Serial entrepreneur Pete Kadens was already onto his second mega-successful business —the commercial solar energy installations company SoCore Energy—when a colleague, Ben Kovler, called him with a proposition: to launch a cannabis business in the wake of Illinois Gov. Pat Quinn’s 2013 decision to sign into law the Compassionate Use of Medical Cannabis Pilot Program Act, which would allow medical marijuana in the state.

Kadens, though he’d recently sold SoCore to Edison International and signed a contract to stay on as an executive, jumped at the chance. As he describes, it was a question of morality, not opportunity.

“The reason I was interested is—truth be told—not because I have an intimate connection to the plant, but because … I have an anthropological fascination with poverty,” Kadens says. “What I have learned is that of all the permutations of poverty, the vast majority of the people—with whom I have interfaced—have gotten there because of some non-violent drug crime.” He wanted to change that.

“With so many communities crushed by the war on drugs, we believe that we have a moral imperative to not only help rebuild these communities, but also to help the individuals who have suffered rebuild their lives through gainful employment opportunities,” Kadens explains.

“When I have the opportunity to invest my own money in this mission, I’m like, ‘I’m in,’” he says.

“But when we wrote that first six-figure check, I told my wife, ‘You might as well burn this money because we will never see it again.’” Kadens wasn’t sure they’d win a license, let alone build a successful brand. “And she said, ‘Then why are we doing this?’ And I said, ‘Because this is the right thing to do,’” regardless of whether they’d win a license.

Not only did Kadens and Kovler snag a license and launch Green Thumb Industries (GTI), they have since successfully opened 13 dispensaries in five states, most under the name RISE, with another seven expected to open by December. The company has also secured 25 additional licenses across the country, and those dispensaries are slated to open in 2019.

The 13 existing dispensaries opened as medical facilities, though many are incorporating recreational as state laws shift. For example, its two Nevada dispensaries (Carson City and Spanish Springs) converted to include adult-use in January, following Nevada’s decision to legalize recreational marijuana beginning July 2017. This July, Massachusetts dispensaries will be able to legally sell recreational cannabis, and RISE’s Amherst store is prepared.

GTI also has dispensaries in Maryland and Pennsylvania and is looking to expand into Florida. It recently won five licenses in Ohio, too. “We are very pleased with the outcome of the Ohio dispensary awards,” Kadens says. “The fact that we won the max number of licenses—five—is a testament to the exemplary track record we have of serving patients and communities around the country.”

Through all that, GTI’s home base remains Illinois. It is headquartered there, and it’s where the company launched its first dispensary in 2015. At that time, Kadens’ contract with Edison International was ending, and it was the perfect time, he says, to make cannabis his priority. To that end, he initiated a conversation with Kovler about expanding the brand nationally.

“I said, ‘What about taking this concept and scaling it?’” Kadens recalls. He made the full-time leap to cannabis when his partner challenged him to take up the task himself. “At that time, we had two grows and one dispensary, and probably 30 employees,” he says. “We’ve grown by dramatic proportions since then.”

Today, GTI has seven vertically integrated production facilities with a total of roughly 400,000 square feet of cultivation canopy, and employs 400 people. “It’s a big operation, with a lot of real estate and a lot of capacity in terms of what can be produced,” Kadens says. “One of the key areas of focus for me and our executive team is continuous improvement every single day. The goal was always to produce consistent and trustworthy product—you just never want to have a letdown, or hear that a consumer has had a bad experience with your flowers or edibles.”

“We integrate the community into our name because our goal is to have a very close connection with our community. We want our facilities to be a gathering place—like home—for the members of that community.” Pete Kadens, director/CEO, Green Thumb Industries

The dispensaries have a strong focus on community and customer service, too. Most dispensaries under the GTI umbrella are called RISE, with a nod to the store’s location tagged on at the end. There is RISE Erie, RISE Bethesda, and so on. “We integrate the community into our name because our goal is to have a very close connection with our community,” Kadens says. “We want our facilities to be a gathering place—like home—for the members of that community.”

Each RISE is fitted with vibrant lighting and the company’s bright color scheme. “The [employees] are cordial and nice, and it feels like a very collegial atmosphere,” Kadens describes. “I hate to use a cliché, but it’s kind of like ‘Cheers,’ where everybody knows your name.”

Like ‘Cheers,’ RISE dispensaries are meant to be friendly. “Dispensaries around the country are a lot to take in,” Kadens says. “There are a lot of undereducated consumers out there, and the menus are massive. ... The care specialists don’t spend a lot of time with consumers because there are a lot of transactions to be done.” That said, he adds, “we like to do things a little bit differently. We like the time to be well spent and feel like a connection is developing … between the consumer and the care specialist. We like people to feel at home and very welcome.”

RISE’s medical dispensary origins come in handy at its now-recreational stores. Designed to help medical patients, the adult-use dispensaries still have cubicles where customers can enjoy privacy while they speak to the store’s care specialists. “We still find that the most important relationship is … between the care specialist and the consumer, and whether that’s a patient who’s under the medical platform or an adult-access consumer, it’s still very important to us,” Kadens says.

Even those without diagnosed medical issues and medical cards “want to have that … connection with the care specialist,” Kadens continues. “The interaction is one-on-one and it’s confidential. We do not want to be a crazy transactional place—we don’t want our dispensaries to look like a McDonald’s line. That doesn’t feel very community-like.”

A Worthy Cause

For Kadens, philanthropy is a primary concern. That’s why GTI is committed to helping non-violent drug offenders clear their records, as well as earn the ability to have gainful employment, including at RISE dispensaries. (In many states, people with drug records cannot work in cultivation facilities or dispensaries, so GTI is unable to hire them unless their records are first cleared.)

This commitment echoes Kadens’ belief that many people are impoverished because of minor, non-violent drug offenses, and that by changing that cycle, poverty could be greatly reduced.

GTI also recently held a job fair in Massachusetts, welcoming more than 400 people and 50 potential employers. Attorneys were also on site to help previous drug offenders clear their criminal histories. “That is how change starts,” Kadens says. “And then one day we can eventually hire them.”

Keeping It Straight

If maintaining dispensaries in several states sounds as if it might be confusing, it is. “Every market is so idiosyncratic—they’re all unique, provincial fiefdoms,” Kadens describes. In Maryland, for example, you can’t sell edibles—and in Pennsylvania, flower sales were initially prohibited and only begin this summer.

“In Massachusetts, there is no home delivery, but in Nevada there is,” Kadens says. “In Pennsylvania, we have to keep years of surveillance data ..., but in Nevada it’s 90 days. And in Pennsylvania, if you have anything more than a summary offense, we can’t hire you—in Maryland, it has to be a felony [to make a person un-hirable]. So every state has its own thing that we have to be clearly aware of, and it is tough to manage. And that is just one thing that makes this business so complex: It’s very tough to scale it [across the country].”

Branding is also difficult to keep straight, Kadens says. For example, RISE has its own packaging, but that packaging might need to include a tamper-proof sticker in one state, but not in another. GTI and RISE work with an external branding team that “understands our brand standards and how to apply them across the markets,” Kadens says. “These people work within the regulatory framework and make sure that our brand is as consistent as possible, working to maintain the color scheme, the look, the feel and the energy.”

The A-Team

Kadens credits his staff with the company’s interstate success. “I would never be so brazen as to say we’re the best operator or the best grower. But I’ll tell you this: I’d put our hiring system and protocols up against any other company in the country. We take it so seriously and we’re so thoughtful about every person we hire.”

In fact, Kadens personally approves every company hire. “We have a process called ‘The Gauntlet,’ and I am the final approver on The Gauntlet,” he says, “and it’s in place to ensure that every single person on the payroll—down to someone who is a $13-an-hour trimmer at one of our production facilities—meets all of our eight cultural standards.”

Kadens says those standards are the “secret sauce” to GTI’s success, so he would only divulge a few of them. The first standard he sets for potential employees, Kadens says, is the use of good judgment. “We want people who have shown time and time again that they use good judgment,” he describes. Another standard is, as Kadens says, “embracing your inner weirdo. We want people to be themselves. We want people to be authentic. We don’t want phonies and disingenuous people. We want to really know people so we know how to manage them.” That plays into the last standard Kadens was willing to share: Employees at GTI must use “excessive honesty” at all times at work.

“All it takes is one person—I don’t care if they’re an intern or an hourly laborer or a senior executive … to screw up an entire company,” Kadens explains.

Staying Social

Another way GTI and RISE stay connected to the community is through social media platforms such as Twitter and Instagram, and sites such as Leafly and Weedmaps. And GTI is adding team members to specifically handle social media.

“We do want to be responsive to consumers’ concerns and questions, so we have people … on our outlets in charge of responding in real time,” Kadens explains. For him, that means within two hours—never more.

Social media is “a great way to access the community and really engage people and create some noise and show people what our culture is like,” adds Matt Yee, GTI’s market president for Massachusetts. “We get feedback and get people excited on social media. And overall, when everyone has a smartphone in their pocket, it’s an incredible resource for us.”

GTI and RISE also make an effort to provide as much information on their websites and social media platforms as possible, from sharing industry news to educational materials. “People are insatiably curious and under-educated,” Kadens explains. “Consumers trust people who provide them with education.” In that sense, then, by providing guides and news online, GTI and RISE are bettering its relationships with customers, too.

“This isn’t like a widget—you’re putting this in your body,” Kadens explains. “This is something that is going to … affect my central nervous system and my brain. I want to understand how it works,” Kadens says. “So we want to use every single format possible to educate our under-educated consumers.” Kadens adds, “... The more we educate them, the more we build that bond of trust between us and our consumers.”

Jillian Kramer is a New York City-based freelance journalist.

As of May, medicinal cannabis was legal in 30 states plus the District of Columbia, with nine states and D.C. having legalized recreational cannabis. At the same time, it remains federally illegal. That dichotomy translates into great uncertainty for those who make a living cultivating, processing or selling the plant and creates a regulatory vacuum.

While the federal government routinely issues safety regulations related to food and drugs, transportation, occupational health, consumer products and myriad other issues, those regulations interpret the will of Congress in passing related legislation. Without federal legislation legalizing marijuana, there is no Congressional intent to interpret. Therefore, regulations from the Food and Drug Administration (FDA), the U.S. Drug Enforcement Administration (DEA) and any other federal agencies with potential stakes in the cannabis industry are virtually non-existent.

Because of that void, many of the most reputable licensed cannabis companies are taking it upon themselves to establish national standards in lieu of federal guidance. The process became a bit more complicated earlier this year when Attorney General Jeff Sessions rescinded the Cole Memo, which previously provided the industry with some level of understanding regarding the federal government’s priorities.

Still, many licensed cannabis companies feel they just need to abide by state law and regulation. That view is short-sighted. Other growers, processors and dispensary owners are taking control of their destinies, however. By going beyond what is required of them at the state level, these leading, licensed businesses will demonstrate to banks, insurance companies and other professional organizations that they are trustworthy. Simultaneously, they will pro-actively demonstrate to the DEA, FDA, Department of Justice (DOJ) and other relevant government agencies that they are doing everything that they can, notwithstanding the uncertainty that exists, to align with the priorities of our federal government to protect its citizens.

How? Those interested in being uber-compliant are working with self-regulatory organizations (SROs) to anticipate the priorities of the federal government, including prohibiting youth use, diversion and drugged driving. It’s a testament to true democracy in action. (See below for more on SROs.)

The Case for Self-Regulation

Regulators often look to the success of an industry’s SRO when deciding how the government will regulate that industry.

For cannabis, a window of opportunity still exists for the industry to determine its own destiny, by establishing strong national standards that address critical issues such as financial record-keeping and transparency, responsible marketing, prevention of youth use and drugged driving, lab testing best practices and more. Such action would elevate the legitimacy of the SRO’s members in the eyes of regulators and business service providers alike, making it easier for members to access banking, investment capital and other professional services necessary for their companies to keep growing.

A cannabis industry SRO that demonstrates a good faith effort to hold its members to rigorous operational standards could influence future federal regulation.

As an example, look at the FDA’s recent enforcement action against e-cigarette manufacturers. It was predictable that the FDA would crack down on nicotine devices that appeal to minors. Because it was predictable, it was also avoidable. If e-cigarette manufacturers had voluntarily done more to prevent youth use, the FDA would likely have taken a different approach. Instead, e-cigarette manufacturers find themselves producing documents pursuant to a formal request from the FDA. And it’s likely to get much worse for them as federal regulators set their sights on low-hanging fruit.

It’s for all these reasons that the National Association of Cannabis Businesses (NACB)—an SRO—was formed last year.

Developing Standards

The NACB has built a team of former federal regulators, bank executives, anti-money-laundering experts and successful cannabis executives who are uniquely positioned to develop national standards that can withstand government scrutiny. The NACB is developing those standards in partnership with its member organizations, including Green Thumb Industries (see the cover story in this month's issue), Cresco Labs, Aunt Zelda’s, PharmaCann, ForwardGro, Dixie and others.

Dialogue between NACB leaders and its members leads to identifying issues to be tackled by the SRO, and the SRO then recruits subject matter experts to bring deep knowledge of the issues to the discussion. Next, NACB lawyers draft an outline of a standard by critically examining state laws around the country. In doing so, the NACB looks at the most effective methods for protecting the public while also recognizing the burdens regulations place on member businesses. The NACB’s standards may go beyond state laws if doing so is required to protect the public, but they may be less burdensome than state laws if those laws have proven to be ineffective or unnecessary.

After an initial standard draft is ready, it is circulated to member companies along with a discussion guide. The NACB then spends hours with members, discussing the intricacies of the proposed standard, soliciting and receiving feedback, moderating debate on key provisions and ultimately voting on the end product.

Once passed, the draft standard is published publicly for a one-month notice and comment period. Much like the way that the Office of Management and Budget puts out a notice in the federal register for comment on regulation, the NACB posts its draft standard on its website (NACB.com) and pro-actively seeks additional comments from experts and the cannabis community at large.

Feedback is synthesized, the SRO’s members determine what relevant comments to incorporate, and ultimately, a final vote for standard adoption occurs.

Once a standard becomes final, it will act as a voluntary operating rule for NACB member companies; however, ongoing membership in the NACB is contingent upon adhering to NACB standards.

Industry Benefits

NACB members distinguish themselves from others in the industry as superlatively compliance-focused. The standards that the NACB are developing in partnership with members can be useful, however, to the cannabis community at large. NACB posts the standards publicly, and anyone can follow them. But, without an enforcement, they are just pie-in-the-sky standards; NACB members are held to the higher standard, and we make sure that members are walking the walk.

Andrew Kline is president of the National Association of Cannabis Businesses (NACB). To join the NACB, apply at NACB.com.

According to several attorneys, it’s not that cannabis dispensary owners are prone to more mistakes than the average retail business owner—but the often murky business of cannabis does lend itself to more pitfalls and confusion, which can easily lead to unnecessary errors.

For starters, “The conflict between federal, state and then sometimes state and local laws can be challenging for a start-up entrepreneur,” says Lance Rogers, partner at Greenspoon Marder law firm, which has locations throughout the country.

Of course, there are many reasons this industry might face more legal pitfalls. Here, according to expert attorneys, are the top 11 mistakes your business could make—and how you can avoid them.

Mistake #1: Not knowing cannabis law.

There are many, ever-changing rules dispensary operators must follow, and understanding them isn’t always easy. But, “operators must take the time to understand the [laws’] scope and meaning, because ‘I didn’t know’ isn’t an excuse that will hold up with regulators or in a court,” warns Ariel Clark, partner at Clark Neubert LLP in California. “Taxes are a great example. Taxation around cannabis is incredibly complex in California, the rates vary city to city, and there are many filing deadlines. We urge clients to get professional support to ensure compliance. It can be the difference between keeping or losing a license.”

Mistake #2: Not knowing other applicable laws.

In addition to knowing cannabis-specific laws, “dispensary owners must also follow a host of non-cannabis laws, codes and regulations, which define everything from labor practices to building codes,” says Nicole Howell Neubert, partner at Clark Neubert LLP. “We’ve seen dispensaries do full remodels—without pulling a license from the city. That kind of mistake is an immediate red flag for inspectors when they arrive.” What’s more, Neubert adds, “it’s also a surefire way to have inspectors scrutinizing every other aspect of your business.” So, study up on what laws apply to you as a business owner—not just a dispensary owner.

Mistake #3: Thinking some compliance with the law is good enough.

Partial compliance with laws that govern cannabis sales is not enough, cautions Rachel Gillette, partner at Greenspoon Marder Law in Denver, Colo. “When your license to operate depends on strict compliance, even substantially complying can leave a business in a very precarious situation,” she says. “One slip-up could mean the loss of your business license, and thus the loss of everything you’ve invested in.” So, follow any applicable laws in full, Gillette advises. It will keep you out of trouble and benefit your dispensary. “Strict compliance with state and local laws is also your business’s best defense against federal interference.”

“Operators must take the time to understand the [laws’] scope and meaning, because ‘I didn’t know’ isn’t an excuse that will hold up with regulators or in a court.” – Ariel Clark, partner, Clark Neubert LLP

Mistake #4: Not understanding local, state and federal tax codes—including IRC § 280E.

Those tax codes mentioned earlier could be the undoing of your dispensary if you don’t understand them—so prepare for a worst-case scenario, Gillette says. “Plan to be audited,” she advises, before adding that “it’s not if you will be audited by a local, state or federal tax authority, but when.”

How could taxes get you into trouble? “A significant deficiency assessment [from your cannabis business] for a previous tax year could cause severe financial distress for a licensed cannabis business,” Gillette says. So, before you open a cannabis business, “you should fully understand how and when to collect and remit sales tax, use tax, excise tax, income tax and business personal property tax,” Gillette says.

On the federal level, you should study up on § 280E. However, be wary of what you read, and make sure you are learning from a reliable source. “There is an abundance of misinformation and bad advice on the internet regarding § 280E,” Gillette warns, “and cannabis business owners should have at least an understanding of the IRS’s position and likely application of § 280E.”

If the business is a flow through—where income is passed “through” to the owners, and the owners are taxed instead of the business—Gillette adds that owners should be paying the company’s estimated tax payments on a quarterly basis, taking into account disallowed tax expenses based on § 280E. “It’s essential for your business to keep good books.”

Mistake #5: Not choosing the right location for your dispensary.

Location is important to the success of any business, yet a dispensary owner can’t simply pick any prime location. When it comes to dispensaries, “your location is all about zoning,” says Rogers. “Most communities consider [dispensary location] to be a sensitive or controversial thing, and they put a lot of thought into where a dispensary can and should be.” As such, there are a lot of rules and regulations about where a dispensary can be located. “I think what's most important for dispensary owners is to, at the outset, know the property zone laws, and whether their business meets any buffer requirements—that their business is not too close to a school or a playground or in some cases, a church.”

Rogers adds, “The way to avoid trouble is to be very familiar with the local licensing ordinance, which will tell you specifically where your type of business can and should go.”

Mistake #6: Providing inadequate training.

“We always tell operators, ‘You're only as good as your weakest link,’” says Clark. “If that weakest link is your employees, then they have a problem.” In other words, it’s important to pass along your knowledge of cannabis and business laws to your employees, as exampled by a recent Colorado Marijuana Enforcement Division (MED) bulletin.

The May 24 notice reminded dispensary owners that suggesting that cannabis products are safe or effective to treat medical conditions is an infraction that could lead to administrative action. The bulletin came as a result of the MED being made aware of reports that some dispensary employees were “allegedly providing information on marijuana use to women reporting pregnancy-related morning sickness.”

“Everyone who works in a dispensary must know and follow the law,” Clark says. “The best operators invest the time and resources into getting employees trained so they don’t make mistakes.”

Mistake #7: Failing to adequately supervise or be aware of what is happening in your business.

As they say, the buck stops with you. “A business owner is ultimately responsible [for] what occurs in the licensed business and the licensed premises,” says Gillette, and unfortunately for dispensary owners, “when an owner fails to adequately supervise employees or become aware of what happens within his [or her] licensed facility, he or she cannot simply rely on the fact they ‘didn’t know.’” If your employee commits a compliance violation, such as “diversion of product,” you could lose your license and your ability to operate, warns Gillette. So, in addition to training, make sure you’re aware of what happens inside your dispensary.

Mistake #8: Working with unlicensed distributors.

At one time, dispensary owners in California, in particular, had the freedom to buy from anyone who had a good or otherwise desirable product, says Neubert. But those days are over, she says. “It’s just not worth the risk to work with an unlicensed distributor,” Neubert cautions. “We urge clients to verify the license of every vendor and partner they work with”—sage advice in any market—and then document the verification you receive. “Once track and trace comes online later this year [in California], dispensary owners will need to demonstrate they’ve been compliant while licensed,” Neubert explains.

“We’ve seen dispensaries do full remodels—without pulling a license from the city. That kind of mistake is an immediate red flag for inspectors when they arrive.” – Nicole Howell Neubert, partner, Clark Neubert LLP

Mistake #9: Not laying out terms clearly with your partner(s).

It may seem like a good idea to begin your dispensary business with someone else, whether it be a partner or an investor. But if you don’t define such partnerships in a clear fashion, it could lead to trouble, cautions Rogers.

“Sometimes—because of personality differences or getting taken advantage of—a business owner can get into a dispute with their partners or investors,” he says, “and it can really interfere with the success of the business.”

To avoid problems with your partnership, Rogers advises that you should “really think through your business plan and really consider who your partners are and will be,” he says. “Make sure that everyone is on the same page, in terms of how much money the business is going to cost [each of] you, what percentage each person owns, who's going to manage the business, and what will happen if you need more money.” Once these details have been hammered out, they should “go into the legal documents for the creation of that business,” Rogers advises.

Mistake #10: Hiring the wrong expert or consultant.

According to Gillette, unqualified experts and consultants are very common in the cannabis industry. “Truly qualified experts are rare indeed,” she says. If you meet with an expert who promises to make magic happen for your dispensary—at a substantial fee—you have probably run into someone who is unqualified, Gillette says. “The lesson here is to vet your expert,” she says. You do that by “asking a lot of questions and getting legitimate references before hiring an expert or consultant,” she says. And whatever you do, never hire an expert or consultant to give you legal advice, Gillette warns. “They have no ethical obligation or training to know the law,” she explains. When you do work with an expert, “make sure [he or she] signs a non-disclosure/confidentiality agreement before being engaged” to protect your IP, she says.

Mistake #11: Working without contracts.

Clark and Gillette agree that many cannabis businesses, including dispensaries, are too lax with business contracts. In fact, “in the past, dispensary owners very often had handshake deals with growers and manufacturers,” Clark says. And while that may have made sense in the past, it won’t work today. “Dispensaries must put formal, on-paper contracts in place with vendors, to ensure accountability, but more importantly, to prove regulatory compliance,” Clark says.

Even if you’re working with friends, get your agreement in writing, Gillette adds. “Just because a person is your ‘bro’ doesn’t mean you shouldn’t document your agreement in a well-written contract,” she says. While contracts cost money to draft, “spending … money now to have a lawyer draft your agreement can save you a lot of money in the long run,” she says. “An ounce of prevention can be a pound of cure.”

Jillian Kramer is a New York City-based freelance journalist.

Consider what can be accomplished in just 92 days.

In its 92-day orbit, Sputnik, the first artificial Earth satellite, traveled nearly 44 million miles, circling the globe once every 0.067 days. And while traveling 44 million miles in 92 days apparently isn’t impossible, opening three cannabis retail locations in that same time frame (in a brand-new medical cannabis market) certainly seems like it could be for the average business owner.

It was not impossible, however, for Chris Visco and Adina Birnbaum, co-owners of TerraVida Holistic Centers in Pennsylvania.

On Feb. 17, TerraVida opened its Sellersville location. Fast-forward to April 26, and patients were welcomed into the company’s Abington dispensary (its primary center). And on May 20, Visco and Birnbaum snipped the ceremonious red ribbon in front of their Malvern store. (All three municipalities are in far eastern side of the state.)

When the Russian satellite Sputnik blasted off Oct. 4, 1957, however, it wasn’t as if a few scientists showed up that morning, slapped it together and threw it into orbit. The launch was the culmination of hard work and planning—the same type of preparation that went into TerraVida’s grand openings.

Raising More Than Money

The story of TerraVida (which translates to “EarthLife”) officially begins June 28, 2017, when the dispensary was awarded its licenses. “One of the most difficult processes I’ve ever been through is applying for the license, winning the license, getting financial backers,” Visco says.

Finding the right investors was difficult for two reasons. First, “No one thought Pennsylvania would be a great market,” Visco says, citing concerns that many doctors and patients wouldn’t register for the medical marijuana program in the conservative state. “A lot of investors were very skeptical about getting involved,” she recalls.

Second, Visco and Birnbaum were adamant that they retained control of the company because they witnessed “the amount of outside money coming into our state,” Visco says. She is a life-long Pennsylvanian—born and raised in Conshohocken in Montgomery Country, the same county as TerraVida’s Abington dispensary—and she is committed to helping her community. (She and Birnbaum once saved a 14-business farmer’s market from closing.) “We know the landscape of our neighborhood and Pennsylvania residents, and we just felt that it was important to have a Pennsylvania-based company also be involved in the process to really provide the best patient care,” Visco says.

The co-owners also wanted to remain a woman-owned business. TerraVida is currently a Women’s Business Enterprise National Council (WBENC)-certified company—the only dispensary in the state with such honors, according to Visco. To keep that certification, Visco and Birnbaum must remain the primary owners.

“We didn’t want someone to come in and take control. … We were looking for an investor who would understand our vision and stand aside and allow us to create our vision,” Visco says. In September, they partnered with an investor who they say shared their dream of providing a holistic, comfortable environment where patients would feel at ease. Now, they just had to build it.

Expect the Unexpected

Visco and Birnbaum envisioned a “spa-like” environment, peppered with mellow colors, natural wood and stone, and even an indoor waterfall. “It was important for us to assure the community that our locations would be beautiful,” Visco says. “We wanted [an environment where] when patients came in, they would immediately feel relaxed.”

Converting their first location, Sellersville, into that patient utopia was anything but relaxing, though. “Construction takes longer than you expect. Things pop up that you don’t anticipate,” Visco says. And when those things pop up, they often come with hefty price tags.

For instance, Sellersville’s foundation was cracked and had to be repaired at an additional cost. The weight of the safes required installation of a sub-floor, “which was not something we anticipated,” Visco adds. There was a staircase in the middle of the dispensary that “cut off the whole building,” she explains, so they had it knocked down and relocated. And the entryway waterfall? “That ended up costing us about $14,000 to $15,000,” Visco recalls—$10,000 more than she had planned.

But through patience and perseverance, Visco and Birnbaum eventually saw their dispensary vision become a reality. But they still needed a staff.

“We know the landscape of our neighborhood and Pennsylvania residents, and we just felt that it was important to have a Pennsylvania-based company also be involved in the process to really provide the best patient care.” Chris Visco, co-owner, TerraVida Holistic Centers

Mr. Right

For TerraVida, the hiring process was difficult because it was tough to find appropriate employees with cannabis experience in a state with such a new program, Visco says. So TerraVida took its search national and hired from the top down. “The first person we hired was our director of operations, Josh Reiss,” Visco says.

Reiss, a native Pennsylvanian, arrived at TerraVida by way of Colorado where he had been managing medical dispensaries. Visco says that because of “his experience treating patients for as long as he did, he had a great understanding of the different types of cannabis, what worked for different patients.” Reiss developed educational materials for each of Pennsylvania’s 17 qualifying conditions, implemented a training program and assisted Visco with hiring.

“It was a long process finding the right people,” Visco says, “making sure that we had compassionate, patient-focused employees who would always make our patients feel like they are the most important thing.” To entice those types of employees, Visco offers competitive incentives. No TerraVida employee earns less than $15 an hour, and the company provides healthcare benefits and 401(k) contributions to all full-time employees.

Today, TerraVida has 35 employees—a mix of pharmacists (required by Pennsylvania law), budtenders, receptionists and security guards—between its three locations, and it needs every one of them. Especially considering the number of patients each location sees.

Patient Experience

Combining a knowledgeable, compassionate staff with a premium retail environment, TerraVida has seen more patients than any medical cannabis company in the state, Visco claims. “I was just doing the numbers, and we have seen over 5,500 patients in the last 12 weeks,” she says, estimating that the company now serves 100 patients daily.

Those patients are an equal split between male and female and are, on average, 68 years old, says Visco; however, she adds, “we have patients in their 90s, and we have children.” Regardless of who walks through the door, TerraVida is quick to make them comfortable. “They feel like family. When they’re in pain, we cry with them. When they’re upset, we hug them,” Visco says. But, TerraVida provides more than just an open ear and shoulder to cry on.

Each location has a self-service refreshment bar where patients can indulge in coffee, cucumber water and cookies. Board games are strewn about, says Visco, so “our patients can interact and build relationships and share stories with each other.”

Because the company’s patient population is predominantly older and many have not used cannabis products before, compassion and education are key. “We spend a lot of time with [patients] really explaining what the benefits are of the individual types of cannabis, and how to use the products and get past their anxiety of trying something new.”

"Each location has a self-service refreshment bar where patients can indulge in coffee, cucumber water and cookies. Board games are strewn about, says Visco, so “our patients can interact and build relationships and share stories with each other.”

TerraVida’s pharmacists and sales associates are available via phone in case a patient incurs problems at home. “A lot of what we sell in terms of medicine can be a little bit complicated for older patients. If they have chosen to vape, the batteries are not always that easy to use with the five clicks on and three clicks to find the proper temperature setting. So, they’ll call, and we’ll walk them through that process,” Visco says.

There’s no telling what product an employee might receive a call about, considering the dispensary has roughly 80 SKUs and sells a variety of items such as concentrates, oils, vape cartridges, tinctures, capsules, lotions, transdermal patches and Rick Simpson Oil (RSO). Top-selling products, according to Visco, are vape cartridges, capsules and RSO. “We sell a lot of RSO because we have many cancer patients, and a lot of our chronic pain patients find that RSO really works for their overall pain management.”

Patients won’t find flower at TerraVida, at least not currently. Until recently, Pennsylvania law prohibited dispensaries from selling flower; in April, Pennsylvania Health Secretary Dr. Rachel Levine accepted a recommendation for the state to allow flower sales.

“It makes the program more accessible,” Visco says, adding “Medical marijuana … is not inexpensive. It’s not covered by healthcare, so that really out-prices a lot of our patients.” Flower will be a less expensive alternative for them, she says. The company plans to have flower in-stock by summer’s end and is already coordinating with licensed producers.

Onward and Upward

Much like Sputnik, when TerraVida began its mission, its future was unclear—crashing and burning was a real possibility, but so was succeeding in unknown territory. Sputnik expanded the universe for millions, and while TerraVida hasn’t reached those numbers yet, its early success has opened new worlds and possibilities for thousands of sick Pennsylvania residents. And Visco doesn’t plan on stopping. The company submitted a new round of applications May 17 to open more locations in its home state and is looking to expand its model into other states, albeit cautiously. “We wouldn’t want to grow too quickly to where our patient care would suffer,” Visco says. “We’re being very strategic and methodical”—as if they were launching a satellite.

Scott Guthrie is senior editor of Cannabis Dispensary.