Twenty years ago, it would have seemed impossible to get funding for a new cannabis company. These days, it is more than possible – there are hundreds of companies popping up all over the country to serve this increased demand.
While investors are less intimidated by the prospect of a cannabis-oriented company, one must still be cautious in the way it is pitched. As with any industry, cannabis entrepreneurs must showcase their understanding of the business – and what will make theirs stand out.
Create a Pitch Deck
A pitch deck is a brief presentation specifically designed to help investors get on board with a project. It should be both informative and visually appealing, providing plenty of reasons for interest.
On average, your pitch deck should be 15-20 slides long, contain a business plan and financial projections. All of which should help to prove your understanding of the business you wish to dive into.
Define the Problem – and the Solution
Businesses exist to solve problems for their clients. They create either a product or a service that will help customers in one way or another. It’s your job to define the problem that needs to be solved – and how to do it.
Understand Your Investors
Even if you don’t know the potential investors personally, there are ways to help understand them. Try imagining the business from their perspective – the risk versus reward that would appear first in their mind.
Remember, the main goal of an investor is to make money. Thus, an explanation of how that will happen should always be included in the pitch.
Keep it Short
While it may feel counterintuitive, pitches should remain as brief as possible. The idea of revealing every detail of the business plan may sound tempting, but it’ll hinder the pitch more than it’ll help.
Investors want to get an idea of the bigger picture, not get bogged down in the minutiae of how a business runs. Keep the pitch brief and stay on point.
Mistakes to Avoid
When pitching a new business idea, there are certain things that one should always strive to avoid. For example, pitching cold (without practice or preparation) is almost certainly going to result in failure.
Other mistakes include:
- Being too ambiguous during pitching.
- Going on for too long.
- Dumbing the idea down.
- Failing to do research ahead of time.