By 
Our biggest savings of the year
Crafted Cannabis
Financial Plan
Forecast
Key Assumptions
- No significant change in regulation and enforcement related to cannabis businesses in from the state of Oregon, or Lane Country, or Eugene.
- We assume fierce competition among the various entrants to the retail market. Not all retailers will survive. This makes differentiation essential.
- Continued competition between relatively equal sized players, with no emergence of a major dominant retail brand.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Our projections indicate approximately $110 in startup costs including all the operating expenses projected for the first three months of the plan – before launch – plus the purchase of an estimated $17.5K in furniture and fixtures and signage and such; and initial inventory.
Sources of Funds
Owner [name omitted] will commit $120K of personal funds to finance the starting costs of the business from the beginning until it reaches cash flow break-even in the sixth month.
Statements
Projected Profit & Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $1,226,750 | $1,704,000 | $2,038,000 |
| Direct Costs | $981,763 | $1,364,250 | $1,632,250 |
| Gross Margin | $244,988 | $339,750 | $405,750 |
| Gross Margin % | 20% | 20% | 20% |
| Operating Expenses | |||
| Salaries & Wages | $86,000 | $209,480 | $244,970 |
| Employee Related Expenses | $13,600 | $37,000 | $44,000 |
| Location rent | $20,000 | $24,000 | $24,000 |
| Marketing and promotion | $16,550 | $12,000 | $12,000 |
| Utilities | $2,400 | $2,400 | $2,400 |
| Legal and compliance | $22,000 | $18,000 | $18,000 |
| Other & miscellaneous | $15,000 | $14,000 | $16,000 |
| Total Operating Expenses | $175,550 | $316,880 | $361,370 |
| Operating Income | $69,438 | $22,870 | $44,380 |
| Interest Incurred | |||
| Depreciation and Amortization | $3,300 | $3,825 | $4,425 |
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $11,243 | $3,238 | $6,792 |
| Total Expenses | $1,171,856 | $1,688,193 | $2,004,837 |
| Net Profit | $54,894 | $15,807 | $33,163 |
| Net Profit/Sales | 4% | 1% | 2% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $0 | $182,819 | $57,066 | ($43,213) |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | $0 | $113,688 | $136,058 | $136,058 |
| Other Current Assets | ||||
| Total Current Assets | $0 | $296,507 | $193,124 | $92,845 |
| Long-Term Assets | $0 | $17,500 | $20,500 | $23,500 |
| Accumulated Depreciation | ($3,300) | ($7,125) | ($11,550) | |
| Total Long-Term Assets | $0 | $14,200 | $13,375 | $11,950 |
| Total Assets | $0 | $310,707 | $206,499 | $104,795 |
| Accounts Payable | $35,546 | $42,578 | $42,627 | |
| Income Taxes Payable | $8,891 | $800 | $1,688 | |
| Sales Taxes Payable | $91,375 | $72,420 | $86,615 | |
| Short-Term Debt | ||||
| Prepaid Revenue | ||||
| Total Current Liabilities | $135,812 | $115,798 | $130,930 | |
| Long-Term Debt | ||||
| Long-Term Liabilities | ||||
| Total Liabilities | $135,812 | $115,798 | $130,930 | |
| Paid-In Capital | $120,000 | $120,000 | $120,000 | |
| Retained Earnings | $0 | $0 | ($45,106) | ($179,299) |
| Earnings | $54,894 | $15,807 | $33,163 | |
| Total Owner’s Equity | $0 | $174,894 | $90,701 | ($26,136) |
| Total Liabilities & Equity | $0 | $310,707 | $206,499 | $104,795 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $54,894 | $15,807 | $33,163 |
| Depreciation & Amortization | $3,300 | $3,825 | $4,425 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | ($113,688) | ($22,371) | $0 |
| Change in Accounts Payable | $35,546 | $7,031 | $50 |
| Change in Income Tax Payable | $8,891 | ($8,091) | $888 |
| Change in Sales Tax Payable | $91,375 | ($18,955) | $14,195 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $80,319 | ($22,753) | $52,721 |
| Investing & Financing | |||
| Assets Purchased or Sold | ($17,500) | ($3,000) | ($3,000) |
| Net Cash from Investing | ($17,500) | ($3,000) | ($3,000) |
| Investments Received | $120,000 | ||
| Dividends & Distributions | ($100,000) | ($150,000) | |
| Change in Short-Term Debt | |||
| Change in Long-Term Debt | |||
| Net Cash from Financing | $120,000 | ($100,000) | ($150,000) |
| Cash at Beginning of Period | $0 | $182,819 | $57,066 |
| Net Change in Cash | $182,819 | ($125,753) | ($100,279) |
| Cash at End of Period | $182,819 | $57,066 | ($43,213) |