Business plans are…important
A business plan is a crucial step to the success of a business and should never be eliminated from the process of planning its future. It is a road map showing the direction intended for the business. And here’s a little fun fact all ganjapreneurs should know — if you’re planning on approaching outside sources such as banks or private investors for financial assistance, without a well thought-out, solid business plan, they won’t even consider helping. Without setting goals, there will be no green.
A business plan always starts with the business name, address and contact number. Consider this the introduction to your cannabusiness. Next, all non-disclosure statements need to be included. If your cannabusiness doesn’t have non-disclosure statements, then simply eliminate this step. Don’t make them up, that would be a big no-no. Non-disclosure statements are agreements of confidentiality between the business and any individual or outside party such as another business. And finally, before getting into all the nitty-gritty planning, the business plan needs a table of contents. A sample outline and everything that should be included in a completed business plan will be provided at the end of this article.
A business plan has three main parts. The first is the business concept. In this section, describe the industry, the cannabusiness structure and the particular service or product that’s being offered. The second is the marketplace. Here you will describe potential customers and what’s going to draw them to your cannabusiness. Also acknowledge the competition and plan strategy moves. The third part is the financial projections. Everything to do with money goes into this section. Be as accurate with these projections as possible. Do not falsify financial projections to make the business look good. This isn’t their first rodeo — potential investors will see right through that and decline the request.
These three main parts of a business plan are broken down into nine categories that need to be included in a business plan. These include Executive Summary; Business Description; Management and Personnel; Products and/or Services Provided; Sales and Marketing; Operational Information; Risk Analysis; Financial Information and Projections; and Appendices. Each of these nine categories has sub-categories. I know, right? That sure sounds like a lot of information to provide, but remember what’s being sought. Approaching someone to ask for help with financing that will ultimately pave the way to the business’s success is asking lot as well. One would think it should be time well spent. So think about that again. It really isn’t asking too much after all, is it?
The following is a brief description of the nine categories:
The Executive Summary should not be any longer than two pages. Some people find it easier to prepare this after all other information is gathered since it’s a summary of the business plan itself. Make it exciting to grab and hold the potential investors attention.
The Business Description needs to be very detailed, outlining the type of business; location; if it’s a new or existing business being acquired; and the reason the business is structured the way it is. Be sure to include the company’s mission and vision statement here.
Management and Personnel should be brief. List all business partners and employees, as well as their job description, responsibilities, experience and qualifications. Resumes should be included in the