By: Chris Williams
The Californian Gold Rush made California what it is today. It revolutionized America. Reinvented entrepreneurship and led to California’s admittance as a free state. Over 300,000 people uprooted themselves and flocked to Cali by land and sea starting in 1849. Hence the name “forty-niners’’. Many faced terrifying hardships and some even died for the opportunity to pan the American Dream. The rush contributed to the developments of more roads, schools, railroads, and businesses.
Fast forward the clock to 2016. 60% of Americans now live in a state where cannabis is legal or soon to be in some form or another. Stevie Wonder can see the momentum building for the outright national legalization of marijuana. The industry is locked and loaded for a BOOM. Who else smells that lovely scent of weed and money in the air? The American Green Rush is here. Entrepreneurs will leave other ventures behind in search of wealth promised by Weed. Investors and professionals who would not touch the industry with a ten-foot pole just a couple years ago are now salivating at the mouth to offer cannaprenuers their expertise and capital. The nationwide cannabis industry is projected to be a 50 billion guerilla; that’s f-i-f-t-y with a “B.” The marijuana plant is the world’s richest crop. There goes that tantalizing smell again.
The Gold Rush did have adverse effects as will The Green Rush: Native Americans were slaughtered by the hundreds of thousands and pushed off their lands. Mining was anything but environmentally friendly and yes, a few became wealthy, but many returned home diseased, malnourished with even less than what they started with.
Most people don’t plan to fail; they just fail to plan. So here is a simple 1-2-3 planning guide before you set off on the marijuana mogul adventure.
- Know your product or services’ growth potential. Investors like the word scalability. Lifestyles business is needed but isn’t as attractive to most investors.
- Know your numbers. This is critical. What is the 3-5 year payout potential? How much money will the investors have to spend to achieve these figures? (Never ask for less than what is needed)
- Know who you are and why you’re better than the rest. Investors know new businesses are risky. How do you plan to mitigate those risks? Always remember a winning team/board with experience to an investor is what a parachute is to a skydiver.
So before you quit your day job ask yourself, are you prepared for the necessary sacrifices that must be made to be successful in this blossoming industry? Do you have experience, are you ready to go hungry, are you willing to give everything you got physically, emotionally, and financially? Are you willing to die for your piece of the American dream? These are questions you should have answers to before asking investors to ante up with his or her’s hard earned money.
