
An interview with Karing Kind owner Dylan Donaldson.
Karing Kind was the first recreational marijuana shop to open in Boulder early this year. With a background in growing and in medical marijuana, Karing Kind owner Dylan Donaldson quickly took advantage of the opportunity to expand when Colorado's laws opened the door to recreational marijuana sales, and he has been evolving and expanding his business ever since.
While the dispensary started as a passion for Donaldson, it's definitely a solid business, being driven by many sound business and marketing practices. Karing Kind offers a membership rewards program, which provides discounts to repeat customers, and it is launching a Karing Kind Mobile Rewards Program app to give customers access to regular deals and discounts.
But, like all dispensaries, Karing Kind faces ongoing challenges with compliance, unexpected costs and the hazy area where dispensaries operate–somewhere between legal and illegal–which is still weighed down by risk. Here, Donaldson talks with CBT Editor Noelle Skodzinski about the launch of Karing Kind, the hurdles he's had to overcome, and what he considers a "must" for other entrepreneurs in the legalized marijuana industry.
Noelle Skodzinski: So how did you get into this business–what inspired you to open a marijuana dispensary? Do you have partners in the business?
Dylan Donaldson: I am sole owner. I got started by working in greenhouses, and when medical marijuana was proliferating, I was approached by several cancer patients to grow for them. After a few months, I rented a grow warehouse and then laws evolved to medical retail shops, and we went for it. On year 5, recreational laws passed, and we became Boulder's First Recreational dispensary!
Skodzinski: So Karing Kind was the first recreational marijuana retail shop to open in Boulder in February this year. What was that like? Could you believe you were actually legally selling pot?

Inside Karing Kind in Boulder, Colo.
Donaldson: It was surreal and exciting and crazy all at once. The support from the community was awesome and overwhelming in a good way! Sometimes I still can't believe what I do for a living!
Skodzinski: Was there a highlight, or a "we made it" moment, during your first day or first few days in business?
Donaldson: It was really a few weeks later after getting some sleep that we realized how we were changing the world and how awesome it is to be on the forefront of it all.
Skodzinski: You not only sell marijuana and edibles, but you also grow the majority of your product. What was involved in setting up a grow operation? Did you have to hire others to help with this?
Donaldson: Since my background was in growing, and my family includes architects and contractors, it was the capital costs that were the biggest challenge. So we slowly expanded to where we are at today.
Skodzinski: If you get some of your MJ from an outside source, where do you get it? How did you decide on which company to use?
Donaldson: We interview and inspect grows before purchasing their product to make sure it is up to our standards of quality and organic growing. We strive to only sell products we all use ourselves. This is actually a difficult process to get vendors of quality as many manufacturers have sub par quality and use pesticides. Even in Boulder!
Skodzinski: What were some of the biggest obstacles you had to overcome in opening Karing Kind (besides getting stuck in traffic on the way to pick up your state license on opening day)?
Donaldson: It's hard to pinpoint exact challenges. The industry as a whole is very complicated, heavily regulated and not for the faint of heart. Many, many nights have been spent wondering if this is what I should do, but in the end the customers make it worthwhile. We are so happy to have support from the community that we have seen.
Skodzinski: What were some of the things you did right, which helped you successfully open your doors?
Donaldson: Mostly adhering to the strict regulations both state and locally has kept us in business. Especially with the threat of the Federal Government prosecuting non-compliant businesses.
Skodzinski: What are some of the ongoing challenges you face?
The biggest challenge is the ever-changing landscape of the regulations, as they change sometimes weekly.
Skodzinski: Were there any major unanticipated expenses you encountered in the start-up phase or since?
Donaldson: Lots. Too many to count! You can't just start a business with a couple hundred thousand or even a few million without the risk of losing it all with one wrong step. Luckily we have been successful at adapting to the changing regulations.
Skodzinski: Washington State has had issues with having enough supply to meet demand. Colorado didn't seem to have that problem. Have you encountered any shortages or challenges with supply? Do you think Colorado's policy that requires retailers to grow the majority of their own product helps avoid supply shortages?
Donaldson: The laws definitely help keep supply and demand in check. Washington has failed in numerous ways because they deviated from Colorado's regulatory model.
Skodzinski: What's your favorite aspect of running a dispensary?
Donaldson: The customers. They are always happy and support us so much it is unbelievable. We have a huge following of loyal customers because of our prices, variety of products and customer service.
Skodzinski: What's your least favorite?
Donaldson: Being taxed as an illegal business on the federal level. It really holds us back in many ways.
Skodzinski: Can you offer any advice to others interested in opening recreational dispensaries?
Donaldson: They better use marijuana first off. Many owners don't use their products, which means they don't care about quality or contaminated products. Buyers beware!
Also be willing to fail and lose a lot of money, and still they might not survive the industry. It has spit out many millionaires and business people alike. It is not easy, nor is it getting easier.
Skodzinski: Oh, and one more question. How many college students can you fit into a dispensary? (with the University of Colorado being there in Boulder)
Donaldson: Lol. Good question. We can serve many people, no problems.