SPOTLIGHT:

HEMP IN THE HOLLOW

Proprietor: Steven Farmer

Business Address: 640 S.Coast Highway, Suite 2A, Laguna Beach, 92651

Telephone:(714)494-3070

Type of business: Retail specialty store. The store carries industrial
hemp products ranging from clothing to bags and backpacks, hats, jewelry,
body products, and edibles.

When opened: November 1995

Why you started the business: While in Hawaii, about 2 1/2 years ago, I
came across some hemp clothing.Until than I had no idea this was being used
as a material for clothing. I researched what I could find and discovered
that this was a recently renewed and growing industry, still in its
infancy. I especially liked that it is environmentally friends and that so
many useful products can be made from hemp.

Where did you get the idea? The initial idea came from the hemp clothing I
purchased while on vacation. After further reading, I became quite
enthused about the potential for hemp products. I also discovered that it
was still illegal to grow hemp in the United States, even though it is
distinctly different from marijuana. My partner, Cindy Biggers, and I had
several intense discussions about how we might get involved in the hemp
business.

What was the biggest hurdle and how did you overcome it? My limited
experience in the retail business. It was Cindy and a few friends involved
in the retail industry who helped me and gave me a lot of advice.

How much did it take to get this business from idea to open doors? Four
months. During this time I recruited friends and family to help me, and
studied up on hemp and how to run a retail store.

How much did it cost to get started? It took about $25,000 to prepare the
store and by inventory.

Where did you get the money? Savings, two bank loans and credit cards.

What is your expected revenue for the year? $175,000.

Is this your first business? No. I have had a few businesses in the past.
My primary trade is as a psychotherapist in private practice.

To whom did you go for advice? Cindy was instrumental in supporting this
enterprise. Together, both of us did a lot of reading and spoke with others
in retail sales.

Did you right a business plan? No.

What's the biggest thing you didn't think of before you started? Probably
a business plan. It is necessary in order to expand.