How To Write A Business Plan For A Canna-Business
While marijuana continues to inch closer to the end of prohibition each year, the stoner stereotype still remains for many in the business world. A thorough business plan will allow you to demonstrate your professionalism and overcome the stigma attached to cannabis. Success is just a business plan away and we’re going to walk you through how to develop a thorough one.
No matter the industry or the business, every business plan begins with an executive summary. This section will describe an overview of your company and what you’re trying to accomplish.
Professional investors read through dozens of business plans a month and often use the executive summary as an indicator of whether or not they should continue reading or toss the plan away.
Your summary should include how much money you are looking for, how you will use it, and what you are willing to offer in return. For those investors who aren’t familiar with the cannabis industry it would be beneficial to include polls showing the growing demand for medical marijuana.
This section of a business plan provides a detailed overview of the retail pharmaceutical industry in which your dispensary will participate. You’ll want to include some sense of the size of the market and the segment that you’re targeting. You’ll also want to note the competitors currently in the field and others expected to soon enter.
Organization & Management
This section is used to describe the organizational structure of your business and highlight you and your team. You’ll want to start by discussing the business owners and the characteristics they possess that deem them qualified to run a marijuana business.
You’ll want to pick your partners from a variety of different backgrounds to ensure each partner brings highly specialized skills and experience to the table.
This section is fairly straightforward as it is an opportunity to talk about what you will be selling. It’s important to mention whether or not you will be manufacturing your own products in house or purchasing them from somewhere else. If you’re not producing products in-house, then you’ll want to state where you plan on obtaining them from. You’ll also want to include estimated gross margin numbers for the products you plan to sell.
Your marketing strategy will be essential for customer acquisition and the overall growth of your business. In the marketing section of your business plan you’ll want to start out by describing the general approach you will take to create and promote your cannabusiness brand.
Once you’ve discussed an overview of your marketing strategy, you can then begin to talk about the specific marketing channels you will utilize and how you will utilize them.
Your growth plan gives investors an opportunity to realize the full potential of your business. It proves that you are looking ahead and have thought out how you will go about providing a return on investment. You’ll want to mention the additional market segments, products, or locations you may wish to target in the future.
No investor will willingly provide any funding without a sound financial plan. Your financial plan will be broken down into the two variables of cost accounting: expenses and income.
Expenses will fall under either start-up expenses, or operating expenses and you’ll want to differentiate between the two. Start-up expenses include all of the costs you’ll incur to get your business up and running. Operating expenses are the ongoing monthly costs you’ll incur to keep your business properly running.
Income can be challenging to project, especially for a new industry like the medical marijuana industry. The ultimate goal is to set aside time to come up with your best possible estimation along with an accompanying explanation of how you reached the numbers you did.
The Next Steps
It’s well worth the effort to put in the time to ensure your business plan is as good as it can possibly be. With a winning business plan in hand the next step is to identify potential investors and successfully pitch your business to them.
This article was originally published on Hail Mary Jane