Dispensary Business Plan Template
If you want to start a Dispensary or expand your current Dispensary business, you need a business plan.
The following Dispensary business plan template gives you the key elements to include in a winning Dispensary business plan.
Below is an outline of each of the key sections of your Dispensary business plan:
I. Executive Summary
Business Overview
[Company name] is a cannabis dispensary in the [Location] area that offers high-quality and carefully curated medical and recreational products to its customers that will aid their specific needs and ailments. Putting the welfare and convenience of its customers first, [Company name] makes itself accessible by offering its products and services on site and online.
In [Company name], customers are encouraged to ask questions and learn more about the medical and recreational benefits of cannabis. The company’s staff are experts in cannabis preparation and handling, and well-trained in patient care, thus giving its customers a great experience on their dispensary visits. Its team of researchers make sure that they are up to date with the latest studies and development in the cannabis industry to ensure the safety and welfare of its customers.
Products Served
[Company Name]’s produces products in the following forms:
- Flower
- Vape
- Edibles
- Accessories
- Prerolls
- Concentrates
- Topicals
It also offers consultation for patients in need of a customized product for specific ailments and conditions.
Customer Focus
[Company Name] will primarily serve the residents who live within the city. The demographics of these customers are as follows:
- 70,520 residents
- 1,540 businesses
- Average income of $52,320
- 33.3% married
- 60% in Mgt./Professional occupations
- Median age: 37 years
Management Team
[Company Name] is led by [Founder’s Name] who has been in the alternative medicine industry for 15 years. While [Founder] has never started a dispensary business before, he has spent years of study and trials on the different cannabis products that he is now producing. He has completed a dispensary technician certification at the Cannabis Training Institute.
Prior to focusing his efforts on cannabis development, [Founder] worked at a pharmacy for 5 years, making him knowledgeable in medical prescriptions. As such [Founder] is well-prepared to manage the dispensary.
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons:
- There is currently no dispensary in the community we are entering.
- We have determined that the demographics of our target location consists of adults who are legally allowed to use cannabis for medical and recreational purposes.
- Our location is central to the downtown and easily accessible.
- The management team has a track record of success in the alternative medicine industry.
Financial Highlights
[Company Name] is seeking a total funding of $270,000 to launch the dispensary. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Design/build: $200,000
- Working capital: $70,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next three years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $1,080,000 | $2,472,768 | $2,830,825 | $3,240,728 | $3,709,986 |
| Total Expenses | $962,000 | $1,539,107 | $1,719,742 | $1,901,321 | $2,112,641 |
| EBITDA | $118,000 | $933,661 | $1,111,082 | $1,339,407 | $1,597,344 |
| Depreciation | $25,600 | $25,600 | $25,600 | $25,600 | $25,600 |
| EBIT | $92,400 | $908,061 | $1,085,482 | $1,313,807 | $1,571,744 |
| Interest | $29,946 | $26,202 | $22,459 | $18,716 | $14,973 |
| Pre Tax Income | $62,455 | $881,858 | $1,063,023 | $1,295,091 | $1,556,772 |
| Income Tax Expense | $21,859 | $308,650 | $372,058 | $453,282 | $544,870 |
| Net Income | $40,595 | $573,208 | $690,965 | $841,809 | $1,011,902 |
II. Company Overview
Who is [Company Name]?
[Company name] is a cannabis dispensary in the [Location] area. It offers high-quality and carefully curated medical and recreational products to its customers that will aid their specific needs and ailments. Putting the welfare and convenience of its customers first, [Company name] makes itself accessible by offering its products and services on site and online.
It is the company’s goal is to become the most accessible, supportive and positive facility in the area. Customers are encouraged to ask questions and learn more about the medical and recreational benefits of cannabis. The company’s staff are experts in cannabis preparation and handling, and well-trained in patient care, thus giving its customers a great experience on their dispensary visits. Its team of researchers make sure that they are up to date with the latest studies and development in the cannabis industry to ensure the safety and welfare of its customers.
[Company Name]’s History
[Company name] is founded by [Founder’s name] in [yyyy]. A firm believer that regulated use of cannabis is beneficial and safe, he started growing and studying the different medical and recreational benefits of cannabis. After thousands of hours of research and testing, and after receiving great feedback on his sample products from his friends, colleagues and random volunteers, [Founder name] began to seek funding for his dispensary until he eventually opened it.
Since incorporation, the Company has achieved the following milestones:
- Found site location and signed the land deed purchasing rights to the land.
- Developed the company’s name, logo and website located at www…
- Determined equipment leasing and financing requirements
- Began recruiting key employees with experience in the wedding venue industry
[Company Name]’s Products/Services
[Company Name]’s produces products in the following forms:
- Flower
- Vape
- Edibles
- Accessories
- Prerolls
- Concentrates
- Topicals
It also offers consultation for patients in need of a customized product for specific ailments and conditions.
III. Industry Analysis
The outlook for the Dispensary industry is overwhelmingly positive, with the industry expected to achieve record breaking revenues this year.
The industry will continue to benefit from increasingly favorable attitudes toward medical marijuana treatments, and the growth of legal recreational marijuana sales. Sales are expected to continue to explode, especially in the states that legalized recreational marijuana. This includes the industry’s largest market, California, which leads the country in cannabis expenditure.
In particular, an increase in per capita disposable income is projected to drive demand for industry products. Although medicinal products are essential for health and therefore less susceptible to fluctuations in consumer expenditure, the unconventional nature of the industry’s products still make them subject to changes in disposable income. Nevertheless, since consumers pay for industry products out-of-pocket, growth in disposable income will help boost demand. Additionally, dispensaries will likely further expand their offerings of edible marijuana products, which will likely be a major growth segment for industry operators moving forward.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [Insert location] and its immediate surrounding area. The market we serve is willing to spend money on recreational and medical products.
The precise demographics of the town in which our location resides is as follows:
| Glendale | Highland | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The company targets the following customer segments:
- Local residents: Approximately 70,000 people live in the area, 80% of which are over the age of 21.
- Patients: This includes seniors and critically ill patients that need assistance to alleviate the pain that they are feeling.
- Local office workers and young professionals: Approximately 5,000 individuals work in offices within a quarter mile of our location and we expect a fair portion of these individuals to frequent the establishment.
V. Competitive Analysis
Direct & Indirect Competitors
Edna Dispensary
Founded in 2013, Edna Dispensary is a group of patient advocates and experienced professionals who strive to provide the best in the art and science of medical marijuana. It is a vertically-integrated cannabis operation, cultivating over 50 strains and more than 100 pharmaceutical grade therapies, manufacturing products under 6 brands, and operating dispensaries.
Edna Dispensary’s cultivation facility is located in Franklin, but its 2 cannabis dispensaries are located in Brookline, and Northampton.
Green Garden Remedies
Green Garden Remedies Inc. is a producer and provider of all-natural cannabis products in Massachusetts. It grows all its plants locally and indoors with living super soil. Its licensed, non-profit medical marijuana dispensary was founded by an M.D. and dedicated to helping patients.
Cannabis products available from Garden remedies include flowers, vapes, concentrates and edibles.
CC Dispensary
Established in 2016, CC Dispensary provides medical marijuana products and services to qualifying patients in New York and throughout the United States. Its product line merges industry-leading cannabis cultivation standards with cutting-edge pharmaceutical-quality technology. Each product is precision-engineered to deliver controlled-dose cannabis medicine in a variety of patient-oriented formats and condition-specific cannabinoid concentrations.
In addition, the company offers express ordering, delivery, and video and chat consultations for registered patients, and designated caregivers.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location in the downtown area, gives central access to both residents and businesses in the area. The Company also offers adequate parking making it very accessible for customers.
- Products:The company offers a wide selection of cannabis products from flowers to prerolls to edibles and more.
- Ambiance: The dispensary is a convenient place to shop for cannabis with relaxing music, a lounge for waiting customers, snack bar, and wifi connectivity.
- Management: Our management team has years of experience and knowledge on our products that allows us to market and serve customers in the same manner as our most sophisticated competitors.
- Relationships: Having lived in the community for a number of years, [Founder’s Name] knows all of the local leaders, newspapers and other influences. As such, it will be relatively easy for us to build the brand and awareness.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Customer-friendly facility
- Central location in the downtown area
- Excellent customer service and patient care
- High-quality curated products
Promotions Strategy
The Company’s promotions strategy to reach its target market are the following:
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products, and more.
Pre-Opening Events
Before opening the dispensary, [Company Name] will organize pre-opening events designed for prospective customers and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Online Marketing
[Company name] will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company name] as the trustworthy, well-qualified dispensary that it is.
Commute Advertising
The company will draw attention by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
VII. Operations Plan
Functional Roles
The Company intends to employ [x] sales person, [x] maintenance personnel and [x] security personnel.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles:
Service Functions
- Sales staff
- Maintenance personnel
- Security personnel
Administrative Functions
- General & administrative functions including marketing, bookkeeping, etc.
- Marketing team (includes customer representatives to answer general inquiries, social media manager, salesperson
- Sourcing and storing supplies and equipment
Milestones
[Company name]’s long term goal is to become the most renowned dispensary in the area. It seeks to be the standard by which other providers are judged.
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name] who has been in the alternative medicine industry for 15 years. While [Founder] has never started a dispensary business before, he has spent years of study and trials on the different cannabis products that he is now producing. He has been in contact with other experts in the field and has completed a dispensary technician certification at the Cannabis Training Institute.
Prior to focusing his efforts on cannabis development, [Founder] worked at a pharmacy for 5 years, making him knowledgeable in medical prescriptions. As such [Founder] is well-prepared to manage the dispensary.
[Founder] graduated from the University of ABC with a Bachelor’s Degree in Pharmacy.
Hiring Plan
[Founder] will serve as the Manager of [Company name]. In order to launch the business, we will hire a staff of 4 to run the store.
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s will come from patient consultations and sales of products.
The major costs for the company will be salaries of the staff and cost to maintain the standard of the dispensary. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $270,000 to launch the dispensary. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Design/build: $200,000
- Working capital: $70,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| FY 1 | 75 |
| FY 2 | 100 |
| FY 3 | 125 |
| FY 4 | 150 |
| FY 5 | 175 |
| Annual Lease ( per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
