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.
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.
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.
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?
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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