With the growing interest and popularity of the benefits of cannabis, more members of the community and even entrepreneurs have high hopes for its market value in the years to come.
However, the stigma towards marijuana is still prevalent until now, despite it being legalized in many parts of the world.
So if you want to make it big and create connections to see your marijuana company flourish, we’ve gathered these tips to help you get started and take you on the right path.
Cannabis as an Investment
While most state laws approve its use mainly for medical concerns, starting up a company has several limitations. This has caused aspiring businessmen troubles with handling their finances and finding a trusted investor in this venture.
But your dreams do not end here. Thanks to the growth of this group from supporters and loyal users, there are still lots of investors out there who want to be a stepping stone towards the acceptance and success of canna-businesses.
Canna conventions and similar events are a good way to network your business plan too. Always remember to get in touch with a lawyer about how you can safely make transactions with your clients and follow the rules! Connect with caution, and don’t give up on your vision.
Don’t Forget to Read On the Terms and Conditions
Before you dive into finding a good business partner, it’s best to do your research first on your state’s federal laws that cover the selling and distribution of cannabis. You may also need to hire an attorney to assist you throughout this process and to ensure your actions comply with these rules and regulations. The safer you play, the more money you can make.
How to Find Investors for a Marijuana Company
1. Take it to the Internet
The worldwide web is the fastest and easiest way to go if you’re looking for candidates and have peers who can help out. You might be surprised if family and long-time friends could actually be interested in investing in your venture.
Social media has now made business more accessible and convenient by adding marketplace features for entrepreneurs and potpreneurs to search for clients and collaborate. Exclusive networks for the cannabis community on these online platforms can also be a great place to discuss and pitch your business plan. There are other platforms specifically designed for cannabis businesses as well (these will be discussed in the following items).
2. Check for Investors Near You
If you already have a tab open on your browser and hit search for “finding investors for a marijuana company,” you might find recommended search terms like “investors near me” or “marijuana investors in (your state)”.
It is a good choice for those who’d like to meet their potential investors in person and to really get to know them. You are also less likely to get scammed, and you have the assurance that you are collaborating with someone who is genuinely interested in helping you grow.
3. Post a Listing on a Cannabusiness Directory
Though cannabis business directories are mainly for running businesses to reach out to more customers, you can also post here as a business start-up to attract investors. There are lots of business directories that have a separate section for marijuana companies, or others may just be a mix of everything you could find. Post your business plan and contact details and see who’ll slide into your inbox.
4. Sign Up for Investor Platforms
While traditional established investment banks are not open to providing you with the funding you need, there are online investor platforms specially designed to cater to potpreneurs. Here you can find angel investors and other trusted businessmen who are looking for their next big investment. If your proposal stands out and has a promising spot in the market, you’re sure to find an investor at the right time.
5. Crowdfunding Platforms for Marijuana Companies
Crowdfunding has become a fast-growing platform to get friends and people across the globe to help contribute a certain amount of cash for innovative products and businesses with a gift in return. Now marijuana has also jumped into this type of networking by creating distinguished crowdfunding platforms to help start-up cannabis businesses.
Though a reward for your patrons is not required, it will help draw them in more to become investors for your business too. Consider offering a discount on your products, a gift card, or give them options to increase their contribution to a bigger reward too!
6. Loans to Look Out For
If you still prefer the traditional method, you can always apply for a personal loan to banks and investment firms. However, this may not be as safe as the other options listed here if they will need more information from you. A private investor or angel funder may be the better route to take and can give you more security. So, apply for personal loans at your own risk and always seek legal consultation first.
7. Participate in Cannabis Conventions and Related Events
Cannabis conventions and conferences online are a good starter for making good friends and even business partners. You can attend seminars on how to start your own marijuana company or attend the annual gatherings near you.
Know your brand and have a pamphlet ready that presents your business pitch when you meet up with buddies who may be interested in joining your venture. Of course, don’t forget to have fun at the event and keep learning how legal cannabis has advanced along with its impact on the community so you can further improve your pitch for services and products.
Saving up and raising extra funds to make your dream of a marijuana company, reality can feel discouraging at first because of the stigma and regulations of federal state laws. Even if these limitations get in the way, they can’t stop you completely when you can count on the right people.
Today, there are numerous platforms for cannabis businesses to share their pitches and connect with potential investors, from angel funders, private firms, patrons, and online cryptocurrency services. You can also personally invite friends and family who have shown interest in your business.