the opportunities are tremendous but the risks are huge. find out about the green rush taking place in colorado and the many entrepreneurs taking advantage of the state's legalization of pot. that's coming up next on "your business." smoul businesses are revitalizing the economy. american express open is here to help. we are proud to present "your business" on msnbc. ♪

hi there, everyone. i'm j.j. ramberg. welcome to "your business." what was once unthinkable has become a reality and a very profitable one at that. the legal marijuana movement is gaining traction with the editorial board of the new york times advocating it nationwide. for entrepreneurs, the opportune toy cash is in hard to resist. states like colorado and washington normalize the market regulating marijuana, similar to alcohol. for anyone interested in getting into the business, the stakes are high. this is no longer inhabited by stoners dawning tie dyes and bong hits. it requires a lot of time and money and smarts to succeed.

♪ >> this business is pretty much unmerging market. it's high risk/high reward. >> this is a story about change. changing laws. changing attitudes. an ever changing landscape for a brand-new business in america, marijuana. >> it's a very young industry full of entrepreneurs from all over the country that want to build their lives and careers and businesses in marijuana. >> we went to colorado, the first state to legalize marijuana for recreational use to see how entrepreneurs are fairing. >> it's a brand-new industry emerging out of a black market scenario. regulation helped streamline the system. it puts the pieces in place to maneuver safely and allows the consumer to get a safe product as well. >> the product is pot. under federal law, selling,

producing, possessing and consuming marijuana is still a crime. that makes for a very complicated business model when you live under the constant threat of a federal crackdown. >> it's the most challenging industry. it's crisis management by hour. >> the ceo of dixie edibles has a varied resume, including a stint in the reagan administration. a believer in the economy, he's a serial entrepreneur, the ronald reagan of reefer. >> i have been in this business for four years. it seems like dog years. it's not for individuals not willing to commit time, money and intellectual horsepower. >> after spending time in colorado, the entrepreneurs in the business were nothing like the stereo typical hippies we see in punch lines. >> tonight, the pros and cons of

owning a pot store. the pro, repeat customers. con because they forgot they were in five minutes ago. i need weed man, did you check your right pocket? >> oh, yeah, thanks. >> we visited one in denver and found a group of entrepreneurs, many of them women getting together to talk seriously about cannab cannabis. >> brook was working in real estate before taking the leap of faith and getting involved in cannabis in 2009. >> there are a lot of educated people who left their jobs in corporate america or, you know, left other business ventures they had successes in because they saw or felt a sense of opportunity. >> megacollins saw an opportunity in pot to help shape public policy. before taking the job of the

executive director of the cannabis business alliance, she spent most of her career in oil and gas industry. i have gone from gas to grass. what a phenomenal opportunity to be on the ground floor of building the legal and regulatory frame of work for a new industry. >> this is an industry with a lot of rules, like the requirement to grow and sell your own cannabis instead of sourcing it. i met jan cole, a mother of two who decided she wanted to take her experience in that industry and translate it to the emerging cannabis business. we met her at one of her seven grow facilities. >> i share the term, seed to sale. can you explain what that means? >> the state of colorado wants us to track every plant from seed to sale. from every plant put in dirt to the plant we harvest and turn into medicinal we have to track.

>> there's a lot that goes on behind the scenes. it's not putting seeds in the ground, growing it and selling it. >> no. >> we followed her to the brick and mortar side of the business, the farm. this is not what i expected. i imagine that's deliberate. >> we have been referred to as the whole foods of cannabis. we appeal to a customer that cares about what they are putting into their bodies. >> you are going after upscale moms, basically. >> yeah. people like us. >> but the biggest issue that jan and other company owners in the cannabis industry are facing now have to do with all the money coming into their businesses. >> banking is a huge issue for the industry, nationwide. because it is illegal at the federal level, banks are not comfortable jeopardizing their federal insurance. we are treated like every other

business except when it comes to financial matters, then we are treated as a criminal function. >> with big issues like banking that need to be sorted out. states like colorado and washington are taking the lead on setting policies. while other states and the federal government sit back and watch very closely to see how their implementation works. >> i think all eyes of the world are on our state, focusing on how this is going to happen. >> as more as more states legalize pot in some way, shape or form, it's clear that there is a major shift in attitudes happening in the u.s. with a recent poll showing 54% of americans in favor of legalization. if the tide keeps moving in that direction, that means the marijuana market is going to increase krees increase. >> it's green rush 2.0. pikes peak or bust, 21st cent y

century. >> casey had several businesses related to cannabis in colorado. he teaches a cannabis 101 to people interested in learning more about the business so they, too, can become entrepreneurs. >> zoning, packaging, tracking, seed-to-sale. it is complicated, but we make it easy. come to colorado, learn the rules and change the future. >> as the legalization of pot comes online, there are serious concerns about new and potent strains of marijuana. and the new breed of edibles that are highly concentrated. >> what happened here on the fourth floor of this denver hotel has investigators and medical experts asking questions. the group decided to try marijuana cookies. the autopsy report lists the death as an accident. >> in the past five months, the state of colorado dealt with two tragedies where it appears marijuana was involved.

they were quick to get out in front of the issue and understand these products have to be consumed in moderation. >> with the industry still in its infancy, it's a future that is totally unchartered, speculative and at the same time, potentially very lucrative. one study predicting a billion dollar a year industry by 2018. >> i'm confident in this industry. i believe there are going to be companies that will succeed and compete with big tobacco. >> there is no end to what marijuana can do for the american economy. what has it done for us in colorado? raised millions. created tens of thousands of jobs. almost literally overnight. as you can see, it is not aging hippies who are becoming

entrepreneurs. they want to cash in. let's get the board of directors to weigh in on this. brendan kennedy is the ceo of an equity firm that invests in the cannabis industry. and he helps consumers and patients learn about cannabis strains and products. >> ted is the chairman and ceo and jessica is the founder and ceo of the leverage legal group, an intellectual property and business law firm. >> thanks, j.j. >> thank you. >> you are in the center of this now. when i was there, ift's fascinating to see it unfold because the regulations are changing every single day. it's incredibly hard to be a business owner in this industry. >> it is. the regulations in colorado are changing on a daily, weekly basis. it's one of the things they are doing really well there.

they are constantly refining the regulations to keep tight control over the industry as it transforms from an area of prohibition to a legal market. >> as a business owner, it's so hard. some of the people we talked to said this was legal yesterday, but not today. i have to change my logo and my packaging. how do you keep on top of everything that's happening? >> well, so, we have an internal legal team, external legal team. we have people focused on lobbying and staying in contact with the boards to ensure that everything we do complies with local and federal regulations. >> what do you say to people who want to jump into this industry? >> i mean, in some ways, it's exciting. i'm an entrepreneur as well as a lawyer. this is the ultimate experience. entrepreneurs love to be nimble and they love to have to react quickly. it's right for innovation, which

is really exciting. but, as you are saying, there are pitfalls, just as a business owner. going into business with somebody is like a marriage. tough make sure you are aligned in lots of different ways in order to have a good working relationship. that's a huge one. obviously, negotiating, you know, good business terms, buyout provisions, all those types of things is critical to the success of a business like that. it's all moving so quickly, a lot of people aren't having time to consider the issues they should be considering before they go into business together. >> the whole thing is fascinating. fascinating to see what's happening and, again, how things are changing every single day. attitudes are changing. >> j.j., the way i look at it, there's a phenomenal opportunity going on here. gold rush turn green. lots of regulations. it's going to be a difficult business. there aren't that many companies supplying the product.

demand is big. big margins, lots of cash and profits. that's why it's a business everybody is talking about and rushing to get into it. >> it's still very, very young. this is a brand-new industry. have you seen, already, breakouts who are going to be successful and a bunch of people shut down? >> what we are seeing are the establishment of brands. that would be the big difference over the next five to ten years. for the first time, you will see trusted professional brands in this industry. >> are you starting to see some breakouts already? >> i think as you covered in your segment, dixie is one that is interesting and they are talking about cannabis in a mainstream, professional way. that's really how americans think about this product. >> that's what we saw -- >> 54% of americans believe it should be legal. >> that's what we saw over and over again. people are treating it like a business. again, there are late night

jokes, but this is a business. the people that are successful are the ones working closely as a regulator and talking to the lawmakers every single day. >> j.j., it's important to treat it as a sophisticated business z. if you are not a sophisticated business owner, you have to align yourself with business partners. you may not be able to work with banks, but you can work with people like brendan. after the show, get in touch with brendon and invest with him. >> it's not clear cut. we have a conflict of laws between the federal statutes and what's happening in the state. as a business owner, this is not for the faint of heart. you don't know how the federal government is going to come out on this. the controlled substances act is unequivocal. this is a class one drug, which is interesting that it is. that's not changing. we don't see that changing anytime soon. maybe it will. >> the banking issues. brendan, the banking issues are

so complicated. it's a cash business, a lot of these people. >> it is. i have been in -- i have been in dispensaries and rooms with $1 million of cash flying around. it's not a comfortable feeling. >> no. >> we don't violate local, state or federal laws, yet we have been kicked out of three banks in the u.s. so, everything in this industry is harder, whether it's banking or payroll or hiring a marketing and branding firm. everything is more difficult. >> boy, might there be a big pay off in the end. >> the cash came from profit. >> there are security issues, too. it is infinitely interesting to see how this industry grows. thanks for taking the time to chat about it. >> like this marijuana industry, breweries around the country are grappling with government rules and regulations that are an

impact on their business from new york to utah, microbreweries are trying to get laws eased to make it easier to operate. one brewery is opening a second one after fighting to get the law in that state changed. ♪ >> it was a small change, but it's still a little piece of legislation that made a difference for us. it's good for the state. ift's good for business z. it's good for minnesota. >> the founder of this brewing center in minnesota already has plans in mind for expanding his business. >> we never thought we would experience this type of success. it's been fantastic. >> the beer is so popular, there's a waiting list for customers. with so much demand, he had to increase supply. he decided to open a second location. simple, right? not in this case. because of this decision, omar had to become the driving force

in the change of state law. >> minnesota is a state you could not sell someone a glass of beer at a production brewery. >> he could sell in beers, restaurants and liquor stores but that's it. they come in for a tour, it's not legal to charge for a glass of beer. some states you can, some you can't. >> the second one would have a restaurant in the bar. he wants to open a bar. >> if we could manage to change the law that breweries could sell a glass of beer. we are building a destination. >> with the political battle brewing, he created a team to take the issue to the capital. he enlisted publicists of one simple plan. >> i realized what he wanted to do and realized it was a 78-year-old prohibition law and said well, this is going to take some -- this isn't going to

happen in two weeks. >> omar felt resist tense from the start. >> a lot of people didn't want to see that change happen. just that's the way politics works. usually, when the laws are there, someone wants to keep them that way. >> he had to prove his campaign wasn't just about selling pints of beer. >> we made it more about small business, big idea. free market. this guy wants to grow his business, why is anybody standing in his way, let alone the government. >> he argued that they wouldn't be the only brewery to benefit. his message was focused. hundreds of jobs could be created with a minor, legal change. >> it became a jobs bill. we have opportunity to do stuff here. let's do it here as opposed to another state. >> jennifer loom was a sponsor of the bill. she believed it was on opportunity to give the local economy a boost. >> he was seeking a minor change, in my opinion, to the liquor statutes in minnesota.

>> the law put small business zs at a disadvantage. >> it's how most businesses start, somebody and an idea. we need to make sure we are not putting roadblocks in their way. we are here to provide opportunities and create jobs. >> when it fell on deaf ears, they took it public. >> the fight had to be taken outside the capitol doors. really, the people were going to have to help us out and support us. >> fans of surly brewing, better known as surly nation took action. facebook and twitter turned into a campaign. they spent hours making their case. >> we brought everybody together. here is what they are saying. here is what it means for the project. >> the support from surly nation never waivered. lawmakers got a constant stream of e-mails and phone calls. >> people started to take more seriously surly nation and what

a hot button issue it was. it was about small business, beer and evolution of a company. >> legislatures took notice. a process that could take years turned into months. with overwhelming support, the surly bill became law in may, 2011. the result? >> breweries like myself can get a tap room license. we can sell beer that we make here. we can sell in tap rooms. >> the company is finalizing plans for expansion. the fight was worth it because the bill has opened the door to grow for everyone. >> so, we are going to see a lot of other breweries open up now with this law changing. it's going to make the beer scene here a better and better place. >> when we return, we'll have important advice to help you run your small business, including how to keep tabs on the competition and how

entrepreneurs can stay focused. if i can impart one lesson to a new business owner, it would be one thing i've learned is my philosophy is real simple american express open forum is an on-line community, that helps our members connect and share ideas to make smart business decisions. if you mess up, fess up. be your partners best partner. we built it for our members, but it's open for everyone. there's not one way to do something. no details too small. american express open forum. this is what membership is. this is what membership does. i want people to live up to their full potential but be committed to service and

excellence. take pride in serving. i'm a servant. i am here to serve this community and guests here. want to keep an eye on your competition? much of the information you need is publicly available. here are five ways to ethically spy on rivals, curtesy of entrepreneur.com. look at what keywords they are using. you should be able to see them in the source code of their home page. two, examine their load time. use google page to see how well your competitor site performs compared to your own. three, discover the most popular pag pages. four, do a search on topsy.com. see who is mentioning them and what they are talking about. five, keep tabs on what website changes they are making. your competitor may be updating

their website to maximize conversions. you can use the way back machine to get an image of exactly what their site looked like on any given date. it's time to answer some of "your business" questions. ted and jessica is back with us. the first is about shutting down your business. >> i'm looking for a potential out of the box solution to liquidate our business and transition it so that the employees and clients continue to be well taken care of. >> how does she find a buyer? >> that's a great question. sounds complicated. you want to sell your business while staying in control. how do you do that? there's a solution. a lot of private equity firms do that. they want you to stay in control and manage the business through the transition. it becomes a win/win. she gets the cash and manages

the transition for herself and clients. >> say you run a toy store, you are a fast growing internet company, sure, there are financial investors looking for it. >> it's a tough question. when i thought about the question, i wasn't sure if she meant liquidate. i think she means acquisition. i think, really it comes down to having a good lawyer help you negotiate the deal. once you have sold the company or liquidated assets, you don't have control. you don't have say in what happens to the company, including the employees. it comes down to negotiating. it's not out of the box, but it can't be ignored. >> finding the right buyer. you may not have control, but you may trust somebody. >> spoken like a true attorney to hire a attorney. the next question is about trying to stay focused.

>> we live in a world where phones are beeping, vibrating and going off. we are constantly distracted. what is a good tool to let me know to keep us focused on what we are working on? >> there are a lot of things, right. only answer e-mails at certain times, turn off e-mail alerts. do they work for you? >> i do a time walking technique. i dedicate certain days of the week to certain activities. it's hard. i'm tempted to check e-mails and i get texts. for me, this is like a philosophical technique. i try to be very present in whatever i am doing. i try to give my full attention even if i give myself 15 minutes to a half hour, i try not to get into the temptation of looking beyond that. it's like raising kids, you want to be fully present. for me, that works. by blocking mikhail enradar, i can be sure things that need

attention are going to get it during the week. >> you can't go back in time. smartphones are only getting smarter. i'm a ceo of a company. i'm receiving hundreds of e-mails a day. here i am taping the show. i don't have my cell phone with me the next hour. >> because we won't let you. what about in a meeting? >> the truth of the matter, i try to put it down. if i'm working with a vendor selling to me, if their phone is going off, i'm not doing business with them. put the phone down. no matter how important the call is. they can wait 30 minutes. i don't want to wait 24 hours to get a response. 30 or 60 minutes, not a big deal. put the phone down. >> i find the real issue is less at work and more personal time. then i have to be more disciplined about put this away. >> the big struggle is with the family at dinner time. they are sitting at the dinner table and can't get them to have

a conversation. >> no phones at the table. >> try to enforce it. >> my kids are little. finally, we have a question about getting a lawyer. >> for a business that specializes in intellectual property and writing online for ourselves and clients, how important is it to retain legal council. >> i'm going to start with you on this. >> jessica is going to be happy to hear me say this. you never want to cut corners when it comes to legal fees. but, what you can do and this worked effectively for me, i will hire an attorney from a law firm to work for me part time. i pay their salary directly. i don't pay the overhead of the law firm. the law firm is happy because they like the young attorneys getting corporate experience working in a corporation. it's a win/win. we cut back on expenses getting legal advice. >> for people who don't have a budget for it yet, there are firm that is provide flat fee

services. we did it for a number of years now. it's possible to get really good legal representation in a way that is predictable and not scary or intimidating. in response to the question, it's absolutely critical to have good legal representation as early as you can afford to have it. honestly, if you can't afford a lawyer, you are risking too much. particularly, intellectual property. if that's the business, protecting the intellectual property is critical. >> great to see you both. >> nice to be here. >> thank you. thank all of you for joining us today. if you want to learn more about today's show, click on our website. it is openforum.com/yourbusiness. you'll find all the segments and web exclusive content to help your business grow. you can follow us on twitter. we are on facebook and instagram as well.

coming up next week, the "your business" main street series marks the 45th anniversary of the famous wood stock music festival by visiting the main street in wood stock. >> it's the only true place you could name peace loving cupcakes is woodstock, new york. it's the perfect name. >> how the legacy of the '60s left its mark on this small town in rural new york state. i'm j.j. ramberg. remember, we make "your business" our business. if i can impart one lesson to a new business owner, it would be one thing i've learned is my philosophy is real simple american express open forum is an on-line community, that helps our members connect and share ideas to make smart business decisions. if you mess up, fess up. be your partners best partner. we built it for our members, but it's open for everyone.

there's not one way to do something. no details too small. american express open forum. this is what membership is. this is what membership does. we have some new reporting ahead this hour on the situation in ferguson. and we're going to be keeping an eye on the protests that you could see unfolding over chris's shoulder there. unfolding there yet again tonight, after what really was an explosive day of news in ferguson, missouri. i should also tell you, we're going to be joined live by the attorney for michael brown's family in just a few minutes. that's coming up live in just a couple of minutes. but before we get to that, we have some late-breaking news tonight out of texas. a grand jury in austin, texas, tonight has indicted texas republican governor, rick perry. he's charged with two felony counts of abuse of power.