Medical Marijuana Business Plans—Are Essentially The Same As Any Other Business Plan.
Due to the changes in state laws, medical marijuana is becoming a new and profitable industry. However, at its core, it is still a business with many of the hurdles that every new business faces. And a good, well thought out business plan will increase your company’s chances of survival. Generally, there are four important elements to include in a medical marijuana business plan—Please note that the type of business plan described below is geared to attracting investors.
First is the Executive Summary. To begin with, each and every business plan has to start with an executive summary. Good business plans start with an executive summary that’s short and to-the-point. This is where most of the prospective readers will decide whether to read on or throw it away. Basically, the executive summary quickly describes the overall business plan and should be no more than two pages long.
Second is the Market Opportunity. What you need to include are the reasons that there is a market for the businesses customers. Describe the size and growth rate of the market as well as the risks the business will inevitable face. This section is important because investors will get to see how much of market share is actually available for the taking. If there is no market they might as well stop reading.
Third is the Actual Execution Strategy. Here is where you outline your revenue streams and operational costs. Specify the assumptions you’re making, and why you’re making them. Your day-to-day operations will also be included in this section. The plan will also need to describe compliance with applicable state laws before your company can legally operate. It is important to insure your reader that you have competent legal counsel to assist your company in complying with the many laws and regulations this industry faces.
Fourth are the Financial Projections. Every small business relies on cash flow. Poor cash flow is the biggest reasons start-ups fail. Large profits do not guaranty a company’s survival if it lacks the liquidity to pay ongoing expenses. Business plans generally are expected to include three years of forward-looking profit-and-loss reports, cash-flow statements, and balance sheet projections. These numbers should not be “pie in the sky” projections. Straight forward and real-world financials are always preferable to ones that are too outrageous in their sales and market shares.
Before you write any business plan you should have a clear understanding of the legal issues you will inevitably face. At, our attorneys have experience in working with entrepreneurs who specialize in this new industry and have successfully helped other startup companies comply with the complex maze of business and regulatory hurdles you will face should you decide to move forward with your new business. Our legal projects are backed by a satisfaction guarantee, 24/7 support, start-to-finish project management, and flexible payment options.