5 Reasons Your Cannabis Company is Not Generating Investor Leads
The legal cannabis market in North America reached $12 billion in 2018 and that number is expected to jump to $25 billion in three years. The rapid growth has the small start-up cannabis companies and larger players, buoyed by a flurry of consolidation, to compete for a foothold in the market.
“All these companies are in a race,” Dan Daviau, CEO of Canaccord Genuity Group Inc., told the Financial Post. Canaccord is one of the leading Canadian investment banks in the sector. “The faster you can use capital and deploy it properly, the better off you’re going be.”
U.S. cannabis companies increasingly are looking to raise capital and list in Canada because of the strong investor base. Which means, most cannabis companies across the board are focused on two main business drivers: getting customers and generating investor leads. When it comes to the latter, companies need a proven outreach strategy. Now’s the time to jump on best practices and tweak yours to full potential.
5 Barriers to Generating Investor Leads
Here are five reasons your cannabis company may not be generating the leads you expect:
- Your Website Needs Sticky Content
Your website can be a huge asset (and calling card) for attracting investors to your company. But it’s easy to get caught up in using industry jargon. Or perhaps your site navigation is not simple to follow and it’s difficult for potential investors to find the information investors they’re looking for. Great photos and video that tell your “brand story” are a must, but so is the search-friendly language that you use to describe your company, your team, your services and products, and your actual call-out to investors with critical information to get them interested. Do you have a page with “Investor Opportunities” on your site?
You want to position your company as an industry expert. Content that is “sticky” is relevant and engaging; it resonates with readers and potential investors and brings them back for more. Having a quality company blog can do a lot in terms of search visibility, leads, and investments. Marketers today advocate investing heavily in a content publication strategy, and that strategy begins with the company blog on your website.
Blogging gives your company a way to talk about issues, concerns and your company “wins” to your prospects, while also sharing what you and your employees are passionate about. Your posts really give you the opportunity to share your personality and your voice, building up trust and increasing your brand’s likeability. It’s the human interest angle that you want to capitalize on.
- Your Social Media Has to be Strategic
Social media is the most cost-effective way to raise brand awareness and reach new investors. It can also give your brand the exposure it needs to thrive in a competitive environment. Consider that roughly 81 percent of the U.S. population alone is on social media. Its reach is powerful.
But you can’t just have a Twitter account, for example, and randomly post or retweet. You have to use it to your best advantage to gain a following. Engagement is key, so you’ve got to get online and join the conversation. You need to be heard with regular posts that boost your digital profile. If you provide thoughtful and timely content about your industry, investors will take notice.
Video is the fastest and largest growing form of content marketing across social media. Get your CEO talking, for example, and showcase your company headquarters and grow operations. Again, that personal touch makes a difference. Case in point, major investment firms in Japan are now highlighting individual fund managers to promote their investment products.
The challenge is there are legal limitations for Twitter, Facebook and others about what you can post because you can’t actively promote cannabis on their social platforms. That’s where social media influencers come into play, offering huge visibility to followers and an organic, grassroots approach to promoting your brand. You also want to make sure you understand social media limitations when it comes to promoting your cannabis brand, or work with a reputable cannabis digital marketing agency that knows the legal restrictions to avoid your account getting shut down.
- Investor Communications Must be Engaging (and Regular)
Another key way to generate leads is email marketing. Why? Email is an essential part of our lives for business, social and family. The vast majority uses it every day. And email marketing is now considered the king of marketing.
Marketers say ongoing, personalized communication with existing customers results in moderate to significant revenue impact. So if you’re not sending out regular quality content, news and other industry commentary (pulled from your website blog, for example), you should be.
- You’re Missing a Killer Investor Deck
What do you have on hand to send to prospective investors to bring them onboard? An investor deck is crucial. It’s not a personal presentation, like a pitch deck to a general audience.
An investor deck can be read by itself to introduce intrigued investors to your company’s key value proposition. So keep in mind that the investor deck focuses on the information investors need to make decisions, such as the market opportunity and advantage of your company. It should talk about your team and their qualifications. It also outlines your go-to-market strategy in detail.
You already have their attention, so play to that interest and take the time to inform and enlighten the investor. You want to clearly illustrate how and when you will get them a return. They’re in it for personal gain.
- Networking is at the Bottom of Your To-Do List
Don’t forget the importance of in-person introductions. Success in business and fundraising is all about visibility, getting noticed by the right investors. Attending events is a great way to do this.
In fact, “soft sell” networking is often the number one tip for new entrepreneurs because you can talk about your company in a less formal way. Yes, you’re still selling your business, but it’s personable. It’s making that memorable human connection. And if someone is interested, they will keep the conversation going and could become a valuable addition to your business network.