Regardless of how big or small your cannabis business may be, it’s important to have a business plan. There are many reasons as to why business plans are so important, but it all boils down to being able to effectively communicate your vision to lenders, suppliers, property managers and anyone else you are soliciting help from or are looking to develop a business relationship with.
Creating a business plan for a cannabis company isn’t quite like creating a business plan in any other industry. The marijuana industry faces a number of hurdles that other industries don’t, like financing obstacles. And, since each state that has legalized cannabis so far has vastly different laws, you’ll also need to ensure that you study the marijuana laws in California closely to ensure that you’re in compliance with all regulations.
Executive Summary – In this section, you’ll give a high-level overview of your company, as well as your goals. If you’re looking for investors, this is also a great place to include statistics about the growth of the industry or the growing demand of marijuana.
Objectives – Here, you’ll explain what your day-to-day mission is, as well as your long-term objective. You’ll also need to describe what you’ll do to achieve that objective, including any strategic affiliates or partners that will help you reach it.
Your Team – Investors want to work with partners who are willing to work hard and put in the long hours necessary for real growth. Showcasing your team will help investors and other partners understand who your team is and what specifically you have that will help you succeed.
Market Size and Development – Give your readers an idea of your company’s growth potential by including information about the marijuana market in general. Furthermore, this is also where you’ll want to identify your target market (the location, income, gender, age, etc. of your customers).
Competition – Provide your readers with an in-depth analysis about who your competitors are. This is also a great time to explain what makes your company different and a worthwhile investment. Qualities like efficiency, environmental friendliness and safety should be highlighted.
Marketing Plan – Every business needs a solid marketing plan in order to acquire new customers and continue growing. If you’re not sure of where to start, find out what your competitors are doing. Then, you can determine what they’re doing right and what you can do to improve on their strategy.
Financial Plan – This is probably the most important aspect of your business plan. Any investor will want to know exactly where their money will be going. Are you using it on research and development, marketing, staffing or something else?