PP 104 | Hiring For Cannabis Business

 

One of the more challenging parts of managing a cannabis business is the hiring process. How do you know which applicant to hire? How do you know which positions you need? Some of the answers only come when you’ve made the mistakes. But if you want to avoid these mistakes and prevent a bad hire, this episode is for you! Tony Frischknecht shares a list of key reminders when finding a person to join your business. He’s made the mistakes and learned the lessons. Today, he iterates those insights to help you in your cannabis business journey. Stay tuned!

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Four Things To Keep In Mind When Hiring For Your Cannabis Business

The cannabis business is always exciting and fun. Getting into some of the challenging parts of the business outside of regulations can always be a bit tedious per se. I was thinking about some different scenarios where I was having issues as a business owner as well. One of the biggest things that we have as owners that we have full control over is how we do our hiring. What are some of the issues that you guys are having out there with your hiring? Whether you’re starting and you’re creating your business where you might be the only one in your business. How do we decide to bring these people on?

If you’ve got business partners, it can tend to make things a little bit easier and challenging at the same time. You can utilize some of the power of your business partners to create different ways to find the right people because I’ve been hiring and firing people for many years. When I started managing some different restaurants in my early twenties, I started that process.

These are a couple of things that I’ve learned that had helped me through the years. Sometimes I make similar mistakes and I got to go back and say, “Remember, we’ve done this before.” Those aren’t as easy to figure out until you do it a few times, unfortunately. The old saying, “Fool me once, shame on you. Fool me twice, shame on me,” happens sometimes. It’s best to think about, “How can I make this simpler for me? How can I make it easy for the next person?” You as a business owner, this is not always going to be your job. This is one of your jobs right now. You’re having to do the hiring and the firing.

State Regulations: What Is The Licensing Process?

If this is your first company, you’re about to learn a lot. If you’ve done this before, one of the biggest hurdles is usually getting over, “How do I separate myself from a bad employee? How do I make these things less painful for me and the other individual that I’m letting go of?” In this episode, I thought, “What are some of the most important things that I want to discuss with you?”

PP 104 | Hiring For Cannabis Business

Hiring For Cannabis Business: One of the biggest things that we have as owners is full control over how we do our hiring.

 

The first one is and this coming more from a regulatory standpoint, “What’s the licensing process in your state?” Every state has some type of licensing process for an employee. Whether it’s been created it’s definitely on the book. One thing you need to do is a little bit of homework and find out, “What is required by my state for an employee to work at my business?” If you’re going into all this and you don’t know that, it is going to be a big mistake.

What are your state regulations? Are they requiring background checks? Are they doing deeper background checks than just a simple $10 background check? There are all kinds of ways this can go. I like to do background checks on anybody I work with to understand what’s happening. When you’re hiring anybody, you want to make sure that they don’t have any felonies or pending issues in their background that might throw up a red flag on your licensing remembering that there’s so much at stake when you bring these people into your circle.

If they’re criminals, you’re bringing in a bad element. It may or may not affect your business internally right away but it could affect it down the road. That’s why you want to know what the state’s requirements are. You also want to know the city requirements. Sometimes they’re different, sometimes they’re the same. It goes along with taxes. You have different taxes so you want to make sure you understand that.

Your time is the most valuable thing. Click To Tweet

I recommend that once you know all these, creating a simple process like, “What do we do with an employee when somebody wants to apply for one of our positions?” First of all, we got this A, B, C and D. That’s going to eliminate a lot of people right away especially if they don’t have the licensing that’s required. “Sorry, you might be a great employee but we can’t help you out.” You don’t want to waste your time on that.

Job Description: What Are The Positions You Need?

What are the positions you need? I know this seems like it should pop at you right away but sometimes it doesn’t. If you’re not dealing with your main things like sales, accounting, marketing and some of that stuff. Know what you want and create a job description. The funny thing is you might need to be able to create the job description before you know the actual position you need. This position in place might dictate what the job title is. It doesn’t have to be extremely detailed right away. Write out a couple of sentences or if you’re like me and it’s like, “I don’t have a lot of time.”

Search the internet. People like to take all this time to make it exactly how they want it. I’m a big proponent of saving my time and how much time can I save. I can easily go to Indeed or LinkedIn and search some of these executives or different employees out there and search for a great description that I’m looking for to put this in place.

We’ve got the licensing part discussed and the positions needed. If you have business partners or executives, make sure you get their input on this after you’ve gotten some descriptions made up and positions open. You may need to pull some of your managers in what they’d like to see in tasks. This does take a lot of time. What’s nice about this is once you have this done and you have this created, you only have to do it once.

PP 104 | Hiring For Cannabis Business

Hiring For Cannabis Business: These are things that are kind of painful in the beginning, but having these in place makes it repetitive and much easier.

 

You might have to tweak it a little bit but other than that, you only have to do it once. You’ll be adding new information. You’re also creating a manual for the person that was going to take your place when they start doing the hiring. These are something that’s kind of painful in the beginning, but once you have this in place, it makes it repetitive and much easier.

Background Check: What Type Of Person Fits This Position?

The other thing that I thought of is going back and tweaking this due to bad hires that you’ve done. These are certain things you can tweak in place. I can almost guarantee you can search us out online. However, you’re still going to have to do some work to create one of your own. What type of person fits this position? You could be hiring for accounting, sales, IT or HR. What are these positions? What’s their main point? What do you need?

If you would need a writer, you need somebody that maybe went to school for journalism. Maybe they do a blog. A salesperson needs to be outgoing. These are obvious things but if you sit down and take this work and put it together now, it’s going to save you a lot of time in the future. One of the most challenging things is taking the time to do this before you make a bad hire. The point of this whole episode is, “How do I save you time as you move forward and grow as a company?”

What type of person? Think about what that takes. For a salesperson, if they’re an introvert, they might be a good writer. Maybe they’re more for an online type, social media type style. Most salespeople need to be extroverts. They got to be outgoing to reach out to people. Some people are just naturally good at this. You want to look for those. I like to get recommendations from people but I still vet them as if I didn’t know them. Maybe there’s a good recommendation from somebody, however, it doesn’t always mean that they’re going to be a great employee.

One of the most wasteful things is hanging on to somebody who doesn’t fit what you need. Click To Tweet

Trial Basis: What Is Your Vesting Period?

After you’ve created these three spots, I’m sure you’re going to have some other stuff to add in I want to give you guys a starting point that makes a lot of sense. I was taught this and I still use it to this day. It makes it extremely easy to get rid of a bad employee quickly. It’s not always that they’re a bad employee, they may not fit your company. That’s not a bad thing. It’s life. That’s how it goes.

One of the things that I started using during my career, is creating a time period. It’s a test and this is one of the most important things because, in any type of resume, an online profile or work background, it still doesn’t truly show you. People can say anything on paper but at the end of the day, their actions are truly what they’re going to be as an employee or be a future executive. It depends.

Using a trial basis whether it be 7 days or 2 weeks. What’s great about a trial basis is you’re going to know, “Is this person going to step up? Are they going to follow what I was sold?” It’s a return policy like, “We’ll try you out but you got to show us what you can do as well.” Nine times out of ten, the people step up. The ones that will fall out, it’s so much easier to say, “This is our hiring process. What we want to do is a two-week trial.”

If they’re okay with it, they’ll show up. I’ve had people not show up, which is good because do you know how much time that saved me? Your guys’ time is the most valuable thing. I want you to know and feel that. Understand that it’s hard to put a price tag on your time but know that when you’re creating a multimillion-dollar business, that a lot of you are doing and have, finishing off what you’re doing with a different project because you’ve got to deal with a bad employee or somebody that doesn’t fit the bill. You’re trying to fit a round peg in a square hole and that’s always a challenge.

PP 104 | Hiring For Cannabis Business

 

I want you to do the best you can and avoid that in the beginning. If you’ve got a two-week trial and you’re either hiring a manager or an employee, when you see he’s not doing any good and your manager is not doing any good, it’s easy to say, “At the end of the two-week trial, we’ll sit down, have a meeting and talk about these things.” By then, you’ve had a couple of discussions with your staff or you’ve had a couple of discussions with the new employee yourself.

You need to come to this meeting and set a date so that you have a deadline and it’s not forgotten about or passed over. You’re either going to hire them full-time or he’s going to be gone. Having them know that in advance takes a lot of the pressure off of you having to go fire somebody. One of the most wasteful things is you hanging on to somebody that doesn’t fit what you need. That is the biggest waste of money.

Check us out on PlantProblem.com and let us know if you have some hiring issues that you’d like to discuss and how you would like to fix them. I’d love to know. I’m all over social media as well so you can connect with me there. PlantProblem.com is going to be one of the best ways to get in touch with me. Thank you for reading. I appreciate it. You are out there making a future for cannabis and the people coming behind you, you’re smoothing it out for them. You’re creating the wave to national legalization. If you guys are hopping into the game, welcome. We’re glad you’re joining and we look to see you down the road. See you next time.

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PP 100 | Against The IRS

Free 280E & 471(c) Documents

If you have been listening to the show you know that my cannabis business got Audited by the IRS! Not fun let me tell you.

However, Rachel my awesome lawyer who specializes in tax law sent me these two gems to share with my audience!

 

Cannabis Taxpayers Find Flaws in New Accounting Method Rules

The Growth of the Marijuana Industry Warrants Increased Tax Compliance Effort

 

Just input your information and I will send them right to your inbox!

Show Rachel your appreciation and head over to listen to her episode #100! 

 

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