Identify and understand the real problems that are occurring and come up with new ideas to fix them.
Ideas that don’t have merit will not succeed in this business. Now that the cannabis industry is receiving tons of attention, everyone is trying to get something on the market. There’s a lot of repetition in ideas and the best ideas are ones that aren’t duplicated and can change the industry itself. The plus side of this industry being so new is that there’s a lot of room to advance it.
Find the funds.
Solve a problem for a few people first to show investors why your idea is worth investing in. Securing funding in this industry is not easy, which is why I suggest finding an idea that not only sets you aside from competitors but can advance the industry altogether.
Don’t just go to any VC.
I highly recommend going to a cannabis-specific VC. Spend time with VC’s that have already invested in the space or understand the industry’s problems. Otherwise, you risk wasting time pitching to groups who have restrictive LP agreements or who generally will be unable to invest in the space until post federal legalization. You may still want to pitch non-cannabis specific VC’s but it is important to qualify them first and make sure they would be able to write a check at the end of the day.
Don’t get involved unless you’re passionate.
One obstacle about the space is that it’s ever-changing. Cannabis is very different than any other industry you’ll ever work in because of all the rules and regulations constantly changing. The market is very divided, federal legality is restricting, and it’s extremely difficult to secure banking and fundraising. Each country has different laws in place regarding cannabis, making it hard to expand your market and hurdles are constantly thrown at you. Passion is the key to success in this game.
Don’t look at it as a capital opportunity.
Having a product or a company that does not have a moral goal in the works will make it hard to succeed.. As someone working in this field, it’s important that you play your part in helping those on the other side of cannabis.
A little background in cannabis industry or any of the regulated industry is a boon.