Cannabis and Hemp Marketing Agency Business Plan

Cannabis Marketing: Some Facts and Stats

The legalization of cannabis has opened up a promising market for many businesses and organizations. This market has not yet defined a convenient, affordable, and comprehensive system with which to network with and advertise to existent and potential players in the industry. This problem is reinforced by the large number of new entrants to the industry – including both startups and established companies looking to expand their profile.

Google, Facebook and Twitter all have advertising policies that restrict the promotion of the sale of cannabis. Google’s policy prohibits ads that promote “substances that alter mental state for the purpose of recreation.” Facebook restricts any “illegal, prescription, or recreational drugs.” And Twitter bans “illegal drugs” as well as substances that cause “legal highs.” Instagram and Facebook have decided to go a step further by removing pages of cannabis related businesses.

The source of this problem lies partly in the need for industry participants to navigate legal restrictions (including those related to advertising) and partly in the tendency of both principal industry members and ancillary providers to maintain a low profile. Hence, the industry is characterized by tighter networks who are likely not accessing the best possible deals for their operations or the clients in need of their products/services.

Based on the report “Cannabis Digital Marketing Survey: How Cannabis Marketers Are Chasing Their Share of a $32 Billion Market”, released by New Frontier, the majority of cannabis marketers who participated in the survey classified their individual companies in the “small business” segment with 67% reported having less than five people on a marketing staff, and 47% had a marketing budget of less than $50,000.

Why Do You Need a Cannabis Business Plan?

To start your journey, you will need a Cannabis and Hemp Marketing Agency Business Plan, an important tool for running your business and attracting investors. As the cannabis industry grows, so does the competition and the investment needed to start, and you will need a solid cannabis business plan, while it can also increase your profits because it helps you get organized.

A cannabis business plan contains both common parts with other industries and specific sections that are important for cannabis operations and licensing depending on your business activities. The cannabis financial model is a necessary part and foundation of the financial section of a business plan and should be the starting point when writing a cannabis business plan. A good business plan and presentation reflects business goals and strategies, market analysis, operating plan, organizational structure and financial information. The business plan covers five to seven years in advance and guides the reader along the path of the expected evolution of the business.

Cannabis Marketing Business Economics

Initial investments range from the cost of website development to $1 million to cover start-up costs and ongoing costs until profitability is achieved. These funds should be sufficient to allow the business to achieve its business goals and provide a satisfactory cash safety cushion for the business. By investing primarily in developing a quality website, marketing, and business set-up, a marketing agency usually expects to penetrate the market and establish a substantive client base within a one-year time frame.

Calculate cannabis marketing agency costs and profits with our pre-populated cannabis and/or hemp marketing agency financial model. All you have to do to get started is enter the size of your premises and your target annual income. The model will help you estimate how much it costs to start and operate your own cannabis business, build all revenue and cost line-items monthly over a flexible seven year period, and then total the monthly results into quarters and years for an easy view into the various time periods.