Cannabis Retail Market Size
Spending on legal cannabis worldwide is expected to reach about $57 billion by 2027. The recreational cannabis market will cover about 67% of the spending, with medical cannabis taking up the remaining 33%. This puts global annual recreational cannabis sales at approximately $40 billion by 2027, a 60% increase from the current $25 billion. The growth in recreational cannabis sales will be largely driven by ongoing policy reform in the US and Europe.
Why Do You Need a Cannabis Dispensary Business Plan?
A cannabis dispensary business plan is an important tool for running your business and attracting investors.
A cannabis dispensary business plan will help you obtain a license and financing. As the cannabis industry grows, so does the competition and the investment needed to start, and you will need a solid cannabis business plan. And it can also increase your profits because it helps you get organized. Most states require an address on the application of where you intend to set up your facility. This allows the licensing committee to verify the location meets all the requirements and restrictions. However, this also means you will need to have the place rented out or purchased before the application is submitted.
Cannabis retail business conditions differ from country to country and state to state and if you have planned to set up your own retail business, then you must comply with the laws of your particular location. Licensing requirements will also depend on the type of business you wish to start. Cannabis dispensaries sell cannabis and cannabis products through brick-and-mortar stores and/or delivery, depending on license and local cannabis laws. Typically, dispensaries provide delivery services using their own delivery agents or licensed couriers. Our cannabis dispensary business plan template is suitable for both options or a combination of both (storefront with delivery service). Check whether a cannabis delivery service is legal in your state and if you need to apply for approval to add a delivery permit.
A cannabis non-storefront retailer sells cannabis goods to customers only through delivery and requires a physical commercial location to securely store on its premises cannabis and cannabis products that have been purchased at wholesale for eventual resale to consumers.
Cannabis Dispensary Economics
Profit margins in the retail side of the cannabis industry are more modest than for other types of cannabis business due in part to the fact that average startup costs for dispensaries are higher than other sectors of the marijuana business. Median operational costs for retailers are also the highest in the industry, at around $600,000 annually.
According to a 2016 MJBizFactbook study, average sales per square foot were $1,773 for recreational stores and $1,143 for medical dispensaries, while reasonable expectations at this point are around $1,000 per square foot, but may reach $3,000, especially in new markets. More established operations boast 40-50% profit margins, while newer shops may only see 20% due to their lack of strategic partnerships and vendor relations.
The initial capital to start a retail cannabis business depends on many factors: license type, store size, location, and your goals and objectives. For example, let’s say your goal is to achieve an annual income of over $1 million, or around $200,000 is also appropriate.
Retail Microbusiness
Retail Microbusiness with a total area of 1,000 sq. ft, rented; 50% of sales are from delivery. Investments (50/50) = $200,000.
Revenue | +$1,417,500 |
Direct Costs | -$664,848 |
Gross Profit | =$752,652 (53%) |
SG&A Expenses | -$305,027 |
Operating Income (EBITDA) | =$447,625 (32%) |
Net Income | $237,115 (17%) |
Retail Store
Retail Sore with a total area of 5,000 sq. ft, rented; 30% of sales are from delivery. Investments (50/50) = $1,000,000.
Revenue | +$5,775,000 |
Direct Costs | -$2,560,783 |
Gross Profit | =$3,214,217 (56%) |
SG&A Expenses | -$1,010,183 |
Operating Income (EBITDA) | =$2,204,034 (38%) |
Net Income | $1,269,850 (22%) |
Calculate the costs and profits of your retail cannabis business with our pre-populated cannabis dispensary financial models. All you have to do to get started is enter your monthly sales target and dispensary size. The model will help you estimate how much it costs to open and operate your own cannabis dispensary, plot all income and expense items monthly over a flexible seven-year period, and then summarize the monthly results by quarter and year for easy viewing.
Cannabis Dispensary Business Plan
We also offer Word document and PowerPoint pitch deck templates for your cannabis retail business.
EXECUTIVE SUMMARY
Project Scope
Market Opportunities
Start-up Summary
Financial Projections
COMPANY DESCRIPTION
PROJECT SCOPE
Mission/Vision/Goal
Objectives
Products & Services
Key Customers
MARKET OVERVIEW
Global Market Overview
North American Cannabis Market
Cannabis Market in the US and Brief State Market Overview
Cannabis Retail Sector Projections and Perspectives
SWOT Analyses
STRATEGY & IMPLEMENTATION
Online Advertising Obstacles
Alternative Online Advertising Options
Marketing Plan
Cannabis Directories
Launching Strategy
Sales Forecast
OPERATIONAL PLAN
Location/Facilities
Equipment
Project Plan
Physical Security Plan
Video Surveillance
Packaging and Labeling
Tracking Solution
ORGANISATIONAL STRUCTURE & MANAGEMENT
FINANCIAL PROJECTIONS
Funding Analyses
Direct & Operational Costs
Profit & Loss Forecast
Cash Flow Statement
Balance Sheet
Main Ratios
APPENDICES
Income Statements, monthly
Cash Flow Statements, monthly
Floor Plans
Cannabis Dispensary Business Plan
If you are going to start a Cannabis Dispensary Business with or without delivery service, the Cannabis Dispensary Business Plan Template will help you create a professional business plan as part of your cannabis retailer license application and prepare for a meeting with potential investors.
We also offer:
The Cannabis Business Plan Template includes: Excel financial model that you will be able to edit and customize according to your business needs Word business plan document template, open and editable PowerPoint pitch deck template, open and editable Unlimited support (email)
All products can also be purchased separately or in any combination, e.g. Word document + PowerPoint presentation and so on.
Should you have any questions, please do not hesitate to contact us.
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Cannabis Dispensary Business Plan Sample FAQs
What is a business plan format?
It explains your business goals, strategies for achieving them, and market analyses to support your plans.
What does a Cannabis Dispensary Business Plan Template include?
Our ‘70% ready to go’ cannabis dispensary business plan template is all you need. It includes a document template, pitch deck, financial model with step-by-step guide and a cannabis dispensary business plan sample.
We also offer CBD Products Retail/Online Store Business Plan Templates at hempcbdbusinessplans.com.