Cha-ching. Marijuana is attracting hopeful entrepreneurs in droves. What’s that? You want in too? That’s awesome. How well have you thought things through? Let’s get real.
Like any new investment, whether it be time or money, it’s important to research, plan and consider. For most, getting in on this burgeoning legal weed economy is a chance at generating a paycheck or, perhaps, even building some substantial wealth. But getting in early on the pot game doesn’t necessarily mean getting the worm. So we’ve compiled this self-assessment of sorts to be sure you’ve done your homework. We’re sure there’s a bunch we’re missing or haven’t yet thought of. But the below should help you get started.
25 Things to Ask Yourself before Investing Time or Money in a Marijuana Related Business
- What are the licensing requirements in your state or surrounding your investment?
- Are you willing to follow legislative changes closely?
- Where will you go for up to the minute information about the industry and legal matters?
- How will your business and, therefore, investment be affected by changes made by government or other regulatory entities?
- What entities in your state or surrounding your investment are responsible for regulating this business?
- How much do you really know about the many uses and strains of cannabis?
- What resources do you have to learn more?
- Beyond the high, what are the benefits medicinally?
- What is the supply chain like for the product you are selling?
- What is the profit margin?
- What is the break even?
- What affects the supply chain beyond the regulatory environment? Weather? Trade organizations?
- Who is the customer base?
- How will you attract new customers?
- How will the business maintain customers?
- What information will the business be required to keep on customers and what systems are in place to do so?
- What exactly are you expecting to get back from this investment?
- What could go wrong?
- What needs to be right? What’s the perfect storm needed for your perfect case scenario?
- What’s your threshold for pain? How much time are you willing to give? How much money are you willing to risk before you have to walk away entirely?
- Have you thought through an exit strategy? Is there a plan B? Should there be?
- What kind of relationships do you have with your business partners, the investment group and/or your vendors?
- Are you comfortable sharing openly that you’re in the marijuana trade? It may seem silly but it’s something to consider. Can you say with confidence, when out networking, that this is what you do?
- In what ways are you able to promote your investment within your existing social or professional circles?
- What attracted you to consider this as a business? Was it just the buzz?