Why The Cannabis Industry Became A Magnet For Women and People of Color

Posted by Bold Apps on

CBD Oil Plant

I love everything about the cannabis space. I love the efficacy of it, I love the business of it, I love the smell of it, but more importantly, I love the opportunity of it. And it's a BIG ONE. I'm not the first person to quote stats about the growth of the space by 2025, something like 25 billion dollars, right? Women are flocking to it at a 92% growth over the last few years and all kinds of brands are popping up to capitalize on the CPG (consumer packaged goods) opportunity. I've seen everything from coffee to shampoo with CBD and apparently there are now more dispensaries in Colorado than Starbucks. I sniff a partnership soon between the two.

Why not, grab a scone and some CBD infused coffee on your way to class or work. Sounds merrily to me. I have seen so many types of CBD brands, from the well thought-out companies with pretty packaging to the low-rent marijuana leaf boxes that look like Grandma helped label in the kitchen. This is my favorite part of this gold or ahem 'green rush' is that everyone can have a real shot at the dream. Granted, by next Q1 and Q2 most of these brands won't be around but at least they were able to give it the old college try with some friends and make some money. The reason I was originally attracted to the space was the fact that the plant not only has so many benefits but I saw so many women and people of color getting in on the action.

Lux Beauty Club - Victoria Flores (CEO)
Victoria Flores (CEO), Co-founder of Lux Beauty Club

With my previous company it was always so difficult to raise money from all the white men in VC who for the most part back their 'bros' or white women who went to Harvard or other Ivy League schools. Time and time again, I would see these male founders raise huge rounds, blow up these businesses (not in a good way) and then simply go back and get more funding. Out the window went the rational reasoning of actually building a profitable business and getting real paying customers. "Let's put a lemonade stand on Mars!"…"Yes, yes, billion dollar opportunity, here's 2 million dollars pre-seed!" Ok, ok, maybe not that dumb but felt pretty close to that. Nothing was more frustrating than seeing the men get all the capital to launch women-focused products or brands. You mean to tell me, not one woman came to you with this same idea. Not one? Yeah, exactly. Which brings me to why I love the cannabis space.

Weed doesn't see color. Weed doesn't care if you're black, brown, yellow, Snoop Dog or Martha Stewart. Weed is simply the vehicle to make money, and lots of it. From the farms, to the supply chain to the shelves at Sephora. Weed and everything about it is here to stay. I, for one, can't wait for the Napa of Weed to fully develop in Humboldt county in the next few years. It will easily be a top tourist destination, and all those growers and OGs (Original Growers) who have gone legal can truly profit from it without hiding in the shadows.

I also love the cannabis space because it's not tech, it's not fintech, it's not travel, it's not SAAS, it's plain ole grass. Don't get me wrong, there is plenty of VC money going into the opportunity but it's not the usual suspects of founders and investors. The people flocking to it are mostly scrappy folks with no VC connections or family money, they're simple folks with good ideas and making them work. We are people that don't fit the mold by any means. We didn't go to the fancy schools, we didn't do the VC rounds, we simply got to work, put our heads down and created incredible products that work and that people want.

Weed doesn't see color. Weed doesn't care if you're black, brown, yellow, Snoop Dog or Martha Stewart.

To be frank, although I had a successful career on Wall Street, I never truly felt accepted by the venture capitalists giving. They would often turn their noses up at me, especially since I wasn't the textbook founder with the pedigree. I wasn't under 35, single, on my 3rd startup or with an Ivy League degree. In the cannabis space I feel truly accepted and valued for the work I have put in and it feels right. And my team, well, it's mostly brown people. Our Chief Scientist, George, is Mexican, my Head of Licensing, Richard, is Venezuelan and the majority of our sales team is also Latino. We are building our company, Lux Beauty Club, on our own terms and scaling rapidly through mostly wholesale distribution since we are still not allowed to advertise on Facebook or Instagram. Why is this great? Because it's cheaper to build real relationships with buyers and wholesalers than spending millions on CA (Customer Acquisition) online. Because we can't advertise online, we've had to go back to basics and battle it on the ground. It's a land grab and most of these snooty dudes have no clue how to do this. All they know is how to spend millions chasing customers online. They don't know how to pick up the phone and make connections or even know which trade shows to attend. Never underestimate the power of face to face sales. It's been our secret weapon on scaling our business fast and furious. These are products that people want to test and try and people want to buy from people they like and trust. You can't always get that from an online website. There's also still a bit of a stigma attached to the industry as a whole, so buyers are starting to get away from the products announcing what they are on the packaging. Subtlety sells. Both my grandma and mother now use our products nightly.. We are a CBD family and household. Gone are the days of the young stoners selling you nickel bags behind the dumpsters. It's a serious and lucrative business with or without THC .

The other great part of this industry is that most VCs cannot invest in this space because their LPs (limited partners) won't allow them to. VCs have LP's to answer to or even larger institutional money so it's not easy for them to invest even when they want to. So that leaves the true cannabis investors that don't care where you are from or look like, as long as you are pushing the product out as fast as possible. Even the big brands are getting in on the action through partnerships and licensing deals. It's an opportunity of a lifetime and history making. And, I, for one, want to be in the forefront of all the possibilities cannabis can bring.

 

 

Ever dream of a career as a CBD oil distributor and opening your own store?

Why not? Commercially, cannabis is high as an elephants eye and there's money to be made in cannabidiol (CBD) industry that's expected to hit $20 billion in 2020 and $22 billion by 2024.

Do Not miss out on this opportunity and start your CBD business now with Lux Beauty Club! 

Click the button "Join Now" to join our fast growing CBD Wholesale Distribution Team.

Learn more about the Lux Beauty Club CBD products and CBD Sample Pack.

 

 

 


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