Cannabis Retail Business Plan

Profit margins in the retail side of the cannabis industry are more modest than for other types of cannabis business due in part to the fact that average startup costs for retailers are higher than other sectors of the cannabis business. Median operational costs for retailers are also the highest in the industry, at around €600,000 annually.

The initial capital to start a cannabis retail business depends on many factors, including location, premises size, your goals and objectives. For example, your goal is to reach the annual revenue more than €1 mln or under €100,000 is also appropriate. There will be different initial capital and operating costs for these two cannabis retail business plan scenarios:

• €5,000 Application fee (depends on state, one-time application and annual license fees typically range anywhere from $5,000 to $50,000 for retailers and tend to be much higher for cultivation licenses)
• €18,000 for six months rent
• €20,000 for a space improvements
• Deals with growers, often costing nothing more that a percentage of the sale from their product, for dispensaries it will be approximately 33%
• €400 for display cases
• €50 office supplies
• €150 for security system
• €75 for a sign
• €300 for product bottles and $31 for jars to store the products (again, thrift shops)
• €50 on labels (all white)
• plus salaries for manager and guard

= approximately €50,000-€65,000 start-up expenses

• €50,000 Legal Fees & Licensing & Insurances
• €250,000 Building renting (includes security deposit)
• €70,000 Inventory, packaging supplies
• €2,500 Website design and development, hosting
• €70,000 Marketing Campaign
• €100,000 Space improvements including finishing/painting, kitchen, office space, bathrooms, etc.
• €20,000 Security system including multiple camera feeds and metal/weapons detectors
• €50,000 Furniture, Display Counters, Refrigerators, Freezers, Multiple POS/ Cash Registers, Registration Computer, Commercial Label Printer, Storage Hardware and Shelving, etc.
• €7,000 Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, etc.)
• plus salaries for director, managers and guards

= approximately €750,000-€1,000,000 start-up expenses

How Much Does it Cost to Open a Cannabis Dispensary?

Average sales per square foot for a cannabis store is €1,500. More established operations boast 40-50% profit margins, while newer shops may only see 20% due to their lack of strategic partnerships and vendor relations.

EXECUTIVE SUMMARY

• Project Scope

• Global Market

• International Markets

• Target Market

• Start-up Summary

• Financial Projections

COMPANY DESCRIPTION

PROJECT SCOPE

• Mission/Vision/Goal

• Objectives 

• Products & Services 

• Key Customers

MARKET OVERVIEW

• Market Overview

• Target Market

• Cannabis Laws

• Competition

• Competitive Advantages

• Revenue Benchmarks

• Cannabis 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

• Location/Facilities

• Equipment

• Project Plan

• Physical Security Plan

• Video Surveillance

• Packaging and Labeling

• Tracking Solution

ORGANISATIONAL STRUCTURE & MANAGEMENT

FINANCIAL PROJECTIONS

• Profit & Loss Forecast

• Cash Flow Statement

• Balance Sheet

• Main Ratios

• Sensitivity Analyses

APPENDICES

• Income Statements, monthly

• Cash Flow Statements, monthly

• Floor Plans