Pubdate: Mon, 30 Jun 2014
Source: Washington Times (DC)
Copyright: 2014 The Washington Times, LLC.
Contact:  http://www.washingtontimes.com/
Details: http://www.mapinc.org/media/492
Author: Valerie Richardson
Page: A1

AT SUMMIT, POT INDUSTRY IS SERIOUS BUSINESS

Goods, Services Passed Around

DENVER - Those expecting to find hippies in tie-dyed T-shirts at the
inaugural National Cannabis Industry Association's Cannabis Business
Summit last week were in for a rude awakening.

More than 1,000 attendees wearing button-down collars and ties
gathered at the Colorado Convention Center for a two-day confab to
discuss regulations, banking, product lines, insurance, energy
efficiency, human resources and other issues related to the burgeoning
marijuana industry.

Make no mistake: Marijuana is big business. Retailers in medical and
legalized recreational marijuana are expected to generate more than
$2.2 billion this year, and entrepreneurs nationwide are looking for a
piece of the action.

That includes Carole Richter, a human resources consultant in Denver,
who never attended a marijuana-related convention until last week.

Her first impression? "I'm seeing a lot of suits," she said with a
laugh.

Just like any other business, marijuana growers and retailers need
help handling headaches related to hiring and firing, and that is
where Ms. Richter comes in.

"If you have employees, you might need my help," said Ms. Richter.
"Every small-business owner, they don't know what they don't know. Now
employees are banging on the doors trying to get into the business,
but as more and more states legalize, it's going to be more and more
competitive. They not only need to attract the best people; now they
have to think about retaining the best people by establishing a good
corporate culture."

Jeff Herbert, owner of Wind Orchard Energy in Denver, was promoting
his solar and wind energy systems for marijuana growers.

"I've been following what the industry's doing, and I read that their
energy demands are out of the roof," said Mr. Herbert. "I feel like
there's a real need. It's a green energy for a green product and a
green industry."

It was also his first time at a marijuana-themed convention. He found
out about it days beforehand and was able to finagle a booth, even
though the event was officially full.

"We called, and all the booths were taken, and I said, 'Oh, come on,'
and they said, 'Let me make a phone call and I'll call you back,'"
said Mr. Herbert. "So somebody canceled and here we are."

This isn't the first gathering of marijuana-related businesses, but it
may be the largest, said Patrick McManamon of Cann a sure Insurance
Services LLC in Cleveland.

He has attended 10 business-related pot gatherings in the past few
years. This time, more than 100 business owners gathered for his
seminar on insurance issues.

"You're seeing people here who aren't necessarily from the states with
legalized medical cannabis," said Mr. McManamon. "You see people where
they're interested in it because the plant has been a part of their
life at some point, it may still be a part of their life, and they
want to figure out if they can be a part of the industry."

Marijuana businesses face the same issues as other industries, but
with a few caveats. Like the jewelry industry, for example, moving the
product can be fraught with risk.

"The transportation of product - it's kind of like jewelers delivering
rings and uncut diamonds," said Mr. McManamon. "These guys are
delivering product from the cultivation facility to the dispensary, so
they can have a lot of product in the car. There's no easy way to do
that."

Mark Goldfogel, CEO of C4 Ever Systems, brought with him an invention
that he billed as a solution to the industry's banking woes: a kiosk
that accepts payments for marijuana sales, takes a photo of the buyer,
records proof of age, and keeps the cash and receipts in a secure cash
box for pickup by an armored car. The kiosk even makes change. "The
banks can go back to regulators and say, 'Hey, regulators, every
dollar that I'm taking and putting in I can guarantee came from a
legitimate transaction,'" Mr. Goldfogel said.

Mr. Goldfogel said he already has orders for 600 units.

The business-to-business events for marijuana used to be "really
small," he said, making the Denver conference unique.

"This has been fascinating," he said. "This particular industry grew
out of drug dealers. They were former pot sellers who came in with
their backpacks and said, 'I don't want to get arrested anymore.' And
I've watched how those people have gentrified out, and business people
have bought out their stores."

Hence the NCIA's conference motto: "Where Commerce Meets a
Revolution."
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MAP posted-by: Matt