Are you thinking of jumping on board the “green rush” bandwagon? It’s estimated at $10 billion-with big names like Snoop Dogg and Willie Nelson, the world of legalized cannabis appears wide open and vast. We wanted to share 3 tips if you’re thinking of “kashing in” on the green revolution.
- Don’t Make Whimsical Decisions
Sure, it can seem like weed’s economic benefits have no end. But it’s important to make decisions just like any other financial transaction and never make them for the wrong reasons. Make sure to do your due diligence. It must be done from all angles, including but not limited to the company you’re investing in, its founders, legality behind their business on a municipal, state, and federal level. Make sure they’re all legit, above board and following all laws-they change every day!
- Know the Risks
Be sure to educate yourself on the risks and business model of the enterprise you’re considering to invest in. Visit conferences, watch videos and webinars and attend investor summits that will help you become learn about the specific sector you’re investing into as well as how the company should be making money on this type of business. Listen and read expert opinion on the business and look at comparable companies. Cannabis is still federally illegal, so be aware the industry could disappear overnight with a change in leadership.
- Ask Lots of Questions
Ask questions to the people you’re investing with, those in similar businesses or experts on those sectors. Ask your friends and family to get a sense of other people’s opinion on your investment. Legalized marijuana still has a public stigma, so public opinion can have a huge sway.
These tips are adapted from Eddie Miller’s ideas. He is from Invest in Cannabis (www.investincannabis.com.) What do you think?