Visualizing your cannabis company and planning out products and services sounds easy at first, but to attract investors to fund your business is a different conversation. To make the dream happen, you need to begin preparations as early as possible if you want to start up your company soon and see it become successful.
To fund the business, presenting a business plan to potential clients takes you one step closer to becoming a certified potpreneur.
Now, a cannabis company business plan is not any creative writing task. This is a formal document presented to investors to learn more about your venture as well as how it will serve and perform in the market.
So, how can you write a pitch that is valuable and will stand out from competitors? By applying the elements and writing guidelines to the cannabis company business, you might just get the funding you need.
Formulating a Canabusiness Plan: Elements and Writing Guidelines
Company Background and Overview
This is the profile of your cannabis company. Required details in this section include the company’s name, the name or branding of your product or service, your contact information (contact number, business email address, and other social media accounts where customers and business partners can reach out to you). Include your store location if applicable.
Introduce yourself, the staff and personnel, and even business partners who may be working with you already. This is a plus to show you are team-oriented, open to collaborating, and gives transparency to the workflow inside your business. Discuss their tasks and responsibilities to create the product you want to sell.
This part of the business plan is a quick look at the expenses and other finances to cover your personnel, resources, promotions, and other services needed to keep business running.
Your Company Objectives
The company objectives define the purpose and goals you set daily (mission statement) and for the future, as your venture grows (vision statement). It also asks the question, how will you achieve these goals and serve your purpose? Answer these in this section.
Address the problem that drove you to plan the business. Are there little to no dispensaries in your area? Do you offer a unique line of edibles that other competitors are yet to craft? Maybe you are a supplier for seeds and other cannabis farming essentials online and want to put up a store for nearby customers to reach you easily. Real-life situations that your business can help with will give investors more reasons to partner with you.
Business Model and Brand Differentiation
The business model refers to what type of cannabusiness you have started or planning to put up. Common business models for cannabis companies include dispensaries for medical purposes, weed farming for tools and seeds, and suppliers of smoking instruments and mediums.
You do not necessarily have to fall into these categories. Don’t be afraid to be different and stand out! It may be a risk, but you’ll never know if it’s worth it until you give it a try.
Getting to Know Your Market
Your market is who your products will appeal to, or the target market. Like most cannabusinesses, this should be in the age group of 21 and older, though this may vary across regions.
Do your research on their consumer behaviors with other competitors, and predict as to how often they would make a purchase from you, and the quantity for each product they would order.
From here, you can see the value of your business and how you can sustain it from profits. This information will help you plan how to improve your demographic and track it.
Competing with Other Brands and Businesses
Yes, competition is a section that needs to be found in your business plan. This gives you a clearer picture of how your business will perform with other companies. While to best out other brands may not be your goal, if your business cannot keep up with similar labels out there, you might end up having to say goodbye to your cannabizz dreams.
There is no need to mention specific companies that you will compete with, but data such as how many there are out there, and what you offer that competitors don’t have can give you some leverage against them.
Here is where the money starts coming in. Not real cash, but an idea on how you will allocate funds and earn in the long run. List down expenses, cash flow, and other finances to support your company, its team, and how your company’s value will grow over time.
In this section, you delve into how the company works and what steps it will take towards success.
Marketing and Sales Plan
Here you can find the estimated sales you will make over a certain period of time. You must also figure out how you can meet your estimate. Market your brand through potential partnerships, ads, and more that will bring a bigger audience to you.
From square one to getting into the hands of your customer. How does the product or service come to be, to its promotion, and the purchasing process? Give clients an inside look of an effective team from production to marketing and good customer service.
Your presentation may have featured several charts and graphs throughout the plan. An appendix at the end works as a table of contents to these important visuals, and even important sections to return to.
Tips to Winning Your Cannabis Company Business Plan Presentation
Presenting a good business plan can’t go wrong with some helpful hints and tips. Keep these in mind as you start writing and meet up with investors.
- Always have important documents such as permits and licenses to operate your business on hand. If you have not processed these requirements, start doing your research on how you can secure them.
- Insert visuals in your presentation. These are not only limited to charts and graphs, even images that best present your target market, a sample of your product, and other related visuals make your plan appealing and will keep your clients on board with the discussion.
- Changes may be made to a business plan, so update it regularly. Don’t be afraid of making mistakes or trying out new concepts. Be open to changes along the way with how you initially planned your business, and also update your investors regarding this.
- Check out samples, but get creative and show personality. Using business plan samples are helpful, but you don’t have to take them word-for-word. Have fun with how you would layout the presentation, but make sure it’s easy to read.
- Keep it formal and present with professionalism. You never know if an investor wants to go big on an offer, so you always want to have your best foot forward. Keep the conversation light, engaging, and discuss ideas clearly.
- Set SMART goals. Accept that there will be rough roads and trails to tread. So if you want more wins than losses, have Specific, Measurable, Attainable, Realistic, and Time-based goals to guide you towards what your cannabis company needs to achieve.
Now you are ready to create a business plan for your cannabis company. Just follow the above writing guidelines to impress potential investors and attain your goals as a cannabis entrepreneur. Don’t miss the important parts of your business plan, such as creating SMART goals, laying a framework for the other relevant content of your business plan.