A business plan is a key component of every commercial venture – it not only serves as the outline for the development of your business, but is also a crucial tool for securing outside investors.
Elements of a business plan
Here are the basic provisions that should be included in your cannabusiness plan:
- Executive Summary. Your executive summary is generally a 1-2 page snapshot of your company. It should include a brief description of your products, objectives, viability in the market, competition, growth potential and funding requirements.
- Objectives. Your cannabusiness plan should iterate the company’s overall vision, mission and short-term objectives.
- The Team. This is the place to showcase the background and expertise of your business team, and how they will help your business venture to succeed.
- Competitors. It is important to feature the strengths and weaknesses of your competitors’ activities and strategies and how your company differs. An analysis of possible strategic partnerships with other marijuana-related businesses is a plus.
- Marketing Plan. Your marketing plan should include an analysis of your target market and clearly demonstrate how you plan to acquire customers. It should outline what activities you will employ in order to accomplish your business objectives, and in what time frame.
- Branding. Your brand is the strategic communication of the values and characteristics of your venture. Good branding will make your company more valuable over time.
- Financial Plan. If you are seeking outside investors, you will need to present a well-researched financial analysis of your current and future expenses and projections. Any bank, independent investor or venture capital firm will want to know what you will do with their money – the more detailed your financial plan, the more reliable your businesses will appear.
The Operations Manual
Your cannabusiness plan should be accompanied by an operations manual. An operations manual may contain any or all of the following: (1) a list of all the company’s employees, vendors, and other contacts; (2) checklists that provide details and instructions on the day-to-day operations of the business; (3) guidelines for employees; and (4) business policies (e.g., payments, refunds, etc.).
San Francisco Cannabis Practice Group
The business and tax law firm of Moskowitz, LLP is committed to the success of the California cannabis industry and is available to assist marijuana entrepreneurs with their business development and taxation needs. Contact our San Francisco office today for a consultation.