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Dispensary Business Plan Template

Written by Dave Lavinsky

Dispensary Business Plan Template

Over the past 20+ years, we have helped over 1,000 cannabis entrepreneurs and business owners create business plans to start and grow their cannabis and marijuana dispensaries. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a business plan template step-by-step so you can create your plan today.

Download our Dispensary Business Plan Template here

Why You Need a Dispensary Business Plan

If you’re looking to start a new dispensary business or grow your existing dispensary, you need a well-written business plan. The business plan will help you raise funding, if needed, and plan out the growth of your dispensary in order to improve your chances of success. It is a living document that should be updated annually as your company grows and changes.

Sources of Funding for the Cannabis Industry

With regards to funding, the main sources of funding for the cannabis industry are personal savings and angel investors. Unless and until the federal government makes new laws, many banks typically will not lend money to marijuana businesses.

Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan.

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How to write a business plan for a cannabis dispensary.

Below are the 10 sections of a sample dispensary business plan:

1. Executive Summary

Your executive summary provides an introduction to your cannabis business plan, but it is normally the last section you write because it provides a summary of each key section of your business plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of cannabis dispensary you are operating and the status. For example, are you a startup, do you have a business that you would like to grow, or are you operating a chain of dispensaries?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the cannabis industry. Discuss the type of cannabis retail business you are operating. Detail your direct competitors. Give an overview of your ideal customer base. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

2. Company Analysis

In your company analysis, you will detail the type of cannabis dispensary you are operating.

For example, you might operate one of the following types:

  • Recreational Cannabis Dispensary
  • Medical Marijuana Dispensary
  • Combination (Recreational & Medical Marijuana Dispensary)

In addition to explaining the type of business you operate, this section explains the background of the business. Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
  • What is your business model?
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

3. Industry Analysis

In this section, you need to provide an overview of your marijuana retail business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the industry educates you. It helps you understand the ecosystem in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies cannabis market trends. For example, if there was a trend towards oils and tinctures, it would be helpful to ensure your plan calls for plenty of such options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in this section:

  • How big is the cannabis industry (in dollars)?
  • What is the most profitable niche of the cannabis market?
  • Is the target market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth potential over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your cannabis business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

4. Customer Analysis

The customer analysis section must detail the potential customers in your target market.

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of cannabis dispensary you operate. Clearly, baby boomers would want a different atmosphere, pricing, and product options, and would respond to different marketing promotions than recent college graduates.

Try to break out your target segments in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the target customers you seek to serve. Because most dispensaries primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target consumers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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5. Competitive Analysis

Your competitive analysis should identify the competitors your business faces. Such competitors are other dispensaries within proximity to your location.

For each such competitor, provide an overview of their cannabis business and document their strengths and weaknesses. Unless you once worked at a competitor’s business, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What cannabis products do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask them as they leave what they like most and least about them. Likewise, online review sites can give you solid insight into your competition.

The final part of your competitive analysis section is to document your areas of competitive advantage. Some questions you might consider include:

  • Will you provide a superior product line?
  • Will you provide marijuana products that your competitors don’t offer?
  • Will you make it easier or faster for customers to acquire your products?
  • Will you provide better customer service?
  • Will you offer better pricing?
  • What security measures will you take to protect your employees?

Think about ways you will outperform your competition and document them in this section of your plan.

6. Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion.

In the product section, you should reiterate the type of business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, which of the following cannabis products will you offer?

Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections, you are presenting the cannabis and marijuana items you offer and their prices.

Place refers to the location of your business. Document your location and mention how the location will impact your success. Is your dispensary located next to a heavily populated office building, or gym, etc.? Discuss how your location might provide a steady stream of customers.

The final part is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Making your dispensary’s storefront extra appealing to attract passing customers
  • Advertising in local papers and magazines
  • Reaching out to local bloggers and websites
  • Local radio advertising
  • Event advertising

7. Operations Plan

While the earlier sections explained your goals, this section describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday Short-Term Processes

Include all of the tasks involved in running your dispensary such as serving customers, procuring supplies, keeping the store clean, maintaining regulatory compliance, etc.

Long-Term Goals

These are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.  

8. Management Team

To demonstrate your dispensary’s ability to succeed as a business, a strong organizational structure and personnel plan is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in the legal cannabis industry. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in dispensaries and/or successfully running retail and small cannabis businesses.  

9. Financial Analysis

Your financial analysis of your business plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your annual revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 50 customers per day or 200? And will sales grow by 2% or 10% per year? How much revenue do you expect during Year 1, Year 2, etc.? As you can imagine, your sales forecast assumptions will greatly impact the financial forecasts for your marijuana business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

While balance sheets include detailed information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $200,000 on building out your dispensary, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if you get a loan for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business and make sure you never run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dispensary:

  • Start-up expenses
  • Location build-out including design fees, construction, etc.
  • Cost of fixtures and display cases
  • Cost of initial inventory
  • Payroll or salaries paid to staff
  • Business insurance
  • Cannabis business license
  • Taxes and permits
  • Legal expenses

10. Appendix

Cannabis dispensary business plan summary.

Putting together a cannabis dispensary business plan is a worthwhile endeavor. If you follow the business template above, by the time you are done, you will truly be an expert. You will really understand the legal cannabis business, your competition, your ideal customers, dispensary marketing, and you will have a plan to present to potential investors. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful cannabis business.

To further help you, we have other articles on key aspects of how to start your dispensary and running it effectively. Specifically, our dispensary marketing plan will help you develop the best promotions strategy. Our dispensary startup costs post will let you know what costs to expect.

Where Can I Get and Dispensary Business Plan Example PDF?

You can download our dispensary business plan example here. This is a sample dispensary business plan template you can use in PDF format.

Additional Resources

These resources will provide a solid foundation for understanding the cannabis industry and staying informed about the latest trends and legal requirements.

  • NCSL State Cannabis Laws
  • Cannabis Business Times
  • MJBiz Daily

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Cannabis Dispensary

Back to All Business Ideas

How to Open a Cannabis Dispensary

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on June 2, 2023 Updated on February 14, 2024

How to Open a Cannabis Dispensary

Investment range

$116,300 - $243,300

Revenue potential

$312,000 - $936,000 p.a.

Time to build

Profit potential

$78,000 - $234,000 p.a

Industry trend

38 states and the District of Columbia have made medical marijuana legal, and 22 have legalized marijuana for recreational use. That’s opened up a whole new cannabis industry that’s already worth more than $20 billion and growing. If you’re lucky enough to live in a state where cannabis dispensaries are allowed, you could start your own dispensary and get in on the action. 

But first, you’ll need to understand the business. Fortunately, this step-by-step guide details all you need to know to fire up a successful cannabis dispensary.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

  • Fast growing market
  • Good profit potential
  • Meet many like-minded people
  • Highly regulated industry 
  • Licenses are expensive

Cannabis dispensary industry trends

Industry size and growth.

  • Industry size and past growth – The U.S. cannabis industry was worth $21.1 billion in 2022.(( https://www.statista.com/markets/415/topic/2436/cannabis/#statistic1 ))
  • Growth forecast – The U.S. cannabis industry is projected to grow to more than $37 billion by 2026. 

Cannabis Industry size and growth

Trends and challenges

  • Cannabis concentrates and cannabis beverages are growing in popularity.
  • The number of female cannabis buyers is growing rapidly. 
  • The regulatory landscape is still evolving, forcing cannabis dispensary owners to continuously adapt.
  • Many banks still refuse to work with cannabis related businesses, creating obstacles to financing for cannabis dispensaries.

Cannabis Industry Trends and Challenges

How much does it cost to start a cannabis dispensary business?

Startup costs for a cannabis dispensary range from $120,000 to $250,000. Costs in include licensing, the space rental, and inventory.

You’ll need a handful of items to successfully launch your cannabis dispensary business, including: 

  • Shelving and cases
  • Checkout counter
  • Coolers for cannabis beverages

How much can you earn from a cannabis dispensary business?

You can generally charge about $300 per ounce of cannabis, or $75 for a quarter ounce. Prices for things like edibles and beverages will vary. These calculations will assume that your average customer will spend $100. Your profit margin should be about 25%.

In your first year or two, you could have 10 customers a day, 6 days a week, bringing in $312,000 in revenue. This would mean $78,000 in profit, assuming that 25% margin. 

As you gain traction, you might have 30 customers a day. With annual revenue of $936,000, you’d make a tidy profit of $234,000.

Cannabis Dispensary earning forecast

What barriers to entry are there?

There are a few barriers to entry for a cannabis dispensary. Your biggest challenges will be:

  • Funding the startup costs
  • Living in a state where cannabis is legal
  • Finding a wholesale supplier of cannabis and cannabis products

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Step 2: hone your idea.

Now that you know what’s involved in starting a cannabis dispensary, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.

Analyze your competitors 

Research cannabis dispensaries in your area and online to examine their products, price points, and customer reviews.

  • Make a list of cannabis dispensary that offer similar products. 
  • Review your competitors’ products – their features, pricing, and quality – and marketing strategies.
  • Check out their online reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
  • Identify your competitors’ strengths and weaknesses. 

This should identify areas where you can strengthen your business and gain a competitive edge to make better business decisions.

Why? Identify an opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing a recreational cannabis dispensary that sells concentrated cannabis, or a marijuana business that sells cannabis beverages and edibles.

business plan for startup dispensary

You might consider targeting a niche, such as cannabis by the ounce.

What? Determine your products

Your best bet is to offer a wide variety of cannabis products, including:

  • Pre-rolled joints
  • Edibles (gummies, chocolates, cookies, brownies, tinctures)
  • Concentrates
  • Vape pens and cartridges
  • Topicals (creams and balmas)
  • Seeds or clones (for cultivation)
  • Accessories (pipes, bongs, rolling papers and trays)

How much should you charge for cannabis products?

Your prices for various products should depend on market prices in your area, but also on your costs to acquire the products.

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market, whether you have a medical marijuana dispensary or a recreational cannabis dispensary, could be people of any age, so you should market on TikTok, Instagram, and Facebook.

Where? Choose a cannabis dispensary location

You’ll need to rent out a space for your dispensary. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices . Ensure the location adheres to local and state regulations concerning the distance from schools, parks, and other specified establishments. Moreover, gauge the local community’s attitude towards cannabis; supportive neighborhoods can be crucial for business success.

Cannabis Dispensary idea rating

Step 3: Brainstorm a Cannabis Dispensary Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “cannabis” or “marijuana”, boosts SEO
  • Name should allow for expansion, for ex: “Cannaverse” over “Herb Healers”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Cannabis Dispensary Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary: Provide a concise overview of your cannabis dispensary business, including its location, key offerings, and target customer base.
  • Business Overview: Describe the nature of your cannabis dispensary, its mission, and the specific products you plan to offer, such as flower, edibles, or concentrates.
  • Product and Services: Detail the range of cannabis products and related services available in your dispensary, including strains, brands, and any additional offerings like consultations or delivery services.
  • Market Analysis: Analyze the local and regional cannabis market, identifying consumer preferences, regulatory considerations, and potential growth opportunities.
  • Competitive Analysis: Identify existing competitors in the cannabis industry within your area, highlighting their strengths, weaknesses, and what differentiates your dispensary.
  • Sales and Marketing: Outline your strategies for attracting customers, including advertising, promotions, and community engagement efforts.
  • Management Team: Introduce the key members of your team responsible for managing and operating the cannabis dispensary, emphasizing their expertise in the industry.
  • Operations Plan: Describe the day-to-day operations of the dispensary, covering aspects like inventory management, compliance with regulations, security measures, and employee training.
  • Financial Plan: Present financial projections, including startup costs, revenue forecasts, operating expenses, and profit margins for your cannabis dispensary.
  • Appendix: Include any additional materials that support your cannabis dispensary business plan, such as licensing documents, partnerships, or market research data.

what to include in a business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to cannabis dispensaries. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your cannabis dispensary will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company ( LLC ) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.  Here’s how to form an LLC .
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.  Read how to start a corporation here .
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

business plan for startup dispensary

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

business plan for startup dispensary

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Venture capital: Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
  • Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like  Kickstarter  and  Indiegogo  offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like  Fundable  and  WeFunder  enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

You may have to get creative to get funding for a cannabis dispensary. Some online lenders offer cannabis dispensary loans, or you can get an inventory loan to finance the purchase of your products. They are usually short term loans and may come with a high interest rate.

types of business funding

Step 8: Apply for Cannabis Dispensary Licenses and Permits

Starting a cannabis dispensary business requires obtaining a number of licenses and permits from local, state, and federal governments.

You’ll need to check with your state for specific cannabis dispensary license requirements.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your cannabis dispensary business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

types of business insurance

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as  flowhub , or Cova , to manage your customers, orders, inventory, and payments. 

  • Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Now” or “Order”. This can sharply increase purchases.

Here are some powerful marketing strategies for your future business:

  • Educational Workshops: Host workshops or seminars on the benefits and uses of cannabis, addressing common misconceptions and providing valuable information to both newcomers and experienced users.
  • Loyalty Programs: Implement a loyalty program that rewards repeat customers with discounts, free products, or exclusive access to new strains, fostering customer retention and building a community around your dispensary.
  • Strategic Partnerships: Forge partnerships with local businesses, such as wellness centers, yoga studios, or health food stores, to cross-promote products and services, expanding your reach within the community.
  • Innovative Packaging: Invest in visually appealing and eco-friendly packaging for your cannabis products, as this not only enhances the overall customer experience but also serves as a powerful marketing tool when shared on social media.
  • Community Events Sponsorship: Sponsor or actively participate in local events, festivals, or community gatherings to increase brand visibility and connect with potential customers in a more relaxed and enjoyable setting.
  • Localized SEO Optimization: Optimize your online presence with localized SEO strategies to ensure your dispensary appears in local search results, making it easier for nearby customers to find and visit your store.
  • In-Store Experience: Create a welcoming and comfortable in-store atmosphere, incorporating aesthetic design, knowledgeable staff, and interactive displays to enhance the overall customer experience and encourage repeat visits.
  • Social Media Contests: Run engaging contests on social media platforms, encouraging user-generated content and increasing your online presence while rewarding participants with discounts or free products.
  • Health and Wellness Collaborations: Collaborate with healthcare professionals to highlight the potential therapeutic benefits of cannabis, positioning your dispensary as a trusted source for both recreational and medicinal use.
  • Customer Feedback Integration: Actively seek and incorporate customer feedback to improve your products and services continually, demonstrating your commitment to meeting the needs and preferences of your customer base.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your cannabis dispensary meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your cannabis dispensary business could be: 

  • Discover an exquisite selection of hand-picked, premium-grade cannabis strains
  • Experience a carefully crafted range of high-quality cannabis products designed to enhance your well-being
  • Our knowledgeable staff ensures your journey through cannabis is tailored to your unique needs and preferences

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a cannabis dispensary business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in cannabis dispensaries for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in cannabis dispensaries. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a cannabis dispensary business include:

  • Dispensary Clerks – make sales, customer service
  • Marketing Lead – create and implement marketing strategies
  • General Manager – scheduling, inventory management, accounting

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a a Cannabis Dispensary – Start Making Money!

Cannabis is a fast growing industry in the United States, so now could be a great time to start a cannabis dispensary. You just have to meet the licensing requirements and stock up on inventory, and you can make a healthy profit. If you’re successful, you could even expand to new locations in your state and build a cannabis empire.

Now that you understand the business, you’re ready to light up your town with your new cannabis dispensary!

  • Cannabis Dispensary Business FAQs

Yes, a well-run and compliant cannabis dispensary can be a very profitable business. The profitability depends on factors such as location, competition, product selection, pricing, marketing strategies, and operational efficiency. The market is growing rapidly, so a cannabis dispensary has huge potential.

A typical day at a cannabis dispensary involves activities such as opening procedures, inventory management, customer service, sales transactions, compliance with regulations, product education, staff training, ongoing marketing and promotions, and closing procedures.

The growth potential of a cannabis dispensary is significant due to increasing legalization, shifting perceptions, product diversification, innovation and research, and ancillary opportunities in the cannabis industry.

A cannabis dispensary is a retail business that specializes in the sale of cannabis and cannabis-related products to eligible consumers. It operates within the legal framework and regulations set by its jurisdiction, requiring licenses and compliance with specific rules related to product sourcing, testing, packaging, labeling, security, and customer verification.

business plan for startup dispensary

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  • Decide if the Business Is Right for You
  • Hone Your Idea
  • Brainstorm a Cannabis Dispensary Name
  • Create a Cannabis Dispensary Business Plan
  • Register Your Business
  • Register for Taxes
  • Fund your Business
  • Apply for Cannabis Dispensary Licenses and Permits
  • Open a Business Bank Account
  • Get Business Insurance
  • Prepare to Launch
  • Build Your Team
  • Run a a Cannabis Dispensary - Start Making Money!

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Dispensary Business Plan Template

Written by Dave Lavinsky

Cannabis Dispensary Business Plan

You’ve come to the right place to create your dispensary business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their dispensaries.

Below is a dispensary business plan example to help you create each section of your marijuana dispensary business plan.

Executive Summary

Business overview.

High Kite Dispensary is a startup cannabis business located in Denver, Colorado. The company is founded by Jim Johnson and Michelle Smith, who are both experienced entrepreneurs and business owners. Jim has successfully brought multiple companies from the conception phase to a successful exit, either by acquisition by a larger company or byway of an initial public offering. Michelle comes with extensive experience as a business owner with expertise in financial management of food and beverage and retail shops. The founders are confident in their ability to bring High Kite Dispensary to market. The duo’s plan for success begins with hiring experienced professional budtenders and retail managers to operate the cannabis business on a day-to-day basis. 

High Kite Dispensary will be Denver’s one-stop shop for all things cannabis from vapes, edibles, and CBD oils to bulk flower, the most popular strains, and cannabis accessories. 

Product Offering

The following are the products that High Kite Dispensary will offer:

  • Baked goods
  • Flower Pre-rolls
  • Bulk flower
  • High Kite apparel and accessories

Customer Focus

High Kite Dispensary will target recreational cannabis consumers in Denver, Colorado. The Company’s product offerings will cater to individuals ages 21 and over, from people new to cannabis to seasoned connoisseurs. High Kite Dispensary will employ knowledgeable budtenders to provide personalized customer service, providing each customer with information and helping them select the products that are right for them.  

Management Team

High Kite Dispensary will be owned and operated by Jim Johnson and Michelle Smith. The duo has recruited Jan Jones, an experienced dispensary manager, to help run the day-to-day dispensary operations and supervise the budtenders. 

Jim Johnson is a graduate of the University of Colorado with a Master’s degree in Business Administration. He has successfully brought two other startups to market as an active member of the executive team. Jim’s organizational skills and diligence have allowed him to establish a reputation as a driven CEO with the ability to spearhead favorable ROIs. 

Michelle Smith is also a graduate of the University of Colorado with a Bachelor’s degree in Finance. She has spent the last ten years working in a financial management role for a high end retail shop, before coming on as High Kite’s CFO. 

Jan Jones has been working in the cannabis industry in Colorado for the last three years. She started out as an entry level budtender and has gone on to roles with increasing responsibilities from head budtender to dispensary manager. Jan’s industry expertise is an essential asset for this new cannabis company.  

Success Factors

High Kite Dispensary will be able to achieve success by offering the following competitive advantages:

  • Friendly, knowledgeable, and highly qualified cannabis experts that are able to effectively educate customers, manage the products, and work together as a team to provide the best experience for shoppers. 
  • Extensive menu of products ensures there is something for every taste and every budget. 
  • As a locally owned and operated business, High Kite Dispensary sources its products from local cannabis growers and producers at a wholesale discount, thus allowing the company to achieve a healthy profit margin. 

Financial Highlights

High Kite Dispensary is seeking $200,000 to launch its cannabis dispensary. The funding will be dedicated towards securing and remodeling the shop and purchasing the initial inventory. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

  • Storefront build-out: $20,000
  • Inventory and supplies:  $10,000
  • Three months of overhead expenses (payroll, rent, utilities):  $150,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph below outlines the pro forma financial projections for High Kite Dispensary.

Company Overview

Who is high kite dispensary .

High Kite Dispensary is a newly established recreational cannabis dispensary in Denver, Colorado. High Kite Dispensary will be the most reliable, affordable, and fun choice for cannabis consumers in the city. The dispensary will provide a comprehensive menu of locally sourced cannabis products to appeal to any palette. Their customer-focused approach includes personalized customer service from knowledgeable budtenders seven days per week. 

High Kite Dispensary will be able to serve all types of customers, from those new to cannabis to long-time consumers. The team of professionals are highly qualified and experienced in all things cannabis, from growing and production to processing and sales. High Kite Dispensary answers all questions customers may have, while delivering the best customer service.

High Kite Dispensary History

High Kite is owned and operated by Jim Johnson, a serial entrepreneur who has an MBA from the University of Colorado and Michelle Smith, a business management professional who has a Bachelor’s degree in Finance from the University of Colorado. Jim has successfully built and sold two previous startups. Michelle’s tenure as CFO of a previous retail company has given her the skills and knowledge required to venture out on her own and start her own company. Jim has gained the trust and commitment of a network of entrepreneurs, who will help to bring his new company to the attention of industry leaders. 

Since incorporation, High Kite Dispensary has achieved the following milestones:

  • Registered High Kite Dispensary, LLC to transact business in the state of Colorado. 
  • Has a contract in place for the chosen dispensary location. 
  • Reached out to numerous contacts to get that word out to potential customers that there will soon be a new dispensary coming to the area soon. 
  • Began recruiting a staff of managers, bookkeepers, and budtenders to work at High Kite Dispensary.

High Kite Dispensary Products

The following will be the products High Kite Dispensary will provide:

Industry Analysis

The legal cannabis industry is experiencing significant growth and is expected to continue this pattern over the next several years as recreational cannabis is becoming more accepted by the general population. The Colorado cannabis industry is a $2.2B market. Cannabis is a major source of tax dollars for the state, bringing in an estimated $423M in 2021, so it is a favorable market to start a new dispensary. Furthermore, the cannabis industry in Colorado is a major contributor to the local job market, bolstering the economy. In 2019, multiple cannabis bills were signed into law that ensure Colorado dispensaries can remain competitive in the ever-evolving industry through increased innovation, diversity, and equity. 

For industry operators, intellectual property assets such as brand names and product trademarks are becoming increasingly valuable. Additionally, over the past year, the cannabis industry experienced a significant increase in M&A transactions with large players acquiring small dispensaries. This M&A activity is expected to continue to grow in the coming years.  

Customer Analysis

Demographic profile of target market.

High Kite Dispensary will target individuals ages 21 and over in Denver, Colorado. They will target people new to cannabis as well as those that are very familiar with it. 

The precise demographics for Denver, Colorado are:

Customer Segmentation

High Kite will primarily target the following customer profiles:

  • Millennials
  • Silent Generation

Competitive Analysis

Direct and indirect competitors.

High Kite Dispensary will face competition from other companies with similar business profiles. A description of each competitor company is below.

Rocky Mountain Cannabis (RMC)

Rocky Mountain Cannabis (RMC) provides a range of cannabis products including vapes, CBD, and edibles. Located in southeastern Denver, RMC is an established dispensary that advertises the lowest prices in the area. The dispensary is opening a second location next year to accommodate the communities in northern Denver. RMC products include 23 strains of flower, a large selection of CBD oil brands, and edibles such as gummies and chocolates. 

Denver’s Best Dispensary

Denver’s Best Dispensary is located in central Denver and offers edibles, CBD oils, pre-rolls, and vapes. The dispensary also sells cannabis-infused baked goods through its on-site bakery. Denver’s Best is owned and operated by cannabis professionals who have extensive experience in growing, processing, and retail of recreational cannabis and CBD products.

Colorado Canna Flower (CCF) 

Colorado Canna Flower (CCF) is located in eastern Denver, with multiple locations across Colorado including Golden, Boulder, and Aspen. CCF specializes in unique CBD oil blends and low-dose edibles. The dispensary is managed by former medical dispensary executives with extensive industry experience. 

Competitive Advantage

High Kite Dispensary will be able to offer the following advantages over their competition:

  • As a locally owned and operated business, High Kite Dispensary sources its products from local cannabis growers and producers, bolstering the local economy. 

Marketing Plan

Brand & value proposition.

High Kite Dispensary will offer the unique value proposition to its clientele:

  • Highly-qualified team of skilled employees that is able to provide personalized service and value-add information. 
  • Unbeatable pricing to its customers – High Kite Dispensary does not mark up its products at a large percentage. They will offer the most reasonable price for quality cannabis products in town. 

Promotions Strategy 

The promotions strategy for High Kite Dispensary is as follows:

Word of Mouth/Referrals

Jim Johnson has built up an extensive list of contacts over the years by providing exceptional service and expertise to his customers. Once Jim advised them he was about to open his own cannabis business, they volunteered to help spread the word of High Kite Dispensary.

Professional Associations and Networking

High Kite Dispensary will become a member of cannabis industry associations such as the Colorado Cannabis Association (CCA) and the National Cannabis Industry Association (NCIA).  They will focus their networking efforts on expanding their customer base.

Print Advertising

High Kite Dispensary will invest in professionally designed print ads to display in programs or flyers at industry networking events. 

Website/SEO Marketing

High Kite Dispensary will utilize their in-house marketing director that designed their print ads to also design their website. The website will be well organized, informative, and list all their products. The marketing director will also manage High Kite’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Denver cannabis dispensary” or “CBD near me”, High Kite Dispensary will be listed at the top of the search results.

The pricing of High Kite Dispensary will be moderate and on par with competitors so customers feel they receive value when purchasing their products. 

Operations Plan

The following will be the operations plan for High Kite Dispensary.

Operation Functions:

  • Jim Johnson will be the owner and CEO of the company. He will oversee all staff and manage business relations. 
  • Michelle Smith will be the co-owner and CFO of the company. She will oversee all accounting and bookkeeping for the company. Jim and Michelle have spent the last few months recruiting the following staff: 
  • Jan Jones – Dispensary Manager who will supervise the budtender staff and run the day-to-day operations of the business. 
  • Kim Martinez – Staff Accountant will report to Michelle and will provide all accounting, tax payments, and monthly financial reporting.
  • Ben Martin – Marketing Manager who will provide all marketing for High Kite. 

Milestones:

High Kite Dispensary will have the following milestones complete in the next six months.

6/1/2022 – Finalize contract to lease dispensary building

6/15/2022 – Finalize personnel and staff employment contracts for the High Kite management team

7/1/2022 – Finalize contracts with cannabis product suppliers

7/15/2022 – Begin networking at industry events 

7/22/2022 – Begin moving into High Kite Dispensary

9/1/2022 – High Kite Dispensary opens for business

Jim Johnson is a graduate of the University of Colorado with a Master’s degree in Business Administration. He has successfully brought two other startups to market as an active member of the executive team. Jim’s organizational skills and diligence have allowed him to establish a reputation as a driven CEO with the ability to spearhead favorable outcomes. 

Jan Jones has been working in the cannabis industry in Colorado for the last three years. She started out as an entry level budtender and has gone on to roles with increasing responsibilities from head budtender to general manager. Jan’s industry expertise is an essential asset for this new cannabis company.  

Financial Plan

Key revenue & costs.

The revenue drivers for High Kite Dispensary are the sales of cannabis products. High Kite has contracts in place with suppliers to purchase products at a wholesale price, which allows them to sell the products for a lower price point than competition for a higher profit margin. 

The cost drivers will be the overhead costs required in order to staff a dispensary seven days per week. The expenses will be the payroll cost, rent, utilities, inventory and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials. 

  • Average sales per month: $500,000
  • Average profit margin: 21 percent
  • Building lease per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, dispensary business plan faqs, what is a dispensary business plan.

A dispensary business plan is a plan to start and/or grow your dispensary business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your dispensary business plan using our Dispensary Business Plan Template here .

What are the Main Types of Dispensaries?

There are three main types of dispensaries:

  • Recreational Cannabis Dispensary
  • Medical Marijuana Dispensary
  • Combination (Recreational & Medical Marijuana Dispensary)

How Do You Get Funding for Your Dispensary?

The main sources of funding for a cannabis business are personal savings and angel investors. Banks typically will not lend money to marijuana businesses due to federal laws. To help you convince an angel investor to invest in your dispensary, you need a well-written business plan.

What are the Steps To Start a Dispensary Business?

Starting a dispensary business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Dispensary Business Plan - The first step in starting a business is to create a detailed business plan for your dispensary  that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your dispensary business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your dispensary business is in compliance with local laws.

3. Register Your Dispensary Business - Once you have chosen a legal structure, the next step is to register your dispensary business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your dispensary business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Dispensary Equipment & Supplies - In order to start your dispensary business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your dispensary business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful dispensary business:

  • How to Open a Dispensary Business

Where Can I Get a Dispensary Business Plan PDF?

You can download our free dispensary business plan template PDF here . This is a sample dispensary business plan template you can use in PDF format.

business plan for startup dispensary

The Complete Marijuana Dispensary Business Plan Guide – with Templates!

business plan for startup dispensary

There's so much to keep in mind when starting your own marijuana dispensary business. It's not just about what strains and products you're going to sell. Many, many things are critical to a great plan. If this all sounds overwhelming, don't worry! We've compiled everything you should know, even what most plans out there don't cover. Keep reading for Happy Cabbage's guide for making your next business plan.

The Purpose of Your Marijuana Business Plan

How do I write the purpose of my cannabis dispensary in a business plan? What should it say? First, you should outline what you're going to do, how you're going to do it, and why. You will want a section in your business plan on mission and values. These are critical before articulating other pieces of your company, such as a product or marketing strategy. Let's take a look at some consumer-facing examples of mission statements and values that reflect the internal business plans developed by store owners. San Francisco retailer Sava takes a community and equity angle, stating that they aim to offer suitable products for all consumers. They also strive to sell products that customers would recommend to their friends. ‍

business plan for startup dispensary

‍ Basa , also in SF, focused more on aligning its values with a medicinal perspective on cannabis. ‍

business plan for startup dispensary

‍ Oregon and Massachusetts retailer Diem emphasizes the importance of their in-house brand instead of the retail angle other dispensaries may traditionally take. ‍

business plan for startup dispensary

‍ These are a few ideas to spark your creativity. Of course, you'll probably format these into sections with a bit less prose, but don't be fooled. These principles exist in front of consumers as they do behind the scenes in your dispensary business plan. Your mission and values should align with your target audience, local laws, and whom you want to reach, all of which we'll discuss further in this article.

Determining Your Target Market in The Industry

Figuring out your target cannabis market is one of the most decisive and challenging parts of your marijuana business. It helps you figure out what services and products to offer and what marketing to do. You can start this portion of your business plan by getting as much information on the area you're choosing to open your storefront.

Forget The General "Stoner" Audience 

A critical piece to finding your target market is that you shouldn't define it as generally anyone that smokes weed. After all, there are so many different types of cannabis customers. You'll have to find a target that fits your business plan well. According to a recent survey , there are likely more than 40 million cannabis consumers or roughly 12% of the entire population in the United States. ‍

business plan for startup dispensary

‍ That means everyone, from Gen-Z to millennials to baby boomers and beyond, across all socioeconomic groups and cultures that are currently cannabis consumers today. You'll have to start narrowing down your scope for whom you intend to reach. Begin your search for your target market with local research. Who is in your immediate vicinity? Perhaps you’re planning to launch in an inner-city New York neighborhood. Maybe your consumers are parents in the suburbs, which could potentially change the way you choose to market in your business plan. Maybe you’re the first cannabis business to open in a small Midwest town, which could come with its own set of challenges regarding education and outreach. For example, suppose legal marijuana dispensaries are already flourishing in your city or state. In that case, it's unlikely that your potential local clients have never used marijuana products before.  That means that they shouldn't need much education to make them customers at your business. On the other hand, if you're the first retailer to open up shop in your area, it may be a different story. You'll have to spend more time convincing locals to come into your storefront. 

It Comes Down to Demographics & Size

As you can see above, creating your target audience is all about understanding key demographics. These distinctions will likely influence the way you tailor your business to consumers. A few demographics to pay attention are the following:

  • Job and income
  • Family status
  • Preferred social media sites ‍

Another important factor is size. You want to go after the most populous demographic in your region, creating many opportunities for new and long-term customers. Although size is not always the most definitive factor, it certainly comes into play when considering what kind of business you’ll want to start.

Kicking Off Your Strategy: Opportunities & Risks

It’s always good idea to identify critical opportunities and risks before launching your business. Imagine investing in property, technology, and employees without a clear direction. You’d essentially leave your success (and investment) up to chance without the foresight into potential challenges that you could’ve uncovered during strategic development. So let's take a step back and look at the bigger picture with the help of these two tools.

SWOT Analysis

A Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis is a strategic formulation tool for either formal or informal use.

It’s a commonly used analysis by entrepreneurs across every industry, so it will surely help with your business plan.

business plan for startup dispensary

‍ Consider the Strengths and Weaknesses as internal factors such as the organization's assets, processes, or personnel. On the other hand, Opportunities and Threats concern external factors, such as market, state law, and economic conditions.

The Eliminate-Raise-Reduce-Create Grid is another analysis for identifying opportunities and potential routes for scaling a business model. While the SWOT focuses more on internal and external market conditions that your business plan should acknowledge, the ERRC Grid outlines how your business plan model will respond to those factors.

business plan for startup dispensary

‍ Completing this grid will help you create a unique position in the legal market that's informed by how your business plan engages with cannabis retail industry standards. It's an excellent exercise for establishing differentiators, unique selling propositions, and guiding a plan to scale in the future.   

Organizational Plan: Your Team & Their Duties

Who will be the key players in your organization? It’s an important question to consider as it can vary depending on the type of business plan you’re developing. Your business plan should have a traditional chart and team background information, such as qualifications of lead personnel in marketing, finance, legal, operations, management, and other divisions. ‍

business plan for startup dispensary

‍ Do you want to elaborate more? Also list other relevant skills needed to launch and operate the company successfully. Defining these will inform your hiring and employee evaluation, saving time and money throughout the process.

Choosing Products for Your Dispensary Business Plan

At this stage in your business plan, picking the best products will depend primarily on how well you know your target audience and market. The goal here is to create a menu based on preferences you’ve identified while researching your target audience. For example, you might learn that a cohort within your target audience prefers flower but will typically choose hash if the brand they want is not in store. Alternatively, suppose you're opening up your cannabis dispensary in a neighborhood with predominantly millennial consumers. In that case, you might want to consider offering other product types or how past news cycles— such as the coverage on vapes— might impact purchase decisions. It undoubtedly becomes more granular once you start planning what brands will line your shelves.

What About Brands?

Cannabis brands have target audiences just like your business, investing in marketing communications designed to reach that specific communities.  Like what we mentioned above, you’ll want to pick brands with an affinity or marketing for your target audience. That way, when a potential customer enters your store, they’ll likely recognize and purchase a product they’ve seen or tried before. Brands might focus on marketing their products towards women and people of color. Others may take a more generalist approach or focus on the medicinal perspective of cannabis than being lifestyle-oriented. You can see how choosing certain cannabis brands, and products can influence what a customer recognizes and decides to buy when coming into your establishment.

Developing Your Marketing Strategy

How will you choose to market your business plan? The answers could vary a ton based on whom you talk to. Here are some key tips for writing the marketing strategy in your business plan. 

Allocating Your Budget

Clearly define your budget and the investments you choose to make. The more granular to get with deciding what marketing to do, the better prepared you will be to ensure tracking of return on investment.

Selecting Your Channels

Conduct diligent research into what channels you’re planning to activate. Start with questions like what social media platforms does your target audience use? Where can you deploy cannabis advertising? Many platforms restrict cannabis businesses from marketing; so, make sure you know how you plan to use them before going live. 

Get into Local SEO

Google My Business and Maps are two services many consumers rely on for choosing where to shop in their area. You’re going to want to have a plan for how your store will use this platform in its first year.

Consider Dispensary Text Marketing

How will you communicate with your customers once they have purchased from you? Software like a dispensary text marketing platform can help retailers send targeted communications to proportions of their customer base, resulting in higher open, click, and conversion rates.

Track, Track, & Track!

As it does for all dispensaries, your return on investment from marketing will matter to the success of your business plan. You're going to want to include how you intend on tracking each channel, your key performance indicators, and how you will attribute marketing-assisted sales.

Funding Strategy: How You'll Find The Money

When planning how you'll raise funds, ask yourself the following questions: ‍

  • What are we going for?
  • Why are we doing it?
  • Who will do it?
  • Where will we do it?
  • How will we do it?
  • When will we start? ‍

These are the six most essential questions for business funding because they cover the scope of your fundraising plan, the need in the market, key players, and a path to action. There are also two acronyms relevant to most fundraising strategies: BITS and SMART. BITS (Business-Individuals-Trusts-Statutory) will help you outline who will provide funds to your cannabis business. SMART (Specific-Measurable-Agreed-Realistic-Timetabled) helps set objectives for raising capital in a way attainable by your organization.

Outlining Your Exit Strategy

Exit strategies are plans for when investors want to get out of the company. Starting dispensaries can be quite costly and potentially rely on long-term financial commitments some investors can't make. These plans account for how venture capitalists can liquidate their investment based on specific criteria. The options can range from demonstrating a proven need in the market to selling off the company to another investor or enterprise. It is essential to have this in place so that every investor knows what they're signing up for before putting capital into your storefront.

Timeline & Milestones: What All Business Plans Need

Last but not least, no plan is complete without setting a timeline for operations and the milestones you wish to achieve. Here is a list of a few to consider: ‍

  • Gaining the amount of capital required to operate.
  • Acquiring property for operations.
  • Licensing and permits.
  • Purchasing all required software and equipment.
  • Hiring employees.
  • When marketing communications will start.
  • When you expect your first customer. ‍

Setting these goals in advance will align your organization around clear business objectives relevant to your success. It will also make it easier for investors to visualize the trajectory of your business plans before they go underway.

Here's A List of Every Cannabis Business Plan Template for Dispensaries

We know you love templates. So, we made a list of every dispensary business plan pdf we could find on the Internet. Happy planning! UpMetrics CannabisBusinessPlans.com OGS Capital GrowThink LegallyRooted Wave Cannabis Pharm House & Sugarleaf Adilas420 DispensaryTemplates.com Beachside Health & Wellness Chandelier Template.net Northreadingma.gov The Healing Center Are your plans ready? Let us help you execute them! Happy Cabbage makes technology for cannabis dispensaries. Schedule a demo to see our tools Happy Marketers and Happy Operatorsand how they can help you run a better dispensary operation.

Ready to grow?

Learn how Happy Cabbage can help you make more money in the most effective way possible.

business plan for startup dispensary

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How to Start a Medical Marijuana Dispensary Business in 2024

How to Start a Medical Marijuana Dispensary Business in 2024

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Opening a medical dispensary is a great opportunity for entrepreneurs who aren’t afraid to roll up their sleeves, cut through a decent chunk of bureaucratic tape, and hand over some cash upfront.

A dispensary will allow you to be a pioneer in what is soon to be a massive national industry. 

When considering how to start a business in the cannabis market, you will have many questions. People often ask:

  • How much does it cost to start a dispensary?
  • What are the legalities of starting a dispensary?
  • Is marijuana a profitable industry?
  • Where can I open a dispensary?

Our team has helped hundreds of businesses in the cannabis industry, including medical dispensaries. We’ve mentored and helped thousands of entrepreneurs to start, operate, and grow their businesses. And because we work with many clients in regulated industries, we’ve developed expertise in helping clients build strong brands without violating regulatory frameworks. This guide shares our expertise, insights, actionable tips, and best practices.

How to start a cannabis dispensary business:

  • Research the risks and eligibility factors
  • Research policies, legalities, licensing, cost, and location
  • Cannabis training
  • Write a business plan
  • Acquire funding
  • Build a team
  • Secure a location
  • Branding and marketing your cannabis dispensary
  • Open your doors

business plan for startup dispensary

Let’s look at what you need to know to get started.

First, some important industry metrics. The industry has been rapidly growing. According to Gallup, the percentage of young adults who smoke cannabis has increased.

Cannabis use

Fourteen percent of U.S. adults use CBD. This figure grows to over 20% of those between 18 and 29.

CBD use

1. Research the risks and eligibility factors

Understanding the legal risks.

Despite the increasing number of states that have legalized medical (and recreational) marijuana use, there are risks. Marijuana is still considered illegal at the federal level .

Medical cannabis is classified as a Schedule 1 drug under the federal Controlled Substance Act.  This means that it’s classified as a potential drug use product and can only be suggested, not prescribed.

There’s not much case law on this topic, so dispensaries’ true legal status (when it comes to federal law) is cloudy.

This can make it difficult for a dispensary to know how to stay within legal parameters, exposing your business to legal risks.

(This is one reason we suggest including a lawyer well-versed in this type of venture when building your team.)

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business plan for startup dispensary

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  • Starting a Corporation Guide
  • Is an LLC Right for You?
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  • Starting Business Partnerships
  • Creating a Powerful Pitch Deck

Financial risks

It’s not news that opening a business takes a substantial financial investment. When considering cannabis retail, there are some additional challenges to obtaining the financial backing needed.

Securing funding in the cannabis industry has proven to be very difficult through traditional methods, and due to risks, most banks won’t even allow you to transact your cannabis business through them.

This can mean operating your business on a cash basis, making you more susceptible to theft.

It will take some creativity, and perhaps the entire contents of your savings, to get the ball rolling.  The capital required to open a dispensary can be over $250,000 – $750,000.

Eligibility

Are you qualified?  Local governments have a series of “must-haves” to apply to be a dispensary owner and red flags that will disqualify you immediately.

NORML has a good resource to look up marijuana laws and license requirements by state to get a full understanding of whether you are eligible and what you’ll need. In general, a few standard requirements include:

  • Owner, investors, and license holders may not have any felony convictions
  • Dispensary location must be more than 500-1000 feet away from schools, churches, and other restricted locations (varies by state)
  • A complete business plan must outline property ownership, costs, business licenses, etc.
  • Compliance with all  safety regulations

2. Research policies, legalities, licensing, cost, and location

So you are pretty convinced this is for you, but you have more questions.

This is the time to jump into research and answer those burning questions.

  • What are the laws in my state for dispensing and use?
  • Would state laws protect my business?
  • What are the costs associated with starting a dispensary?
  • What licenses and applications are required?

State laws for cannabis use and dispensing vary.  According to the NCSL (National Conference of State legislators) as of June 24, 2019:

A total of 34 states, District of Columbia, Guam, Puerto Rico and US Virgin Islands have approved a comprehensive, publicly available medical marijuana/cannabis programs.   (See Table 1 below for more info.)  Approved efforts in 12 states allow use of “low THC, high cannabidiol (CBD)” products for medical reasons in limited situations or as a legal defense. See Table 2 below for more information about those programs. Low-THC programs are not counted as comprehensive medical marijuana programs. NCSL uses criteria similar to other organizations tracking this issue to determine if a program is “comprehensive”: Protection from criminal penalties for using marijuana for a medical purpose; Access to marijuana through home cultivation, dispensaries or some other system that is likely to be implemented; It allows a variety of strains or products, including those with more than “low THC;” and It allows either smoking or vaporization of some kind of marijuana products, plant material or extract, and Is not a limited trial program.  (South Dakota and Nebraska have limited, trial programs that are not open to the public.)

Licenses, insurance, and taxes

Paperwork. It’s probably the least exciting part of starting a new business- but often the most important.

When starting a dispensary, you want that paper trail of protection.

So, what exactly is required?  That depends on where you live.

Let’s take a look at California’s requirements:

  • Seller’s Permit: Like other businesses selling goods, individuals and startups interested in selling cannabis or cannabis products will need to register for a seller’s permit. This is a basic prerequisite when applying for a cannabis dispensary license.
  • Cannabis duration license: There are two types. Temporary (up to 120 days) and non-temporary (which must be renewed every 12 months)
  • Cannabis dispensary license: Nonrefundable dispensary application fees generally range from $1,000 to $5,000, with registration  or annual fees typically between $5,000 and $20,000. 

To be approved for a dispensary license in Florida , you must have the following plans in order:

  • Business Plan
  • Cultivation Plan
  • Marijuana Processing and Manufacturing Plan
  • Employee Manual
  • Environmental Plan
  • Financial Plan
  • Fire Safety Plan
  • Inventory Control Plan
  • Recordkeeping Plan
  • Patient Education Plan
  • Product Safety Plan
  • Security Plan
  • Staffing Plan
  • Suitability of Proposed Plan
  • Transportation Plan

The license rates and tax fees vary state by state. Drastically.

For example, the licensing fee in Louisiana is $150, while New Jersey applicants must fork out a staggering $20,000 .

You can see a full comparison of each state here .

Also, remember that most states require you to register your business if the trade name under which you operate your business differs from the legal name of your business.

For example, if your registered company is an LLC named Three Brothers, LLC, you cannot operate that business lawfully in most states if you’re selling products under the trade name Three Tigers. That’s because the registered name, and your trade name, are different.

Fortunately, this is not a difficult problem to overcome. You can simply register your actual trade name with your state (and or local government) by filing a “doing business as” (DBA) certificate. DBAs are also commonly called “assumed name,” “fictitious business name,” or “trade name.” Here’s a terrific resource that explains what a DBA is, the DBA state requirements, and how to file a DBA  for your business in all 50 states and U.S. territories.

And remember to register your business.

Hire an expert to form your company and save time. Our trusted partners can help: Northwest ($39 + state fee) or Bizee ($199 + state fee) . We recommend Northwest. After evaluating the leading registration companies, Northwest stands out as our top choice due to its competitive pricing, exceptional customer support, and commitment to privacy. Pay just $39 + state fees and you'll get a free year of registered agent service, articles of organization, privacy, and client support from local experts.

Business insurance is the best way to protect your hard work against fire, damage, and theft.

You’ll want to protect your investment with the proper insurance:

  • General liability : typically required by landlords and at a state level. This protects against general damages and injuries.
  • Product liability : this covers inventory and dispensary equipment.
  • Medicine : Medicinal coverage protects inventory against fire or theft in your brick-and-mortar location and during transportation from the manufacturer to your storefront.

As this fantastic industry grows, so do the insurance companies willing to protect your business assets.

Medicinal but not a prescription.

Because medical cannabis can only be suggested and not prescribed, it is not protected by FDA tax exemptions.

This means that the product must be issued a state tax. Check out a sampling of state tax requirements below, or check out a full list here .

business plan for startup dispensary

3. Cannabis training

You now have a strong understanding of the risks and requirements of starting a dispensary.

You are eager and willing to jump in and get your hands dirty.

Before signing those application checks over — make sure you understand your product.

Educating yourself on various forms of cannabis, your customer base, and how your product will benefit them is essential.

Hemp Staff shares,

When customers come in, they may be anxious or nervous about trying medical marijuana. This is especially true if they have never used cannabis before. Your job is to both reassure and show them which products work the best for their problem. Working at a dispensary means your clients need to learn to trust you and your knowledge. They gain that trust by purchasing products that you recommend that work. Therefore, you need to come to interviews prepared to give excellent advice and demonstrate your knowledge of the plant.

Consider taking a dispensary training course  to grasp a firm understanding of the products you will be selling.  Doing so will educate yourself and your employees on cannabinoids and which specifically to recommend based on clients’ needs.

business plan for startup dispensary

CannLabs Cannabinoid Guide

Founded in 2007, Oaksterdam University was the first cannabis college with educational roots in 1995. OU boasts over 40,000 Alumni worldwide. The primary focus of their programs is a full-spectrum look at the cannabis industry from business to botany.  Oaksterdam prides itself on being a leader in training in the canna industry, emphasizing that this new emerging world of cannabis dispensaries can be both transformational and transactional .

4. Write a business plan

Studies show  that entrepreneurs who take the time to write a business plan are 2.5 times more likely to follow through and get their business off the ground.

As we previously mentioned in how to start a business :

Traditional business plans have the following sections: An executive summary.  This section summaries the entire plan, so it is generally written last. Anyone reading your plan will read this first, so it’s an important element. An industry overview.  This section gives a brief overview of the industry sector your business will operate in. It includes key players, industry trends, and estimates of industry sales. Market analysis.  This looks at the target market for your product or service. It has a breakdown of your market segments, their geographic location, and what their needs are. This section shows anyone reading that you have a thorough understanding of the people you plan to sell to or serve. Competitive analysis.  Who are your direct and indirect competitors? How do they currently meet your target market’s needs, and how will you differentiate your product or services? Sales and marketing plan .  What is your unique selling proposition? How are you going to promote your business and persuade your target audience to buy? This section goes into detail on questions like these. Management plan.  This section outlines your legal and management structure. It shows who your leadership team is and what your staffing needs will be. If you plan to seek funding, you should describe your advisory board here, as well. Operating plan.  Your business location, facilities, equipment, and what kind of employees you’ll need are in this section. Any suppliers, manufacturing processes, and any other operating details also appear here. Financial plan.  This section is for all things financial. There are three key financial documents of any business that go here: an income statement, a balance sheet, and a cash flow statement. Appendices and Exhibits.  Any information that helps support your business idea goes here, including market studies, legal agreements, photos of your products, and more.

A good business plan guides you through each stage of starting and managing your business. Check out Legally Rooted’s comprehensive business plan for medical marijuana dispensaries.

And for additional actionable insights and free downloadable business plan templates, read this definitive guide on how to write a business plan .

Ensure that your business plan assesses your total addressable market to help you understand the opportunity better. Because this is a regulated industry, gathering this data shouldn’t be difficult.

5.  Acquire funding

Financing any business can be a headache. Funding a medical dispensary can be a full-bodied migraine.

Because marijuana is still not legal at the federal level, it’s more difficult for owners of medical marijuana dispensaries to apply for loans, merchant accounts, or other types of financing to cover operating expenses.

The cost of opening a dispensary varies depending on the county, city, and state requirements.

Startup investment averages between $250,000 to $750,000. This sum includes securing insurance, hiring employees, and renting a storefront.

If you’ve been fortunate enough to find an investor to hand over this kind of cash, congratulations! If not, don’t fret — there are other options!

Is traditional banking an option?

In short, probably not.

Because of the federal illegality of cannabis, most financial institutions will not consider investing to protect themselves.

A dispensary is considered a high-risk venture, and even if you could find a financial institution ready to back you,  the increased costs and fees could quickly make doing business with them unprofitable.

Merchant Maverick explains:

Banks are insured by the Federal Deposit Insurance Corporation. A bank that works with companies that violate federal law will not be insured by the FDIC. This includes medical marijuana dispensaries. Instead of taking on this risk, most banks opt to simply avoid working with businesses in the cannabis industry. There are also legal issues that a bank could potentially face when working with businesses in the cannabis industry. For example, a bank could be charged with money laundering for accepting deposits from a medical marijuana dispensary. Although the odds of this law being enforced are slim, lenders simply don’t want to take that risk.

Alternate Funding Options

If you find yourself being turned down by banks and other financial facilities, you will need some alternative ways to start your business.

Sure, funding can be more challenging to acquire, but as hundreds of small business owners can attest, it is possible!

You just may need to get a little creative!

Equity Funding

Equity funding is gaining popularity as the canna market continues to increase.

Equity financing is the process of raising capital through the sale of shares.

Companies raise money by selling ownership shares in their company in return for cash. Equity financing for your new business can come from many sources, such as personal friends, family, and investors.

Fundera shares three main types of equity funding: Venture Capital, Angel Investors , and crowdfunding .

Venture Capital There are a handful of venture capital firms that focus specifically on cannabis startups, including Snoop Dogg’s  Casa Verde Capital . If you’re beyond the seed funding stage, then these firms can be worth a try. New Cannabis Ventures has a  list of VCs , and a quick Google search can also turn up some results, too. Angel Investors Just like there are plenty of VC firms looking to invest, cannabis has peaked the interest of angel investors, too. To find your angel, you can start by checking out AngelList, which actually has a section dedicated to helping startups find  angels who are interested in investing in marijuana . An offline option is to try tapping your network or any angels you may have previously worked with to see if they can point you in the right direction. Cannabis  industry conventions and meetups also exist, and it never hurts to attend some and see who you connect with. Crowdfunding Crowdfunding has recently arisen as a popular option for funding startups. The two most well-known platforms are  Indiegogo and Kickstarter . Indiegogo, for one, has approved some cannabis companies to raise funds on their platform.  StartEngine , a lesser-known platform, has also approved weed startups. Finally, there are a couple marijuana-specific platforms, including  CannaFundr and  Fundanna .

Debt Funding

Startup costs funded by debt, be it loans or business credit, can be tricky to secure – but new alternative lenders have assisted entrepreneurs in getting the funding they need.

Personal Loans

If you have a good credit score and a steady income, you may qualify for a personal loan to help with start-up costs.

Personal loans are the option many startups choose because the industry, time in business, and usage of funds aren’t taken into consideration for loan approval.

You will, however, have to disclose how the funds will be used. A personal loan calculator can help ensure you’re not overpaying for a personal loan.

Credit Cards

A business credit card is a good (but very expensive if you don’t pay it off monthly) option. They can be used to pay recurring expenses, cover an emergency, or startup costs.

The bottom line

Opening a medical cannabis business can be very lucrative, but managing its finances can be challenging.  There is good news, though! It’s possible to get the funding you need, and as the industry grows, so will investors’ willingness to see that growth benefit them directly.

6. Build a team

Running a successful dispensary relies on more than modern decor and a great product selection.

As Henry Ford said, “If everyone is moving forward together, then success takes care of itself.”

When building the best team possible at your shop, you need to consider two types of individuals – your professional support that works behind the scenes and your day-to-day staff.

If both groups are trustworthy and skilled, you will be on the fast track toward success!

Professional Support

Your dispensary will have many moving pieces that require support your clients will know nothing about.

As the business owner, your most critical interest is ensuring everything is done correctly with your I’s dotted and t’s crossed.

As with most businesses, two of the most vital people to add to your team are a lawyer and a CPA.

Blogger Dave Emmett writes,

Knowing how to open a dispensary can be challenging; it often requires that you deal with a lot of red tape, and it helps to have someone who can make sure you’re doing things by the book. Speaking of books, given that dispensaries must adhere Asto specific tax codes, it’s best to hire a trained professional to keep an eye on the numbers. Many dispensaries hire a compliance officer, as these individuals make it their business to follow all regulations to the letter.

Day-to-Day Operations

The dispensary’s front end, which helps clients, is equally as important.  You should employ the following to help with day-to-day operations.

  • Budtenders : Budtenders must be qualified to work in a dispensary and have a wide range of cannabis knowledge. To provide customers with a positive experience at a dispensary, budtenders must demonstrate their knowledge of strains ,  cannabis products , and medical use .
  • Managers : Aim to find someone who has experience in the cannabis industry.  They should have a passion for the industry and be someone who can manage your team when you are not around.
  • Administrative Assistant : bookkeeping, accounts payable and receivable, or in-house IT.
  • Security : Security detail is required by some states, but a good idea for all.  Security will protect your employees, customers, and investments.
  • Board of Directors/Influencers :  When adding trusted business associates to a board of directors, consider adding a physician to oversee the entire patient care process.

7. Secure a location

business plan for startup dispensary

When it’s time to find the perfect business location — understand that when it comes to dispensary real estate, “perfect” will be synonymous with “compliant.”

As with most things cannabis-related, compliance codes vary from state to state.

Renting vs. Buying

Renting, for now, is a popular choice among cannabis entrepreneurs.

Because of the ever-changing environment of the marijuana industry, a compliant property might not be in two years.

A compliant property means different things in different places. Even when you find a property within regulation, you must be upfront with the landlord about your plans to open a dispensary there and know they might not be supportive.

When searching for a place to open your dispensary, consider whether it is convenient for potential customers.

Resources to find a property

With the rise in this industry, real estate agencies and brokers specialize in finding cannabis-friendly corporate spaces.  Utilize some of the resources below to find a space that may work for you

  • 420 Property is an excellent resource for purchasing a marijuana-friendly property.
  • Weed Rentals specializes in corporate and private spaces for rent.
  • Cannabis Real Estate Consultants specializing in corporate real estate for sale.

8. Branding and marketing your cannabis dispensary

business plan for startup dispensary

Brand identity

The cannabis industry is transitioning from what was considered a “black market” to now a legitimate medical need. Part of that transition is getting the branding right in a way that presents medical dispensaries in an accepted and celebrated space.

If your dispensary business will get noticed, you need to consciously develop your brand identity .

logo designer sitting in front of a computer

As we’ve  previously discussed ,

…your brand is your company’s public identity. Ideally, your brand should embody the best (and most essential) attributes of your company.

Here are a few questions to guide you as you think about your brand:

  • What personality do I want my brand to project?
  • Who will want to buy my cannabis products?
  • What can customers get from my cannabis products that they can’t get anywhere else?
  • What makes my brand unique? 
  • What is the most important part of my customer’s experience?

Your answers to these questions (and others like them) will build your brand’s core. All of your future branding decisions should expand on these ideas. Your business name , your  business logo , your website design , how you design the exterior and interior of your dispensary, and everything else visual about your brand should all grow from the concepts you lay out here.

And if your dispensary is vertically integrated with growing facilities or you have a choice of products from suppliers, be sure that the cannabis and CBD packaging in your dispensary is high quality.

So, take the time to think – think – about your brand from the start. And maintain that brand as your dispensary business evolves and grows. This consistency of brand personality (and the quality of your products) will keep loyal customers returning.

Your website is one of your dispensary’s most important ambassadors. As we explained  previously :

Today, it’s impossible to reach most customers without a website. This is especially true for new small businesses and startups trying to compete in an increasingly noisy world. but it’s also true for even established companies. Don’t believe me? A  recent study  shows that 97% of consumers research their purchases online before they buy something. Your website is a crucial component of your marketing and branding strategy.

So, put this vital business tool to work for your business. Start by ensuring that your  website design truly embodies your brand. Visitors should be able to understand who you are and what your brand is about as soon as they arrive.

Your website’s visual design and marketing copy should project your brand’s voice and identity. Here are some suggestions:

  • Use your brand’s colors.
  • Prominently feature your logo.
  • Share your philosophy as a dispensary.
  • Write copy with your target consumer in mind.

In addition to serving as a brand ambassador, your website is also a great venue for attracting a wider customer base.

Finally, a strong website design will lend credibility and legitimacy to your business. Make sure you’re using your website to its fullest capacity.

To learn more about great website design, check out  Grow Your Small Business With These 7 Website Design Best Practices  and  11 biggest web design trends for 2022 .

As the cannabis industry grows rapidly, keeping current with the constantly changing federal and state regulations can feel overwhelming.

Advertising regulations are strict, and many marketing platforms restrict or outright ban cannabis advertisements due to the substance’s federal status.

The popular website Leafly , put together a state-by-state guide to cannabis advertising regulations that should help cannabis businesses adhere to the guidelines set forth by the state they’re operating in and any states they want to advertise.

9. Open your doors!

Congratulations! You have considered the risks vs. benefits, shelled out the cash, hired the right people, and begun advertising your medical dispensary within the community! Now is the time to open a shop!

Hosting a grand opening is one of the best ways to launch your business forward from the start.

When hosting a grand opening, consider offering the following:

  • Meet the Team

Patient Education

  • Product Information
  • Sales & Specials

Meet The Team

You spent significant time gathering the best team for your clients.

Introduce them .

As we mentioned earlier, acceptance in the community is a vital step in your business’s success. Meeting your team and providing information will make your business even more approachable to those in the community who are unsure.

Show your passion for the industry, commitment to medical standards, and cooperation with community and law enforcement rules and regulations.

You may be surprised how quickly you gain support.

Consider Patient education on popular topics your audience may be interested in learning about.  This is an ideal time to learn more about your patients and grow e-mail and prospect lists.

These may include qualifying for medical marijuana, purchasing cannabis from your store specifically, what products would work best for them, and the most up-to-date research on cannabis.

Sales & Promotions

Most consumers would say their favorite part of a grand opening is the steals, deals, and today-only promotions.

Deliver, and deliver well. You get one chance to make a first impression. Make a great one. You will likely gain a life-long customer.

Commercial competitors routinely offer all new customers 50% off their first order and free shipping or delivery.

There’s no doubt that starting a medical marijuana dispensary business is hard work.

But with planning and hard work, you can pioneer this rapidly growing industry.

Cannabis Business Times

Cannabis Real Estate Consultants

420 Property

MJ Business Daily

business plan for startup dispensary

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How to Write a Cannabis Business Plan: A Step-by-Step Guide

Cannabis Entrepreneurs , Cannabis Industry , Cannabis Retail

Business-Plan

Legal cannabis business sales reached $33 billion at the end of 2022. These outstanding statistics are drawing more individuals into the cannabis industry to start their very own dispensaries as more states in the US legalize recreational marijuana.

However, getting a foothold in this industry is not as easy as it may sound, especially with stringent compliance regulations. If you're considering opening a dispensary and getting involved in this line of work, you must know what you're doing. That's why you need a solid cannabis business plan, just not to obtain a legal dispensary license but also to ensure that you always remain compliant with all cannabis laws and regulations . 

A business plan helps you organize your goals and objectives, next steps, financial situation, and any other information you need before opening a cannabis dispensary. But keep in mind that your business plan should be flexible as it’ll need updates according to the constantly evolving regulations and trends in the cannabis market.

Writing a Cannabis Dispensary Business Plan

A business plan for a dispensary lays out your purpose for opening one, along with the strategies that can help you reach that purpose. You may need to conduct market research and measure relevant metrics to write a data-driven cannabis dispensary business plan. 

You may think that writing a business plan is a drag, but it's worth your time. Take the time to write the perfect business plan, and save a lot of time and energy in the future. 

We prepared this step-by-step guide to help you quickly get through this stage. 

1. Executive Summary

The first section of your cannabis dispensary business plan outlines an executive summary of the whole plan. This section is very important because if you want to sign a contract with an investor, they will first look at this part of your plan. 

Surely you don't expect an investor to work with a cannabis company that doesn't have a business plan? 

Here is all the information you need to include in your summary.

  • Your business information: In this section, you need to provide information about who you are, if you're a start-up or a well-developed company, your location, and all your contact information. You can also prepare a description of the cannabis business for those who don't know it.
  • Your products and services: Write down all the products and services you will offer.
  • Your target market: Who could be your ideal customer? What are their age bracket, habits, income, and job? Create a buyer persona with all this information so you can target the right audience - those who are interested in your products and with a high chance of purchasing them. 
  • Your competitors: Who are your competitors that offer the same products? Keep them under close watch. Analyze them fully- understand what strategies they're implementing, who their customers are, what their pricing is, etc. 
  • Your team members: Determine what roles your company needs and who will be positioned in those roles.
  • Financial summary: Your financial summary should contain the profitability of your business, your operating costs, revenue, debts, and anticipation of future growth. 
  • Problem and solution: Think about your value proposition carefully. What is it that your company offers that your competitors don't? Why would they need to choose you over the others? What problems can your products solve? In what way?

Dispensary-Business-Plan-Guide

2. Company Analysis

In this section, you must explain what kind of cannabis business you're running. We prepared some examples of cannabis businesses here below.

  • Cannabis producers or cultivators: They grow and harvest cannabis on farms or greenhouses or run any growing operation, such as a hydroponic farm.
  • Cannabis product manufacturers: They are the ones who take the cannabis from farmers and make products out of them, such as oils, drinks, textures, vapes, etc.
  • Cannabis dispensary: They provide cannabis-related products for adults, medical, and recreational use.
  • Cannabis retailers: They sell cannabis products to customers, such as the dispensaries we mentioned above. 
  • Vertically integrated operation: They grow cannabis, make products with them, and retail themselves. 

Other types of cannabis businesses include:

  • Delivery services
  • Laboratories for testing and researching
  • Places for social cannabis consumption

Aside from the type of business, there are other pieces of information you need to include in your company analysis:

  • The time and the reason you started the business.
  • The milestones you achieved, such as the number of products you created, etc.
  • The retail structure of your business ; Are you an S-Corp, sole proprietorship, or maybe an LLC?

3. Industry Analysis

Another important part of the cannabis dispensary business plan is industry analysis.

Industry analysis is an overview of the cannabis industry. You need to conduct an industry analysis for several reasons:

  • Educating yourself about the cannabis market you're working in
  • Identifying market trends and improving your marketing strategies
  • Proving your professionalism and expertise to your readers

You should also include the following information in your industry analysis section:

  • Cannabis industry's worth in dollars
  • If the market is growing or decreasing
  • Your key competitors 
  • Your key suppliers
  • The trends affecting the industry
  • The industry's growth forecast over the next 5-10 years
  • The relevant market size to understand your chance for growth

4. Customer Analysis

You should think about your customers carefully so you can include the right type of audience in your cannabis business plan. Customers are the core of any business, so if you target customer segments who are not your ideal ones, it may result in losing precious time, money, effort, and resources. 

There are several things you need to pay attention to while looking for your target audience:

  • Segmented Available Market, or SAM
  • Total Available Market, or TAM
  • Share of the Market, or SOM

Based on the total available market, your customers are the ones who are over the age of 21. The segmented available market shows the groups of people who are willing to pay for your products. The market share is the number of customers you can reach in a few years. 

You should know that legality will impact your total available markets, so not everyone can be your ideal customer. But keep in mind that you can have a bigger TAM for products known to be widely legal, such as CBD oils and hemp.

Also, cannabis businesses react differently to marketing methods. For example, a strategy that works for cannabis dispensaries will not work for manufacturers. 

To conduct customer analysis, you can also consider their demographics and psychographics aside from SAM, TAM, and SOM. Customer demographics are about your ideal customer's age, income, gender, location, education, etc. 

Psychographics is about customers' values, wants, needs, and expectations. The more you get to know them, the better you understand what will attract and repel them. 

Dispensary-Business-Plan-Checklist

5. Competitive Analysis

A competitive analysis analyzes your direct and indirect competitors in terms of products, services, prices, etc. 

As a cannabis dispensary, your direct customers are other dispensaries that work in the same location as you, and your indirect customers would be the producers. Here is the information you need to provide in this section of your cannabis dispensary business plan:

  • An overview of their businesses
  • Their strengths and weaknesses
  • The product types they offer
  • Their distribution to a particular dispensary type, such as medical or retail
  • Their pricing

Also, mention the following information regarding these matters:

  • If you can provide a wider range of products or services 
  • If you provide a better customer service
  • If you offer cost-effective pricing.

Write down all the ways you can win the competition and why consumers need to choose you above the others. 

6. Cannabis Marketing and Sales Plan 

Without marketing, you won't be able to find new customers and increase revenue. A solid marketing plan is important for a cannabis business plan. A marketing plan includes your marketing options in terms of all the factors mentioned below.

  • Product: Again, mention the type of your cannabis business. Then write down your products but add more details.
  • Price: Include the prices for each product and how your pricing differs from your competitors. 
  • Place: Place refers to how customers are going to access your products. Do you have a physical store? Document the location and also include how it can benefit you. Do you own an eCommerce website? Document the site address. 
  • Promotion: Here, you need to mention how you will advertise your business and products to attract more customers. These methods would include:
  • Online: Such as social media marketing
  • Print: Such as advertising in magazines
  • Networking: Such as using independent representatives 

7. Operations and Security Plan

Your operations plan is about how you will meet your business goals. Your operations plan should include two sections:

  • Short-term process: Include all the tasks you and your team will do to run the business in this section. It might include:
  • Security of Products and Facility
  • If you grow or manufacture cannabis
  • Packaging products
  • Dispensary SOPs
  • Long-term goals: Your operations plan should contain the milestones you wish to achieve in a specific period.

Dispensary-Operations-and-Security-Plan-Guide

8. Your Financial Plan

Here is what you need to include in your financial plan:

  • Balance sheets: This includes the amount of money you have in the bank, the amount your clients owe you, and the amount you owe your vendors. Your balance sheet illustrates how your business is doing at any particular time.
  • Cash flow statement: This shows the amount of cash the business received, spent, and has after the financial year. 
  • Total net profit or less: This outlines how your company generated a profit or suffered a loss over a specific period (usually three months), outlining all revenues and outlays before calculating the overall net profit or loss.
  • Sales forecast: You have to forecast how much product you will sell in the future. The time frame is usually 1-3 years. 

9. The Technology You Need to Use

As a cannabis business owner, you will need to use software, for instance, to sell products and manage transactions. You should know that having a website is essential for cannabis-related businesses so that consumers can browse through different categories and products.

A dispensary POS system allows you to take your business to the next level and enter the world of online transactions instead of being solely cash-based. COVA helps you to manage inventory and streamline sales. Also, we tweak our software as per the  cannabis laws in each region so that your business always stays compliant.

Our cannabis POS verifies the customers' age and prevents underage people from purchasing. On top of that, it calculates the amount of THC in cannabis products and stops sales that exceed legal limitations. This means that you don't have to worry about breaking the law accidentally and can focus on finding better marketing strategies and providing superior customer experiences.  Book a demo with us to learn more about the tools you need. 

10. Appendix 

The appendix should contain any remaining financial projections along with charts, graphs, and images that make the document easy to read.

Any business needs proper preparation before launching to determine what it will achieve. Dispensaries are not exempted. They need even more planning due to the nature of the cannabis business. One mistake in planning and everything can go downwards. Read and revise your plan multiple times before launching your dispensary. 

Aside from the things mentioned to include in the business plan for your dispensary, you can also write down each team member's role, especially from your management team. Writing down your product distribution plan has its benefits as well. 

Now that you have an idea about how to write a cannabis business plan, you should also consider reading this guide for more information: 5 Key Elements of a Successful Cannabis Retail Business Plan, or check out our cannabis guides and resources page to learn more about how you can succeed as a cannabis retailer. Contact Cova to see how we can help you succeed.

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Written by Faai Steuer Faai Steuer is VP of marketing at Cova Software, the fastest growing cannabis retail POS in North America. An entrepreneur at heart, she has a passion for growing startups and building brands. With 20 years of marketing experience in CPG and retail tech, she lends her knowledge and best practices to help cannabis entrepreneurs in the US and Canada open their first store and grow their business through vital thought leader content. Faai oversees the strategies and executions of Cova public relations, content marketing, social media, events, and campaigns.

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Leafy Mate

Essential Steps To Start Your Own Cannabis Dispensary Business

Are you interested in venturing into the cannabis industry and starting your dispensary business? Legalizing cannabis in many states has opened up opportunities for entrepreneurs like yourself. However, embarking on this journey requires careful planning and execution.

In this article, we will guide you through the essential steps you need to take to start your own cannabis dispensary business.

A comprehensive business plan will also be crucial when seeking financing for your venture. Lenders and investors will want to see your plan to assess the viability and profitability of your business.

Table of Contents

Key Takeaways

  • Starting a cannabis dispensary business requires following a set of essential steps.
  • These steps guide how to establish and run a successful cannabis dispensary.
  • Suppliers play a crucial role in ensuring customers’ diverse range of products.
  • Building relationships with reliable suppliers is vital for the success of the business.

Understanding the Legal Landscape

Before diving into the essential steps to start your own cannabis dispensary business, it’s crucial to understand the legal landscape. This includes the varying regulations and restrictions across different states.

For instance, did you know that as of 2021, recreational marijuana is legal in 17 states and the District of Columbia? However, it’s important to note that each state has its own set of laws and regulations governing the cultivation, sale, and use of cannabis. These regulations can range from licensing requirements to restrictions on advertising and packaging.

Before proceeding with your business plans, research and understand your state’s laws and regulations. By doing so, you can ensure that you operate within the legal boundaries and avoid any potential legal issues that could jeopardize your business.

In addition to state regulations, it’s also crucial to consider federal laws surrounding cannabis. Despite the increasing acceptance and legalization of marijuana at the state level, cannabis remains illegal under federal law. This can create complexities and challenges for cannabis businesses, including issues with banking, taxation, and interstate commerce.

It’s essential to consult with legal professionals who specialize in cannabis law to navigate these federal complexities and ensure compliance with both state and federal regulations. Contact Leafy Mate for further details.

Understanding the legal landscape is the foundation for a successful cannabis dispensary business, as it allows you to develop a solid business plan and strategy that aligns with the regulations in your state.

Developing a Solid Business Plan

To ensure success in the cannabis industry, you must establish a well-crafted business plan. A solid business plan is a roadmap for your dispensary, helping you navigate the industry’s complexities and make informed decisions.

Here are three key elements to include in your business plan:

  • Market analysis: Conduct thorough research on the local cannabis market to understand its size, potential customers, and competitors. Identify gaps in the market and determine how your dispensary can fill those gaps. This analysis will help you develop a competitive advantage and tailor your products and services to meet the needs of your target audience.
  • Financial projections: Outline your financial goals and projections for your cannabis dispensary. Include detailed information on startup costs, ongoing expenses, and projected revenue. Consider licensing fees, rent, employee salaries, inventory, and marketing expenses. It’s important to have a realistic understanding of your financial situation to ensure long-term sustainability.
  • Compliance and regulations: The cannabis industry is heavily regulated, so it’s essential to understand and comply with all relevant laws and regulations. Research the specific requirements for operating a dispensary in your state or country, including licensing, permits, security measures, and product testing. Include a detailed plan for ensuring compliance, such as employee training programs and regular audits.

By developing a comprehensive business plan incorporating these elements, you will be better equipped to navigate the challenges and opportunities in the cannabis industry. It will give you a clear vision for your dispensary and increase your chances of success in this rapidly growing market.

Securing Financing and Licenses

When securing financing and licenses for your cannabis dispensary, you must research funding options and navigate the application process.

Start by exploring different funding sources such as loans, investors, or personal savings.

Research local and state regulations to ensure you understand the requirements for obtaining licenses and permits to operate your business. This may include receiving a license for selling cannabis products and complying with zoning and safety regulations.

Once you clearly understand the funding options and the licensing requirements, you can begin the application process. This typically involves submitting detailed business plans, financial statements, and background checks for all individuals involved in the business.

It’s essential to be thorough and accurate in your application to increase your chances of approval.

Securing financing and licenses for your cannabis dispensary can be complex and time-consuming, but it’s a crucial step in starting your business.

By researching funding options and carefully navigating the application process, you’ll be one step closer to opening the doors of your cannabis dispensary.

Finding a Suitable Location

Finding a suitable location for your cannabis dispensary is like finding the perfect puzzle piece that completes the picture of your business. It’s a crucial step that can significantly impact the success of your venture.

Here are some key considerations to keep in mind when searching for the ideal location:

  • Accessibility: Look for a location that’s easily accessible to your target market. Consider factors such as proximity to main roads, public transportation, and parking availability. You want to make it convenient for your customers to visit your dispensary.
  • Zoning laws: Make sure to thoroughly research and understand your area’s zoning laws and regulations. Some cities and municipalities have specific zoning requirements for cannabis businesses. Ensure that the location you choose complies with these regulations to avoid any legal issues.
  • Competition: Take a close look at the competition in the area. Are there already established cannabis dispensaries nearby? If so, consider whether there’s enough demand to support another one. Choosing a location where you can cater to an underserved market may be beneficial.

Finding the right location for your cannabis dispensary is critical in setting up your business for success. By considering factors such as accessibility, zoning laws, and competition, you can ensure that your dispensary is well-positioned to effectively attract and serve your target market.

What are the Essential Steps to Establish a Powerful Cannabis Brand in the Dispensary Business?

When establishing a powerful cannabis brand in the dispensary business, it’s crucial to start with a strong brand identity that reflects the values and mission of your business. In addition, effective marketing, high-quality products, and excellent customer service are all essential powerful cannabis brand strategies for success.

Building a Strong Team and Establishing Relationships with Suppliers

Building a solid team and establishing supplier relationships is vital to success in the cannabis industry. As you embark on starting your own cannabis dispensary business, you must surround yourself with a team of dedicated and knowledgeable individuals who share your passion for the industry. Look for individuals who have experience in the cannabis field, whether it’s in cultivation, sales, or compliance.

By building a team with diverse skills and expertise, you can ensure that all aspects of your dispensary are well-managed and efficient.

In addition to a strong team, establishing relationships with suppliers is essential for the smooth operation of your cannabis dispensary. Take the time to research and connect with reputable suppliers who can provide you with high-quality products at competitive prices.

Regular communication with your suppliers is also crucial to ensure you’re aware of any product availability or pricing changes.

Frequently Asked Questions

How can i ensure that my cannabis dispensary business operates within the legal boundaries of my state’s regulations.

To ensure your cannabis dispensary operates within the legal boundaries of your state’s regulations, research and understand local laws, obtain the necessary licenses and permits, comply with zoning requirements, and regularly update yourself on any regulation changes.

What are some key factors to consider when creating a business plan for a cannabis dispensary?

When creating a business plan for a cannabis dispensary, consider that the legal cannabis market is projected to reach .6 billion by 2027. This statistic highlights the potential profitability and growth opportunities in the industry.

Where can I find reliable sources of financing for my cannabis dispensary startup?

You can find reliable sources of financing for your cannabis dispensary startup by approaching private investors, exploring government grants and loans, seeking out cannabis-focused venture capital firms, or considering crowdfunding platforms specifically for cannabis businesses.

What licenses and permits are required to open and operate a cannabis dispensary, and how can I obtain them?

To open and operate a cannabis dispensary, you’ll need licenses and permits, such as a state dispensary license and local permits. For example, you can obtain a dispensary license in California through the Bureau of Cannabis Control.

What are some important considerations when selecting a location for my cannabis dispensary, and how can I evaluate potential options?

When selecting a location for your cannabis dispensary, consider local zoning regulations, proximity to your target market, and accessibility. Evaluate potential options by researching the area’s demographics, competition, and foot traffic.

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The Ultimate Step-by-Step Guide to Writing a Cannabis Business Plan

business plan for startup dispensary

According to Cowen Research, cannabis sales are projected to reach almost $100 billion by 2030 in the US alone. As compared to other industries, cannabis is currently the fastest moving market with a great potential for growth and running profitable businesses. 

But starting a cannabis retail dispensary is easier said than done. With several moving parts like cultivation, processing, distribution and keeping up with various state laws and regulations, you need a well defined cannabis business plan for your dispensary before you step in and make an investment. 

In this guide, we’re going to walk you through what a business plan is, why it is important and a step-by-step on how you can write one. 

What is a cannabis business plan? 

A business plan is like a snapshot of how your cannabis dispensary will be set up and the path it will follow to grow its reach in the market for a defined period of time. It details your business goals and objectives, and lays down the strategy for reaching them, including market research on consumer demands and products. A cannabis business plan is like a living document that gets updated annually as your company grows and changes to meet consumer demands and industry trends, while ensuring complete alignment with the business goal set up. 

Why do you need a cannabis business plan? 

Just like any other industry, having a business plan is like structuring your thought process and market research to create a detailed strategy to grow your dispensary. Here are some of the key reasons why we recommend building a business plan before starting a cannabis dispensary: 

  • To establish business milestones - A cannabis business plan will nudge you to clearly lay out your long-term milestones that are crucial for success. This includes setting up some key metrics like the amount of sales and revenue you make in pre-defined periods of time. 
  • To better understand your competition - Since a business plan requires you to add more depth to your market research, it encourages you to analyze competitors too. This helps you identify the USP of your cannabis dispensary or what you may have to work towards to get a competitive edge in the market. 
  • To better understand your customer - Once you know your competition, the business plan gives you more in-depth knowledge of who your customers will be, why do they make purchases, what do they need the most, what are their purchase motivations and so on. 
  • To assess the feasibility of running the business - Being able to see the current competition, market demand and the offer you’d have to take to market, also helps you validate the feasibility of your business idea. For instance, if you thought of opening dispensaries in multiple locations, the business plan may highlight how starting with one is a better idea to test waters. 
  • To document revenue model - The cannabis business plan you create also requires you to state how you intend to make money. This includes detailing out your revenue model, your assumptions and the challenges you may face, and how you intend to deal with them. For example, the need to open consultations with doctors before a customer makes a purchase can be your first-touch revenue model.  
  • To determine your financial requirements - From working with growers, processors, distributors or even medical professionals, getting licenses, renting a physical space or setting up an online store, there are a number of areas where an upfront investment is required. A business plan will nudge you to think about the smallest of expenses and evaluate if the business needs to raise capital or start small as compared to the initial aspirations. 
  • To attract investors - Whether you decide to raise capital right at the start or seek investors after growing to a certain level, a cannabis dispensary plan helps you position your venture with the right vision and mission to attract the right financing proposals. For this, your business plan needs to include financial projections, exit strategy and how the investors stand to benefit from you. 
  • To reduce risks - As we said, business plans nudge you to validate ideas. As you start to detail it out, the business plan helps you assess the current opportunity with other opportunities that you may want to pursue, or avenues to optimize your costs. 
  • To attract the right talent - A business plan will also help you identify the type of skills you need on the team. At the same time, it also helps you think about what you can do to attract and retain top talent to work towards the business goals you set up. The business plan can also serve as a forecast to your staffing needs as your cannabis dispensary grows. 
  • To attract partners - As you start to grow your cannabis dispensary business, you may have to partner with cultivators in different locations, delivery companies or legal entities to help you cover all grounds. Establishing these partnerships require time and capital, and having a business plan is like a sales pitch that can entice the right partners. 
  • To position your brand - Creating a business plan helps you define where and how your company gets positioned in the market. For example, does it become a dispensary known for discounted products or a dispensary known to offer discounted medical guidance to help consumers make informed purchases. This has a big influence on your marketing and sales strategies. 
  • To align your marketing plan - With the on-ground market reality and projections in front of you, a cannabis business plan also helps you identify the best suited marketing strategy to reach your audience. From the channels you will make use of, to the messaging, value proposition, offers and so on, the business plan defines it all (but of course, it can change iteratively as you start to gather marketing performance data). 
  • To ensure compliances - A cannabis business plan is not just about how you set up and grow the business. It also includes details on the rules, regulations and compliance requirements you will need to ensure as per the location of your dispensary. This then further defines the tools and cannabis technologies you will need to maintain records. 

How to write a cannabis business plan? 

Now that you know the importance of having a cannabis business plan and how it aids your venture’s growth, let’s walk you through step-by-step on creating one. 

PS. It is also important to note the state regulation requirements when creating a business plan as it impacts your cannabis license application approval. 

1. Understand the different business models 

Opening a dispensary is not the only way to enter the cannabis market. Before you begin writing a business plan, research and identify the business model or the type of cannabis business you want to establish. Here are some examples: 

  • Cannabis producers or cultivators - Companies that grow and harvest cannabis 
  • Cannabis product manufacturers - Companies that take cannabis from cultivators and make products like oils, drinks, etc from them
  • Cannabis dispensary - Companies that sell the products from the manufacturers for medical and recreational use 
  • Cannabis retailers - Companies that sell cannabis products from manufacturers to consumers via online and offline channels 
  • Vertically integrated - Companies that grow cannabis, manufacture products, have their own dispensaries and retail outlets 
  • Cannabis delivery - Companies that are responsible for delivery cannabis products ordered from dispensaries or retail outlets 
  • Cannabis laboratories - Companies that are set up for testing and researching 

2. Define your geographic market 

Before working on the other details of your cannabis business plan, we recommend researching and shortlisting the location in which you want to open a dispensary. This is not just important from a retail perspective, but also has an impact on the rules, regulations and laws you will need to comply with, development costs and community attitudes, which in turn may have an influence on how you set up and grow your dispensary business. 

3. Create an executive summary 

Once you have the location finalized, the next step is to create an executive summary for your cannabis business. This is a one-page document that lists out all the important information about your dispensary, and is often used for license applications and for audits by local regulators. 

  • Business information - Who you are, your location, your contact information 
  • Products and services - List of all the products and services you offer (or intend to)
  • Target market - Summary of who your target audience is 
  • Competitors - Summary of the type of businesses that you will be competing with 
  • Team members - Defining the roles your company needs and who will be fulfilling them 
  • Financial summary - Current investment (even if bootstrapped), profitability, operational costs, revenue, debt and projections 
  • Problem and solution - Your value proposition 

4. Write down a market overview 

This part of the cannabis business plan describes the demand for these products in the market, and how your dispensary aims to meet those needs. While you can start with broad-level figures, we recommend gradually narrowing your focus (remember, the business plan is a living document that needs to be updated regularly). 

  • Consumer insights - Who is your target audience? What is your ideal customer persona? What is their purchase power? What are their purchase motivations? What influences their purchases? 
  • Consumer demand - What is your audience looking for? What is your ideal customer persona purchasing? How regularly are they making the purchases? How have their needs and preferences evolved?  
  • Competitive insights - Who are your direct and indirect competitors? What are they offering to the consumers? What are their strengths and weaknesses? What is their average pricing? Who have they partnered with? How are you different? What are the advantages you can offer to consumers? 
  • Market trends - Is there a trending product? When do consumer needs typically change? Are there any patterns that you will need to adapt product offers to? 

5. Detail out your cannabis marketing and sales plan 

This is the section of the cannabis business plan that structures all the analysis and research above and turns it into a plan of action to reach your target market. No matter what type of cannabis business you start or where you’re located, marketing it well will ensure you get noticed by the right audience for the right reasons. 

  • Products and services - Now create a detailed version of the products or services you want to sell, each with its independent description of what, why, benefits and other information that can help consumers make an informed decision. 
  • Pricing and offers - Next, work on defining the pricing of each product and service you offer. Also include notes on how your pricing is better or different from your competitors. 
  • Channels and platforms - Based on what you sell, the pricing and offers and who you want to sell to, define the platforms you will be using to promote your cannabis business. This can include social media channels, online marketplaces, print advertising in magazines, on-ground sales, events, networking and other tactics. 
  • Purchase path - This is where you describe how a consumer targeted by your marketing takes the next step towards purchasing the product or service you offer. Do you have an eCommerce website they can buy from? Will they need to send you a text to place an order from the dispensary? Do they need to walk into the dispensary to place an order? This can also impact the marketing message you use across campaigns. 

6. Operational plan

The operational plan essentially lays down the backend of the work required to meet your business goals and fulfill orders as you start to receive them. This typically includes the following: 

  • SOPs - These are detailed standard operating procedures that you, your team and partners will follow to ensure smooth operations and compliances. 
  • Partners - Detailing out who will be supplying the products to you and your agreements with them, who will be handling order delivery and other types of partners based on your business model. 
  • Product packaging - Depending on what you sell, you will need to identify the type of packaging the products will require, whether you will be doing it in-house or partnering with a vendor for the same. 
  • Cannabis dispensary POS - Defining the point of sale, the information you will need to record for every purchase made, the payment methods you will accept from customers, receipt generation and reporting. 
  • Seed to sale compliance - The process you have in place to label, package and track cannabis products sold, and how you report them to the state regulators. A good cannabis POS system will ease the process of reporting by integrating with seed to sale tracking systems like Metrc and BioTrack to automate the process. 
  • Security - Describe how you intend to keep your dispensary or facility secure from break ins to prevent products from reaching illicit markets or falling into the wrong hands. This should include the smallest of details like managing your cash drawer as well or how you intend to focus on cashless payments to make the dispensary less attractive to thefts. 

7. Organizational structure 

This section in your cannabis business plan describes how the dispensary will operate and the individuals that are responsible for the operations at different levels. The organizational chart also helps in assigning roles and responsibilities to keep functions streamlined and working in tandem. 

  • Key stakeholders - People are responsible for taking managerial decisions for your cannabis business, who they are, their background and the skills they bring to the table. 
  • Inventory specialists - People who are responsible for ensuring you have the right inventory in place and are also key to predicting consumer demand. 
  • Budtenders - People who will be responsible for educating consumers or clients about your products and services at the point of sale. 
  • Marketers - People who will be taking charge of running your marketing, advertising and other promotional activities. 
  • Accountants - People who will be responsible for maintaining all business accounts - sales, revenue, spend, employee salaries, partner commissions, contracts and so on. 
  • Investors - If applicable, these are the people who have invested money in your cannabis business. This should also include the agreement you have with them on the amount of investment received. 

Note: Your organizational flow chart does not have to include all the job roles right from the beginning. Depending on the business model you set up and how fast you grow, the jobs you hire for may vary. 

8. Financial projections 

Managing your finances will be key to keeping your cannabis business afloat in a competitive market. It will also ensure you always have the required funds to keep operations running even when the market dips or industry trends change. But projections should go beyond just the sales and revenue you make, and look into your expenses as well. 

  • Licensing fees - States and provinces have different licensing costs that can be anywhere from $5,000 to $60,000 depending on the type of cannabis business you set up. It’s also a good idea to account for application and renewal fees for the cannabis license you take. 
  • Rent and development costs - If applicable to your business type, it is important to account for at least six to twelve months of rent for your cannabis facility. If the facility requires development to meet business objectives, ensure you account for those expenses alongside their maintenance costs. 
  • Inventory costs - If your cannabis business will require holding inventory of products to sell or run the services, you need to account for their management and storage costs. For example, cannabis dispensaries typically stock their shelves with fast-selling products in advance to build in buffer time to sell products and pay the supplier. 
  • Equipment costs - Irrespective of the cannabis business type, there will be a set of equipment you need for day-to-day functions. This includes furniture, office supplies, lighting and other aspects that impact the look and feel of the facility for the team and eventually the consumers. 
  • Cannabis technology - From a cannabis POS, HR tool, payroll management, compliance and retail management, CRM and other solutions, your business will need to invest in technology that enables your operations across departments. Take into account their costs as well as renewals. 
  • Product packaging - Whether you choose to package products in-house or through a vendor, take into account the cost of label printing and other supplies you have to invest in to sell products in a state-compliant manner. 
  • Security expenses - Be it video surveillance systems, automated cash drawers, advanced locking systems for the dispensary or other security measures, include them in your financial records. 
  • Salaries - Even if it is just you running the cannabis business initially, we recommend defining the salary you take. As you grow, include the salaries you give to your employees, as this helps calculate the runway more accurately. 

Once you have all the spends well accounted for, the next step is to include the following details: 

  • Monthly operating expenses 
  • Monthly number of orders/ sales 
  • Monthly revenue from sales 
  • Average order value 
  • Projected sales over the next 3-6 months 

9. Appendix 

This part of your cannabis business plan is a record of your monthly income, including your revenue statements. It is important to append these statements to your business plan to help regulators with business audits.

Appendices also come in handy when you start seeking investors for your cannabis business. This helps them understand your projections and calculate the profit and loss more accurately. 

In conclusion 

Having a cannabis business plan is a must-have. 

The evolving document can help you structure your business for success and ensure that you meet all compliance requirements as you grow without the risk of being flagged, blocked, restricted or banned forever. 

Need help structuring your cannabis business plan or not sure where to begin? 

Subscribe to the Treez blog for more such detailed guides or reach out to our experts for a consultation . 

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How to Write a Cannabis Business Plan + Free Template

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Cannabis is a multi-billion dollar industry promising exceptional growth rates and profit margins.

However, establishing a solid foothold in the cannabis industry is no easy task. Firstly, the legal compliances and secondly the costs of setting up a business- you will have a lot to figure out when starting your cannabis business.

A well-planned strategic business plan removes the how, when, where, and what from the equation and gives you a concrete answer to business growth and succession.

You need to create this custom bible for your business before you undertake its responsibility.

Let’s uncover the step-by-step procedure to write a cannabis dispensary business plan in detail.

Let’s get started.

Key Takeaways

  • Identify the state requirements and regulations through official state websites before finalizing anything for your cannabis business.
  • Analyze the competitive landscape of your cannabis business using SWOT analysis and identify your competitive edge in the local market.
  • Consider contingencies and casualties, and prepare the key financial reports for your cannabis business.
  • Create an in-detailed operations plan for your cannabis business highlighting the processes and procedures for sales, purchase, inventory, technologies, and other key aspects.
  • Conduct a thorough market analysis and outline your target market, industry trends, and growth potential in the market.

Why is a cannabis business plan important?

If you are wondering why a business plan is just another trend that holds no concrete value, reconsider. It is more important than ever and here’s why:

  • A business plan offers strategic direction to your business goals and helps you realize them.
  • A marijuana business plan helps evaluate the financial aspects of owning a cannabis business. This will enable you to grab the best opportunities by remodifying the plans and adjusting the ideas.
  • A marijuana business operates in a high-risk environment. With a business plan, you can mitigate the risks and challenges and address them strategically.
  • The cost of setting up a cannabis business can extend up to millions. Only a forward-thinking detailed plan can help you acquire the required funds.
  • A business plan offers a solid framework for your business operations. Having your operations in place will keep the expenses and costs under control.

I guess you now have plenty of reasons convincing enough to have a business plan. So let’s move forward.

How to write a cannabis business plan: Step-by-Step Guide

A lot goes into writing a comprehensive business plan- from company analysis to customer analysis, marketing strategies, funding strategies, and much more. Here is your step-by-step guide to writing an effective plan for the cannabis business.

1. Understand your target market & business model

What type of cannabis business are you planning to start? Get an answer to this before you start working on your cannabis business plan.

Now, dispensary is not the only way to get into the cannabis market. Here are a few prevalent cannabis business models:

  • Cannabis producers
  • Cannabis dispensaries
  • Cannabis product manufacturers
  • Cannabis retailers
  • Vertically integrated operation

The business plan for each of these models will be different. Explore a business plan example here and find the one relevant to your business model.

After identifying the cannabis business you want to start, determine an ideal customer for your business.

Incorporate different market analysis methods to create a buyer persona for your products. Consider factors like age, gender, location, spending patterns, values, needs, and expectations of your target audience in this process.

The study of the target market will help you identify the ideal customer who will be willing to pay for your products.

cannabis target market

2. Create an executive summary

An executive summary offers a concise summary of your cannabis dispensary business plan. It is recommended to write this section at last after you are done writing for other aspects.

Potential investors gauge the viability of your business model after reading your executive summary. If it’s intriguing enough, they will move forward and use it as a reference point.

Consider adding all the important information in this section using a storytelling approach.

This includes business details like its name and location, contact information, market overview, products and services, team members, operations, goals, objectives, and everything that makes your company unique.

An ideal executive summary must offer a snapshot of your business plan.  It should attract investors with a hook and persuade them to read further.

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business plan for startup dispensary

3. Prepare a company overview section

This section offers a brief description of your company and an insight into its important details.

Remember, the different types of business models we discussed earlier? It’s now time to highlight the type of cannabis company you are planning to open.

Mention if it is a startup or an already established company. Also, specify the legal structure of your business, i.e. sole proprietorship, S Corp, LLC, partnership firm.

Include other details such as:

  • Why do you want to start a company?
  • What is the value proposition of your business?
  • If it’s an established business, when did it start?
  • What are the future business goals, aspirations, and objectives of your business?

It’s okay to brag a little but offer your readers a realistic picture of your company.

4. Conduct an industry analysis of your cannabis market

The industry analysis section offers a brief overview of the cannabis industry. Although it may seem unnecessary, this market research will play an extremely important role in determining your business strategies.

The market analysis will enhance your knowledge of the cannabis market and make you aware of the emerging trends that are worth considering. Not only that, it will establish your expertise as a professional amongst readers.

Now, what should an industry analysis section include?

  • The relevant market size of the cannabis industry
  • The growth rate in the marijuana market
  • The industry’s growth forecast for the next 5-10 years
  • The key suppliers for your cannabis dispensary
  • The competitive analysis of your business
  • Current industry trends and emerging trends
  • Potential market share and growth opportunities for your dispensary

While writing this section narrow down the focus from the broad to the specific marijuana market you would be covering. This will help establish the logical flow of information.

For instance,

The US marijuana market is projected to reach 71 billion dollars by 2030, of which legal sales in Arizona alone are projected to reach $1740.2 million. This shows a favorable growth opportunity for cannabis dispensaries in Arizona.

5. Competitors analysis

The Cannabis industry has a competitive market landscape in the US especially since it was legalized. The question is do you stand a competitive edge in this market?

In this section of a business plan, focus on evaluating your competitors and identifying your key strengths through competitive analysis.

To begin with, identify your direct and indirect competitors. Direct competitors are other cannabis businesses offering the same products and services as you, i.e. cannabis dispensaries in your location.

Indirect competitors are businesses that offer replacement products for marijuana.

Study industry reports and publications and use methods like SWOT analysis, competitor profiling, etc. to analyze your competitors. The market research will help you identify their product offerings, strengths, weaknesses, pricing, and distribution channels.

Now, identify your competitive advantage over these cannabis businesses and outline them strategically. Highlight the details like prices, products, or services that make you stand apart.

6. Describe your cannabis product line

In this section of a cannabis dispensary business plan, you offer a line down of all the products and services offered by you.

A variety of marijuana products can be found in a dispensary. From flower buds to edibles, oils, pre-rolls, vaporizers, and cartridges- determine what you will sell or intend to sell as the business scales.

Mention if you would be offering any luxury or branded options in medical and recreational cannabis. And also highlights additional services like consultation, delivery, white labeling, etc. that are relevant to your business.

7. Detail out a cannabis sales and marketing plan

All the analysis and market research in the previous stages will now come together to form a plan of action. This action plan will bring you sales and make your dispensary profitable eventually.

Firstly, detail your sales strategy and highlight different methods that will help you achieve your sales plan.

For instance, a medical dispensary can partner with medical professionals to sell their high-THC cannabis products.

Now, line down your marketing plan that will help you achieve desired sales and popularity in the market.

Cannabis marketing is tricky and you need a proper understanding of the product, price, and place to market your products.

Here are a few things to consider while strategizing your marketing plan:

  • Where will you sell cannabis products- online or physical store
  • What customer segments or age groups will you cater to Youths, medical patients, seniors, etc..
  • What is the placement of your product- luxury, mid-range, low-price
  • What marketing channels will work for your audience- online marketing, print media, social media marketing, Emails or SMS

Find a correlation between each of these factors and form varying marketing strategies.

8. Introduce your management team

In this section of your business plan, outline the organizational structure of your business and introduce the founding members of your dispensary. Also, introduce your key management team and important personnel.

Outline their relevant experiences and skill sets and show how they are an asset to your business.

9. Outline an operational plan

The operations plan streamlines the backend processes and details the everyday operations of running a dispensary.

In this section, mention standard operating procedures (SOPs) that will contribute towards the smooth functioning of a business. There must be a clear SOP for inventory management, ordering, delivery methods, employee training, vendors and suppliers, etc.

Mention all the technologies you will use at a dispensary. For instance, a seed-to-sale compliant POS system.

Detail all the security measures for a dispensary. Clarify how you will store cash and what tools you will have to combat situations like robbery, emergency, etc.

All in all, think of every small detail and lay down a clear guideline for different business activities.

10. Prepare a financial plan

This section of a cannabis dispensary business plan offers a brief financial summary of your business. Prepare this part with utmost scrutiny, especially if the purpose of a business plan is to acquire funds.

Let’s have a glance at everything your financial plan should include.

  • Estimate the cost of starting a cannabis business . Account for every expense starting with lease rental to licensing fees, inventory, payroll, development costs, technology setup, etc.
  • Identify your funding requirements and sources. Government banks and financial institutions are averse to high-risk industries like cannabis. So, it is better to plan your funding sources well in advance.
  • Prepare financial projections for operating costs, sales forecast, and pricing using your study on market analysis.  Create monthly, quarterly, and yearly projections taking into consideration price hikes and seasonal fluctuations.
  • Generate the key financial reports like income statements, balance sheets, cash flow statements, and break-even analyses using the financial projections made earlier.
  • Test and validate the assumptions.
  • Present the information strategically through charts, graphs, and diagrams by highlighting key data points.

Now, it gets relatively difficult to create a robust financial plan from scratch without any aid. Upmetrics financial forecasting tool comes to your rescue by helping you generate accurate estimates and reports in minutes. Simply add your assumptions to the tab and it shall do the rest.

That’s pretty much everything a cannabis business plan must have.

Cannabis Industry Highlights 2023

Let’s have a look at the latest market trends and statistics ruling the cannabis industry in 2023:

  • Market Value : The US cannabis market was valued at $13.2 billion dollars in 2022.  North America is the largest market for legal cannabis in the world and all the sales are generated from here.
  • Cannabis users : More than 55 million American adults have consumed cannabis products at least once in their lives.
  • Legalization in states: According to NCSL , 23 states have legalized the use of recreational cannabis by 2023. Apart from that, districts in Columbia, Guam, and the Northern Mariana Islands have also legalized cannabis.
  • Expected spending : The global spending on Cannabis products is expected to cross $57 billion by 2027.
  • Contribution to the US economy : The cannabis market is expected to contribute $130 billion to the US economy by 2024.
  • Highest market share : The share of the single largest marijuana market in the world is held by California. Colorado, Michigan, Florida, and Washington follow this.
  • CBD Oils : According to Grand View Research , the CBD oil market is expected to generate a revenue of $1 billion by the end of 2022.

Impressive, right? Now consider these stats while forming your market research.

Download a sample cannabis business plan

Need help writing the content for your cannabis business plan? Look no further. We have a perfect resource for you.

Our cannabis business plan sample pdf offers step-by-step instructions with relevant examples and tutorials. It’s an intuitive template with perfect reference points and is available for free download.

Resources related to cannabis businesses

  • How to Start a Cannabis Business
  • Cannabis Marketing Plan
  • Cannabis Industry Statistics
  • Cannabis cultivation plan
  • Dispensary business plan

The Quickest Way to turn a Business Idea into a Business Plan

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Upmetrics resources are perfect whether you are expanding your current cannabis business or setting up a new dispensary.

So what are you waiting for? Turn your cannabis business idea into a reality now.

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Frequently asked questions, what is the best state to start a cannabis business.

The best state to start your cannabis business is Oregon. The legal environment in this state is relaxed and the competition is less intense. The cost of licensing is negligent and the guidelines surrounding cannabis businesses are less severe. Overall, you can start a dispensary at low costs in Oregon.

What Are the Key Components of a Cannabis Business Plan?

A cannabis business plan must include a proper plan for marketing, operations, sales, and organizational structure. Apart from that, a financial plan is of utmost importance when you start a cannabis business. Include, an executive summary and company analysis to make your business plan a concrete one.

Should I include testimonials or case studies in my Cannabis business plan?

Yes, adding testimonials can help establish credibility and trust for your business. The case studies will demonstrate your success in the market and win the trust of potential investors. Gather effective testimonials and case studies from your business history if possible.

What are Some Common Mistakes to Avoid When Writing a Cannabis Business Plan?

Here are a few mistakes to avoid when writing your cannabis business plan:

  • Underestimating and overestimating the costs.
  • Not accounting for licensing fees.
  • Not accounting for casualties and emergencies.
  • Inadequate and low-quality research.
  • Inconsistent formatting and presentation.

How Often Should I Update My Cannabis Business Plan?

A marijuana business plan should be updated every year accounting for the changes in business environment and projections. Also, make changes to your plan as and when new policies roll out in your concerned states.

About the Author

business plan for startup dispensary

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How to write a business plan for a cannabis dispensary?

cannabis dispensary business plan

Creating a business plan for a cannabis dispensary is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a cannabis dispensary business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a cannabis dispensary?

What information is needed to create a business plan for a cannabis dispensary.

  • What goes in the financial forecast for a cannabis dispensary?
  • What goes in the written part of a cannabis dispensary business plan?
  • What tool can I use to write my cannabis dispensary business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a cannabis dispensary business plan in the first place.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your cannabis dispensary is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your cannabis dispensary, you'll have to:

  • Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
  • Determine the pace at which the business needs to progress to meet its objectives as scheduled,
  • Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small cannabis dispensary runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your cannabis dispensary's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your cannabis dispensary business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your cannabis dispensary's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Crafting a comprehensive business plan for your cannabis dispensary, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your cannabis dispensary has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your cannabis dispensary, let's delve into the necessary information needed to craft an effective plan.

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Writing a cannabis dispensary business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a cannabis dispensary

As you consider writing your business plan for a cannabis dispensary, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your cannabis dispensary.

You may discover that there is increased interest in cannabis products that are tailored to specific medical needs. This could be seen as a potential trend, as more people may be looking to cannabis as an alternative to traditional treatments for medical issues. Additionally, you might observe an increase in demand for products that are organic and/or sustainably grown. This could be an indication that people are becoming more conscious of their purchasing decisions, and are looking for cannabis products that align with their values.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your cannabis dispensary.

cannabis dispensary business plan: illustration of the products and services section

Developing the sales and marketing plan for a cannabis dispensary

As you embark on creating your cannabis dispensary business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a cannabis dispensary

As you embark on starting or expanding your cannabis dispensary, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A cannabis dispensary might incur staffing costs such as salaries for employees, benefits, payroll taxes, and training. The dispensary may also need to purchase equipment such as computers, point-of-sale terminals, and security systems. Additionally, the dispensary may need to purchase furniture, fixtures, and other supplies such as packaging materials, labels, and security bags.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your cannabis dispensary's financial forecast?

The financial forecast of your cannabis dispensary will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a cannabis dispensary are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

The projected P&L statement for a cannabis dispensary shows how much revenue and profit your business is expected to make in the future.

example of projected profit and loss statement in a cannabis dispensary business plan

A healthy cannabis dispensary's P&L statement should show:

  • Sales growing at (minimum) or above (better) inflation
  • Stable (minimum) or expanding (better) profit margins
  • A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established cannabis dispensary.

The forecasted balance sheet of your cannabis dispensary

The projected balance sheet of your cannabis dispensary will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

  • Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
  • Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

projected balance sheet in a cannabis dispensary business plan example

Analysing your cannabis dispensary projected balance sheet provides an understanding of your cannabis dispensary's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your cannabis dispensary's liquidity and solvency:

  • A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
  • A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your cannabis dispensary has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your cannabis dispensary business plan.

example of projected cash flow forecast in a cannabis dispensary business plan

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

  • Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
  • Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
  • Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your cannabis dispensary business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a cannabis dispensary.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

sources and uses table in a cannabis dispensary business plan

This table helps size the investment required to set up the cannabis dispensary, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your cannabis dispensary business plan, let's have a look at the written part of the plan.

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The written part of a cannabis dispensary business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a cannabis dispensary business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

In your cannabis dispensary's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your cannabis dispensary, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

In your cannabis dispensary business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your cannabis dispensary to a third party financier, you may want to focus on the area's potential for growth. Point out that the location could be situated in an area with a strong economy, and that it is likely to benefit from an influx of customers who are looking for convenient access to cannabis products. You might also want to emphasize the potential for additional revenue streams, such as through online sales or delivery services. Additionally, you could point out the potential for brand loyalty and customer loyalty programs, which could help keep customers coming back to your dispensary. Finally, you could suggest that the location could provide a strong competitive advantage over other dispensaries in the area.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your cannabis dispensary may offer a variety of products such as premium flower, concentrates, edibles, pre-rolls, and topicals. These items can be tailored to the individual customer’s needs, whether they're looking for a specific strain or a certain type of product. Additionally, your dispensary could also provide services such as consultations and educational events to help customers learn more about their cannabis products. Lastly, they could offer delivery services to make it more convenient for customers to get the products they need.

cannabis dispensary business plan: illustration of the products and services section

4. The market analysis

When you present your market analysis in your cannabis dispensary business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your cannabis dispensary, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your cannabis dispensary aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include urban professionals in their mid-30s and early 40s. These individuals are likely to have disposable income to spend on cannabis, and they may be looking for ways to incorporate cannabis into their lifestyle. Furthermore, they may be interested in trying out new products and looking for a convenient way to purchase cannabis products.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your cannabis dispensary.

5. The strategy section

When crafting the strategy section of your business plan for your cannabis dispensary, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your cannabis dispensary could face reputational risks if it is found to be in violation of regulations or ethical standards. If news of a violation were to reach the public, it may lead to negative publicity and loss of customers. Your cannabis dispensary could also face financial risks. If the business is not able to generate enough revenue to cover costs, it may have difficulty staying afloat. Additionally, unexpected costs such as theft or natural disasters could lead to financial strain.

6. The operations section

The operations of your cannabis dispensary must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your cannabis dispensary - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as the dispensary itself and the products you offer. These could be tangible assets such as the building, equipment, and inventory, or intangible assets such as your brand or intellectual property (IP). Your IP may include trademarks, copyrights, or trade secrets that you use to differentiate yourself in the market. Additionally, you might have specialized know-how such as cultivation, extraction, or formulation processes that you have developed and use to create unique products.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into a cannabis dispensary business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my cannabis dispensary's business plan?

There are two main ways of creating your cannabis dispensary business plan:

  • Using specialized business planning software,
  • Hiring a business plan writer.

Using an online business plan software for your cannabis dispensary's business plan

Using online business planning software is the most efficient and modern way to create a cannabis dispensary business plan.

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Screenshot from The Business Plan Shop's Financial Forecasting Software

Hiring a business plan writer to write your cannabis dispensary's business plan

Outsourcing your cannabis dispensary business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the cannabis dispensary business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your cannabis dispensary's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a cannabis dispensary business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my cannabis dispensary business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

  • Word processors don't include instructions and examples for each part of your business plan
  • Word processors don't update your numbers automatically when they change in your forecast
  • Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a cannabis dispensary business plan for some entrepreneurs, it is by far not the best or most efficient solution.

  • A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
  • Having an up-to-date business plan is the only way to keep visibility on your cannabis dispensary's future cash flows.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your cannabis dispensary. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

  • In-depth business plan structure
  • Key steps to write a business plan?
  • Free business plan template

Know someone who owns or wants to start a cannabis dispensary? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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Writing a Cannabis Dispensary Business Plan

 The cannabis industry is experiencing exponential growth and you’re considering opening up a cannabis dispensary . Before you do anything else, we strongly encourage you to start writing a cannabis dispensary business plan. Having a well written business plan is an essential component for state licensing. It can also help you attract investors and other key members of your management team. Statistics show that entrepreneurs in other industries who have written a business plan are twice as likely to grow their business and secure funding as those with no business plan. Being meticulous about every detail in your business plan will maximize your chances of getting approved for a cannabis business license. You might consider hiring an experienced cannabis consultant to ensure that your business plan is as detailed, concise and well organized as possible. Skipping any steps or presenting potential investors with the first draft of your business plan could potentially be detrimental to the success of your cannabis business.

business plan for startup dispensary

License Application Best Practices: The Extensive Guide for Cannabis Entrepreneurs

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Mitigate the Risks of Cannabis Investing

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Webinar Replay - How to Secure Limited Cannabis Business Licenses Amid COVID-19

C o n n e c t  w i t h   u s, c o m p a n y, r e s o u r c e s, s e r v i c e s, f o l l o w   u s .

business plan for startup dispensary

Local News | Evanston opens second dispensary on Chicago border

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CEO of OKAY Cannabis Ameya Pawar cuts the ribbon for the grand opening of the OKAY Dispensary and West Town Bakery location on the corner of Chicago Ave and Howard Street at the southern edge of Evanston.

Evanston has opened its second cannabis dispensary at the southern edge of the city on the corner of Chicago Avenue and Howard Street through a partnership between OKAY Cannabis and West Town Bakery.

The new shop houses the two businesses with OKAY set behind the bakery serving its signature cakeballs alongside breakfast foods, sandwiches and other items. None of the items in the bakery are infused with cannabis but those interested can buy those products in the dispensary.

A vibrant neon sign on the bakery’s back wall identifies the entrance to the dispensary.

The entrance to Okay Dispensary sits along the back wall of the Westtown Bakery in south Evanston.

OKAY CEO Ameya Pawar cut the ribbon , officially opening the third tandem location with West Town. Other locations include the West Town neighborhood in Chicago and Wheeling.

The business name comes from Pawar’s idea that you don’t have to use cannabis to enjoy the space in the same way you don’t have to enjoy alcohol to go out to a restaurant or bar.

“You’re okay, we’re okay and most importantly, you’re okay here,” he said. “Adding hospitality creates space for new cannabis users and meets them where they’re at.”

Evanston’s 8th Ward Alderperson Devon Reid was in attendance for the ribbon cutting and expressed his excitement for the city to house another dispensary whose taxes will go toward funding the city’s reparations efforts.

“I’m really excited about this,” said Reid, clad in a woven, striped Baja hoodie, referred to as a “drug rug” on many sites that sell them. “Not just because I look like someone who might start my day with cannabis and pastries.”

Other revenue streams for the fund include $1 million a year for the next 10 years from the city’s real estate transfer tax as well as private donations. Exact revenues from the 3% recreational cannabis tax are unavailable as state law requires a minimum number of dispensaries to contribute before releasing the information in order to protect their privacy.

Evanston Mayor Daniel Biss, who attended the ribbon cutting, said the business, which is working with the state on a program to hire the formerly incarcerated, helps combat the negative impacts of the war on drugs at every angle.

The business is one aspect of the One Howard Street plan, an ongoing project between Evanston and the Rogers Park Business Alliance to revitalize the area, which sits steps from the Howard L Station. Evanston City Council adopted the plan during its Feb. 12 meeting.

Pawar hopes the success of partnerships like OKAY and West Town can serve as a blueprint for other businesses looking to benefit from and grow along with the cannabis industry. He noted the significance of a minority-owned business opening during Black History Month whose profits will be used to better the lives of Evanston’s Black residents and reverse some of the historic harms perpetuated against them.

“Profit and purpose don’t have to be at odds,” Pawar said.

Chicagoland could become the Napa Valley of cannabis, according to Pawar, if steps are taken to combine the areas’ food tourism scene and its recreational cannabis. He said he would love to see an integration of fine dining and cannabis.

To achieve this, Pawar pitched a partnership between the cannabis industry, economic development agency World Business Chicago and Choose Chicago, which manages the city’s tourism. He hopes to open three to four more locations as the company grows.

“It’s such an incredible opportunity to take something and reverse the war on drugs by turning it on its head,” he said. “We’re ready and willing to do this.”

Thebakery opens every day at 7 a.m. and closes at 9 p.m. Monday through Thursday, 10 p.m. Friday and Saturday and 8 p.m. on Sunday. The dispensary opens at 9 a.m. each day and closes alongside the bakery.

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Trump on Trial

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Aileen Cannon is facing a series of tests in the classified documents case.

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Donald Trump waves to supporters as he is driven from a courthouse in Fort Pierce, Florida.

By Alan Feuer and Maggie Haberman

When Judge Aileen Cannon was handed the job last spring of overseeing Donald Trump’s prosecution on charges of mishandling classified documents, she was already under fire.

Many legal analysts as well as Trump critics assailed her for having issued a ruling in an early part of the inquiry that was favorable to him but so legally questionable that an appeals court chided her in overturning it.

Now Judge Cannon is facing a series of decisions that will further test her legal acumen and give an indication of how she views the case and its famous main defendant.

The biggest decision in front of the judge, who was appointed to the federal bench by Trump in his waning days in office, is when she will hold the trial. It is currently set to start on May 20, but will almost certainly be delayed.

How much of a delay she decides on — and whether she postpones the trial until after the election — will signal how much she intends to indulge Trump’s strategy of trying to run the clock out.

Trump already faces trial next month in New York on charges related to hush-money payments to a porn star, but the timing of the other proceedings against him is up in the air, including the federal case in which he stands accused of plotting to overturn the 2020 election and a case in state court in Georgia on similar charges.

But there are smaller decisions on Judge Cannon’s plate as well that will serve to flesh out perspectives on her handling of the case.

One involves whether she will allow Trump’s lawyers to include in one of their public filings the names of nearly two dozen witnesses who might testify at trial. Prosecutors working for the special counsel, Jack Smith, have vehemently protested the move, saying that it could expose the witnesses to the same sort of threats and intimidation that other participants in the array of legal proceedings against Trump have also faced.

The other decision concerns a highly unusual request by Trump’s lawyers to see a secret government filing detailing the sensitive classified discovery material that prosecutors believe they have no right to see.

It seems increasingly likely that if Judge Cannon rules for Trump on any of these matters, Smith’s team might respond by seeking its first appeal since the indictment in the case was handed up in June. Prosecutors have already shown their frustration with the judge, accusing her in recent court papers of having committed a “clear error” after she initially agreed to let Trump’s lawyers release the witnesses’ names — a move that she quickly put on hold after the government complained.

A rough start

From the moment Judge Cannon was randomly assigned to the classified documents case, which she is overseeing in the federal courthouse in Fort Pierce, Fla., legal experts and others closely watching the proceeding have — fairly or not — regarded her with a skeptical eye.

Even for the most seasoned jurist, overseeing the criminal prosecution of a former president on explosive charges of illegally hoarding state secrets would have been a challenging task. And Judge Cannon, who is 43, came to the case with only three years on the bench and with little experience in running criminal trials — let alone one that will hinge on the intricacies of the federal law governing the use of classified material and that will play out under global scrutiny.

But Judge Cannon did herself no favors by making a highly controversial decision during the early investigative phase of the case, well before an indictment was returned.

After the F.B.I. searched Mar-a-Lago, Trump’s private club and residence in Florida, for classified documents in August 2022, Judge Cannon appointed an independent arbiter to figure out if any of the materials collected by the agents were privileged and should be kept from the hands of investigators.

While that decision wasn’t all that unusual, a second one she made at the same time was all but unheard-of: Treating Trump with what appeared to be special favor, she effectively froze the documents case in place until after the work of the arbiter, known as a special master, was complete.

That move flew in the face of the Justice Department’s repeated assertions that in scrutinizing Trump, it was merely following the facts and the law, and it earned Judge Cannon a stern rebuke from the federal appeals court in Atlanta that sits over her. A three-judge panel of the court not only unanimously reversed her decision , but also made a point of saying that she seemed to have granted “a special exception” for Trump in defiance of “our nation’s foundational principle that our law applies to all.”

It may be worth noting at this point that Trump has spared Judge Cannon the relentless attacks he has directed at most of the jurists involved in his three other criminal cases and in several of his civil trials.

In fact, Trump has barely said a word about her on social media, on the campaign trail or while visiting the courthouse. That is a far cry from the verbal assaults he has made against nearly every other judge handling his cases, whom he has referred to, in various turns, as “corrupt and radical,” “a radical Obama hack” and “a Trump-hating guy.”

Judge Cannon is expected to settle the timing issues for the trial next Friday, when she has scheduled a hearing in Fort Pierce to set a new date for the proceeding. She is waiting to receive a final set of court papers from Trump’s legal team tomorrow before deciding on how to handle the witnesses.

As for the dispute over granting Trump access to the government’s sealed discovery papers, it has been fully briefed and discussed with the defense and prosecution during separate court hearings. She could make a decision at any time.

Your questions

We’re asking readers what they’d like to know about the Trump cases: the charges, the procedure, the important players or anything else. You can send us your question by filling out this form.

In the case about hush money paid to Stormy Daniels, what is the crime? Did Trump use money donated to his campaign? — Camille Olcese, Lawrence, Kansas

Alan: Trump has been charged with multiple counts of falsifying business records — invoices, ledger entries and checks — in order to disguise the nature of the payments that passed from his lawyer and personal fixer, Michael Cohen, to Stormy Daniels. In essence, he’s been accused of using the phony documentation to cover up his relationship with Daniels in an effort to win the presidency. Prosecutors say that amounts to campaign finance violations.

Where does each criminal case stand?

Trump is at the center of at least four separate criminal investigations, at both the state and federal levels, into matters related to his business and political careers. Here is where each case currently stands .

What else we’re watching

We’re still waiting for a major decision by the Supreme Court on how it plans to handle Trump’s attempts to challenge federal charges accusing him of plotting to overturn the 2020 election with a sweeping claim of presidential immunity. The court’s decision could come at any time.

Later tonight — possibly quite late — we’ll get our first look at Trump’s legal motions to dismiss the classified documents case. He has promised to file as many as 10 separate motions amounting to up to 200 pages, but some of them may not come until next week or so.

More Trump coverage

Democrats are trying to reassemble an anti-Trump coalition. But some liberals say they are feeling fatigued .

Trump is promoting the “Never Surrender” sneakers, $399 hightops that our fashion critic described as a dangerous “ merching of the moment. ”

Trump allies are planning ways to restrict abortion access if he’s re-elected, including by criminalizing the shipping of abortion pills.

Nikki Haley, J.D. Vance or Vivek Ramaswamy: See a list of possible contenders to be Trump’s running mate.

Thanks for reading the Trump on Trial newsletter. See you next time — Alan and Maggie.

Read past editions of the newsletter here.

If you’re enjoying what you’re reading, please consider recommending it to others. They can sign up here.

Alan Feuer covers extremism and political violence for The Times, focusing on the criminal cases involving the Jan. 6 attack on the Capitol and against former President Donald J. Trump.  More about Alan Feuer

Maggie Haberman is a senior political correspondent reporting on the 2024 presidential campaign, down ballot races across the country and the investigations into former President Donald J. Trump. More about Maggie Haberman

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Remarks by President   Biden on the Saving on a Valuable Education Plan | Culver City,   CA

Culver City Julian Dixon Library Culver City, California

1:18 P.M. PST

THE PRESIDENT:  Thank you, thank you, thank you.  (Applause.)

Well, Dr. Saint-Paul, thank you very much for that introduction.  But, you know, you’re — you’re like thousands of others who — who took out loans for undergraduate school and graduate school and — because you wanted to serve your community, and you have.

But, in the meantime, that $90,000 you borrowed grew to $145,000, even though you kept paying on a monthly basis.

Folks, I’m happy to have been able to forgive these loans because when we realize and relieve Americans of their student debt, they’re free to chase their dreams.

And, Doc, you’ve got one of your dreams: your baby girl.  And a — and by the way, an awful lot of people with student debt are putting off whether they can have a child, whether they can — a whole range of basic, basic, fundamental issues.

And, Mayor Bass, thank you for your partnership and, more importantly for me, your friendship.

And I want to thank the Culver City Mayor.  Where are you, Mayor?

MAYOR MCMORRIN:  Right here.

THE PRESIDENT:  Thank you.  (Laughter.)  Thank you, thank you, thank you. 

It’s great to — and it’s great to be joined by members of Congress: Alex in the Senate and Sydney in the House.  I really appreciate you being here.  It’s a busman’s holiday for you guys to come hear another public official speak, but thank you.

And I know our great Vice President sends her love to all her California friends.  She constantly — all I hear about is California, you know?  (Laughter.)  No, I’m glad to be here.  When I was vice president, all I heard about was Chicago, you know?  (Laughter.)  But I’m making — trying to make sure they hear about Delaware, but it ain’t working yet.  (Laughter.)

Look, Kamala and I ran to lead this country.  We made a commitment to fix our broken student loan system.  That was one of the things we both talked about in the beginning.  Because while a college degree is still a ticket to a better life, that ticket is too expensive.   And too many Americans are still saddled with unsustainable debt in exchange for a college degree.

So, there was a student loan program to be able to afford a college degree, but a lot of people didn’t take advantage of it.  What — and I wanted to make sure they did.

The ability to repay, though, has become so burdensome, a lot of people can’t even repay.  And they try.  They — they don’t miss payments.  They work like the devil every month to pay their bills.  But even if they pay their loans, their debt increases.  It doesn’t diminish because of interest rates.

And I thought I’d — make a lot more sense to relieve student debt for families and it would grow our economy. 

Well, there’s a — were existing programs in the law.  To fix and adjust the programs, we had — we had to change them to make people actually — make them available for — make people eligible.  And that’s what I’ve done when the Supreme Court said I couldn’t go ahead and relieve all the debt.

It helps everyone, not just the people whose debt is relieved.  But when people with student debt are re- — student debt relieved, they buy homes, they start businesses, they contribute.  They engage in the community in ways they weren’t able to before.  That actually grows the economy.  It grows the economy.

That’s why my — my administration is taking significant action to provide student debt relief to so many borrows — borrowers that — many of whom didn’t know they were — they were able to get relief, and do it as quickly and as — as possible.

Look, early in my term, I announced a major plan to provide millions of working families with debt relief for their college student debt.  Tens of millions of people in debt were literally about to be canceled — their debts.  But my MAGA Republican friends in the Congress, elected officials, and special interests stepped in and sued us.  And the Supreme Court blocked it.  They blocked it.

But that didn’t stop me.  I announced we were going to pursue alternative paths for student debt relief for as many borrowers as possible.  And that’s the effort that’s been underway the last two years.

I fixed what’s called the “SAVE Plan.”  It existed, but I fixed it to make it the most affordable repayment plan ever.

Before I took office, student borrowers had to pay 10 percent of their discretionary income on a monthly basis.  If they made less than — if they didn’t have enough to do that, they were able to not have to pay that month, but the interest continued.  A lot of people don’t have the means to do that, though.

Under my SAVE Plan, we’re cutting in half to 5 percent the undergraduate borrowers — what undergraduate borrowers have to pay after their living expenses are accounted for.

That means no one with an undergraduate loan, whether it’s a community college or a four-year college, will have to pay more than 5 percent of their discretionary income to repay those loans starting in July.  And that’s income after you pay the ne- — for necessities like food and housing. 

Already 7.5 million Americans have enrolled in this so-called SAVE Plan.  And there’s more than 4 million of those borrowers had their monthly payments drop to zero if they’re living paycheck to paycheck, below a certain level.

This plan is the most generous repayment program ever, and today we’re doing it even faster and quicker than ever before.

I’m proud to announce our SAVE plan.  We are immediately canceling the debt loans for over 150,000 borrowers nearly six months ahead of schedule.

Starting today, we are canceling student debt for borrowers who are enrolled in the SAVE Plan and have been paying student loans for as little as 10 years.  If they took less than tw- — if they borrowed less than $2,000, it’s forgiven — they — $12,000, excuse me, it’s for- — the loan is forgiven.

This action will be a huge help to graduates of community college and borrowers with smaller loans, putting them back on track faster for debt forgiveness than ever before. 

And this builds on other progress I’ve made in canceling student debt for close to 4 million Americans through various actions. 

For example, we fixed what was called the Public Service Loan program — Loan Forgiveness program, which was designed to make sure that school teachers, firefighters, law enforcement officers, social workers, public servants get their student loans forgiven if they make payments for 10 years in a row and the 10 years of public service at the same time.

When I took office, there were 7,000 public servants who had taken advantage of this program and had them forgiven, but thanks to the reforms we made in the program, now there are nearly 800,000 have had their debts forgiven — 800,000.  (Applause.) 

Look, let me close with this.  This is — kind of relief can be life-changing for individuals and for their families.  And it’s good for the economy as a whole.

By freeing millions of Americans from the crushing debt of student loan programs, it means they can finally get on with their lives instead of getting — their lives being put on hold.  They can think about buying a house, starting a home, starting a family, having a family future that they can enjoy, or saving for the family’s future — saving and being able to put away a little bit of money.

I’m proud to have been able to give borrowers, like so many of you, the relief you earned.  I promise you I’m never going to stop fighting for hardworking American families. 

 So, if you qualify, you’ll be hearing from me shortly.  Thousands of people per month are eligible — about 25,000 a month are eli- — or every two months — it will be paid at a 50,000 basis — but are eligible for relief, and they’ll be getting a letter from me letting them know they’re qualified.  And when they get that letter, your debt is going to be forgiven.

Look, folks, and it’s also helping you who don’t go to college.  It’s not just — you know, people say to me sometimes, “Well, Joe, that’s great, you’re helping people get into college, but how about all those hardworking people you grew up with in the neighborhood?  How about all those folks in labor unions?  How about all those hardworking people that work with their hands, why should they…”

Well, just today, my Labor Department announced 200 — this is not the student loan program, but $200 million in grants for registered — registered apprenticeship programs around the country — while you can learn a skilled trade and lead to good-paying jobs.

You know, everybody thinks if you’re an electrician, you — you say, “I want to be electrician,” and you’re all — you got to go to school, basically.  These apprenticeship programs are four and five years before you qualify to have a license.  They work like hell to get these licenses. 

And guess what?  If you work with your hands, you ought to be able to make a decent living.  And that’s why they’re doing it now with my prop- — my — my position on organized labor.

So, it matters.  All of this matters.

My dad used to say, “Joey, a — a paycheck is about more than — a job is about more than a paycheck.  It’s about your dignity.  It’s about opportunity.  It’s about being able to look your kid in the eye and say, ‘Honey, it’s going to be okay.  You got a chance.’” 

That’s all we’re doing — and people are taking advantage of it — giving people a chance, a fighting chance to make it, because no one who’s willing to work hard in America should be denied the opportunity to have that chance.

And so, I — how many of you had student loans forgiven here? 

All right.  (Laughter.) 

I tell you what, how about anybody over $10,000?  $30,000?  $50,000?

AUDIENCE MEMBER:  Next month.

THE PRESIDENT:  Next month?  Okay. 

Anyway.  Seriously, thank you. 

And people have to understand: You not only did the right thing by busting your neck and going back to school and doing as well as you did in school, but you’re breaking your neck for people.  You’re doing it through programs that benefit the society — benefit the American people. 

Just like I got criticized not long ago for being too favorable on organized labor and unions.  Well, they’re the best workers in the world.  They’re the most qualified technicians in the — no, they really are.  They really are.  

And — (applause) — and the economy is growing.  It’s growing — jobs, income — across the board.  We have the most advanced economy of any major nation in the world.

We’ve got a lot more to do, but with the help of all of you college graduates who — who have paid off your student loans now, I’m confident we’re going to get it all done.

Thank you, thank you, thank you, thank you.  Appreciate it.  (Applause.)

Q    Do you worry this will get shut down in court? THE PRESIDENT:  I don’t have a worry at all. 1:29 P.M. PST

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How to Write a Cannabis Business Plan (+ Template)

Business Plan-MB

Creating a business plan is essential for any business, but it can be especially helpful for cannabis businesses that want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every cannabis business owner should include in their business plan.

Download the Ultimate Dispensary Business Plan Template

What is a Cannabis Business Plan?

A cannabis business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Cannabis Business Plan?

A cannabis business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Cannabis Business Plan

The following are the key components of a successful cannabis business plan:

Executive Summary

The executive summary of a cannabis business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your cannabis company
  • Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

If you are just starting your cannabis business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your cannabis firm, mention this.

You will also include information about your chosen cannabis business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a cannabis business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

  • What part of the cannabis industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a cannabis business’ customers may include medical patients, recreational users, and cannabis businesses (e.g., growers, manufacturers, dispensaries).

You can include information about how your customers decide to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or cannabis services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will differ from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your cannabis business may have:

  • Experienced management team
  • Licensed and compliant
  • Diversified product line
  • Well-funded
  • Strategic partnerships

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

  • Product/Service : Detail your product/service offerings here. Document their features and benefits.
  • Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your cannabis business via PR or at industry events.

Operations Plan

This part of your cannabis business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a cannabis business include reaching $X in sales. Other examples include launching a new product line, expanding to a new state or country, and partnering with a major industry player.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific cannabis industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue : how much revenue you generate.
  • Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Cannabis Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All of the things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Cannabis Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include cash flow from:

  • Investments

Below is a sample of a projected cash flow statement for a startup cannabis business.

Sample Cash Flow Statement for a Startup Cannabis Business

You will also want to include an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your cannabis company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A business plan is an essential tool for any cannabis company business owner. By having a well-thought-out business plan, you increase the chances of your cannabis company being successful.  

Finish Your Cannabis Business Plan in 1 Day!

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  27. How To Write A Cannabis Business Plan + Template

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