Business
COOPERATION, NOT COMPETITION
From February 3-5, over 1,2000 cannabis industry professionals descended upon Denver for the second annual Women Grow Leadership Summit. The Summit provided an opportunity for men and women to come together to network, build relationships and grow their knowledge of how to engage in a responsible and ethical cannabis industry. The first day treated attendees to a full day of Ted-style talks which motivated and inspired all who attended. Day two offered a variety of panel discussions lead by experts in MMJ healthcare, testing, business practices, finance and funding, legal compliance, branding and trademarking the importance of diversity.
One of the highlights of the conference though came on Thursday afternoon when Melissa Ethridge delivered the keynote address. Ethridge shared her personal history and journey with cannabis as a breast cancer survivor. She spoke about how women in cannabis is part of a huge paradigm shift in how we look at health and taking care of ourselves. At the end of her keynote address, Ethridge said, “Cooperation, not competition, is what moves us forward” and this sentiment seemed to resonate throughout the entire conference.
On Friday afternoon, the Law Office of Kimberly R. Simms, alongside Colorado based-Sally Kent Peebles and Shawn Hauser of Vicente Sederberg, LLC and Illinois based-Dina Rollman of Rollman & Dahlin, had the pleasure of presenting on the topic of “Business Relationships & Contract Best Practices.” This panel served as an excellent resource for attendees at all stages of their business life cycle.
On the topic of building strong business relationships, the panel imparted to the audience the notion that it takes a dedicated amount of time, energy and consistent work to build strong and long-lasting business relationships. A good business network should be comprised of a qualified, selective group of people who add value to each other’s businesses. The panel gave seven tips for building a strong business relationship:
- Identifying what type of partner(s) you need.
- Take the time to develop the relationship.
- Clearly define your expectations and goals.
- Engage in consistent communication.
- Be transparent and honest with potential partners, but also be sure to protect your intellectual property.
- Acknowledge when it’s not working and when it’s time to walk away.
- Ensure that your business partners are educated and compliant with the cannabis laws in the states where you are operating.
Once a business relationship and partnership has been established, it’s time to memorialize that relationship in writing. Contracts are the fundamental building blocks for any business. They constitute the binding relationship between the companies and individuals and help to define terms, conditions, expectations, fee structures and methods for dispute resolution. Failure to execute a sound legal contract can result in a waste of the organization’s time, lost revenue, increase in cost and potential risk and liability. The panel outlined seven fundamentals to keep in mind when drafting contracts:
- Put your agreements in writing.
- Hire an attorney practicing in the cannabis field. There are many legal nuances that occur from federal, state to local law that must be contemplated when drafting. 3. Clearly define terms to avoid confusion down the road.
- Be open to negotiations.
- Include dispute resolution remedies.
- Draft contracts in consideration and preparation for changes in law.
- Protect your intellectual property. This includes trade secrets; customer lists, marketing strategy, and all other proprietary information.
The panel concluded by discussing red flags to watch out for the industry. When building business relationships and executing contracts, businesses should be on the look out for partners who are focused on short term profits and a quick exit as well as any potential partner who seeks to rush through due diligence.
Overall, the panel and the entire Leadership Summit was a great success. Participants walked away with renewed energy and excellent knowledge to propel themselves forward during this very exciting time in the cannabis industry.
If you are interested in learning more about Women Grow, visit www.womengrow.com. If you would like to attend San Diego Women Grow Events, find us on Facebook or email sandiego@womengrow.com and request to be added to our email list.
