In business, owners will always have to take calculated risks in order to succeed and grow their investments. Taking such risks can have rewards, but are sometimes wrought with peril. However, in one Denver family's case, the decision and dedication to "growing" their family owned business is set to pay huge dividends.
Two brothers with slightly different histories embarked on an unlikely dream of opening a marijuana dispensary in Colorado following the loosening of standards related to medical marijuana in the state. Armed with an investment of $125,000 investment courtesy of their mother and her husband, the brothers - one already in the business, but working out of his home, the other leaving a day job as a project portfolio manager - leased a warehouse and began operations with the intention of becoming a marijuana superstore.
The brothers have heavily invested in their enterprise, seeking to develop the best possible product for their limited customer base. In fact, just this past fall, one brother pitched his business ideas to a group of investors interested in the pot-growing business, ultimately negotiating almost $1.5 million in loans. Perhaps the best news of the young companies history came when Colorado agreed to legalize marijuana for recreational use. Now, what started as an incredibly risky proposition in 2010 looks to pay huge dividends, as a $2.6 million expansion is in the works to increase production and meet growing customer demands.
For this business, the future looks especially bright. However, the story can be illustrative for any Colorado family owned business. Taking risks can be instrumental in not only starting, but also growing a business. However, just as important - if not as interesting to discuss in a news article - are steps taken to protect interests of owners and investors. This is where strong legal counsel in the area of business law can be of great value.
A great business plan can run amok if owners don't take time to address the potential legal issues. While not every business owner may have concerns over the legality of their product as could be the case above, other issues like employment law, real estate contracts and more can have just as profound an impact on the success of a business. However, with appropriate planning and problem solving, like these two brothers, any Denver family owned business can position themselves for success.
Source: Denver Post, "Family-owned pot shop in Denver seeks to become national player," Eric Gorski, Jan. 19, 2014