By Charles A. Reid III, Esq.

As an attorney, I have had many discussions about the emerging marijuana industry in Massachusetts. With the ever-changing laws and regulations, clients are unsure of what the status of the law and industry really is. I have had several questions asked of me and comments made with regards to entering the industry. Some include the following:

• “When can I get a license?”
• “Can I start at home for now so the plants are almost ready to harvest when I get a license?”
• “Do I need a business plan?”
• “My only problem is that I don’t have the money to invest.”
• “How can I find money to get started?”
• “There are too many people trying to get a bite of the apple.”
• “Do you think it’s a good idea to buy a property now? I would like to have everything set up so that I can be ready.”
• “What should I be doing now to get ready?”

I can utilize one of the various versions of a lawyer’s classic response to any legal question to respond to these questions or comments. “It depends”, or “that is possible depending on…, etc.” There are too many variables and unknowns to give a specific and accurate response. The industry is changing and the Cannabis Board will be making several additions to the laws and regulations while trying to work within Federal law. This is a lesson from the jurisdictions that have been working in the industry for years.[1]

So why then should you speak to a lawyer about the industry? This question is a little bit easier to answer more concisely. The lawyer can advise you on the status of and about the proposals for changes to the law. The lawyer can help you avoid doing something, like starting commercial cultivation in your house, that may prevent you from obtaining a license or even get you prosecuted. Remember, the new Massachusetts law does not repeal the old laws; it adds to them. In other words, if you run afoul of the new law, the Commonwealth may prosecute you under the old laws.[2]

Your attorney will help you build your team. The lawyer will be the second team member as you are the first. Together, you and your attorney need to build the rest of the team. These individuals will have specific skill sets such as accounting or marketing.

Once you have your team assembled, you can move to the next stage. This will be to decide what type, if any, your business plan should be and writing it. It is much easier to find funding when you are starting your first business if you give the financial organization or investors that you trying to get to fund your startup something they can see. Everyone has dreams, goals and aspirations; however, investors cannot read your mind and may have a tough time trying to see the picture you are trying to paint for them if it’s not put on the canvas. A business plan is an artist’s (entrepreneur’s) vision (business idea) put on the canvas (paper). The plan also gives the company’s leadership a unified direction.

Many people who wish to get into the industry do not have the money to invest. The early medical dispensaries that opened spent hundreds of thousands of dollars just to get open during the licensing process. Now recreational licensing will be drastically cheaper depending on which licenses you wish to apply for; however, all start-ups need some level of funding to get going. Having a business plan will greatly increase your chances of securing the necessary capital. Then you must negotiate the terms. Progressive Law can negotiate the deal for you and will strive to get you the most amount of capital for the least amount of risk and detriment as possible.

You may have to compete for a bite of the apple; it’s called capitalism. You must be better than the other entrepreneur. Sometimes that may mean walking through the door before her. Sometimes it will come down to who has the better business plan or business team. Sometimes, you don’t go to the apple for a bite.

In 1848, a store owner named Sam Brannan went out into the street holding gold dust in one hand and his hat in the other waving and shouting, “Gold! Gold from the American River!”[3] He sold all of the people quitting their jobs to run off and get rich mining their shovels. [4] Most of the people didn’t get rich mining. They went broke.[5]

The lesson here being that maybe instead of trying to get a bite of the apple, you sell people the gloves to prevent their fingers from getting sticky while they bite it or sell them a napkin for after.

So, first things first… Get your rough idea in your head. Do not go buying property just yet. Come down to Progressive Law, LLC and discuss it with the professionals.

[1] Blake, David, and Jack Finlaw. Marijuana Legalization in Colorado: Learned Lessons. Harvard Law and Policy Review. Cambridge: Harvard Law and Policy Review, n.d. Harvard Law and Policy Review. 22 June 2015. Web. 9 Feb. 2017. <http://harvardlpr.com/wp-content/uploads/2014/08/HLP204.pdf>.

[2] “Take aways.” MCLE New England. Proc. of “1st Look” at the New Massachusetts Marijuana Law Understand the wide-ranging practical implications for your clients and practice, MCLE Center, Boston, MA. Massachusetts Continuing Legal Education, 19 Jan. 2017. Web.

[3] “Miners vs. Merchants: Fortunes Made Through Global Trade.” Flexport. N.p., 08 Aug. 2016. Web. 17 Mar. 2017. <https://www.flexport.com/blog/trade-merchants-rich-california-gold-rush/>.

[4] Id.

[5] Id.