future cannabis stories. When you are awarded your license and start to establish your business make sure the media is the first to know.

Create Content and Be Social.

You’ve probably heard a lot about content lately. New and fresh content drives traffic to your website, and makes people come back for more, it’s the gasoline of SEO or search engine optimization. Content is the words, videos and images that you put on your website and on your social media pages. It needs refreshing regularly. High-quality content is an integral part of communication and marketing and while you’re selling something, you’re also helping people understand the why of what you’re doing. If you don’t have social media pages for your company, yet, get them established. You can do this long before your new marijuana business is open. It’s good to get your name out there, connect with people and practice your content posting habits.

Discover Your Niche.

While you want to work with everyone and provide medical marijuana to anyone with a card, there’s good reason to have some of your business be a bit specialized. Having a niche makes you different and will help you stand out from your competitors. To discover your niche, you need a passion about something you can address, you need to deeply know the audience you want to reach, you’ll need to research them and their interests, buying habits and behaviors and craft messages to them. Your niche interest needs to be authentic.

Define Your Brand.

A brand is the outfacing image of your business and its inner personality. It starts with your logo and is part of everything about your company including customer interactions. A brand is the personality of your company, not only who you say you are, but more importantly, what others say about you, too. Your brand is the culmination of YOUR work AND customer relationships. It is formed by the content you create, the story you tell, what you share on social sites and how you respond to a crisis. People outside your company will also determine your brand by their opinions, ideas and reviews, but it’s mostly formed by your content, interactions, voice and how your company behaves in the community.

Interested in learning more? Need help getting started?

We’d love to help you move your new marijuana business forward. Drop us a note and we’ll be in touch.

cannabis flowers, soon to be legal in Michigan

Licensing, marijuana licensing

October 13, 2017November 7, 2017Roberta King

Nine Things to Know About Medical Marijuana Licensing in Michigan

It’s coming fast—the December 15 date when medical marijuana license applications begin to be accepted in Michigan. We’ve been reading all the documents, letters and notes and offer here some of the most important things to keep in mind if you are a cannabis entrepreneur. And as LARA often mentions, guidelines are subject to change.

1) Licensing will be in two phases—there will be a pre-application portion, which will allow people to move through making an application while securing a location for their enterprise. With many municipalities still finalizing opt-in ordinances, this two-part process makes sense. If all of your materials ready to go, you can apply and complete both phases at once.

2) In phase one, applicants will undergo a background check that is going to be rigorous. The background investigation includes, but is not limited to: a review of the applicant’s criminal and financial history, a review of previous compliance regarding regulation and taxation and a look at your business litigation history, if you have one. You’ll also consent to allow the state to do a background check—for which you’ll pay up to $8000. You’ll be fingerprinted and don’t forget that the State of Michigan wants its licensees to be of good moral character.

3) You’ll need to have a municipality to lined up your business before you can go very far in the process. This is a critical part of your start up business—not every city, village or township in Michigan is willing to change its ordinances to allow marijuana businesses, if you have a location already working through an ordinance, that’s great. If you don’t, finding a locale where businesses are welcome should be your primary task. And the upside is, there are lots of municipalities in Michigan and not all have made decisions on this topic.

4) You’ll need some serious start up capital for that license. The licenses—whether you are growing, testing, processing, transporting or provisioning will be priced on how many applications there are. The more applications, the less expensive it will be. Large scale growers should plan to give the State of Michigan between $8000 (many of applicants) and $57,000 (few applicants). Your municipality will also take no more than $5,000 of your money for it’s part of licensing. Small growers (Class A licenses) will pay no more than $10,000. Other fees are yet to be determined.

5) Recently released (within 10 years) felons need not apply. You won’t be considered for a license. People who have been convicted of a misdemeanor in the last five years are likely not to get a license if it is drug related or involves theft dishonesty or fraud.

6) Elected officials on the state level in Michigan (and any other state or federal government, for that matter) and Michigan State employees are ineligible to apply for a license. Indian tribe elected officials and employees may apply as well as precinct delegates.

7) For growers who want to go big—more than 1500 plants, you will be able to stack your Class C 1500 plant license. Apply (and pay for) multiple licenses. The state hasn’t said how many Class C licenses can be stacked, but this provision could allow for some very large operations.

8) The State of Michigan is allowing co-location of cannabis operations. That means a grower can also have a processing business and a provisioning center in the same location. It’s a great move for entrepreneurs who want to grow, make edibles and have a retail business. It will also be allow secure transportation. This complete package is very appealing and allows for better control of one’s business.

9) In phase two of the application process, after you’ve been background checked, every licensee will need to present plans for information technology, staffing, marketing, inventory, security and recordkeeping.

That marketing plan part—we’re here for you. Canna Communication has deep experience in creating strategic marketing plans. We are a communications firm dedicated solely to cannabis and are passionate about helping you grow your business!

cannabis communication

September 11, 2017November 7, 2017Roberta King

Why I Gave It All Up for Marijuana

It wasn’t exactly a revelation or a call from God, but for me, it was close.

I’d been noodling the idea of doing communication consulting for a few years. As a senior public relations practitioner, it felt like where my career should go. I didn’t, though, like the idea of being a general practitioner. I wanted whatever came next to be meaningful, special and interesting. I was waiting for that idea to come to me.

The Revelation

On a November evening in 2016, I heard a NPR story about a cannabis industry trade show. What caught my attention was the hundreds, if not thousands, of ancillary businesses that support growing and distributing marijuana. The lights, fertilizers, air exchange systems, grow systems, edible products, star-powered cannabis brands, packaging, vape pens and security systems. It wasn’t about selling flower, but the picks and shovels of this green gold rush. I knew exactly where I was supposed to go next—into cannabis communication.

I secured the domain Canna Communication (how did no one already own this, I still wonder) and then jumped into my more formal education about cannabis. It wasn’t good enough that I liked pot—I needed to know it. I started meeting people in the business, reading books and articles, and listening to podcasts. I stopped being a marijuana mooch and got a Michigan Medical Marihuana card for chronic knee and back pain, the result of years of running.

Cannabis has always been a part of my life to some degree. While in college, I used marijuana socially and recreationally. I learned to roll a joint using Zig Zags and the cover of any convenient double album. As an adult I took a hit when it came my way, but didn’t seek it out. I never thought of cannabis a medicine—like for pain—but something for mental relaxation and happiness. As an introvert, cannabis helps me be more engaged with people.

Coming Out for Cannabis

I started to slowly come out—dropping hints on social media by sharing articles about cannabis and telling select people I was moving toward communication consulting in cannabis. It felt good to say it and people’s reactions were one of surprise, validation and connection. The more I talked about cannabis, the more people told me stories about their experience or that of someone they knew. People connected me with people in the business—a brother who made fertilizers, friends who were growers and people who use the plant for all sorts of medical conditions from Epilepsy to cancer therapy. People validated my business assumption that this was a field full of growth potential.

Just more than a half-year after I bought the Canna Communication domain, I walked away from a good-paying, highly visible position to devote myself to sharing information about cannabis and helping people grow their businesses.

I gave it up because I am sure I’ll get something more than what was left behind.

I aspire to be more self-directed, not just in the work that I do, but in my daily life. I want to complete the narrative about my career; I want it to be about being an entrepreneur and following my intuition about what the future might look like. I envision a story about standing up for something that is changing American culture for the better.

Cannabis is more than a plant for human health—it’s about working for freedom, science, smart public policy and social justice. It’s about being ahead of, and on the right side of history.