Marijuana dispensaries are lighting up across the United States. It seems every day, you find a new one on its way to your neighborhood. The pot farmers of America are legally growing and preparing the plant for the masses and pushing it out into the world. So, what does that mean for those who want to sell the farmed product? It means it’s time to start thinking about funding your marijuana dispensary. Below we’ll talk about some common trends when looking to fund a marijuana dispensary to help you figure out what works best for you while cultivating your dream business.
Funding a Marijuana Dispensary
One of the most difficult reasons behind funding a marijuana dispensary is that most banks still don’t want to be associated with the product and the people who sell it. But, starting and owning a marijuana business is typically a less risky practice than the actual farming and distribution process. The hardest part about getting your marijuana business funded is the stigma still associated with it. Banks won’t necessarily want their name attached to the loans for your business.
Alternative funding sources like us at Finance Factory are a great option for those funding a marijuana dispensary. We won’t judge you for your passion or say no because of a controversial topic. Our team will look at your business plan and goals for success. Our free, multi-point assessments will help gauge where you’re at and where you need to be in terms of getting a loan or other assistance for your business. But, we know you have multiple options and choices to make. Let’s take a look at some popular trends in getting your type of business funded.
Trends for the Weed Entrepreneur
Know Who You’re Pitching To
Remember when we said there was a stigma attached to those who use, make, or sell weed products? Well, knowing who’s a friend and who isn’t, and knowing your competition is going to help when pitching your plan for a loan. Those who want to invest in your company can look past the product if they see your business is well-thought-out, clean, polished, and pitched well. We know that, in this specific industry, there will be some half-hearted, unattractive applications and plans thrown in front of us. But we love opportunities and we wait for someone like you to come along. You can come to us, knowing your business plan, explain how much you need to get started, how it will be used, and how you plan to make payments.
Be Patient but Persistent
It’s almost a given that many of today’s bank, private, or alternative investors don’t have much marijuana experience (at least, not in funding a business for it). They don’t understand the industry nuances or be able to appreciate how modernized and professional these types of businesses can become. Be ready to take the time to help educate them on your profession and industry. Let them know why funding a marijuana dispensary is a great opportunity. Give them time to flush out their process and do their research not only on your product but on you, the “potrepreneur.” And while you’ll probably hear a lot of “no’s” before that saving “yes,” be persistent. Keep searching for a funder and tweaking your plans. It might also help to get advice from those who tell you no and apply it to goals for the future.
Don’t Say, “I Do” Before You Date
Funding a marijuana dispensary is as much about finding the right lender as it is the money. It is smart to really sit down and plan with your investors. Most investments have a term of 5-10 years (depending on how much you borrow). Some may be shorter or longer. But you’re making a commitment with your lenders just as much as you would with a marriage. They are betting on you, not the product, so be brave, proud, and committed. Take the time to get to know everything and everyone before you sign on any dotted lines.
As we mentioned earlier, at Finance Factory, we have the tools to help you get where you need to be. One of our specialties is helping those trying to fund their marijuana business. We’ll sit down with you (take the time to date), run you through our quick assessments, and get you where you need to be in terms of funding. Hearing new plans for businesses, especially those passionate about marijuana start-ups is what we love. It’s a competitive field, so come to us and let’s get started!
Interested in finding funding for your business? Finance Factory would love to help! If you’re looking to fund your business within the next 30 to 90 days for $25,000 to $500,00 and have a credit score of 660 or better, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to get started!