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A Marijuana Dispensary Business Plan in Four Steps

By Richard Farrell 04/25/2014

With cannabis-friendly states limiting the number of licenses to the extent they are, it pays to provide a comprehensive dispensary business plan with your application. You have to convince them that you know what you are doing, and that your plan to provide marijuana to the public will work. While the finished document may turn out sixty pages long, remember not to pad. Every point must count. You cannot afford to lose credibility for a nanosecond. We are here to help with advice.

Executive Summary

This is the introductory part. It must build a good case on its own, or else the officials pay not bother to read further. A good one wins the argument on its own. You should provide:

  1. A letter from the executive director, outlining why the applicant is a worthy weed provider with the necessary commitment and skills

  2. A mission statement that encompasses the primary objective, the target customer base, and a reference to profitability

  3. Your primary goals and objectives within this umbrella statement follow next. Show these on a timeline indicating critical dependencies

  4. An analysis of the business site(s) including proving that there are sufficient marijuana users in the catchment area to create critical startup mass

  5. Append short bios and goal statements detailing the contributions of every member of the team including investors and consultants if used.

Core Business Plan

This is where you get stuck into the numbers. How big is your weed customer-base likely to grow? How will you find sufficient staff and resources to keep up with expansion? Who is going to do what to make sure that you meet state and city legalities? Weave their regulations for marijuana dispensing into this section. Demonstrate that you understand the regulations thoroughly. Conclude by quantifying the opportunity that you are tapping into, and that your rollout plan is comprehensive.

Financial Plan

You write this part for the financial people on the assessment team. Don’t talk them down even if they are ignorant about marijuana or personally against the idea. Explain how you are going to source the best weed strains, how you are going to structure your medical and social marijuana sales, and why you are going to provide value for money as a community service. Make sure they understand how you are going to filter illegal customers out and prevent theft. Mention your take on renewable resources, before closing the section with a detailed, two-year financial forecast. Be prepared to justify your numbers when asked, because they will.

Practical Details

The administrative matters you discuss depend largely on your circumstances and your local cannabis law. Try to avoid delays by attending to the things the officials may ask. Use the following as a checklist.

  1. The customer profiles you are going to target and the marketing plan you will use to reach them

  2. A detailed build out plan showing storage and customer areas, and details of your emergency plan

  3. A fire-risk assessment by a competent person, their recommendations, and how you will implement these

  4. Your governance and management plan detailing how you will delegate responsibilities in your organization.

Is it Worth the Trouble?

Of course it is. There is good money to be made from owning a marijuana dispensary. However the competition is fierce and you need to give it your very best shot. Good luck with your endeavors. The Weed Lynx Team.

XXXXX

http://dispensarypermits.com/dispensary-plans/dispensary-business-plan

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