A cannabis business is a great opportunity, whether you’re a cultivator, processor, distributor or dispensary owner. While it could be everything you ever wanted, you should be prepared for the unique nature of starting a business in this industry. Whether you’re just starting out or you’ve been doing this for a while, you should develop a cannabis business plan if you plan on seeking funding.
Why You Need a Business Plan
The cannabis industry is growing. Projections show that it will reach $16.32 billion by 2026. With such a positive
outlook on the industry, it’s more important than ever to keep track of where you’re going with your cannabis business and how you plan to get there. You and your team need a roadmap, and that’s what your business plan can do for you.
As you reach out to lenders, they will want to know more about you and your company. It’s not a fly-by-the-seat-of-your-pants scenario. Your business plan demonstrates that you’ve done your research, you know the risks and the opportunities, and you’ve spent the time to consider the structure of your business and what you will do to stand out against the competition.
What to Include in Your Business Plan
Your business plan can be as simple or as complex as you want, but the more in-depth you make it, the better it will serve you now and in the future. You should carefully consider how you want to run your company, what security considerations you’ll need to consider, who your target audience will be, and how you will market your products and services.
Executive Summary
Include your name, business name, location, and contact information.
- Company Summary: Include the products and services you’ll be offering.
- Market Opportunities: Include details on how you are uniquely positioned to take advantage of market opportunities.
- Start-up Summary: As part of our Financial Summary, include your Revenue & Profit Forecast, Cash Flow Forecast, and Direct and Indirect Social Impacts
Market Analysis
Include details about your target market and why you know that it will be a profitable niche, based on your research.
- Market: Include details about your market, how you’re positioning yourself locally, nationally, and globally.
- SWOT Analysis: Include strengths, weaknesses, opportunities, and threats. This analysis is a great way to strategically plan out your business, where you’re going, and how you will overcome challenges.
Marketing Strategy & Implementation
- Marketing Strategy: Include a marketing plan and how you plan to target your customers.
- Sales Forecast: Include a sales forecast and assumptions based on research and your industry knowledge.
As a cannabis business, you will face unique marketing challenges. Some social media platforms and ad networks limit the types of ads or claims you can post. Check and continue to track the current state of cannabis restrictions when you post content to your ad networks or social media channels.
Plan for Operations
- Dispensary/Retail Store Location and Facilities: Include details on the location, floor plan, lighting, and security considerations.
- Physical Security Plan: Include customer access, secured areas, access control, and electronic security measures.
- Video Surveillance: Include alarm systems, fire security and suppression systems, intrusion and motion detectors, panic buttons, and third-party monitoring.
- Laboratory Testing Requirements: Include the details that are most relevant to your cannabis business.
- Packaging and Labeling Requirements: Include details on the shipping restrictions from USPS and other shippers.
Organizational Structure
Include an org chart, as well as details on how you will get the work done.
- Personnel Plan: Include the staff positions you will fill and what each role will do for your company.
- Ownership: It’s likely that you’re the owner, but you should include details about who the top leadership in your organization will be.
Financial Plan
- Funding analysis: Include details about your current access to capital.
- Direct and Operating Expense Breakdown: Include direct costs and operating expenses.
- Profit & Loss Forecast: Include details on the projected forecast for what your profits will be compared to what your initial and ongoing losses will be.
- Cash Flow Statement: Include cash availability based on what money is coming in or will come in, and how it is being spent.
- Balance Sheet: Include your assets, liabilities, and net worth. This is a great way to offer an at-a-glance look at how you’re positioned.
- Payment Processing: If your business utilizes a payment processing system, be sure to include information about it.
CannaBusiness Financing Can Help You Get the Money You Need
CannaBusiness Financing helps business owners to secure lines of credit or loans for their businesses. Our goal is to help you to access the financial services you need, particularly since it’s been so hard for cannabis business owners or prospective business owners to access the funding they require in order to grow. Don't hesitate, get pre-approved within 48 hours.
