Women entrepreneurs offer marijuana industry advice at MJBizCon

LAS VEGAS – More women are taking the lead in the marijuana industry, challenging stereotypes and reshaping the landscape of a space once dominated by men.

Despite facing challenges such as limited access to capital and societal biases, women entrepreneurs are building sustainable and profitable businesses, which involves strategic planning, strong financial management and a keen understanding of market trends.

Some of the most influential women in cannabis took center stage on Tuesday to discuss their roles in the industry during the MJBizCon Women Leadership Forum at the Las Vegas Convention Center.

Access to capital

Accessing capital is among the biggest challenges women in the cannabis business face, but panelists for the session “Empowering Women Entrepreneurs: Strategies for Gaining Access to Capital in the Cannabis Industry” provided valuable insights.

Jeanne Sullivan, co-founder of the California-based venture capital fund Arcview Collective Fund, and Jessica Velazquez, founder of Las Vegas-headquartered accounting firm Indiva Advisors, said a good strategy to raising capital is knowing your exit plan while you’re raising capital.

“Folks looking for capital really don’t know their exit,” said Velazquez, who recently merged her company with Arizona-based BeachFleischman.

“That’s probably where you need to start: Make sure you create a plan for yourself that allows you to get there,” Velazquez said.

Sullivan and Velazquez also cautioned against asking family for funding.

Instead, they encouraged entrepreneurs to appeal to their professional connections for financial support.

“Look at who you used to work for, who worked for you and who’s your favorite,” Sullivan said.

“I don’t believe in (asking for capital from) friends and family because you have to look at them at Thanksgiving.”

Karson Humiston, founder and CEO of Denver-headquartered staffing firm Vangst, said rather than asking family members for financial support, lean on them for their wisdom, expertise and insights by hiring them to work for your company.

Sullivan warned that the wrong investors can make life miserable, so it’s better to wait for the right investor than to enter a bad deal, she said.

Finance 101

Understanding the language of finance is critical, so taking the time to learn the difference between terms such as equity and debt – as well as the different kinds of debt – is key.

“I want you to be a great steward of our capital,” Sullivan said of entrepreneurs who receive investments from Arcview.

“You’ve got to be able to walk the talk on financial lingo.”

It’s also important to use attorneys and accountants who are familiar with the marijuana industry rather than rely on family lawyers and bookkeepers, Sullivan said.

International cannabis

Women also are making an impact on the global cannabis industry.

Melanie Wentzel, author of “Cannabis Queens,” advises becoming a subject matter expert and taking your knowledge to new markets.

A cannabis and health care consultant in Australia, Wentzel said adoption to that country’s regulated medical marijuana market has been slow, but she’s been working to normalize the plant for medicinal purposes.

“In the States, you are part of the medical system when you are recommended as a patient, and then you are thrust into the retail system,” she said.

In contrast, Australian doctors certify medical marijuana patients and write them prescriptions.

“There’s a lot of pressure on companies to connect with doctors,” she added.

Jamie Pearson, president of Montana-based global cannabis consulting firm New Holland Group, said it’s imperative for entrepreneurs entering overseas markets to be cognizant of local customs and make an effort to speak the local language.

“If you go into a country and you want to bring your brand into the country, you have to spend a little bit of time learning the language, learning the customs, learning the culture,” said Pearson, who currently is focused on Germany’s cannabis industry.

Cannabis future

After attending the Olympics in Paris this summer, Jazmin Aguiar, CEO of The Working Group in Los Angeles, realized there is a business opportunity when the Summer Games are held in California’s largest city in 2028.

To that end, she’s been working with L.A. officials to implement plans that will enable local cannabis businesses to thrive.

“The city of Los Angeles will be the first one to host (the Olympics) in a regulated market,” Aguiar said.

“We need to, as a city, create an infrastructure to allow us to compete.”

Cannabis marketing and education

Having a digital platform and strategy is crucial to the success of cannabis businesses, said Durée Ross, founder and CEO of public relations and marketing firm Durée & Co.

Ross and Lisa Weser, founder and CEO of Los Angeles communications firm Trailblaze, agree that using influencers can help brands tell their stories and dispel misconceptions about marijuana.

“There’s still such an education component with reporters who are more mainstream,” Ross said, adding that the media world is shrinking.

Marijuana companies’ desire to be featured in national publications such as The New York Times has shifted to a need to be featured in local newspapers that can help get customers through their doors.

“Keeping it hyperlocal is really important,” Weser said.

More information about MJBizCon is available here.