What information should you have ready for investors? Ideal information package contains a cannabis business plan, including income and cash flow statements, and a cannabis investor pitch deck. Find more http://cannabusinessplans.com/ and https://cannabusinessplans.com/shop/
3. PAGE3
PROJECT/VISION
To build a successful commercial cultivation facility and create a
recognizable brand in a rapidly growing industry.
CannaFarm is a new company which is
intending to penetrate into the cannabis
cultivation market, starting with one
greenhouse in California. Our goals:
Own and operate a marijuana cultivation
facility in the state of California.
Sell high-grade cannabis wholesale to
dispensaries and edible manufacturers.
Our vision is to become the stable and
profitable marijuana cultivation company
and also expand our facilities to 5
greenhouses.
Our mission is to establish an innovative
marijuana growing brand with affordable
prices to the residence of City and other
Cities in California.
4. PAGE4
MARKET TODAY
The passage of initiatives in
California, Nevada, Massachusetts,
Maine, Florida, Arkansas, Montana,
and North Dakota will add $7.4
billion to the 2020 market forecast
bringing the overall market
projection for legal adult-use and
medical sales in the U.S. to $22.8
billion by 2020. That brings the
compound annual growth rate
(CAGR) to 28%.
According expert projections, it is the best time for Canna Farm to launch
business and “dip into” the fastest growing and budding sector.
0
5
10
15
20
25
inbillionsofdollars
National Legal Sales of Cannabis
Source: http://cannabusinessplans.com/cannabis-legal-market-size-projections/
5. PAGE5
MARKET TRENDS
By 2020 legal cannabis market
would see a whopping $22.8
billion in total annual sales.
Recreational cannabis sales will
account for more than half
(53%) of the overall market by
2020.
The biggest driver of growth in
coming years is the legalization
of marijuana in some forms by
more states.
Source: http://cannabusinessplans.com/cannabis-legalizing-status-map/
6. PAGE6
KEY CUSTOMERS/COMPETITORS
Number of Licensed
Retail Marijuana Businesses
as of August 1, 2016
Stores 440
Cultivations 583
Product Manufacturers 198
Testing Facilities 15
Number of Licensed
Medical Marijuana Businesses
as of August 1, 2016
Centres 531
Cultivations 801
Infused Product Manufacturers 242
Testing Facilities 13
Competitors
Direct competitors for CannaFarm includes
marijuana growers and whole sellers in
California and also oil and concentrates
manufactures.
Customers
Main customers are dispensaries and manufacturers
of edible products and also whole buyers in the state
of California.
7. PAGE7
SWOT ANALYSES
S
• In California the weather
conditions are ideal for
cultivating cannabis
outside
• Diversification of
greenhouse cultivation
and outdoor cultivation
• Greenhouses will alow
significantely decrease
electricity bills and
W
• Product liability / legal
issues
• Enhanced risk of banking
/ financial / IRS scrutiny
• Crop loss possibility due
to pests, heat, human
error
• Difficulties with finding
employees. Location is a
bit remote and not much
O
• High growth industry
• Trend toward greater
cannabis legalization,
including the use of
cannabis for recreational
purposes
• Global Market
T
• A significant drop in
wholesale pricing
• Enforcement of federal
law, uncertainty with
president election
• Possible California law
changing
• Indicators of a slowed
global economy
8. PAGE8
ADVERTISING STRATEGY
Three most effective
strategies for legal
marijuana companies are
direct marketing at industry
conferences and other
events, building
communities around
marijuana-related concerns
such as health and wellness
and aggregating online
cannabis publishers, which
don’t raise any legal
concerns.
420 Network Marketing themselves as “the advertising network for
alternative lifestyle brands”, 420 Network offers both CPC
and fixed price advertising options.
420 Click
Women Grow
Cannabrand
Offering targeted Pay Per Click ads that display across
their network of cannabis related websites, 420 Click can
be a great option for getting service in front of an
interested audience, and only be charged when someone
clicks an ad.
Founded in 2014, Women Grow is now the largest
national network of cannabis professionals with Monthly
Events for women & men in 45 cities across the US &
Canada.
Full-service cannabis branding agency, dedicated to the
marketing of cannabis products and services
Mantis Offers a solid and growing network of sites
including The Cannabist, Leafly, The Daily Chronic,
and more. Mantis reaches 6 million unique visitors
each month.
9. PAGE9
Website with detail information.
SEO optimization. Maintaining a
high ranking in the Google and
Bing/Yahoo search engines
Mass Mailing using
MailChimp or other
services, noteworthy
monthly newsletter
AdWords. Testing various keywords
to select familiar to topic and at the
same time acceptable by Google’s
algorithm: green, medicine, 502,
infused, relaxing, stimulating,
enhanced, alternative therapies,
alternative medicine, natural, and
others.
Business events and
conferences.
Business and industry
associations.
The total
marketing
expenses is
estimated over
$70,000 for the
first year
MARKETING PLAN
Advertising and articles
in the thematic
Magazines, including
Dope, Cannabis Now,
420 Magazine, Marijuana
Venture, MG Magazine
Alternative Online
Advertising Options,
including Mantis, 420
Network, 420 Click, Women
Grow, Cannabrand
10. PAGE10
OWNERSHIP/TEAM
Performs management and market analysis functions.
Researches cannabis industry protocols and business
operations options. Manages the team of
independent contractors. Oversees the completion of
team tasks, evaluates work, and determines progress
points. Interfaces with potential business subscribers,
patients/customers, and affiliates.
X: 50% ownership, Managing Director
Performs management and market analysis
functions. Researches cannabis industry protocols
and business operations options. Manages the team
of independent contractors. Oversees the
completion of team tasks, evaluates work, and
determines progress points. Interfaces with
potential business subscribers, patients/customers,
and affiliates.
Y: 50% ownership, Operational Director
The organizational structure is designed to maximize personnel, while maintaining flexibility in size and scope.
Boardof
Directors
Marketing
Director/Partner
Managing
Director/Partner
Growers
Trimmers
Packaging Assistant
Sales
Representatives
11. PAGE11
OPERATIONAL PLAN
Company Setting Up
Security & Office Equipment
Greenhouses 1-2
Office Building
Vegetative Plants, indoor
growing
Building for MIP Equipment
CO2 extraction equipment
Greenhouses, 3-4
Hoophouse
Flowering Plants, indoor growing
Yield
Greenhouses 5-6
Outdoor growing
Flowering Plants, greenhouse
growing
Greenhouses 7-8
Yield, outdoor summer harvest
Yield, greenhouses harvest
Greenhouses, 9-10
Greenhouses, 11-12
While most businesses in any industry try to keep startup costs as low as possible, that isn’t necessarily the best way to proceed
when opening a grow. Creating a cost-efficient cultivation site often involves investing in technology and processes that may
result in a big near-term hit. Optimally, our goal is to be able to produce quality cannabis for $1 a gram.
13. PAGE13
YIELDS FORECAST
224,000
1,344,000 1,344,000 1,344,000 1,344,000
-
112,000 224,000 280,000 280,000
-
500,000
1,000,000
1,500,000
2,000,000
Year 1 Year 2 Year 3 Year 4 Year 5
Outdoor
Greenhouse
As growing stage will start from January 2018, sales are projected to be started from the 2018 summer and they will
significantly increase from the second year.
Company intends to mix outdoor cultivation from April to October period and all around year greenhouse cultivation.
Growth rate for revenue is about 550% for the second year and about 10% for the third year.
14. PAGE14
REVENUE FORECAST
-
500
1,000
1,500
2,000
(2,000)
-
2,000
4,000
6,000
8,000
10,000
Year 1 Year 2 Year 3 Year 4 Year 5
$000
Gross Profit Net Income Operating Expense
Last week indoor flower spanned
from $1,000 to $3,500 per pound;
the median price was $2,000.
Greenhouse flower spanned from
$1,200 to $3,000 per pound; the
median price was $1,500.
Outdoor flower spanned from
$1,000 to $2,000 per pound; the
median price was $1,300.
Deal sizes for indoor flower
ranged from 0.5 to 100
pounds.
Deal sizes for greenhouse
flower ranged from 1 to 320
pounds.
Deal sizes for outdoor flower
ranged from 1 to 200
pounds.
15. PAGE15
REVENUE FORECAST
YEAR 1 YEAR 2 YEAR 3
Revenue 224,000 1,456,000 1,568,000
Direct Costs 304,193 954,853 951,307
Gross Profit -80,193 501,147 616,693
-36% 34% 39%
Operating Expense
Legal Fees & Licensing 10,000 3,333 3,333
Building maintenance 0 0 0
Equipment maintenance 0 0 0
Administrative expenses 3,600 3,600 3,600
Administrative Salaries 0 0 0
Community Service, Improvements 1,000 2,400 2,400
Sales & Marketing 12,400 74,000 79,600
Misc. 4,500 6,000 6,000
Total Operating Expense 31,500 89,333 94,933
Operating Income (EBITDA) -111,693 411,813 521,760
% of revenue -49.9% 28.3% 33.3%
Depreciation and Amortization 24,798 26,143 26,143
Earnings Before Interest & Taxes (EBIT) -136,491 385,670 495,617
Income Tax 0 99,672 198,247
Net Income -136,491 285,999 297,370
16. PAGE16
PROJECT’S CASH FLOW
$350,000
$1,000,000
$1,700,000
0
500,000
1,000,000
1,500,000
2,000,000
YEAR 1 YEAR 2 YEAR 3
Year 1
Construction &
Growing
Yearly revenue of
about
$200,000
Year 2
Yearly revenue of
about $1,000,000
Year 3
Yearly revenue of
about $1,500,000
The total investment required for the first year that the business starts operating is
approximately $330,000: Owners - $150,000 and Loans - $180,000.
Initial investments would cover start-up costs and fixed expenses until profit stability is
achieved during first year.