Writing a marijuana business plan is no different than writing one for any other type of business. Whether you need the business plan for licensing, financing, investments, etc, you need your business plan to turn your ideas into reality.
While each marijuana dispensary business plan example may look quite different, the best plans all feature the same sections that investors and lenders want to see. Each section is covered below!
The executive summary of your marijuana business plan is a clear-cut overview of the entire plan for the business. It appears at the beginning of your business plan and is meant to entice your readers to learn more about your business plan.
Most business professionals will recommend writing this when the rest of the plan is finished so you can properly summarize the business idea as a whole. Your business name, location, mission, products, services, and the reason behind your business plan should all be present in your marijuana business plan executive summary.
You may make multiple business plans with each marijuana dispensary business plan sample having a different reason for your plan. Some need plans to secure financing or investors. Other use plans to clarify strategies and analyze the markets in-depth. What you need in this section is dependant on your individual marijuana business.
This section is more of an expansion of the executive summary. It should explain who the people behind the cannabis business are and their goals for the company. How will you operate, what services will you provide, and what are your short and long-term goals in the marijuana industry?
This section should include these features:
- The legal structure of the cannabis business
- The history and nature of your marijuana business, including what consumer needs/demands you intend to deliver
- Overview of your target market and the products and services you will supply to your market
- A list of your suppliers
- Summarization of growth potential that includes financial and market highlights
- In-depth short and long term goals for the weed business and how you can turn a profit during operation
Products And Services
This detailed section must list out all products and services you intend to provide to your target market. It must disclose suppliers and products, along with their cost to stock their inventory.
You must also include the prices you intend to charge for those products and the net revenue you expect in return. Focus on the benefits of the products in the eye of the consumers and how your marijuana business can provide better products and services than your competitors.
No pot business will thrive if they can’t compete with the other marijuana businesses in the area! This section needs to define your target market and their demographics, relevant statistics to the cannabis business industry, marketing data and plans, and detailed analyses of your competition.
This section will truly separate those with a dream and those with the needed ambition to succeed in the marijuana business world. Marketing to your target audience and outperforming the competition is the only way to survive. It doesn’t matter if you have the best prices and the best products if you can’t get customers in your store!
Strategy And Implementation
This is the section where you put all the data and ideas from other sections to use. It needs to disclose marketing strategies, costs, planned pricing of products and services, and the logistics of your cannabis company.
How will you enter an already saturated market and acquire customers that are probably a bit loyal to your competition? How will the day-to-day operations work? How will you handle acquiring inventory, stocking inventory, the sales cycle, and everything in between? How will you find employees? What will be your store schedule?
All of these questions, and more, need to be answered in the strategy and implementation section of your marijuana business plan.
Organization And Management Team
This section varies drastically based on the size of the 420 business. Some businesses start out huge with officers, a board of directors, and many more important positions of power. Others are mom-and-pop shops with owner-operators that don’t employ more than a few people.
Either way, this section should contain an organizational chart of your top positions in the business. Owners should be clearly stated, along with their industry experience, percentage of ownership in the business, and involvement/duties in the business.
Positions below owners that are still important in the section, like a board of directors, should have similar biographies and listed duties for each individual.
Financial Plan And Projections
Probably the most difficult part of any marijuana business plan is the financial projections. Most people choose to enlist the help of professional accountants instead of doing this themselves. This will help make your plan more professional as it is backed by a professional accountant with a reputation instead of doing it by yourself.
This section includes income information and the past business experience of each owner. It also features projected income data, cash flow statements, balance sheets, and capital expenditure budgets for 5 years. As you can see, this data is much more fitting for a professional accountant than a would-be cannabis business owner.
Putting The Marijuana Business Plan Together
Whether you are preparing a marijuana dispensary business plan or a plan for any other cannabis-related business, you need all of the parts listed above in a well-thought-out way. Nobody will take your business seriously without a proper business plan written out, so take your dreams seriously and prepare the best marijuana business plan possible!