Know the value of your business
Hello and welcome to theBlunt
Today we want to talk a bit about our Cannabis Business Valuation Report (CBVR).
We’ve talked a bit about this service before, but we wanted to talk about it a little bit more in depth to illustrate how you might take advantage of a service we have that nobody else provides.
Let’s start with the basics: What is a CBVR?
It’s best to think of this report as an appraisal or projection into the future.
We typically employ it in disputes or sales of equity in operating companies. But, we have found it is also utilized when trying to attract partners for investment opportunities or growth.
This is one of the things that we use which is based from our knowledge in the commercial real estate world and over a decade of settling debts and financing. Jen, the founder of CannaLocations, draws on over a decade of experience in the commercial real estate world, with a focus on the messy stuff... like receiverships, short sales, bankowned deals, and investment specific properties.
Statistically speaking, a lot of the cannabusiness people who are in the industry, or have been in the past, don’t draw from years and years in a solid, stable industry. We are seeing an influx of business savvy people coming into this market now, but that’s a story for another time.
The bottom line is that Jen is rooted in that kind of solid, stable experience that you would want in someone who is going to value your business. If you don’t know the relationships between CAP, NOI, Value, and… well, all the complicated business stuff that goes into selling a company… you might give an expert a call.
If some of you have been diligent theDailyBlunt readers, you might recognize that we’ve talked about some of this before. Now we want to draw you attention to a part of the CBVR that has been under-highlighted until now.
Many potential customers have called in to us wondering about our pitch decks or investment presentations, which is a service that we provide that goes hand-in-hand with the CBVR. The pitch deck deals with all sorts of cool information. Say, for example, if you’re a retail opportunity that’s just opening up, we might include some of the following things to start:
- How close you are to nearby highways
- What your parking is like on site
- What your signage opportunities are
But we like to take it a few steps further than that by including:
- What part of the local population would take a chance on a new store based on convenience, drive-times, and visibility, judging by your position relative to other stores
- What the disposable income for that population is for recreational purchases.
- What that immediate population spends on medications in a year, which they might supplement or replace with cannabis
- What areas other stores are focused on – for example, are you the only CBD focused store in the area?
Lastly, is there a cost for this service? Yup, sure is. Think of it like a $1,749 investment that you can then use to find millions of dollars to expand.
Your offering package matters and can be the difference between getting your meeting with an investor or hearing crickets and going no where.
If you want someone on your side who brings the stability of commercial real estate to the fluid world of cannabis, give us a call at (206) 466-4020, or email us at email@example.com.