Editor's Note: While this article speaks to investors, those with cannabis businesses can learn from this–about what would be appealing and not so appealing to potential investors. If you are seeking investing, reading through this article and others that advise investors can help you improve your business pitch and address the questions and concerns potential investors are likely to have. Also, if you're seeking funding or planning to, you might want to read the Cannabis Business Times article "Seeking Funding: 5 Mistakes Marijuana Business Make and How to Avoid Them."Â
Making money off the pot.com rush is going to be extremely difficult for the average investor.
Here in Part 3 of this series we look at practical ways to balance your risk and potential return (Part 2) when investing in the inevitable wave of decriminalized cannabis (Part 1).
I’ve read approximately 60 business plans in the hemp and marijuana space over the past 9 months or so, and met with numerous management teams / promoters. Here is my evolving basic list to ask the cannabis companies.
- Do you have the licences necessary to legally grow / transport / sell / process cannabis?If the answer is no, then generally the company isn’t worth very much. Yes, there is a chance that the company will eventually get a licence, but that’s a huge risk to take with your money.
