Despite all the challenges, regulations and roadblocks the cannabis industry faces, the vast majority of marijuana companies are actually doing well financially. Nearly 90% of operating dispensaries and recreational marijuana stores, infused products companies and wholesale cultivators – the three pillars of the MJ trade – report that they are profitable or at least breaking even, according to the 2016 Marijuana Business Factbook.

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.

Luxury jewelry - 3017$
High-End athletic wear - 1936$
Recreational cannabis store - 1773$
Medical cannabis dispensary - 1143$
Boutique shoe store - 887$
Pharmacy - 241$

Cannabis Dispensary Business Plan

The Cannabis Dispensary Business Plan is an essential document if you own or are going own a medical marijuana dispensary. If you are applying for a dispensary permit or are interested in obtaining funding, the dispensary business plan is also a vital document to have.

Cannabis dispensary business conditions differ from state to state and if you have planned to set up your own dispensary business, then you must comply with the laws of your particular state. Licensing requirements will also depend on on the type of business you wish to start. Someone who operates a grow house will require a completely different type of license than someone who owns a marijuana dispensary.

CANNABIS DISPENSARY FINANCIAL MODEL

The initial capital to start a dispensary business depends on many factors, including location, premises size, your goals and objectives. For example, your goal is to reach the annual revenue more than $1 mln or under $100,000 is also appropriate. For these two goals there will be different initial CAPEX and OPEX:

 $100,000 Scenario

  • $5,000 Application fee (depends on state, one-time application and annual license fees typically range anywhere from $5,000 to $50,000 for dispensaries and tend to be much higher for cultivation licenses)
  • $18,000 for six months rent
  • $20,000 for a space improvements
  • Deals with growers, often costing nothing more that a percentage of the sale from their product, for dispensaries it will be approximately 33%
  • $400 for display cases
  • $50 office supplies
  • $150 for security system
  • $75 for a sign
  • $300 for product bottles and $31 for jars to store the products (again, thrift shops)
  • $50 on labels (all white)
  • plus salaries for manager and guard

= approximately $50,000-$65,000 start-up expenses

$1 mln Scenario

  • $50,000 Legal Fees & Licensing & Insurances
  • $250,000 Building renting (includes security deposit)
  • $70,000 Inventory, packaging supplies
  • $2,500 Website design and development, hosting
  • $70,000 Marketing Campaign
  • $100,000 Space improvements including finishing/painting, kitchen, office space, bathrooms, etc.
  • $20,000 Security system including multiple camera feeds and metal/weapons detectors
  • $50,000 Furniture, Display Counters, Refrigerators, Freezers, Multiple POS/ Cash Registers, Registration Computer, Commercial Label Printer, Storage Hardware and Shelving, etc.
  • $7,000 Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, etc.)
  • plus salaries for director, managers and guards

= approximately $750,000-$1,000,000 start-up expenses

Average sales per square foot for a recreational marijuana store is $1,773 and $1,143 for a medical marijuana dispensary. 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.

Sample of a revenue model for a California dispensary:
Revenue = $1,000,000 (100%)
-Direct Costs = $350,000 (35% if you mix own product line and vendors, 55% if case of only vendors product line)
Gross Profit = $650,000 (65%)
– Operating Expenses = $300,000 (30%)
Operating Income = $350,000 (35%)

Our Cannabis Dispensary Business Plan is prepared based on the existing knowledge of consultants regarding the Medical and Recreational Cannabis Industry in general and is specific to the country and state.

Table of Contents

EXECUTIVE SUMMARY
  • Project Scope

  • US Market

  • Target Market

  • State Cannabis Laws

  • Start-up Summary

  • Financial Projections

COMPANY DESCRIPTION
PROJECT SCOPE
  • Mission/Vision/Goal

  • Objectives 

  • Products & Services 

  • Key Customers

MARKET OVERVIEW
  • Market Overview

  • Target Market

  • Competition

  • Competitive Advantages

  • Revenue Benchmarks

  • Cannabis 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
  • State Medical Marijuana Laws

  • Facilities

  • Location

  • Equipment

  • Legal Plan

  • Project Plan

  •  
ORGANISATIONAL STRUCTURE & MANAGEMENT
FINANCIAL PROJECTIONS
  • Profit & Loss Forecast

  • Cash Flow Statement

  • Balance Sheet

  • Main Ratios

  • Sensitivity Analyses

APPENDICES
  • Income Statements, monthly

  • Cash Flow Statements, monthly

  • Statistics

Please do not hesitate to contact us to make an order for a cannabis business plan or a cannabis industry research. We will create complete and professional business plans, including pro forma financials and projections to help you know how much money it’ll cost to start your business and how much money you can make by starting and operating your 100% legally compliant medical and recreational marijuana business.

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