Once again Hilary Bricken has brought light and knowledge to readers. Thank you for your path of truth in this green marketplace. Reply
As a licensed producer processor in Washington State who has been through the ringer for the past two years, here are a couple more red flags: Turn-key leases on equipment and property – don’t allow them to be held by a party of interest in your license ownership, make sure your business has the ramp up to pay the lease or else they’ll steal your license as an asset to pay the rent due in eviction proceedings – it takes at least 6 months for clear profits. Business partners operating agreement – define everybody’s responsibilities how & due dates, business partners shall not have sole bargaining interest in your leases and are equally resdponsible for payment of all debts. CPA’s – demand itemized invoices, date of completion with defined actions, watch for double billing, have 280E outlined in your operating agreement and pay all taxes before your percentage is distributed. Attorney’s – don’t let them take advantage of the art of the contract, they will create clauses that benefit them – there is no 2 way street in contracts, biggest bullshit lazy lawyers speak – clearly state what exactly you want and when. Consultants – definitely only hire those who are currently licensed or sold their license. Conferences – you only need the big one – MJBusiness Conf in Las Vegas – all the others don’t compare and will have a fraction of the vendors serving our industry. Lawyers – same as CPA’s watch out for double billing, don’t hire lawyers who you end up paying for their education of our rules of law, only hire lawyers who have already paid for their education of our laws – never let an uneducated lawyer touch your cannabusiness – you can say ‘no, thank you’ and find someone else, watch for predatory lawyers creating contracts that make you responsible for their fee’s regardless of the outcome, have a clause that holds them responsible for the viability of the license and pays you for failing to protect the license, never pay a lawyer for just speaking, they have to take action positive for your outcome regardless of what they advise. If you sell part of your business have payment due dates with accruing interest on late payments – rich people won’t pay debt if there is no reason, accruing interest is the reason, and include clause for cancellation of license transaction if they’re more than 2 weeks late with payment. Good Luck, some times it will suck but it’s the best opportunity we have for regulated cannabis right now. Reply