Chicago, IL, 19 July 2021, ZEX PR WIRE, What do Whoopi Goldberg, Snoop Dogg, and Martha Stewart have in common? They’re all in this new industry.
As more states legalize, more eyes are turning toward the industry. Dr. Stacee Lang CEO of Smart People Network, Inc. who works with companies in this industry says,” There’s gold in “them, there” hills, now refers to the legalization of cannabidiol and those trying to dig their way through the laws.
From business owners to policymakers, black ‘pot-treprenuers’, are trying to cash in on the high profits that abound the industry. Many black ‘pot-treprenuers’ are scrambling to find someone to help them properly position themselves in this arena. Obtaining a license requires a lot of experience in applying for government licenses and engaging with government regulators. One of the primary barriers for black ‘pot-treprenuers’ is the methods used to become established as a business owner. The business licensing process varies from state to state, and transparency is obscured to newcomers, leaving many ‘pot-treprenuers’ baffled and at the bottom of the hill.
Many black ‘pot-treprenuers’ have turned to The Smart People Network to obtain business savvy coaching services in order to help navigate the politicized application process. It seems to be a consensus among the ‘pot-treprenuers’ that unless you are connected with the right political and legal representation or have elevated relationships with local politicians, the licensing process is nearly impossible to navigate. Those newly attempting to enter the arena have reported the barriers simply boils down to money power and influence.
But those who have been in the industry a little longer than these big-name endorsers say it’s a different type of green catalyzing interest.
More Women are Getting into This Business
Mackenzie Saunders and her partner Aaron Williams of Fender’s Blue believe the biggest challenge for companies is how to stand out in a vast ocean of companies. With the explosion of companies and products on the market, our biggest challenge is how to get customers to turn to us with their needs.
We are standing out by offering products that people can trust and afford. Trust is built with our customers with our transparency and third-party verification of our lab results, USDA Organic certification, and our Vegan certification. Our customers have peace of mind knowing that we are vetted by third parties. These test results are readily available on our website. We stand out as a Farm To Wellness company.
Dr. Paula Fellingham, CEO of Women’s Information Network further adds challenges facing women led companies include:
Women receive less funding to grow their businesses. While venture capitalists invested about $58 billion in startups last year, women received only 2 percent of that money. Also, in 2020, women’s annual earnings were 82.3% of men’s. (Bureau of Labor Statistics data) They are often regarded as inferior to their male counterparts in business settings. Although progress has been made, businesswomen are generally not as well-respected as men. As a result, women often work harder and longer to achieve the same business growth results as their male counterparts. Researcher Nicholas Kristof’s study concluded, “A woman (in business) can be perceived as competent or likeable, but not both.”
Women business owners and businesswomen, who are also mothers, divide their time, energy, and focus between work and family. Working mothers make up a significant part of the labor force, accounting for nearly one-third (32%) of all employed women. These mothers report that dividing their time between family and work is difficult, and sometimes the quality of their work is affected.
Financial growth and challenges are abundant for companies that are in the industry. Since this industry is not recognized by the Federal government as being legal, companies struggle with getting bank accounts and several bank transactions are exceedingly difficult. Credit card processing that most companies can be up and running in days takes longer since the major banks do not recognize it as they are Federally governed.
Capital to expand locations is normally at a significant cost and is done on a state-by-state basis as crossing state lines is illegal.
Banks will not lend to these companies since they are not Federally recognized, most all in the industry are required to get private lending from private equity or toxic lenders on wall street.
Lastly, companies that have been private, want to go public, or are traded on stock exchanges, their investors struggle to find brokerage houses to accept their shares even though the shares can be acquired on the open market.
These challenges will continue to haunt the industry till the Federal government recognizes that this is an industry that has exponential growth and is a going concern. Tax dollars will be abundant to the federal government the same way it is to the states upon full legality. Jeff Brandeis, author of Done Deal and Founder of Brandeis Coaching & Brandeis Training Solutions
When entering a market, that has great demand, excitement, and anticipation never assume you will make money despite yourself. Said another way, Demand will take care of my lack of process, and it is not the plan that is important, it is the planning. If you focus on the planning process (the activity of planning) only and not the desired outcome and the processes to accomplish outcomes you will be doomed to being a new business with a great plan process and PowerPoint and poor financial performance.
Make an honest evaluation of your entrepreneurial skills and answer the following questions of yourself. Do I Understand and have experience in all functional areas of my business? Do I understand finance as the language of business and use it to effectively monitor and improve business performance? Do I know how to utilize a Balanced Business Scorecard to augment financial planning? Am I credible with the investor community and all other stakeholders as I am building the plan?
Rocky Romanella is the Founder and CEO of 3SIXTY Management Services, LLC and author of Tighten the Lug Nuts
Happy Paws 4 Life is not just a brand, we are a movement that is led by people that love their pets and are tirelessly working to provide pet owners with quality products so their pets may live longer, happier, and healthier in the most natural way possible. Their wealth of knowledge on pets, combined with our hemp industry experience, enabled us to formulate a high-quality pet product that your pet deserves for all the love you receive from them.