How To Make Your Cannabis Business More Attractive To Investors
When you joined the legal cannabis industry, whether you were transitioning from the black market as a legacy grower, or wanted to capitalize on what everyone has been forecasting is the next big thing, you probably thought it was going to be a lot easier to make money. That's because while the cannabis industry is enjoying tremendous growth across North America, as more states legalize and lots of people are trying to get in at the ground floor, there are tremendous challenges as well. This includes stiff competition and high regulatory and tax hurdles.
No matter what you path, as your company continues to (hopefully) grow, there will come a time when you need outside investment to continue your upward trajectory. Rather than wait until that moment to think about how to attract investors, you should try and build a brand and operation that people will want to be a part of from the very beginning. The point is, it's never too early to start taking the advice in this post, because even if you never seek investors, these tips should help you build a better, more sustainable business anyway.
You should try and build a brand and operation that people will want to be a part of from the very beginning.
Make Sure Your Business Is In Order Before Approaching Investors
Like most creatives, I'm not the most knowledgeable when it comes to business. I'm a lot more focused on creating eye-catching visual content and coming up with cool marketing campaigns. But I know that you shouldn't be looking for investors if you haven't taken the time to get everything in your operations up to snuff.
Savvy investors will want to see that you have healthy fundamentals, whether it's your books or your compliance to local cannabis regulations. If they find you've been cutting corners, it will turn them away and it will be much harder to find reputable investors interested in your company.
I highly recommend working with a third party business services company or cannabis accountant that can handle a lot of the hard work for you and ensure that your business is fully ready for outside scrutiny. As you prepare your business for investors, you should also consult with a cannabis lawyer. Not only will they be indispensable in handling the complicated paperwork and contracts that go along with accepting a significant investment, but they also can help prep you on essentials before you start making pitches.
Start By Elevating Your Branding
As you get ready to present to investors, one of the single best things you can do to make yourself attractive is to create a strong brand for your company. Not only does branding work with consumers, but it also has an impact on how investors and potential investors will look at your company. I'll even go so far as to say that nothing else can compete with strong branding in terms of increasing the value of your business.
Why is branding so valuable to investors? If they see that your company has built a strong identity that is recognized by consumers, then that directly translates to increased sales in their mind. Even if you are lagging in some other areas, whether it's location, facilities, operations, or staff, your potential investors will believe the drawbacks can be overcome thanks to their help. But having that relationship with the customer already established is priceless.
If you haven't already, hire a professional graphic design team to work on all of your visual elements. This includes your logo, style guide, web site, social media accounts, product packaging, and anything else that if customer facing. This kind of premiere brand presence will serve two purposes: attracting customers and attracting investors.
Work With Professional Graphic Designers On Your Investor Deck
You need to treat your investors just like you do your potential customers. That means you'll want to go out of your way to impress them and showcase how valuable your company is. Just like you invest in creating attention-grabbing marketing content and brand assets, you'll want to spare no expense when it comes to putting together your pitch assets.
I've run into too many business owners to count who were actively seeking investment money but had never even heard of an investment deck, let alone put one together. An investment deck is a digital presentation that assembles all of the relevant information and data that your investor will need to know about your business and showcases it in an attractive and easy to navigate package. Skimp on this first impression and your investors will doubt whether you'd make a good partner, while going the extra mile to impress them will directly lead to an increased likelihood they will sign off on that check.
An experienced designer and layout specialist will be able to take all of the information you've compiled and put it into a visually appealing format that will be easily digestible by your investors. It's also a good idea to hire a real copywriter to spruce up all the language. This minor investment on your part should pay big dividends as you present your business to interested parties.
Use Video To Truly Showcase Your Facilities
For businesses that really want to go the extra mile, creating a video presentation will blow away your potential investors. But before jumping into such an endeavor, take the time to research who your potential investors are and craft a video that will appeal directly to them. Rather than include all the detailed information that will be in your deck, focus on the big picture items that will really wow them.
A great video starts with a great story. Show them who you are and why your business would make a safe investment. At the same time, it's a good idea to highlight your strongest assets, including the relationship that you've built with your customer base. Keep it simple and try to make your video as compelling and engaging as possible. Your future investors will walk away impressed, and hopefully you'll walk away at least a little bit (but maybe a lot) richer.
Hire A Drone Pilot For Truly Stunning Visuals
Speaking of eye-catching video, nothing captures attention like sweet aerial footage. Drone content is especially suited to cannabis businesses, whether you're operating a farm, indoor grow op, or dispensary. If you want to truly impress your investors, drone footage of your property or facilities will definitely do the trick.
It should also be noted that when putting together a pitch for investors, real estate often plays a key role. Investors want to have a clear picture of all the assets, and for farms and indoor facilities, the land and area where you are located truly matter. The same is true for a retail location, such as a dispensary. Using a drone to show off where your dispensary is located, particularly if it's in a busy or prominent spot, makes perfect sense.
Increase Your Profits With Energy Efficiency
Another thing that investors of any business, but especially cannabis producers, want to see is that the operations are lean and efficient. They don't want to invest in companies that are poorly run or are wasting money. And for cannabis growers, especially for indoor facilities, one of the biggest expenses is energy. Weed growers that are running at optimal efficiency, whether it's with LED lighting, the latest in cooling tech, or a well-designed greenhouse, will be able to grow at a lower price per pound, meaning they have more profit potential.
This is music to the ear of investors. But partnering with your local utilities or an energy efficient expert will not only increase your bottom line, but it will also help you tell a more effective sustainability story. This will do wonders for your brand image and make your products more appealing to consumers. You'll soon have investors knocking on your door!
Partner With The Hood Collective For Your Cannabis Marketing Needs
People have many different goals when they start a cannabis business. Most are passionate about the plant and want to share their knowledge and expertise with the world at large. Some are hoping to build a sustainable business that will endure, while others are hoping to capitalize on the Green Rush and make it out with a tidy profit. Often times, these goals can overlap.
No matter why you got into the weed business, there comes a time when you'll need outside investment to help grow your company. At The Hood Collective, our team of graphic designers, photographers, and videographers understand this, and we strive to add value wherever we can. We make the success of our clients the number one priority. When you want to make your business attractive to investors, your best bet is to partner with a professional marketing agency like The Hood Collective to realize your dreams.
The Hood Collective specializes in creating top-notch investment decks and pitch materials for businesses of all sizes. Contact us today to schedule a free consultation.