It is no secret that the marijuana industry is considered one of the most fruitful sectors when it comes to revenues. Over the past years, as the plant gained legitimacy across various states in the United States, the industry skyrocketed tremendously thanks to a more mainstream perception. This development is beneficial for cannabis enthusiasts who want to enter the community as an entrepreneur, as well as for those who want more high-quality options for products.
For cannabis entrepreneurs like you, it is important to take the necessary steps to expand your company in more ways than one. Expansion can come in the form of increasing the variety of products your dispensary offers or setting up a second site in your state.
However, you want to make sure that your efforts bring your company to new heights. Instead of opening a second location within your state of residence, why not aim to launch a new site in other states where weed is legal? You might also want to go from sourcing products from another company to fully producing your own products.
We understand that these goals can take a long time to achieve. This is where getting investors to come in. Investors can help you get the funding you need to pursue the kind of expansion you are looking for. They can even improve your operations by providing valuable assistance.
Now, you may know that investors can play a vital role in helping you bring your business up another level, but how can you catch the attention of these funders? Marketing your company properly and effectively is one of the best moves. Not sure where to start? Hiring a digital cannabis marketing agency may be your best bet. Read on to know more about the connection between investing and marketing.
Investing in Cannabis in 2020
The year 2020 is one of the most unprecedented years, especially with the pandemic and its social, economic, and legal impact. Before we proceed to the value of proper marketing in getting investors to notice your company, it is important to see how cannabis investing is doing in 2020.
The public health issue has negatively affected the economy, which can be seen in the fact that many establishments across various industries taking hits. However, cannabis is considered essential services, which warranted the speedy implementation of new laws such as legalizing weed delivery in some states.
So, while many industries are losing business this year, studies show that marijuana sales will continue to spike in 2020. In fact, research anticipates that sales will jump from $13 billion in 2019 to $15.5 billion to $18.9 billion in 2020. By 2024, sales are expected to fall between $30.2 billion and $37 billion. Plus, cannabis stocks in the US are set to bring in more than $1 billion in annual sales by 2024.
These figures show that the industry remains to be a desirable one for investors. For your business to catch investors’ attention, you want to exhibit your potential to participate in this scale of income generation. Cannabis marketing can help you with that.
What Investors are Looking For
For your marketing campaign, you want to show that your company will be a beneficial investment for potential funders. Your strategy will be based on the goals you want to achieve. When it comes to marketing for gathering investments, here are some of the points investors are looking for:
Potentially Profitable Businesses
In this capitalist world, individuals invest capital for profit. So, you want to make sure that your business shows great potential in generating profit. An effective marketing campaign can help boost your revenue by attracting more visitors to your website. With the right tool, you can increase your chances of converting visits into leads, and leads into sales.
Keep in mind that investors look for potentially profitable businesses. This means that even if you are not yet extremely profitable, but investors see something in your company that can turn you into a money-making machine, then they would want to fund you to help your fulfill this potential.
Great Addition to Their Portfolio
Now, we understand that small to medium businesses can generate enough for a small profit and to keep the operations going. With the point given above, you might think that you would have a harder time getting investors. However, you need to remember that investors funnel funds to other companies as a strategic move.
They also fund companies that will be a positive addition to their company. Because your business is in the cannabis industry, an investor looking to diversify their portfolio by entering the marijuana market could consider investing in you. This also applies to investors who want to invest in stocks after funneling their funds to, say, bonds, or properties.
Compatible With Their Brand
In the world of business, branding plays a huge role not only in gaining customers but also investors. Big companies create an image and idea of the entity, which helps them gain the loyalty and business of consumers who subscribe to the same thought. For example, many people who advocate for the protection of the environment tend to transact more with organizations that have the same advocacy.
The same is true for investors. Like the given example, these financiers tend to support small companies that share the same vision as theirs. Of course, you need to show your potential in strengthening their brand and business.
Entry to a Particular Market
Another factor that plays into funders’ decision to invest in a company is their presence in a market the financier is yet to penetrate. Say a big cannabis company operates in one state, and you have a strong presence in a state which it wants to enter. Instead of swooping in as a competitor, some entities choose to invest in the existing company.
Aside from penetrating a geographical market, this can also apply to investors looking to enter other markets. This is true for a cannabis grower wanting to enter your particular target market, which is, young adult CBD consumers, for example.
What a Marijuana Marketing Agency Has to Offer
Now that you know what aspects of your business to boost during your marketing campaign in a bid to gain investors, you might be wondering how a digital marketing agency can offer to help you. Here are some of the most relevant services these firms can deliver.
Promote Your Brand
Above, we talked about how financiers look for businesses that are compatible with their brand. So, one of the most important things to do is to strengthen your branding. Take note that you do not have to change your branding just to fit into the preferences of some of the biggest investors. Instead, you just need to make sure that the image, message, and idea you want to convey comes across clearly.
Digital marketing agencies can help you strengthen your brand by improving your platforms, such as your website and social media profiles. You can work with their web developer to create a site that conveys your message, from the colors down to the font face used.
Market Your Products
As mentioned, some investors are attracted to businesses that show great potential in generating profits. Digital marketing strategies are designed not only to improve your branding but also to increase your sales. Search engine optimization (SEO), a technique used to have your site and pages rank high in search engine results, has great potential in driving traffic to your website.
Your site, which serves as your virtual location, is the primary source of leads. With an effective cannabis SEO, your site and pages can rank high in search results, which can encourage more people to do business with you.
Expand Your Reach
Marijuana SEO also allows businesses to expand their reach not only through search engine results but through link building. What you need to know about SEO is that while you use the right techniques to optimize your pages, your site’s authority plays a huge role in your ranking. Your authority is affected by the quality of your content, popularity, and trustworthiness.
You can increase your authority by having a high-authority website share a link to your own. An agency can reach out to such popular and trusted sites in order to increase your authority, which has the potential to increase your site’s exposure to the high-ranking site’s audience.
Aside from SEO-related activities, these firms can handle your social media presence. If you are not aware, there you can join marijuana-focused social media sites. Some services are more focused on consumers, while others let you create a cannabis business social network. Some of these social networking services help connect business owners to prospective investors.
The Bottom Line
The cannabis industry’s success is expended to continue throughout the next few years. This is why it is only smart to seek investments, which can help launch your business to become a bigger and more successful one. By hiring a cannabis marketing agency, you can boost your chances of getting the right investor.