A business plan is highly recommended while starting a company. It is essential for any company. Either you are starting a cannabis business or getting a license, you need a cannabis business plan. Writing a good business plan is not easy. It requires a lot of planning, research, and time to make a plan that particularly suits the cannabis industry.
Here are the essential steps your cannabis business plan must include:
Executive Summary:
The executive summary of your cannabis business plan needs to be short and precise. Keep it about 1 to 2 pages. Don’t neglect this section because the investors will read this very closely and decide whether they should invest in your business or not. The content should summarize your company overview and entire business plan, be precise but fact-based. Highlight the key points of the business that matters most to the readers to properly understand what you offer, why, who you are, and the problems your business solves? Once concluded, it can stand alone as a summary of your complete business plan.
Company and management team:
This section of your business plan includes leaders, owners, key employees, advisors, business partners, extended staff, and consultants. This is more than about bios and backgrounds. It includes a description of key roles, responsibilities, and an outline of the reporting structure of the organization. Also, additional information about any investors in the company section of your cannabis business plan. Describe well the roles, knowledge, and expertise of your team that adds success to your company. The aim is to ensure that you have the best and strong team that is highly professional and unlikely to let the business fail.
Competition:
When you clearly describe your company’s place within the industry, your competition becomes clear. Every business has competition and to say that “there’s no competition” shows a lack of understanding and immaturity to the investors. The best way to define your competition is to analyze and highlight those who stand out within the industry or have an amazing proposition value. This section is also a great place to show research that you have done on other leading companies working in the cannabis industry. While reading this section, the investor will know instantly that you have invested a good time to research your competition and also build strategies to do better than them.
Sales and marketing:
Here’s the section you describe your marketing strategies and selling the product. Marketing is a promotional effort to create more potential clients while selling is about making sales from customer’s interest. The investor wants to know that how your company will generate sales and who your clients are. Make sure to focus on your marketing section because it can make or break your business plan. A solid marketing plan can help you to build a sustainable and repeatable path for the customers, which is the most critical aspect of any cannabis company.
Financial plan:
The most important section of any business plan is the financial plan. Whether you are seeking investment from an investor, bank, or any other source, you need to show where your money will be allotted. Create a detailed financial plan with operating cost, budget, revenue forecast, profit, and loss statement, projected cash flow statement, and balance sheet. Make sure to focus on both profit and cash flow.