Running a cannabis business, there may come a time when you discover your inventory can’t keep up with increasing customer demand. Maybe you find you’ve grown so much that you no longer fit in your storefront and want to open a second location. You may need to up your marketing game to attract more customers.
To make these and other growth goals a reality, you need money. If you don’t have the funds available, you could benefit from a cannabis investor or other forms of financing.
Ways To Find Cannabis Investors
A cannabis investor is someone who provides you with money in exchange for a financial return once you start generating profits. Some investors have extensive knowledge of the industry and can offer tips and advice to help you succeed.
List Your Venture in Cannabis Business Directories
Cannabis investors may also use directories to find promising startups and other cannabis companies in need of financing. List yourself in as many directories as possible to attract the attention of interested investors.
Check Out Cannabis Venture Capitalist Firms
Venture capitalist (VC) firms are investment firms that fund and mentor startups and other newer private cannabis businesses with potential. Firms like Entourage Effect Capital, Phyto Partners, and KEY Investment Partners specialize in investing in cannabis.
Attend Cannabis Industry Events
Cannabis conventions, trade shows, and other events bring together industry professionals of all kinds. Not only can you learn about the latest industry trends and how to improve your business, but you can also network in person with others in the industry — including potential investors.
You can also meet potential investors online through social networks, forums, and industry-specific platforms. While you should still meet with potential investors in-person — or at least speak over the phone — these online networks are convenient for establishing first contact.
Look Into Crowdfunding
Crowdfunding platforms allow consumers to become investors. You present your business and ask for funding in exchange for something in return. It doesn’t always have to be a percentage of your profits. Incentives related to your business are a great way to show your appreciation.
Alternative Financing Solutions
If you’re looking for other potential funding options, there are a few flexible financing solutions:
- Lines of credit: A line of credit gives you a pool of funds to pull from whenever you need. You only need to repay what you use.
- Purchase money financing: If you accept purchase orders, purchase money financing can provide you with the funds you need to fulfill them. That way, you don’t have to turn down orders.
- Inventory financing: Inventory financing allows you to increase your purchasing power, allowing you to buy larger quantities at lower prices.
- Invoice financing: Rather than waiting for your customers to pay their invoices, invoice financing enables you to sell those invoices for a discount in exchange for immediate working capital. That can help you to avoid cash flow strains and run your business more effectively.
Get the Financing You Need for Your Cannabis Business
Cannabis investors can make excellent financing partners, but they aren’t your only option. Investigating all potential solutions, including cannabis financing, can help you make the best decision for your business.
Are you looking for flexible cannabis financing? Visit Bespoke Financial to learn more and start your application today.