Just like any other business, you will need to approach tons of people and convince them to invest in your cannabis business. However, if you go in front of investors and ramble before begging for money, chances are you will not get even a dime. Here’s where a killer pitch comes in.
Whether you want friends and families to invest or are interested in attracting big equity financiers, your pitch needs to be impressive. But, what exactly is a pitch? And how do you create a killer pitch for a cannabis business? We’ve talked to experts and have all the answers you need below.
What is a Business Pitch?
A pitch refers to a presentation that is used to inform potential investors about a business or project. You can pitch face-to-face, via a video call, or via email. Sometimes, though, you might need to present your pitch in an impromptu manner.
Regardless of the medium used, you need to know the contents of your pitch beforehand. Preparing a pitch deck is thus one of the first things you need to do for your cannabis business.
A pitch deck is a short presentation that thoroughly delivers information about your business. It is a professional presentation, so it should deliver all the necessary information in an appealing way.
How Can You Make a Good Pitch Deck?
Here are a few things you should keep in mind when creating a pitch deck:
- It should be thoroughly researched.
- It should take less than 20 minutes to orally present all the slides.
- It should be visually appealing (Use Canva or PowerPoint).
- It should cover all the bases without being shallow.
Parts of a Pitch Deck
Slide 1: Introduction
This section should showcase the name and logo of your company, as well as your name, job title, and contact information. Add a picture of your product to create a visual element that will stick in the minds of listeners.
Slide 2: Why?
All businesses exist to solve a problem. You may have noticed a gap that other businesses in the market are yet to address, whether it’s the lack of a particular product, platform, or service.
Use this slide to explain what your business exists to address. How severe is the problem? How does this problem affect customers and the market? Why should it be addressed now?
Slide 3: What?
After you explain the problem your business seeks to solve, address what you plan to do/offer to remedy the problem.
Are you creating a new cannabis product to address a neglected demographic? Or are you creating a platform where what’s already in the market can be easily accessed?
More pictures of the product or a prototype will be a good addition to your presentation.
Slide 4: How?
So you have the solution to the problem, but how do you plan to present it to customers?
Use this slide to explain your business model. Will you offer direct sales? If so, will you do it in a physical shop or will you do it online? How will you make money from this business? Will customers have to pay for each use of the product/service, or can they subscribe to a membership plan?
Slide 5: With Who?
Now that your business model is clear, who will help you in its implementation?
Use this slide to talk about your team, explaining their qualifications and the unique value they provide. Remember to show their pictures.
If you don’t have a team in place, then explain what you are looking for in staff. Remember, people almost always invest in people rather than ideas, so make this slide count.
Slide 6: Why Now?
Your investors will want to know why this business needs to be started immediately rather than a couple of years down the line.
Use this slide to explain the opportunities currently present in the cannabis market. Are customers complaining about the lack of the product/service that you’re providing? Do you foresee a near-future shift in current market dynamics that will make your business among the first to provide this particular product/service? What opportunities for expansion exist in the next five years that will guarantee the longevity of your business?
Basically, try to show the investors why they should put money in the business now.
Slide 7: At How Much?
What will it cost you, and thus any investors, to put the product/service in the market?
In this slide, discuss all the costs you will incur to get your cannabis business up and running. This includes the costs of licenses and permits, the costs of buying or renting online or offline premises, the costs of production inputs, and the costs of marketing.
Be completely transparent in this slide so your investors know exactly what hurdles to expect before they start getting returns on their investment.
Slide 8: For How Much?
Now that your audience understands what it will take to get the business up and running, explain what they should expect at the end of that road.
Describe the price you plan to set for your cannabis product/service. Use a graph to display the profits you will earn and how soon you will earn it. What will it take for the business break even? After how long will the profits get into positive integers?
You might be tempted to oversell the profitability of your cannabis business. However, complete honesty will show the good faith you have towards future investors, and will save you a lot of money in legal costs in the future.
Slide 9: Against Who?
As unique as you feel your cannabis business idea is, there will always be someone who is already running a similar business. Do your research, because if nobody else is doing it, then it’s probably because there’s no market for it.
This slide should be highly visual, showing an overview of major competitors and what they are currently making in the market.
Do not ignore smaller competitors. Some of them might have an approach that is closer to yours and with a dedicated customer base, which can make them a big threat.
Slide 10: Why Us?
Yes, competition exists, but what sets your business apart?
The competitive advantage your business has is what will make you profits. Capitalize on it, whether it’s the uniqueness of the cannabis product/service or it’s perceived value based on your target customer base.
Sometimes, your competitive advantage is in the team working for your business.
Remember to include information on how you plan to innovate so you can stay ahead of the competition.
Be completely frank and not oversell your business. Experienced investors make money because they can sniff nonsense from a mile away and avoid it.
Slide 11: For Who?
Today, we live in a world where the impact a business has on the world is more important than ever. In the age of social media, unethical practices can quickly sink an enterprise.
Use this slide to explain to your investors what social impact the business is going to have. If you plan to grow or process cannabis, are you using eco friendly practices? How will your business involve and give back to the community?
The social impact of a business goes a long way in convincing investors to put money in it.
Slide 12: Conclusion
Finish your pitch deck with a brief overview of your business and the plans you have for its immediate future. Invite the audience to ask questions and interact with them cheerfully and honestly.
Need inspiration? Check best cannabis startups.
To Sum Up…
A killer pitch bridges the gap between a great idea and a business that is up and running. To ensure you’re not caught off guard, create a pitch deck. Do your research so you can make an attractive, informative, and convincing pitch to any investor, whether it’s a few friends or deep-pocketed venture capital firms.
And if you want to start a marijuana dispensary business, we got you covered here.