Cannabis Testing Laboratory Business Plan

Cannabis testing is by far the smallest segment of the industry when measured by number of companies. But the work labs perform is critical from a health and safety perspective, as these companies test for everything from pesticides to potency. Lab-tested cannabis is a requirement in nearly every country.

CANNABIS TESTING LABORATORY BUSINESS PLAN TEMPLATE

Startup costs are often higher for testing companies vs. other cannabis businesses, however operational costs much lower making it easier to turn a profit. A testing equipment will cost approximately €700,000 depending on productivity.

Additional costs include but aren’t limited to buildings, licensing, or the infrastructure, materials and wages for chemists and laboratory technicians that will be needed to operate that equipment.

Cannabis Testing Techniques

For the past two years, a majority of testing lab survey participants have indicated high- pressure liquid chromatography is their primary testing method, and that holds true this year as well. While it is still the most prevalent technique, the portion of companies that utilize high-pressure liquid chromatography has fallen from 63% last year to 50% this year.

Types Of Cannabis Testing Obtained By Cultivators, Infused Product Makers & Retailers

Potency 95%
Pathogens 84%
Residual Solvents 60%
Heavy Metals 38%
Homogeneity 30%
Other 11%

The global cannabis testing market is expected to reach $1.4 billion by 2021 from $0.8 billion in 2016, at a CAGR of 11.5% during forecast period (2016–2021). The growth in this market is mainly driven by factors such as legalization of medical cannabis, coupled with the growing number of cannabis testing laboratories; growing adoption of LIMS in cannabis testing laboratories; and increasing awareness through conferences, symposia, and workshops. On the other hand, the high cost of analytical instruments, presence of alternative technologies, and dearth of skilled professionals are some of the major factors that are expected to restrain the growth of this market in the coming years.

The Cannabis Testing Laboratory Business Plan Template was prepared based on the existing knowledge of consultants regarding the Cannabis Industry.

Cannabis Testing Laboratory Business Plan – Table of Contents

EXECUTIVE SUMMARY

  • Project Scope

  • Global Market

  • Target Market

  • Cannabis Laws

  • Start-up Summary

  • Financial Projections

COMPANY DESCRIPTION
PROJECT SCOPE

  • Mission/Vision/Goal

  • Objectives 

  • Products & Services 

  • Key Customers

MARKET OVERVIEW

  • Market Overview

  • Target Market

  • Competition

  • Competitive Advantages

  • Cannabis Sector Projections and Perspectives

  • SWOT Analyses

    •  
STRATEGY & IMPLEMENTATION

  • Marketing Plan

  • Cannabis Directories

  • Launching Strategy

  • Sales Forecast 

    •  
OPERATIONAL PLAN

  • Facilities

  • Location

  • Equipment

  • Legal Plan

  • Project Plan

    •  
ORGANISATIONAL STRUCTURE & MANAGEMENT
FINANCIAL PROJECTIONS

  • Profit & Loss Forecast

  • Cash Flow Statement

  • Balance Sheet

  • Main Ratios

  • Funding Analyses

APPENDICES

  • Income Statements, monthly

  • Cash Flow Statements, monthly

  • Statistics

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