Cannabis Dispensary Business Plan

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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

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for 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
Gross Margin $244,988 $339,750 $405,750
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
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

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
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
Paid-In Capital $120,000 $120,000 $120,000
Retained Earnings $0 $0 ($45,106) ($179,299)
Earnings $54,894 $15,807 $33,163

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
Investing & Financing
Assets Purchased or Sold ($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
Cash at Beginning of Period $0 $182,819 $57,066
Net Change in Cash $182,819 ($125,753) ($100,279)
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