Nearly every day, my Linked In Message Box fills up with "reach outs" - mostly requests for access to equity funding and some requesting conversations and perhaps even a personal meeting to discuss their proposed or existing business venture. I would love to help them all, (or most of them anyway) but my time is precious and I simply cannot.
A very nice young woman from Wisconsin was connected to me on Linked In and she and her partner had a couple of business ideas that they were passionate about and wanted my advice. I took a couple of her calls and spent the time to listen as well as to suggest that she send me "deal sheets," which were simply 1-pagers that let me peruse (quickly) the basics of her ideas and viability, in my opinion. Furtermore, she and her partner were traveling on business to Los Angeles and she wanted to know if I might meet with them in person down in Southern California (where I live) if we could coordinate a time together.
Yesterday, I met with this young woman and her business partner for coffee at one of my favorite cafes in Solana Beach, not far from where I live. Under the adage that "people are like onions," you must peel away the layers to explore who the person is and what synergies may be present, (although they remain hidden until the layers are peeled away)...I am pleased to report that our two hour meeting resulted in a plethora of opportunities together.
These two aspiring entrepreneurs were seasoned business people with skill sets that lent themselves to working with me on potentially several ventures...including their own and which I may well be able to help them with. We would never have known that until we had a "one-on-one" meeting, which I perfected years ago when I met with 1000 members of my Club Entrepreneur organization in Phoenix in an 8-month time-frame, outlined on the link below:
One of the ideas presented to me was a vertical of the Cannabis business involving the manufacturing of CBD oil extracted from hemp. I have a "Cannabis Banking" venture which you can read about at www.cannabizisiders.com. Of course, I have heard about the miracles of CBD Oils but didn't know much and these two had secured a sales contract to buy from one of the top manufacturing machine makers for processing hemp into CBD Oil. Their "model" was to buy at wholesale and sell to various distribution points for wholesale, earning a hoped-for margin of 30%. At a retail rate between $100k and $1.5mm per CBD Oil extraction machine...the commissions earned could be very lucrative to these two folks...if they had the ability and follow through to develop the sales channels and could perform.
Of course, I listened and then responded from my typical 30,000' viewpoint. How do the customers pay for the machines? They are expensive and knowing the reluctance, albeit impossibility of traditional funding resources to delve in the State-legal but Federally-prohibited Cannabis vertical businesses...no one was going to finance these machines for the customers. However, I could because of my unique, individually-issued Entrepreneur Credit Card (www.entcreditcard.com) that I could re-purpose into a "white label" internal equipment funding resource for this couple entering into the CBD business.
Next, I suggested taking it a step further. Why not consider the CBD manufacturing a licensable business to a would-be "Cannabis Entrepreneur?" Create a "business-in-box" model, complete with the CBD oil from hemp extracting business, the instruction how to operate it, the supply chain from hemp farmers and the sales funnels created for distribution. Getting into a full blown licensed Dispensary or Growing Facility in the burgeoning Cannabis industry has become very costly and time-consuming and indeed, only the "big boys" can now gain entry into the field. However, this suggested CBD Oil business opportunity could be created to let the "little guy" into a slice of the Cannabis business and not only bring profit but to run a business (CBD Oil) that actually helps a lot of people. One of my credos..."Doing well by doing good" is exemplified by this venture.
So...the two young people and I spoke of multiple subjects and certainly, we could have carried on for hours but I instinctively know when I have a "winner." I suggested that I could assist them on this one simple execution of the CBD Oil extracting business that could be established and scaled through my resources, if interested. Now...I leave it to each of them to put together all of the material needed for me to analyze the opportunity and to circle back for the next steps.
We will see.....:)
Learn more of the "Adventures in Capitalism" of Peter J. Burns III at www.peterjburns3.com.