Cannabis Testing Laboratory Business Plan

Cannabis Testing Sector: Some Facts and Stats

Cannabis testing laboratory business is by far the smallest segment of the industry when measured by number of companies. But the work labs perform is critical from a health and safety perspective, as these companies test for everything from pesticides to potency. Lab-tested cannabis is a requirement in nearly every state that regulates marijuana businesses, though no federal or industrywide standards exist.

For the past two years, a majority of testing lab survey participants have indicated high- pressure liquid chromatography is their primary testing method, and that holds true this year as well. While it is still the most prevalent technique, the portion of companies that utilize high-pressure liquid chromatography has fallen from 63% last year to 50% this year.

Global cannabis testing laboratory market is projected to grow by over $950 million by 2025, driven by a revised compounded annual growth rate (CAGR) of 9.6%. The growth in this market is mainly driven by legalization of medical cannabis, coupled with the growing number of cannabis testing laboratories.

Potency 95%
Pathogens 84%
Residual Solvents 60%
Heavy Metals 38%
Homogeneity 30%
Other 11%

Why Do You Need a Cannabis Testing Business Plan?

A cannabis testing 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 testing 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.

A cannabis testing business plan is an important tool for running your business and attracting investors.

Cannabis Testing Business Economics

Startup costs are often higher for testing companies vs. other cannabis businesses, however operational costs much lower making it easier to turn a profit. A testing equipment will cost approximately $700,000 depending on productivity.

Additional costs include but aren’t limited to buildings, licensing, or the infrastructure, materials and wages for chemists and laboratory technicians that will be needed to operate that equipment.

Calculate cannabis testing lab costs and profits with our pre-populated cannabis testing laboratory 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 testing 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.

Cannabis Testing Laboratory Financial Model Sample

Cannabis Testing Financial Model

Cannabis Testing Laboratory Business Plan

We also offer Word document and PowerPoint pitch deck templates for your cannabis testing 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 Testing 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

  • Facilities

  • Location

  • Equipment

  • Legal Plan

  • Project Plan

    •  
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

  • Testing Standards

Template

Cannabis Testing Lab Business Plan

If you are going to start a Cannabis Testing Business, the Cannabis Testing Lab Business Plan Template will help you create a professional business plan as part of your cannabis license application and prepare for a meeting with potential investors.

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. 

Best Selling Testing Laboratory Business Plan Templates

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Hemp Testing Laboratory Business Plan Templates are available at hempcbdbusinessplans.com.