Potcast 183: Cannabis Business Mentors
On today’s potcast, we discuss the backbone of a socially conscious business model and what it means to be a mentor. We explore the cannabis dispensary design and shopping experience. And the perks of living your truth out of the cannabis closet.
If you’re a small business owner or entrepreneur wearing a lot of hats this potcast featuring Kevin Ahaesy, CEO of ECO Cannabis is for you. It’s also for anyone curious for an insider’s perspective on the ins and outs of starting a cannabis business - from cannabis banking, taxes, and insurance to creating a community-centric business and growing a massive footprint of cannabis.
I’m happy to be your cannabis lifestyle guide and share what I know and learn with you. If you feel inspired, please take a beat to rate and review Casually Baked on iTunes or Apple Podcasts. That simple action helps other canna-curious folks find this highly responsible cannabis content.
Kumbaya and cannabis, -Jo 💚
This Potcast Is Covered By MJ Relief
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‘After the Show’ Notes
After we wrapped the recorded interview, Kevin and I continued to chat about our experiences in the California cannabis industry and the hurdles of growing a successful business.
We’ve both worn all of the hats in our businesses which is important for building a solid foundation and developing the right team. Kevin was the general contractor for the buildout of both the ECO cannabis campus and dispensary and he took on the role of head grower for eight months and developed an intimate understanding of the operation and what was needed to make it successful. Of course, try not to wear all of the hats at once if you don’t have to. But definitely wear all of the hats.
Another insight I think you’ll appreciate is that of cannabis insurance and banking. Licensed cannabis businesses are forced to have insurance even though the system isn’t actually designed to help them. For example, during the riots in 2020, ECO cannabis was looted like many other local dispensaries. With over $300k dollars in damages, ECO received a $24k dollar settlement which wasn’t paid out for six months. The City of Oakland delayed the licensing fees for these businesses but offered no tax relief. And as a vertically integrated cannabis business, ECO has five separate bank accounts - one for each division of their business. Their annual banking fees - just to have the active bank accounts - is $30k dollars per year! And I thought a $1,200 per year fee was steep for my hemp business banking account. 🤯
As for taxes, the recently disclosed IRS playbook for auditing cannabis businesses exposes taste for low-hanging fruit. Will Brendza details it for us in this article, “For Internal Use Only” published in the Boulder Weekly.
And here’s the most recent example of an Oakland cannabis company fighting for its rights.
The Ninth Circuit recently issued an opinion in the marijuana tax case: Patients Mutual Assistance Collective Corporation v. Comm’r, No. 19-73078 (known as the Harborside case).
Jennifer Benda a former certified public accountant who specializes in marijuana & taxes and is a partner at the national law firm Hall-Estill in its Denver office had to say, “The opinion affirms the Tax Court’s denial of inventory cost deductions for certain costs that the taxpayer argued should be included in inventory costs. The panel declined to address the constitutional arguments raised by Harborside because the exact same arguments had not been raised in the Tax Court. The Ninth Circuit’s ruling does not break any new ground. The marijuana industry continues to battle with the IRS to overcome the harsh impact of Internal Revenue Code provisions that drastically limit their deductions. The case addresses the narrow rules that apply to marijuana companies that are retailers but not producers. As a result of these narrow provisions, the marijuana industry faces a very heavy tax burden, which severely impacts profitability. Marijuana companies that are producers continue to await guidance from the courts and the IRS on the scope of inventory cost deductions available to them."
It’s so important to recognize that nobody is rushing to do favors for the cannabis industry.
Right now, if you’re not in “eye of the tiger” mode - relentless. Being about it. jumping the hurdles. Clawing and scratching just to get to the starting line to begin the race for equal business rights. I’m tired but my heart is full. So you better let that sink in and do a gut check before you dive into the cannabis industry. It will be the ride of a lifetime if you’re in it for the right reasons. If you’re not, you’ll stand out like a turd in a punch bowl. I promise.
One more thing, I want to hammer home is that asking for help doesn’t make you weak. It shows you’re smart and resourceful. Just like asking for what you want conveys confidence and tenacity. ✌️💚 -Jo
GET 20% OFF YOUR FIRST IN-STORE PURCHASE AT ECO CANNABIS when you mention hearing Kevin on Casually Baked, the potcast.
LOCATION: 2435 Telegraph Ave. Oakland, CA 94612 | HOURS: Mon-Sun: 10 am – 7 pm | CALL: (510) 338-3001
Free Resources for Growing Your Small Business
At SCORE.org you’ll find free business templates, e-guides, checklists, blogs, infographics, videos, tools and other helpful resources to help you start and grow your small business.
If you live in the East Bay, learn more about the City of Oakland’s Equity Permit Program designed to minimize barriers to cannabis licensing for those who have been the most victimized by the war on drugs. Find out how to qualify by clicking the button below.
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I celebrated 4/20 but was too late for the 4/21 party. It’s new in town and I didn’t get the memo. Canna4Climate is a new holiday utilizing the day between the cannabis appreciation holiday we all know and love and Earth Day on 4/22. The goal is to mobilize the cannabis community against pollution and encourage environmental sustainability in the burgeoning cannabis industry. The new holiday was founded by WeedTube, the video-sharing platform for cannabis enthusiasts who were deleted from traditional platforms.
Communities in Arizona, California, Massachusetts, Colorado, Montana, Michigan, and Texas reported taking to the great outdoors to clean up local areas.
“We have the power to create real, meaningful change on a global scale by coming together and using our platform and voices as a force for good,” said Arend Richard, Co-Founder of WeedTube. “Since the cannabis plant has brought us together, it’s our mission to not only create a more climate-conscious community, but change the narrative of what a cannabis consumer or ‘stoner’ is. As the community matures, we must destigmatize old stereotypes and show the world that cannabis enthusiasts are proactive, conscious, and contributing members of society.”
The way I see it, there’s no need to wait until next year to put this idea to work in your own community. You cannabis sherpas out there know every day is earth day. And this is a great opportunity to give back and pay it forward. Get creative on ways you can support your local community while lovin’ up on Mother Earth.
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Roll With Me, a new video series launching on the Casually Baked YouTube channel in April 2021, is a collaboration with OCB Rolling Papers. I’ll get lessons and insights on the craft of rolling while chatting about all things hemp and cannabis culture.
Complete This Form to Roll With Me On An Upcoming Episode
We all know practice makes perfect so I’m engaging my cannabis industry friends to coach me. And if you’ve got some rolling tricks up your sleeve, perhaps you, too, can school me on an episode of Roll With Me.
If you too are a joint rolling novice and want to learn the craft alongside me, go ahead and get your supplies ready. Visit ocbusa.com/BAKED to get 4 booklets of OCB and a rolling tray for only $4.99! This bundle is worth 20 bucks and is around for a limited time. But the rolling skills and street cred we’re going to earn together, my friend, makes this bundle priceless as far as I’m concerned. As for you OG’s who can roll a joint one-handed, I challenge you to sample the entire line of OCB products and let me know your favorite.
Get 4 booklets of OCB and a rolling tray for only $4.99! This bundle is worth 20 bucks and is around for a limited time. But the rolling skills and street cred we’re going to earn together, my friend, makes this bundle priceless as far as I’m concerned. ✌️💚
