Cannabis Cultivation Business Plan Template [Updated 2024]

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I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name], located at [insert location here] is a cannabis cultivation business that grows cannabis for medical and recreational markets. We will offer organically produced indica, sativa, and hybrid strains, for manufacturers and dispensaries across the state.

Products and Services

[Company Name] will grow cannabis in a greenhouse environment, using organic production methods. Initial products include:

  • Indica – We will start with three indica-dominant strains: Girl Scout Cookies; Northern Lights; and Sour Kush
  • Sativa – Our first three sativa-dominant strains will be: Jack Herer; Green Crack; and Amnesia Haze
  • Hybrid – We will offer three hybrid strains in the beginning: Wedding Cake; Peanut Butter Breath; and Trainwreck

In addition, [Company name] will offer seeds from these strains.

Customer Focus

[Company Name] will primarily serve both medical and recreational dispensaries across the state. The demographics of these customers are as follows:

  • 423 Medical Provisioning Centers
  • 555 Recreational Retailers
  • 752 Growers licensed for Medical
  • 779 Growers licensed for Recreational

This bodes well for [Company Name], as the prime demographic for cannabis cultivation businesses are dispensaries (provisioning centers and retailers). [Company Name] will work to become known as the premiere cultivator of craft, organic cannabis.

Management Team

[Company Name] is led by [Founder’s Name] who has been a gardener his whole life. While [Founder] was not a cannabis grower before legalization, he began studying cannabis cultivation once legalization became imminent. As such [Founder] has an in-depth knowledge of gardening and has quickly been able to come up to speed with cannabis cultivation, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • The Company will fill a specific market niche for craft product in the growing cannabis market. In addition, we have surveyed local dispensaries and received extremely positive feedback saying that they explicitly want to frequent our business when it is launched.
  • Our location is centrally located near several cities with multiple dispensaries within driving distance.
  • The management team has a track record of success in the growing industry.
  • Cannabis is a growing industry, and is highly successful in communities throughout the United States.
  • Local competitors leave a large gap in the market—there are cultivators offering more strains, and cultivators that exclusively focus on seed production, but nothing that caters to high quality organic cannabis production.

Financial Highlights

[Company Name] is currently seeking $250,000 to launch. Specifically, these funds will be used as follows:

  • Greenhouse design/build: $50,000
  • Licensing, Seeds, Automation, Supplies: $100,000
  • Working capital: $100,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even

Topline projections over the next five years are as follows:

Financial SummaryYear 1Year 2Year 3Year 4Year 5
Revenue$400,000$466,067 $524,563 $590,400 $664,500
Total Expenses$345,594 $385,172 $419,434 $475,894 $507,480
EBITDA$54,406$80,895 $105,129 $114,506 $157,020
Depreciation$20,840 $20,840 $20,840 $20,840 $20,840
EBIT$33,566$60,055 $84,289 $93,666 $136,180
Interest$16,822 $14,719 $12,617 $10,514 $8,411
PreTax Income$16,744$45,336 $71,673 $83,153 $127,769
Income Tax Expense$0$0$17,104 $29,103 $44,719
Net Income$16,744$45,336 $54,569 $54,049 $83,050
Net Profit Margin-10%10%9%12%
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