MJBizMag November-December 2022 - 95

MJBizCon Official Show Guide
MJBIZCON.COM
The other thing that we did was, we
took the time to mentor our partner.
Because they knew how to grow
cannabis in their small backyard,
but we brought this global view-or
corporate cannabis view in-and we
really mentored them and held their
hands and walked them through.
We also took the time to learn from
them. Mentoring is a two-way street.
We learned from them, and we
imparted some of our own wisdom,
and then we came up with a great
system that allowed them to fully
blossom and transition into this
recreational or adult-use licensed
facility.
That was the perfect storm. That
was my dream.
What was the biggest learning
takeaway that you had from this
caregiver?
First of all, I had no idea what the
caregiver license model was, so I
had to learn that. And then, when I
stepped back, I realized that they had
a very unique way of growing: They
used living soil to grow, which was a
little bit different from what we were
used to doing.
But the other thing they taught me
was how difficult it was to get into
the supply chain. And that's where I
became an expert. I really focused all
my energy and attention on how to
create diversity in the supply chain and
give caregivers who want to transition
a pathway into that ... to enable them
to sell their products in a legal way.
A lot of caregivers are in the gray
area. But once we learned their
challenges, it just became crystal
clear to me that we have to get into
the supply chain.
You said you started your first
company with about $50,000. How
did you finance Blak Mar Farms?
We used a little bit of money from
our PPE company; that gave us some
startup capital.
But then we raised about $450,000
in a friends and family raise. We
wanted to give (an opportunity to)
people who wouldn't normally have
access to invest in cannabis, and we
used Blak Mar Farms as that vehicle.
We brought in about 25 friends and
family, and we raised about $450,000.
And then we just bootstrapped the
operation, and we scaled. We grew
products that fit within the budget.
Our growth facility continued to
expand over the 18 months, and
we got to a point where we hit max
capacity. But we did it gradually.
How long did it take you to turn a
profit?
It took us just about a year.
We had to go in and upgrade, we
had to get rid of some equipment. So
that took a little bit of money and a
little bit of partnering with the right
people to get that built out and get
the environment right.
And that cost us probably about
50% of our revenue on the first two
harvests to recoup.
What would you say to people trying
to transition from the legacy market
to the legal market who don't have
that breadth of experience?
The best thing about the legacy
market is that it's operated here in
this country for 400 years, right?
It's like prohibition and alcohol.
But I always I always tell these guys
that are looking to transition from
the legacy market: Find a mentor ...
who has industry experience, real
experience operating legally.
These legacy guys bring a wealth of
See Ruben Lindo
speak at the:
Main Stage Power Panel
Wednesday, November 16
11:00 am-12:00 pm
Las Vegas
Convention Center
knowledge, and I tell guys now: Start
writing your own SOPs, write down
what you do day to day. We used to
have to keep that stuff in our heads.
But now, if you're looking to
transition, I tell guys go back and
create a journal and write this
stuff down. Because that that
industry knowledge transcends and
transitions from the legacy market
into the adult-use market.
This interview was edited for length
and clarity.
➤ Visit mjbizcon.com to get tickets to
hear Ruben Lindo and other industry
experts speak at MJBizCon, held
November 15-18 in Las Vegas.
mjbizdaily.com | November-December 2022 93
http://www.MJBIZCON.COM http://www.mjbizcon.com http://www.mjbizdaily.com
MJBizMag November-December 2022

Table of Contents for the Digital Edition of MJBizMag November-December 2022
