With a flourishing cannabis market comes strong competition and enormous investors. Cannabis entrepreneurs, especially those seeking outside capital, must be able to effectively define their client base, financials, and what makes their business distinct.
Getting into the cannabis business is riskier and more complicated than getting into almost any other business. Cannabis law is inconsistent between states and the federal government and is always changing (Collins, 2020).
Although the executive summary acts as an introduction to your cannabis business plan, it is usually the last piece you write because it highlights each of the major components.
Include a mission statement, a description of your dispensary or retail store, and your location. You should also give basic information about yourself and any other founders or employees. Include a paragraph or two about the cannabis market if you're presenting to potential investors who aren't familiar with it.
Include financial information like the business model you will use, projected launch costs, revenues, and liabilities. Make a brief remark regarding your financial need at the end.
Company and Market Analysis
You will describe the type of cannabis retail business dispensary you are running in your company analysis. You could, for example, run a recreational cannabis business, a medical cannabis firm, or a combination of the two.
Determine who your ideal customer is. Who can your company help and why? Provide as much information as possible about your target market. You can even establish a "persona" for your ideal customer to market to.
Your competitive analysis should identify your company's competitors.
Give an outline of each competitor's cannabis business, as well as a list of their advantages and disadvantages. It is impossible to know everything there is to know about a competition unless you have already worked for it. You should be able to gather vital information about them, such as the types of customers they serve, the cannabis products they sell, their price (premium, inexpensive, etc.), their strengths, and their weaknesses.
Document your areas of competitive advantage as the final step in your competitive study. Will you provide a wider choice of cannabis-related products or make it easier or faster for clients to get your products than your competitors?
Organization and Management
A robust organizational structure and people plan are required to demonstrate your potential to succeed as a corporation. Highlight the backgrounds of your key individuals, stressing the talents and experiences that demonstrate their aptitude to create a business.
First, describe how your firm will be legally organized in this part. Create an organizational chart to show who is in charge of what aspects of the business and how much they will be paid. Make a list of each person's relevant experience and education for their specific employment. Include a general staff hiring plan as well as a strategy for filling managerial vacancies.
Your financial statements include income, balance, and cash flow statements. The financial analysis of your firm plan should include your 5-year financial statement, broken out monthly or quarterly for the first year and then annually thereafter.
Also, clarify whether you want debt or equity, the terms you would like applied to the loan or equity, and the length of time your funding request will cover.
Marketing and Sales
Describe how you intend to use marketing to acquire and retain customers. You could be working with a marketing agency or doing your own marketing. Make a marketing budget that includes the amount of money you want to spend and the types of marketing you want to do (social media ads, billboards, mailers, commercials, etc.).
Describe how the dispensary will conduct business. This is where you may need to be more precise about whether you deal with cash or take credit cards. As you may be aware, cannabis businesses are now prohibited from banking because marijuana remains illegal under federal law.
Finally, make a three- to five-year marketing and sales roadmap, replete with objective goals, dates, and management responsibilities.
A cannabis entrepreneur who wants to establish a new firm or expand an existing one requires a well-written business plan. The business plan will aid in acquiring finances if needed and planning the cannabis business's expansion to improve its chances of success. It is a living document that should be updated at least once a year as the cannabis industry grows and changes.