For part two of the Social Equity Program’s A Day in the Life series, DCR headed to Pauwels Cannabis Co., a Social Equity retailer built on the belief that cannabis is not just a drug, but a lifestyle, a community, and a possible route towards well-being. Run by the husband- and-wife team David and Tiffany Pauwels, they describe the shop as “medically driven” and operates with the mindset that the key to business longevity isn’t flashy marketing or bargain shopping – it’s honesty, communication, and the efficacy and quality of the products on their shelves.
“We try to take care of our customers one-by-one,” said David. “We get their opinions on [products] because they’re the ones that tell us what we really need to put on our shelf. They want us to be honest with them, not just sell them some cute Mylar bag.”
In other words, it’s what’s on the inside that counts. This not only rings true for the products, but for the business as a whole – from the internal processes to the people that make it all possible. For Tiffany, this means weekly inventory checks and quarterly financial audits to ensure everything lines up between the store’s Point of Sale system and the State Department of Cannabis Control’s (DCC) Metrc system, and local and state tax obligations. Her advice for navigating the multi-faceted tax system? Communicate with the state.
Don’t Be Afraid of Communicating
“Don’t be afraid to call the [California] Tax Board,” said Tiffany. “They want you to talk to them. They can work out payment plans, but by avoiding it, it only makes matters worse. Interest rates go up every day that you don’t pay [the taxes], so you’ll get yourself in a hole if you don’t communicate properly.”
David also points to the Social Equity Program’s online training courses, and free- and low- cost legal services as vital tools for navigating the complex, and sometimes predatory, waters of the cannabis industry.
“There’s so many sharks out there, especially when you’re a social equity guy,” said David. “ Whether it be a landlord or a lawyer that’s actually taking advantage of you or a guy that signed a contract and bailed out. I don’t understand how some of my friends don’t know that [the free- and low-cost legal services] it's there.”
Through DCR’s partnership with the Los Angeles County Bar Association’s Cannabis Section, verified social equity entrepreneurs are eligible to receive up to 40 hours of low-cost legal advice from an attorney – the first 10 hours are free, with the additional 30 hours billed at $35 an hour. To learn more, visit DCR's social equity page.
Heavy Lifting
What started as David and Tiffany spending years doing all the heavy lifting has now blossomed into a full-scale operation, including the launch of their own topicals line, Pauwels Cannabis Cosmetics. It’s not only a testament to their grit and dedication to succeed, but the store’s deep-rooted commitment to health and wellness.
“I started my journey in the Prop 215 medical days,” said David. “I saw the value in [cannabis] as I saw people and how it was helping them combat all kinds of issues, but very few were saying anything about it. The government, in my eyes, was behind on this and I made a dedicated decision to get behind cannabis.”
Ultimately, Pauwels stands as a powerful reminder of what the Social Equity Program is all about: turning passion, grit, and community-first values into sustainable business success. To learn more about how they’ve managed to stay true to their mission while surviving the competitive cannabis industry, watch the segment in full.