Creating a Cannabis Business Plan

cannabis business plans

Creating a Cannabis Business Plan

Cannabis Business Plan – Where to Start

Trying to start your cannabis business plan? It’s one of the most important documents you’ll create when it comes to the success of your business, so it’s worth putting in some time to get it right. Not only should this lay out all the details of how you’ll pull off your big cannabis business idea, but it is also the document that investors will look at to decide whether your business is worth taking a risk on.

At Higher Yields Consulting, we’ve helped many entrepreneurs to craft successful business plans that entice investors and set up a business for success. So, we thought we’d share some tips on how to create a business plan that makes investors take notice.

Gather All The Pieces for s Successful Cannabis Business Plan

Once you have a strong idea for your cannabis business, you’ll want to spend some time figuring out what you need to make it happen. You may already have some pieces of the picture in place, so start with what you have and then figure out what else you will need. Perhaps you already have a strong team, but need to find a piece of real estate to operate from. Maybe you already have a piece of land, but you need a financial partner to fund development of the property.

Get together the details of everything you need to make this cannabis businessplan to work, such as real estate, a strong team, a business strategy, and well developed financials. If you find something is missing, research and then describe what it will take to obtain it. This could mean spelling out the cost of the real estate you’d like to purchase, or the cost of recruiting that expert you need on the team. Whatever it is, if it is required to make your business function, it should be included in one way or another in the business plan.

Create a Strong Strategy with Cannabusiness Financial Plans

Creating a strong strategy with realistic financials is also a huge part of the battle when it comes to making a successful business plan. Your investors want to know that you have a strategy for how to create and sustain this business in its current market. Consider how your business will stand out from the crowd? Do you have any competitive advantages when compared to the competition? How will you grow your brand and market share over time? Developing this part of the plan can take a lot of creativity and business experience. But, it is also the part of your plan that lays out how you will move forward. If it isn’t well developed – you probably aren’t ready to start a business. If you aren’t confident in what you have, find help from consultants or other experts in the field to develop something great.

Include an Exit Plan

One of the most important parts of a business plan, from an investor’s point of view, is the exit plan. You might think it’s bad form to talk about what might go wrong in your business, while trying to convince an investor to fund your project. But actually, this is one of the key aspects of the plan that investors look for. While your investor might believe in the business and its potential for success, they also know that 90% of startups fail, and this one might too. So investors want to know that there is an exit strategy for how to recoup costs if things don’t go to plan. This might be as simple as reselling or leasing the property that was being used, or even selling off your cannabis license to a bigger player in space. So look over the assets you have or want to acquire. What could you do to recoup funds if things go south and you need to shut down?

Get Help Filling in the Gaps

It’s not at all unusual for an entrepreneur to feel overwhelmed by the task of creating a business plan. It’s a big task with a lot of complex pieces, and it requires expertise in a lot of different areas. If you are doing it by yourself, you’ll likely find there are gaps in your knowledge where experts might be able to offer assistance. There is no shame in asking for help. This business plan will set up your entire operation for success or failure so find help from consultants or other experts to fill in the gaps.

When we work with clients at Higher Yields Consulting, we utilize our experience to help steer them in the right direction. We’ve been through business plan creation so many times, and can help clients develop a strong strategy, build solid financials and avoid common pitfalls in the planning process. We can even help navigate tricky questions like how much equity to preserve while still making an enticing offer to investors.

If you need help crafting your business plan, contact us to see how our team of consultants can help you create a plan that will stand out from the crowd and make investors want to sign on the dotted line.

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Higher Yields Cannabis Consulting

Higher Yields Cannabis Consulting

Higher Yields Consulting is a Marijuana Consulting Group comprised of industry experts with decades of combined experience in the legal industry. Whether you are looking to get into the business or already have a license we can help your business succeed. Call (844) HI-YIELD to schedule a free initial consultation.

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Cannabis Business Planning 101: Finding Your Big Idea

Cannabis Business Plan

Cannabis Business Planning 101: Finding Your Big Idea

Planning For Your Big Cannabis Business Idea

The green rush is here. With more and more areas in the US and abroad shifting their policies to allow for legal cannabis, the marijuana industry has become the fastest growing industry in the world. Still, while many want to get involved with the space and cash in on the rapidly expanding market, not everyone has found a big cannabis business idea that can can stand out against the competition. Let our consultants help you understand proper cannabis business planning from the ground up.

At Higher Yields Consulting, part of our work is to help cannabis entrepreneurs brainstorm big ideas that can bring even bigger returns. So we thought we’d share some of the basic steps you can use when brainstorming your own big idea. 

Assess Your Expertise – Do You Need a Cannabis Business Consultant?

When we work with clients on brainstorming business ideas, we usually start by assessing their team and the expertise they bring to the table. So to get started with your own brainstorming session, consider the backgrounds of the people on your team. What skills do they have which might transfer to the cannabis industry? If someone comes from real estate, this could be helpful for more real estate driven business models. Does your team have a background in sales? Perhaps distribution is a good fit. Come from a manufacturing background? You might do well with extraction or product manufacturing. Got a talented chef in the mix? Try doing something with edibles. Will you need to bring in cannabis business consultants to help you accomplish your goals?

Whatever skill sets are present on your team should be the starting point for your brainstorming process. There is no point moving forward on a brilliant business idea, if your team won’t be able to actually pull it off. So make sure you design a plan that speaks to your expertise and feels like something you can make happen.

Cannabis Business Planning – Understand Your Market

While it’s key to start with your own teams expertise, you also have to find an idea that fits into the market you are working in. Even if you craft the perfect plan for your team, if it doesn’t work well in your particular area, it’s just not the right idea. So you will also have to look at where you are at, and how to modify your plans so that they make sense in that context.

Part of this stage is looking at the cannabis services already available in your market. You want to notice if there are gaps (areas where a service or product is needed) or areas of over saturation.

For example, in Colorado there is an over saturation of cannabis cultivators, but much fewer cannabis dispensaries. In this market you can make a lot more money opening up a cannabis shop than you could trying to compete as a cultivator with a stand-alone grow facility. So if cultivation is your team’s skill set, but your in Colorado, a market that is over saturated with cultivators, you’ll need a good plan. You might consider a plan that includes vertical integration so you can cash in on your growing skills by selling your cannabis through your own storefront. These market factors can be the difference between success and failure, so you should always take them into account when you are brainstorming your big idea.

Calibrate Your Financials

Finally, it’s important that your idea has the financials to support it. It’s great to dream big, but you need to have a realistic plan for reaching those big goals. If you know you have a certain budget, make sure that your plans are achievable within that budget. If you are courting investors as part of the process, you’ll need to have a strong business plan with a financial strategy that shows you understand what it will take to make your idea happen, and how much return your investors can expect to get back. Your numbers need to make sense with your plan and show that the business can be profitable. This will not only put investors at ease and increase the likelihood that they will want to invest, it will also ensure that your plan has it’s best chance at success. All in all, it will save you a world of heartache and stress later down the line.

If all this sounds like a big project, it certainly can be. Planning a successful new business isn’t a simple task. After all, 90% of new startups fail. That’s why getting advice and insight from expert consultants can be a big help. From brainstorming, to sharing insider knowledge about the different cannabis markets, to assisting with the complicated financial planning, our consultants have a lot of experience with this part of the process. Feel free to contact us for help or advice on finding your big idea.

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Higher Yields Cannabis Consulting

Higher Yields Cannabis Consulting

Higher Yields Consulting is a Marijuana Consulting Group comprised of industry experts with decades of combined experience in the legal industry. Whether you are looking to get into the business or already have a license we can help your business succeed. Call (844) HI-YIELD to schedule a free initial consultation.

The Latest from our cannabis consulting blog