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Why You Shouldn't Use An Investor For Your Cannabis Business

Why You Shouldn't Use An Investor For Your Cannabis Business

Cannabis businesses are part of a billion-dollar industry, but with so much money at stake, it’s important to find the right funding opportunities for your existing or startup cannabusiness. The two most common funding paths are lending and investment, but there are some factors you should take into consideration. You need to decide what's right for you and your business to ensure the best possibility of success.  

Taking On Investors Isn't The Best Idea

First things first, finding investors for a startup in federally legal businesses is already hard enough. So, naturally, cannabis businesswhen it comes to the cannabis industry, that struggle is only going to multiply. Investment in a cannabis business is different than other businesses. It’s still considered risky, even volatile, even though there’s a lot of money at play. The legal status of cannabis in a number of states across the US is still in flux, which can make it hard to land investors in the first place. 

In the event that your business is able to acquire an investor for your new business, you might encounter more limits and hurdles than you initially had before an investor. While you may have the money you need, it may come at the price of control of your vision and dream. With an investor, there are now other decision-makers in the picture, and this is something to seriously consider.  

Lenders Give You More Freedom 

There are other ways to acquire any startup funding you may need for your new cannabis business. At first it may seem daunting to find the money you're looking for. Finding the right lenders isn't easy for an industry that's so new and still not federally legal. Going at it alone without investors or other support can seem frustrating, but that doesn't mean there aren't resources out there for you as a business owner. 

Despite the potential challenges for finding the right lender for your cannabis business, it’s still a better option than an investor. There's no guarantee that an investor willing to invest in your business has the background and experience to provide adequate guidance as you navigate the cannabis industry. Partnering with industry professionals with experience, especially when it comes to acquiring any funding or financing, is crucial. Be sure to surround yourself with those who have the know-how to actively help you meet your goals and fund your dreams. 

cannabis business financing What’s the Next Step?: How Canna Business Financing Can Help  

At Canna Business Financing, we have the experience to help pair you with the lenders right for your business. With our years in the industry, we pride ourselves on being a resource you can rely on. We’ve supported hundreds of cannabis start-ups and we’ve also worked with more established cannabis businesses. That’s why we’re the preferred financing solution. 

We already have the know-how to offer advice on levels of funding as well as how to best apply the business financing. We know what you need, but we also streamline the process to make it as straightforward as possible. Contact us today to find out about the best funding options for you and your cannabis business. You can get pre-approved in as little as 48-hours. 



Posted by Canna Business Team


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In an industry that is constantly evolving, Canna Business Financing provides business owners with a reliable source to gather the most up-to-date information. From resources to fund the growth of your business to insights on best practices to scale, look no further!

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