Commercial Cannabis Cultivation Business Planning Guide

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Commercial Cannabis Cultivation Business Planning Guide

A thriving industry, commercial cannabis has been legalizing rapidly, and according to statistics, in the United States alone, there is 50% of the states that support the legalization of cannabis and other forms of it. Hence, many entrepreneurs are starting to build their own dispensaries but, for those who are starting up, there are no concise means in planning commercial cultivation of cannabis. 

In starting the cultivation of cannabis, it will need concise planning, focus, effort, and full force dedication. Business planning is an essential tool to help anyone to stay concentrated and directed toward the goal of the project, which provides them a more solid edge in the market. Hence, in this article, we will discuss what to consider when creating a business plan in the cultivation of commercial cannabis. This will serve beginners as a guide for their future success in this industry and use essential tips to make the business more profitable. 

Comprehensive Business Planning Guide

The way to successful commercial cannabis cultivation is not easy and simple because the whole cannabis industry is still in infantile phases, and gaps are significant enough not to be seen. With the confusion in-laws and tax regulations, the road is rocky. 

In most ideal thinking, the starting process of your business must coincide with your business plan. If you have already started, it is never too late or too early to create one for your business. 

Lawyer Consultation 

In order to understand how to navigate the laws pertaining to the cannabis business, it requires the expert help of a lawyer to do this. Always remember that cannabis remains to be illegal in the federal laws, hence it is important that before you start up any form of cannabis business, including cannabis cultivation, you don’t want to get yourself involved in any trouble with the law.

Making and Submission Application 

The first thing to get a license for your business is to make and submit an application. This should be pass to any available state program in your place that oversees the Department of Public Health. Check what is available in your area, and this usually can be found on the website of the program. You will be rated according to the standard of your state the moment you deliver an application. If possible, you can hire a proofreader that will filter your application before submission to polish the contents and make sure that everything is cohesive. 

Key Business Partners

Research and analyzed the consumers in your particular area and planned to network on dispensaries within the area to make connections and network your business. Always keep a strong connection and maintain it as much as possible because some of these businesses are the key to the success and growth of your business too. 

Network your business and attract potential investors that will boost your funds and fill your resume. The more pleasing your resume will be, the higher chances that you will bring up money effortlessly. However, if none of these are successfully done, family and friends are usually the initial sources you may need. 

Setting Expectations and Objectives

Keep in mind that in order to keep your focus, it is best to set realistic expectations of everything, including your sales at the beginning. Make sure that you set objectives accordingly. Set that initial sales are not always high, and that is normal. Even after the third harvest, sales do not always be as high as you want it to be, remember it is always normal. Just make sure that your resources are ready for anything and can keep up regardless of low sales for a few months, so there will be no cash problems in the future.

You can never predict which can be a good or bad harvest, so do not get easily disappointed if worse things happen. This is the time that realistic goals and expectations will take effect that could help you deal when things like this occur unexpectedly. Always plan ahead including, the amount of harvest, delays in the stages of cultivation, and time for trimming and curing. 

Nonetheless, there is nothing more amazing than to exceed what you are supposed to expect, which in return will affect how your investors will see your business. But, if you set high expectations for your business, and did not reach the anticipated, it could potentially hurt the future of your business and other endeavors pertaining to it. 

A useful tip that will guide you to planning properly is to double your budget and timeline of what you are expecting because there will always be unforeseen and inevitable challenges you will encounter. 

Cultivation Method 

In cultivation, there three options to choose from, namely, outdoor, greenhouse, and mesh tent. Each of these growing methods has its own costs and advantages, which you should explore and identify what suits best for you. 

For outdoor cultivation, it requires to establish an irrigation system and space allotted for the curing and drying process. The main advantage of this growing method is its capacity to consume low electricity, and the whole concept of it is very simple and not costly. 

Similar to the outdoor growing method, mesh tents have the same concept and resources needed to be set up, but there is an additional requirement needed for protection from too much exposure to airspeed and sunrays. 

While the greenhouse method is the biggest electric consumer, it also requires hoop tents and enclosure made of glass. Suppose it requires various types of upgrades on electrical, which may cost more than the two mentioned awhile ago. It could be very exciting to identify the best growing method for your business; however, the critical part is identifying the kind of environment you have within your area and the cultivating pattern. 

You may identify this by starting an easy and small growth in the location and understand the conditions. If you encounter problems, then you can plan for strategies on how to manage it in the future. Since you have come up with proper business planning, you will full idea of the ideal budget you need to raise. 

Develop Team

To become successful in the commercial cannabis cultivation business, you must have a credible, responsible, and knowledgeable team. The state will look into the characteristics of your team, and it would be better if they see potentials among the members of the team in serving consumers accordingly when your business starts operating. 

These people that you may need include, doctors, if you intend to cultivate medicinal cannabis, and if you decide to grow clones, then horticulturists will help you guide through. Engineers can also be helpful in designing properly your setup and administrators and managers that will fully function as overseers of your team and managing operations. 

Look for Facility

What to seek for a suitable facility for your business should include four things to consider, initially the physical features of the area. Make sure that everything is sustainable for cannabis to grow that all materials required will fit inside. Zoning issues are things to consider also since there will be some cases that nearby places would not be glad that cannabis cultivation is close. 

Moreover, financial issues and legal matters are the greatest struggles to consider, since you have to analyze if the cultivation would suffice when you rent and if the area is allowed for cannabis cultivation. Apart from that, there are other documents that need to be submitted pertaining to the legal aspects of this venture. 

Cultivation Plan

Before writing down your cultivation plan, understand first the core of your state in terms of cannabis, whether it focuses more on the health benefits or does it prioritize the purity of products. Once learned, you can create your mission that must be followed throughout the business endeavor. It is then followed by plans on how to operate like the breeding process, cloning if applicable, from vegetation go harvesting, and from trimming to distribution. 

Take A Sample

The key to building your network is to provide samples of your products. Provide them with samples and accept whatever they remark on your product. If the feedback is not great, then take note of it and improve your crop. Remember to keep your connections strong and maintained. It will make your business progress more and smooth. 


No matter what happens and what unknowns will come, always stay focus on your goal. The world of cannabis is unpredictable, and many states have different approaches and implementation of restrictions to it. It has become a competitive market for you; that’s why following the guide above will definitely help you understand the process and learn important details before starting up.

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