I love to find new Medical Marijuana related websites. Weedist.com is on top as a new favorite. I came across a story on Reddit a few days ago mentioning that medical cannabis growth has outpaced the smart phone market. MMJ 64 % Smart Phones 46%. Then CNN picked it up today and devilmonk published a article on Weedist. He goes on to link a story by Mercedys about investing in MMJ stocks, which links back to a good analysis by dailyfinance.com. Mostly the article talks about penny stocks and how speculation like many stocks drives the current price falls and gains.
A very popular questions with clients is: Will I be successful in this business? i.e. Will I be able to pay my bills? According to this article the answer should be yes. With so many business writers publishing articles comparing the Medical Marijuana industry to other booming business like Amazon, beer and wine, tobacco, Starbucks, and now smart phones, the writing is on the wall. My answer is always long. I tell clients first and most important do not do this for money. If you are simply looking for a paycheck there are easier jobs with less risk to your safety and legal circumstance. You should want to organize a collective for these reasons:
- Provide safe access to MMJ patients.
- You believe marijuana is medicine, and that the real crime is keeping this medicine from those who need it.
- The ability to operate your own business.
With that said, I am a firm believer that if you have been successful in one business venture you can be successful in another. Several traits of a successful business transfer across professional fields. Customer service, price point, quality, finance, diligence, research, and knowing the competition will all help to ensure a successful business venture.
That conversation will usually lead to this question. How much can I pay myself as a collective owner/operator?
You will find that most attorneys in California will recommend you pay yourself less than 50k per year. They give a number so low because it is easy to defend in court. Let say you operate your collective and have been arrested and charged with cultivation or distribution. If the trial goes to a jury, those jury members probably on average have a annual income between 50-100k. So if you have been paying yourself 200-300k per year to operate a dispensary is the jury going to consider that your business was operating not for profit? Well at that point you are leaving the decision of your compliance in the hands of strangers. There is no set amount in the California Corporations Code of what a corporate officer can be compensated for his/her time. My personal suggestion to clients is to stay under 100k per officer per year (due to the cost of living in California). But well before you get that 100k salary there are many things that need to be done:
- Understand the risk- We can explain this for you.
- Get the paperwork (from us of course)
- get the medicine
- get the patients
- find great employees
- find better medicine
- keep the patients happy