Interview with Ryan Dills of The Georgia Hemp Company
By: Natalie Newman
Tell me about yourself. Your background, education, your previous experience in finance
I graduated from WCU in 2003 with degree in Accounting as well as Finance. I worked at a large real estate property management company in SoCal for 7 years as financial analyst.
What is your current position?
Managing Partner of The Georgia Hemp Company
Who are your clients and how do you help small businesses?
We have 4 phases of this business, a business which launched this year; there’s retail (we’re opening a retail location by 11/1), online sales (www.thegeorgiahempcompany.com; www.sympleafwellness.com), wholesale partners (retailers who wholesale our products-just hired several outside salespeople to increase that push), and events (we have sponsored several area music festivals and other local community events-thus tent sales etc); for wholesale partners- we offer healthy discounts and 30 day terms; related within all of this is also an education portion- as we look to become a trusted resource for the many benefits of hemp and the cannabinoids associated- mostly CBD
How do you charge for your services?
The different cash flows are referenced above. Due to the nature of our industry, we have a high-risk processor who handles online payment collections, typically use square for events, and deposit cash sales weekly. Wholesale pricing is typically 1/2 of the retail prices, which I base off of our costs from the manufacturers as well as the associated costs such as packaging, design, and product development. Consulting services will become more relevant as we continue helping other small business in our space, and such pricing will be created based on time/level of involvement.
What do you look at when businesses are looking or applying for financing?
For us, this would concern our wholesale partners looking for 30 day terms, and thus we front them products etc. We request 1099s/current business license, sales tax/resale permits, review website/business details, length of time in business, and perceived legitimacy.
What experience do you have working with small retail establishments?
Most of our wholesale partners (currently about 15 as we just initiated an outside sales program) are small retail establishments and are owner-operated.
Can you tell me about the depth of your business and how happy your clients are?
The success of our company is directly related to customer satisfaction, which includes direct customer sales as well as our wholesale partners. This mostly includes having available inventory, responding to customer inquiries timely, addressing concerns by all partners, providing marketing material relevant to a client’s needs, and being accessible on all levels.
Are you formally held to a fiduciary situation?
The Georgia Hemp Company is currently owned 50/50 between myself and partner Joe Salome. We haven’t taken on any investors or acquired any debt, remaining self-funded thus maintaining 100% of the equity. We have no shareholders. As we look to scale in the near future, these two options for funding will be highly considered and mostly likely necessary. Our fiduciary duty is towards one another, as well as to our customers and clients to continue providing quality products in a timely fashion.
What suggestions might you have for a new business when it comes to finance, business loans, working capital etc.
Button up the back-end and maintain control and retain as much equity as possible, especially in the beginning as the many unknowns of the business’s viability is still unknown. Self-funding can be most challenging route but acquiring debt can be a company’s downfall is taken on without current cash flows to a level to cover the debt’s obligations. Bottom line- don’t rush into such contracts. Control what you can, get/keep your books in order, protect yourself legally, develop a short and long-term strategy, and stick to timelines. Exhaust personal resources and leverage personal options prior to relinquishing equity or seeking business loans.
What advice do you have for future entrepreneurs in the early planning stages of their business?
Same as above. Be clear about what the objectives of the business are, be sensible in the strategy implemented, be PATIENT, handle the backend items thoroughly from accounting to legal to registrations/permits to banking to funds collecting. Do your research and seek advice from those in your personal network. Many in your personal and alumni network are more willing to chat than you may think. Value their time and respect their availability. A 30-minute conversation over coffee can save you lots of money and avoid lots of wasted time. Inches lead to miles. Mind the inches and it’ll help from being overwhelmed by the scope of the business you’re trying to build.
What is a mistake you see new small businesses make in relation to their finances?
Poor management of expenses early on in the endeavor. Don’t overextend and manage your resources and implement strategies relevant to these resources. It takes time. Self-educate and tap into your network as referenced above. Handle most or all of the business-related tasks yourself and/or keep them within your current team. Oftentimes, businesses hire outside help too soon and increase expenses before there’s any incoming cash flow. Don’t put the horse before the cart as they say. Act short term while thinking long term. Lots of good information online. Put in the work. Be patient. Ask questions. Mind the inches. Stay positive. Pick your associates/colleagues wisely. Have fun!
