Marijuana Business Magazine July 2018

6. Preparation Is 80% of a Raise The key to landing funds for a raise to expand your cannabis business comes down to one thing: preparation. That’s according to investment guru Sara Batterby of The Batterby Group, a Portland, Oregon-based firm that works with cannabis businesses seeking capital. She noted that preparation is 80% of a raise. “Create a schedule so you control the raise,” Batterby said. “It sends a clear signal to investors that you are professional, and you won’t sit around waiting for them.” To Batterby, the basics of proper preparation to secure funding come down to: • Timing: Set a date for securing the raise and stick to it. • Format: If your investment folder is complete, you’ll be much more confident. • Structure: Make sure your investment instruments and tools are in place. “Create an environment that will be attractive to more sophisticated investors,” she said. To pique an investor’s interest, specifically explain why your business is important and will be successful.The focus often is around your own clearly defined story, and the more authentic you appear, the better chance you’ll have of gaining an inves- tor. “People are using the relationship to make the decision and the information to validate it,” Batterby said. And don’t be afraid to ask for help. Effective fundraising is a team sport, Batterby 7. Run a Cannabis Retail Dispensary Like a Taco Bell A new cannabis retailer can learn a lot from watching how a Taco Bell is run, said Christopher Martin, CEO ofThe Green Heart, an Oregon-based hemp and mari- juana retailer that’s expanding operations into Nevada and California. How is cannabis like tacos? Both are largely sold by low-wage staffers who must follow specific protocols to comply with health and safety regulations. Martin called cannabis “the most regulated, tracked substance ever known to man” and added that retailers can’t rely on training to keep their staff compliant with the law. “I use the term ‘Taco Bell checklist,’” he said. “When you open a store, there should be a checklist of everything you need to do. It doesn’t change each day.” Some items that Martin puts on his list for employees closing a dispensary include: • Enter sales into seed-to-sale tracking system. • Bring cannabis products (including display items) into vault for overnight storage. • Empty trash cans. • Recharge iPads used during the day. “This is imperative for you to make a successful operation,”Martin said. “There’s nothing worse than getting a call every day from someone asking, ‘Where do I find this?’ or ‘How do I do this?’ If you put the processes in place, people will follow the process.” said; make sure you have quality people in your investor pool. You need to guard your assets and have people on your side you can trust.This is all part of the preparation process. “If you do a good job building relationships,” Batterby said, “that first round of investors will carry you.” Sara Batterby Christopher Martin 84 • Marijuana Business Magazine • July 2018