marijuana dispensary business plan example

The Complete Marijuana Dispensary Business Plan Guide – with Templates!

There's so much to keep in mind when starting your own marijuana dispensary business. It's not just about what strains and products you're going to sell. Many, many things are critical to a great plan. If this all sounds overwhelming, don't worry! We've compiled everything you should know, even what most plans out there don't cover. Keep reading for Happy Cabbage's guide for making your next business plan.

The Purpose of Your Marijuana Business Plan

How do I write the purpose of my cannabis dispensary in a business plan? What should it say? First, you should outline what you're going to do, how you're going to do it, and why. You will want a section in your business plan on mission and values. These are critical before articulating other pieces of your company, such as a product or marketing strategy. Let's take a look at some consumer-facing examples of mission statements and values that reflect the internal business plans developed by store owners. San Francisco retailer Sava takes a community and equity angle, stating that they aim to offer suitable products for all consumers. They also strive to sell products that customers would recommend to their friends. ‍

‍ Basa , also in SF, focused more on aligning its values with a medicinal perspective on cannabis. ‍

‍ Oregon and Massachusetts retailer Diem emphasizes the importance of their in-house brand instead of the retail angle other dispensaries may traditionally take. ‍

‍ These are a few ideas to spark your creativity. Of course, you'll probably format these into sections with a bit less prose, but don't be fooled. These principles exist in front of consumers as they do behind the scenes in your dispensary business plan. Your mission and values should align with your target audience, local laws, and whom you want to reach, all of which we'll discuss further in this article.

Determining Your Target Market in The Industry

Figuring out your target cannabis market is one of the most decisive and challenging parts of your marijuana business. It helps you figure out what services and products to offer and what marketing to do. You can start this portion of your business plan by getting as much information on the area you're choosing to open your storefront.

Forget The General "Stoner" Audience 

A critical piece to finding your target market is that you shouldn't define it as generally anyone that smokes weed. After all, there are so many different types of cannabis customers. You'll have to find a target that fits your business plan well. According to a recent survey , there are likely more than 40 million cannabis consumers or roughly 12% of the entire population in the United States. ‍

‍ That means everyone, from Gen-Z to millennials to baby boomers and beyond, across all socioeconomic groups and cultures that are currently cannabis consumers today. You'll have to start narrowing down your scope for whom you intend to reach. Begin your search for your target market with local research. Who is in your immediate vicinity? Perhaps you’re planning to launch in an inner-city New York neighborhood. Maybe your consumers are parents in the suburbs, which could potentially change the way you choose to market in your business plan. Maybe you’re the first cannabis business to open in a small Midwest town, which could come with its own set of challenges regarding education and outreach. For example, suppose legal marijuana dispensaries are already flourishing in your city or state. In that case, it's unlikely that your potential local clients have never used marijuana products before.  That means that they shouldn't need much education to make them customers at your business. On the other hand, if you're the first retailer to open up shop in your area, it may be a different story. You'll have to spend more time convincing locals to come into your storefront. 

It Comes Down to Demographics & Size

As you can see above, creating your target audience is all about understanding key demographics. These distinctions will likely influence the way you tailor your business to consumers. A few demographics to pay attention are the following:

• Job and income
• Family status
• Preferred social media sites ‍

Another important factor is size. You want to go after the most populous demographic in your region, creating many opportunities for new and long-term customers. Although size is not always the most definitive factor, it certainly comes into play when considering what kind of business you’ll want to start.

Kicking Off Your Strategy: Opportunities & Risks

It’s always good idea to identify critical opportunities and risks before launching your business. Imagine investing in property, technology, and employees without a clear direction. You’d essentially leave your success (and investment) up to chance without the foresight into potential challenges that you could’ve uncovered during strategic development. So let's take a step back and look at the bigger picture with the help of these two tools.

SWOT Analysis

A Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis is a strategic formulation tool for either formal or informal use.

It’s a commonly used analysis by entrepreneurs across every industry, so it will surely help with your business plan.

‍ Consider the Strengths and Weaknesses as internal factors such as the organization's assets, processes, or personnel. On the other hand, Opportunities and Threats concern external factors, such as market, state law, and economic conditions.

The Eliminate-Raise-Reduce-Create Grid is another analysis for identifying opportunities and potential routes for scaling a business model. While the SWOT focuses more on internal and external market conditions that your business plan should acknowledge, the ERRC Grid outlines how your business plan model will respond to those factors.

‍ Completing this grid will help you create a unique position in the legal market that's informed by how your business plan engages with cannabis retail industry standards. It's an excellent exercise for establishing differentiators, unique selling propositions, and guiding a plan to scale in the future.   

Organizational Plan: Your Team & Their Duties

Who will be the key players in your organization? It’s an important question to consider as it can vary depending on the type of business plan you’re developing. Your business plan should have a traditional chart and team background information, such as qualifications of lead personnel in marketing, finance, legal, operations, management, and other divisions. ‍

‍ Do you want to elaborate more? Also list other relevant skills needed to launch and operate the company successfully. Defining these will inform your hiring and employee evaluation, saving time and money throughout the process.

Choosing Products for Your Dispensary Business Plan

At this stage in your business plan, picking the best products will depend primarily on how well you know your target audience and market. The goal here is to create a menu based on preferences you’ve identified while researching your target audience. For example, you might learn that a cohort within your target audience prefers flower but will typically choose hash if the brand they want is not in store. Alternatively, suppose you're opening up your cannabis dispensary in a neighborhood with predominantly millennial consumers. In that case, you might want to consider offering other product types or how past news cycles— such as the coverage on vapes— might impact purchase decisions. It undoubtedly becomes more granular once you start planning what brands will line your shelves.

What About Brands?

Cannabis brands have target audiences just like your business, investing in marketing communications designed to reach that specific communities.  Like what we mentioned above, you’ll want to pick brands with an affinity or marketing for your target audience. That way, when a potential customer enters your store, they’ll likely recognize and purchase a product they’ve seen or tried before. Brands might focus on marketing their products towards women and people of color. Others may take a more generalist approach or focus on the medicinal perspective of cannabis than being lifestyle-oriented. You can see how choosing certain cannabis brands, and products can influence what a customer recognizes and decides to buy when coming into your establishment.

Developing Your Marketing Strategy

How will you choose to market your business plan? The answers could vary a ton based on whom you talk to. Here are some key tips for writing the marketing strategy in your business plan. 

Allocating Your Budget

Clearly define your budget and the investments you choose to make. The more granular to get with deciding what marketing to do, the better prepared you will be to ensure tracking of return on investment.

Selecting Your Channels

Conduct diligent research into what channels you’re planning to activate. Start with questions like what social media platforms does your target audience use? Where can you deploy cannabis advertising? Many platforms restrict cannabis businesses from marketing; so, make sure you know how you plan to use them before going live. 

Get into Local SEO

Google My Business and Maps are two services many consumers rely on for choosing where to shop in their area. You’re going to want to have a plan for how your store will use this platform in its first year.

Consider Dispensary Text Marketing

How will you communicate with your customers once they have purchased from you? Software like a dispensary text marketing platform can help retailers send targeted communications to proportions of their customer base, resulting in higher open, click, and conversion rates.

Track, Track, & Track!

As it does for all dispensaries, your return on investment from marketing will matter to the success of your business plan. You're going to want to include how you intend on tracking each channel, your key performance indicators, and how you will attribute marketing-assisted sales.

Funding Strategy: How You'll Find The Money

When planning how you'll raise funds, ask yourself the following questions: ‍

• What are we going for?
• Why are we doing it?
• Who will do it?
• Where will we do it?
• How will we do it?
• When will we start? ‍

These are the six most essential questions for business funding because they cover the scope of your fundraising plan, the need in the market, key players, and a path to action. There are also two acronyms relevant to most fundraising strategies: BITS and SMART. BITS (Business-Individuals-Trusts-Statutory) will help you outline who will provide funds to your cannabis business. SMART (Specific-Measurable-Agreed-Realistic-Timetabled) helps set objectives for raising capital in a way attainable by your organization.

Outlining Your Exit Strategy

Exit strategies are plans for when investors want to get out of the company. Starting dispensaries can be quite costly and potentially rely on long-term financial commitments some investors can't make. These plans account for how venture capitalists can liquidate their investment based on specific criteria. The options can range from demonstrating a proven need in the market to selling off the company to another investor or enterprise. It is essential to have this in place so that every investor knows what they're signing up for before putting capital into your storefront.

Timeline & Milestones: What All Business Plans Need

Last but not least, no plan is complete without setting a timeline for operations and the milestones you wish to achieve. Here is a list of a few to consider: ‍

• Gaining the amount of capital required to operate.
• Acquiring property for operations.
• Licensing and permits.
• Purchasing all required software and equipment.
• Hiring employees.
• When marketing communications will start.
• When you expect your first customer. ‍

Setting these goals in advance will align your organization around clear business objectives relevant to your success. It will also make it easier for investors to visualize the trajectory of your business plans before they go underway.

Here's A List of Every Cannabis Business Plan Template for Dispensaries

We know you love templates. So, we made a list of every dispensary business plan pdf we could find on the Internet. Happy planning! UpMetrics CannabisBusinessPlans.com OGS Capital GrowThink LegallyRooted Wave Cannabis Pharm House & Sugarleaf Adilas420 DispensaryTemplates.com Beachside Health & Wellness Chandelier Template.net Northreadingma.gov The Healing Center Are your plans ready? Let us help you execute them! Happy Cabbage makes technology for cannabis dispensaries. Schedule a demo to see our tools Happy Marketers and Happy Operatorsand how they can help you run a better dispensary operation.

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How to Write a Cannabis Business Plan: A Step-by-Step Guide

Cannabis Entrepreneurs , Cannabis Industry , Cannabis Retail

Legal cannabis business sales reached $33 billion at the end of 2022. These outstanding statistics are drawing more individuals into the cannabis industry to start their very own dispensaries as more states in the US legalize recreational marijuana.

However, getting a foothold in this industry is not as easy as it may sound, especially with stringent compliance regulations. If you're considering opening a dispensary and getting involved in this line of work, you must know what you're doing. That's why you need a solid cannabis business plan, just not to obtain a legal dispensary license but also to ensure that you always remain compliant with all cannabis laws and regulations . 

A business plan helps you organize your goals and objectives, next steps, financial situation, and any other information you need before opening a cannabis dispensary. But keep in mind that your business plan should be flexible as it’ll need updates according to the constantly evolving regulations and trends in the cannabis market.

Writing a Cannabis Dispensary Business Plan

A business plan for a dispensary lays out your purpose for opening one, along with the strategies that can help you reach that purpose. You may need to conduct market research and measure relevant metrics to write a data-driven cannabis dispensary business plan. 

You may think that writing a business plan is a drag, but it's worth your time. Take the time to write the perfect business plan, and save a lot of time and energy in the future. 

We prepared this step-by-step guide to help you quickly get through this stage. 

1. Executive Summary

The first section of your cannabis dispensary business plan outlines an executive summary of the whole plan. This section is very important because if you want to sign a contract with an investor, they will first look at this part of your plan. 

Surely you don't expect an investor to work with a cannabis company that doesn't have a business plan? 

Here is all the information you need to include in your summary.

• Your business information: In this section, you need to provide information about who you are, if you're a start-up or a well-developed company, your location, and all your contact information. You can also prepare a description of the cannabis business for those who don't know it.
• Your products and services: Write down all the products and services you will offer.
• Your target market: Who could be your ideal customer? What are their age bracket, habits, income, and job? Create a buyer persona with all this information so you can target the right audience - those who are interested in your products and with a high chance of purchasing them. 
• Your competitors: Who are your competitors that offer the same products? Keep them under close watch. Analyze them fully- understand what strategies they're implementing, who their customers are, what their pricing is, etc. 
• Your team members: Determine what roles your company needs and who will be positioned in those roles.
• Financial summary: Your financial summary should contain the profitability of your business, your operating costs, revenue, debts, and anticipation of future growth. 
• Problem and solution: Think about your value proposition carefully. What is it that your company offers that your competitors don't? Why would they need to choose you over the others? What problems can your products solve? In what way?

2. Company Analysis

In this section, you must explain what kind of cannabis business you're running. We prepared some examples of cannabis businesses here below.

• Cannabis producers or cultivators: They grow and harvest cannabis on farms or greenhouses or run any growing operation, such as a hydroponic farm.
• Cannabis product manufacturers: They are the ones who take the cannabis from farmers and make products out of them, such as oils, drinks, textures, vapes, etc.
• Cannabis dispensary: They provide cannabis-related products for adults, medical, and recreational use.
• Cannabis retailers: They sell cannabis products to customers, such as the dispensaries we mentioned above. 
• Vertically integrated operation: They grow cannabis, make products with them, and retail themselves. 

Other types of cannabis businesses include:

• Delivery services
• Laboratories for testing and researching
• Places for social cannabis consumption

Aside from the type of business, there are other pieces of information you need to include in your company analysis:

• The time and the reason you started the business.
• The milestones you achieved, such as the number of products you created, etc.
• The retail structure of your business ; Are you an S-Corp, sole proprietorship, or maybe an LLC?

3. Industry Analysis

Another important part of the cannabis dispensary business plan is industry analysis.

Industry analysis is an overview of the cannabis industry. You need to conduct an industry analysis for several reasons:

• Educating yourself about the cannabis market you're working in
• Identifying market trends and improving your marketing strategies
• Proving your professionalism and expertise to your readers

You should also include the following information in your industry analysis section:

• Cannabis industry's worth in dollars
• If the market is growing or decreasing
• Your key competitors 
• Your key suppliers
• The trends affecting the industry
• The industry's growth forecast over the next 5-10 years
• The relevant market size to understand your chance for growth

4. Customer Analysis

You should think about your customers carefully so you can include the right type of audience in your cannabis business plan. Customers are the core of any business, so if you target customer segments who are not your ideal ones, it may result in losing precious time, money, effort, and resources. 

There are several things you need to pay attention to while looking for your target audience:

• Segmented Available Market, or SAM
• Total Available Market, or TAM
• Share of the Market, or SOM

Based on the total available market, your customers are the ones who are over the age of 21. The segmented available market shows the groups of people who are willing to pay for your products. The market share is the number of customers you can reach in a few years. 

You should know that legality will impact your total available markets, so not everyone can be your ideal customer. But keep in mind that you can have a bigger TAM for products known to be widely legal, such as CBD oils and hemp.

Also, cannabis businesses react differently to marketing methods. For example, a strategy that works for cannabis dispensaries will not work for manufacturers. 

To conduct customer analysis, you can also consider their demographics and psychographics aside from SAM, TAM, and SOM. Customer demographics are about your ideal customer's age, income, gender, location, education, etc. 

Psychographics is about customers' values, wants, needs, and expectations. The more you get to know them, the better you understand what will attract and repel them. 

5. Competitive Analysis

A competitive analysis analyzes your direct and indirect competitors in terms of products, services, prices, etc. 

As a cannabis dispensary, your direct customers are other dispensaries that work in the same location as you, and your indirect customers would be the producers. Here is the information you need to provide in this section of your cannabis dispensary business plan:

• An overview of their businesses
• Their strengths and weaknesses
• The product types they offer
• Their distribution to a particular dispensary type, such as medical or retail
• Their pricing

Also, mention the following information regarding these matters:

• If you can provide a wider range of products or services 
• If you provide a better customer service
• If you offer cost-effective pricing.

Write down all the ways you can win the competition and why consumers need to choose you above the others. 

6. Cannabis Marketing and Sales Plan 

Without marketing, you won't be able to find new customers and increase revenue. A solid marketing plan is important for a cannabis business plan. A marketing plan includes your marketing options in terms of all the factors mentioned below.

• Product: Again, mention the type of your cannabis business. Then write down your products but add more details.
• Price: Include the prices for each product and how your pricing differs from your competitors. 
• Place: Place refers to how customers are going to access your products. Do you have a physical store? Document the location and also include how it can benefit you. Do you own an eCommerce website? Document the site address. 
• Promotion: Here, you need to mention how you will advertise your business and products to attract more customers. These methods would include:
• Online: Such as social media marketing
• Print: Such as advertising in magazines
• Networking: Such as using independent representatives 

7. Operations and Security Plan

Your operations plan is about how you will meet your business goals. Your operations plan should include two sections:

• Short-term process: Include all the tasks you and your team will do to run the business in this section. It might include:
• Security of Products and Facility
• If you grow or manufacture cannabis
• Packaging products
• Dispensary SOPs
• Long-term goals: Your operations plan should contain the milestones you wish to achieve in a specific period.

8. Your Financial Plan

Here is what you need to include in your financial plan:

• Balance sheets: This includes the amount of money you have in the bank, the amount your clients owe you, and the amount you owe your vendors. Your balance sheet illustrates how your business is doing at any particular time.
• Cash flow statement: This shows the amount of cash the business received, spent, and has after the financial year. 
• Total net profit or less: This outlines how your company generated a profit or suffered a loss over a specific period (usually three months), outlining all revenues and outlays before calculating the overall net profit or loss.
• Sales forecast: You have to forecast how much product you will sell in the future. The time frame is usually 1-3 years. 

9. The Technology You Need to Use

As a cannabis business owner, you will need to use software, for instance, to sell products and manage transactions. You should know that having a website is essential for cannabis-related businesses so that consumers can browse through different categories and products.

A dispensary POS system allows you to take your business to the next level and enter the world of online transactions instead of being solely cash-based. COVA helps you to manage inventory and streamline sales. Also, we tweak our software as per the  cannabis laws in each region so that your business always stays compliant.

Our cannabis POS verifies the customers' age and prevents underage people from purchasing. On top of that, it calculates the amount of THC in cannabis products and stops sales that exceed legal limitations. This means that you don't have to worry about breaking the law accidentally and can focus on finding better marketing strategies and providing superior customer experiences.  Book a demo with us to learn more about the tools you need. 

10. Appendix 

The appendix should contain any remaining financial projections along with charts, graphs, and images that make the document easy to read.

Any business needs proper preparation before launching to determine what it will achieve. Dispensaries are not exempted. They need even more planning due to the nature of the cannabis business. One mistake in planning and everything can go downwards. Read and revise your plan multiple times before launching your dispensary. 

Aside from the things mentioned to include in the business plan for your dispensary, you can also write down each team member's role, especially from your management team. Writing down your product distribution plan has its benefits as well. 

Now that you have an idea about how to write a cannabis business plan, you should also consider reading this guide for more information: 5 Key Elements of a Successful Cannabis Retail Business Plan, or check out our cannabis guides and resources page to learn more about how you can succeed as a cannabis retailer. Contact Cova to see how we can help you succeed.

Written by Faai Steuer Faai Steuer is VP of marketing at Cova Software, the fastest growing cannabis retail POS in North America. An entrepreneur at heart, she has a passion for growing startups and building brands. With 20 years of marketing experience in CPG and retail tech, she lends her knowledge and best practices to help cannabis entrepreneurs in the US and Canada open their first store and grow their business through vital thought leader content. Faai oversees the strategies and executions of Cova public relations, content marketing, social media, events, and campaigns.

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How to Write a Cannabis Dispensary Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be especially helpful for cannabis dispensary businesses that want to improve their strategy and raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every cannabis dispensary business owner should include in their business plan.

Download the Ultimate Dispensary Business Plan Template

What is a Cannabis Dispensary Business Plan?

A cannabis dispensary business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Cannabis Dispensary Business Plan?

A cannabis dispensary business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Cannabis Dispensary Business Plan

The following are the key components of a successful cannabis dispensary business plan:

Executive Summary

The executive summary of a cannabis dispensary business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your cannabis dispensary company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

If you are just starting your cannabis dispensary business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your cannabis dispensary firm, mention this.

You will also include information about your chosen cannabis dispensary business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a cannabis dispensary business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the cannabis dispensary industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, cannabis dispensary business customers may include:

• Patients with chronic pain who want an alternative to opioids
• Cancer patients seeking natural relief from chemotherapy side effects
• Anxiety and stress sufferers who find cannabis helpful in managing their symptoms
• People with epilepsy who are using cannabis as a treatment

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or cannabis dispensary services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will differ from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your cannabis dispensary business may have:

• Extensive product line
• Strong brand identity
• Well-known management team
• Industry experience
• Robust marketing strategy

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Additionally, you may promote your cannabis dispensary business via a PR campaign.

Operations Plan

This part of your cannabis dispensary business plan should include the following information:

• How will you deliver your products to customers? For example, will you do it in person or online?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a cannabis dispensary business include reaching $X in sales. Other examples include launching a new product line or opening a new location.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific cannabis dispensary industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Cannabis Dispensary Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : Everything you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Cannabis Dispensary Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include cash flow from:

• Investments

Below is a sample of a projected cash flow statement for a startup cannabis dispensary business.

Sample Cash Flow Statement for a Startup Cannabis Dispensary Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your cannabis dispensary . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A business plan is an essential tool for any cannabis dispensary business owner. Having a well-thought-out business plan increases the chances of your cannabis dispensary succeeding.  

Finish Your Dispensary Business Plan in 1 Day!

Other helpful articles.

How to Write a Successful Hemp Business Plan (+ Template)

How to Write a Cannabis Business Plan (+ Template)

How to Write a Cannabis Cultivation Business Plan (+ Template)

How to Write a Successful CBD Business Plan (+ Template)

How to Write a Cannabis Edibles Business Plan (+ Template)

Dispensary Business Plan Template

Write your dispensary business plan with help from cannabis retail experts.

The Dispensary Business Plan template includes advice and strategic insights to help you create a comprehensive starting document for your cannabis business.

Simply download, add your company details, and follow the instructions to build your completed dispensary business plan.

What's included?

The template covers all necessary sections for a complete dispensary business plan, including:

Executive Summary

Industry or Cannabis Market Analysis

Marketing Plan

Operations Plan

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Dispensary Business Plan Template

Written by Dave Lavinsky

Cannabis Dispensary Business Plan

You’ve come to the right place to create your dispensary business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their dispensaries.

Cannabis Business Plan Sample

Below is a cannabis dispensary business plan to help you create each section of your marijuana dispensary business plan.

Executive Summary

Business overview.

High Kite Dispensary is a startup cannabis business located in Denver, Colorado. The company is founded by Jim Johnson and Michelle Smith, who are both experienced entrepreneurs and business owners. Jim has successfully brought multiple companies from the conception phase to a successful exit, either by acquisition by a larger company or byway of an initial public offering. Michelle comes with extensive experience as a business owner with expertise in financial management of food and beverage and retail shops. The founders are confident in their ability to bring High Kite Dispensary to market. The duo’s plan for success begins with hiring experienced professional budtenders and retail managers to operate the cannabis business on a day-to-day basis. 

High Kite Dispensary will be Denver’s one-stop shop for all things cannabis from vapes, edibles, and CBD oils to bulk flower, the most popular strains, and cannabis accessories. 

Product Offering

The following are the products that High Kite Dispensary will offer:

• Baked goods
• Flower Pre-rolls
• Bulk flower
• High Kite apparel and accessories

Customer Focus

High Kite Dispensary will target recreational cannabis consumers in Denver, Colorado. The Company’s product offerings will cater to individuals ages 21 and over, from people new to cannabis to seasoned connoisseurs. High Kite Dispensary will employ knowledgeable budtenders to provide personalized customer service, providing each customer with information and helping them select the products that are right for them.  

Management Team

High Kite Dispensary will be owned and operated by Jim Johnson and Michelle Smith. The duo has recruited Jan Jones, an experienced cannabis dispensary manager, to help run the day-to-day dispensary operations and supervise the budtenders.

Jim Johnson is a graduate of the University of Colorado with a Master’s degree in Business Administration. He has successfully brought two other startups to market as an active member of the executive team. Jim’s organizational skills and diligence have allowed him to establish a reputation as a driven CEO with the ability to spearhead favorable ROIs. 

Michelle Smith is also a graduate of the University of Colorado with a Bachelor’s degree in Finance. She has spent the last ten years working in a financial management role for a high end retail shop, before coming on as High Kite’s CFO. 

Jan Jones has been working in the cannabis industry in Colorado for the last three years. She started out as an entry level budtender and has gone on to roles with increasing responsibilities from head budtender to cannabis dispensary manager. Jan’s industry expertise is an essential asset for this new cannabis company.

Success Factors

High Kite Dispensary will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified cannabis experts that are able to effectively educate customers, manage the products, and work together as a team to provide the best experience for shoppers. 
• Extensive menu of products ensures there is something for every taste and every budget. 
• As a locally owned and operated business, High Kite Dispensary sources its products from local cannabis growers and producers at a wholesale discount, thus allowing the company to achieve a healthy profit margin. 

Financial Highlights

High Kite Dispensary is seeking $200,000 to launch its cannabis dispensary. The funding will be dedicated towards securing and remodeling the shop and purchasing the initial inventory. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and cannabis marketing costs. The breakout of the funding is below:

• Storefront build-out: $20,000
• Inventory and supplies:  $10,000
• Three months of overhead expenses (payroll, rent, utilities):  $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for High Kite Dispensary.

Company Overview

Who is high kite dispensary .

High Kite Dispensary is a newly established recreational cannabis dispensary in Denver, Colorado. High Kite Dispensary will be the most reliable, affordable, and fun choice for cannabis consumers in the city. The dispensary will provide a comprehensive menu of locally sourced cannabis products to appeal to any palette. Their customer-focused approach includes personalized customer service from knowledgeable budtenders seven days per week. 

High Kite Dispensary will be able to serve all types of customers, from those new to cannabis to long-time consumers. The team of professionals are highly qualified and experienced in all things cannabis, from growing and production to processing and sales. High Kite Dispensary answers all questions customers may have, while delivering the best customer service.

High Kite Dispensary History

High Kite is owned and operated by Jim Johnson, a serial entrepreneur who has an MBA from the University of Colorado and Michelle Smith, a business management professional who has a Bachelor’s degree in Finance from the University of Colorado. Jim has successfully built and sold two previous startups. Michelle’s tenure as CFO of a previous retail company has given her the skills and knowledge required to venture out on her own and start her own company. Jim has gained the trust and commitment of a network of entrepreneurs, who will help to bring his new company to the attention of industry leaders. 

Since incorporation, High Kite Dispensary has achieved the following milestones:

• Registered High Kite Dispensary, LLC to transact business in the state of Colorado. 
• Has a contract in place for the chosen dispensary location. 
• Reached out to numerous contacts to get that word out to potential customers that there will soon be a new dispensary coming to the area soon. 
• Began recruiting a staff of managers, bookkeepers, and budtenders to work at High Kite Dispensary.

High Kite Dispensary Products

The following will be the products High Kite Dispensary will provide:

Industry Analysis

The legal cannabis industry is experiencing significant growth and is expected to continue this pattern over the next several years as recreational cannabis is becoming more accepted by the general population. The Colorado cannabis industry is a $2.2B market. Cannabis is a major source of tax dollars for the state, bringing in an estimated $423M in 2021, so it is a favorable cannabis market to start a new dispensary. Furthermore, the cannabis industry in Colorado is a major contributor to the local job market, bolstering the economy. In 2019, multiple cannabis bills were signed into law that ensure Colorado cannabis dispensaries can remain competitive in the ever-evolving industry through increased innovation, diversity, and equity. 

For industry operators, intellectual property assets such as brand names and product trademarks are becoming increasingly valuable. Additionally, over the past year, the cannabis industry experienced a significant increase in M&A transactions with large players acquiring small dispensaries. This M&A activity is expected to continue to grow in the coming years.  

Customer Analysis

Demographic profile of target market.

High Kite Dispensary will target individuals ages 21 and over in Denver, Colorado. They will target people new to cannabis as well as those that are very familiar with it. 

The precise demographics for Denver, Colorado are:

Customer Segmentation

High Kite will primarily target the following customer profiles:

• Millennials
• Silent Generation

Competitive Analysis

Direct and indirect competitors.

High Kite Dispensary will face competition from other companies with similar business profiles. A description of each competitor company is below.

Rocky Mountain Cannabis (RMC)

Rocky Mountain Cannabis (RMC) provides a range of cannabis products including vapes, CBD, and edibles. Located in southeastern Denver, RMC is an established dispensary that advertises the lowest prices in the area. The dispensary is opening a second location next year to accommodate the communities in northern Denver. RMC products include 23 strains of flower, a large selection of CBD oil brands, and edibles such as gummies and chocolates. 

Denver’s Best Dispensary

Denver’s Best Dispensary is located in central Denver and offers edibles, CBD oils, pre-rolls, and vapes. The dispensary also sells cannabis-infused baked goods through its on-site bakery. Denver’s Best is owned and operated by cannabis professionals who have extensive experience in growing, processing, and retail of recreational cannabis and CBD products.

Colorado Canna Flower (CCF) 

Colorado Canna Flower (CCF) is located in eastern Denver, with multiple locations across Colorado including Golden, Boulder, and Aspen. CCF specializes in unique CBD oil blends and low-dose edibles. The dispensary is managed by former medical dispensary executives with extensive industry experience. 

Competitive Advantage

High Kite Dispensary will be able to offer the following advantages over their competition:

• As a locally owned and operated business, High Kite Dispensary sources its products from local cannabis growers and producers, bolstering the local economy. 

Marketing Plan

Brand & value proposition.

High Kite Dispensary will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees that is able to provide personalized service and value-add information. 
• Unbeatable pricing to its customers – High Kite Dispensary does not mark up its products at a large percentage. They will offer the most reasonable price for quality cannabis products in town. 

Promotions Strategy 

The promotions strategy for High Kite Dispensary is as follows:

Word of Mouth/Referrals

Jim Johnson has built up an extensive list of contacts over the years by providing exceptional service and expertise to his customers. Once Jim advised them he was about to open his own cannabis business, they volunteered to help spread the word of High Kite Dispensary.

Professional Associations and Networking

High Kite Dispensary will become a member of cannabis industry associations such as the Colorado Cannabis Association (CCA) and the National Cannabis Industry Association (NCIA).  They will focus their networking efforts on expanding their customer base.

Print Advertising

High Kite Dispensary will invest in professionally designed print ads to display in programs or flyers at industry networking events. 

Website/SEO Marketing

High Kite Dispensary will utilize their in-house marketing director that designed their print ads to also design their website. The website will be well organized, informative, and list all their products. The marketing director will also manage High Kite’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Denver cannabis dispensary” or “CBD near me”, High Kite Dispensary will be listed at the top of the search results.

The pricing of High Kite Dispensary will be moderate and on par with competitors so customers feel they receive value when purchasing their products. 

Operations Plan

The following will be the operations plan for High Kite Dispensary.

Operation Functions:

• Jim Johnson will be the owner and CEO of the company. He will oversee all staff and manage business relations. 
• Michelle Smith will be the co-owner and CFO of the company. She will oversee all accounting and bookkeeping for the company. Jim and Michelle have spent the last few months recruiting the following staff: 
• Jan Jones – Dispensary Manager who will supervise the budtender staff and run the day-to-day operations of the business. 
• Kim Martinez – Staff Accountant will report to Michelle and will provide all accounting, tax payments, and monthly financial reporting.
• Ben Martin – Marketing Manager who will provide all marketing for High Kite. 

Milestones:

High Kite Dispensary will have the following milestones complete in the next six months.

6/1/2022 – Finalize contract to lease dispensary building

6/15/2022 – Finalize personnel and staff employment contracts for the High Kite management team

7/1/2022 – Finalize contracts with cannabis producers and key suppliers

7/15/2022 – Begin networking at industry events 

7/22/2022 – Begin moving into High Kite Dispensary

9/1/2022 – High Kite Dispensary opens for business

High Kite Dispensary will be owned and operated by Jim Johnson and Michelle Smith. The duo has recruited Jan Jones, an experienced dispensary manager, to help run the day-to-day dispensary operations and supervise the budtenders. 

Jim Johnson is a graduate of the University of Colorado with a Master’s degree in Business Administration. He has successfully brought two other startups to market as an active member of the executive team. Jim’s organizational skills and diligence have allowed him to establish a reputation as a driven CEO with the ability to spearhead favorable outcomes. 

Jan Jones has been working in the cannabis industry in Colorado for the last three years. She started out as an entry level budtender and has gone on to roles with increasing responsibilities from head budtender to general manager. Jan’s industry expertise is an essential asset for this new cannabis company.  

Financial Plan

Key revenue & costs.

The revenue drivers for High Kite Dispensary are the sales of cannabis products. High Kite has contracts in place with suppliers to purchase products at a wholesale price, which allows them to sell the products for a lower price point than competition for a higher profit margin. 

The cost drivers will be the overhead costs required in order to staff a dispensary seven days per week. The expenses will be the payroll cost, rent, utilities, inventory and supplies, and marketing materials.

Funding Requirements and Use of Funds

High Kite Dispensary is seeking $200,000 to launch its cannabis dispensary. The funding will be dedicated towards security measures and remodeling the shop and purchasing the initial inventory. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials. 

• Average sales per month: $500,000
• Average profit margin: 21 percent
• Building lease per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, dispensary business plan faqs, what is a cannabis dispensary business plan.

A dispensary business plan is a plan to start and/or grow your dispensary business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your dispensary business plan using our Dispensary Business Plan Template here .

What are the Main Types of Cannabis Dispensaries?

There are three main types of cannabis dispensaries:

• Recreational Cannabis Dispensary
• Medical Marijuana Dispensary
• Combination (Recreational & Medical Marijuana Dispensary)

How Do You Get Funding for Your Dispensary?

The main sources of funding for a cannabis business are personal savings and angel investors. Banks typically will not lend money to marijuana businesses due to federal laws. To help you convince an angel investor to invest in your dispensary, you need a well-written business plan.

What are the Steps To Start a Dispensary Business?

Starting a dispensary business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your business goals and get started faster.

• Write A Cannabis Business Plan - The first step in starting a business is to create a detailed business plan for your dispensary that outlines all aspects of the venture. This should include relevant market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your dispensary business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your dispensary business is in compliance with local laws.
• Register Your Dispensary Business - Once you have chosen a legal structure, the next step is to register your dispensary business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your dispensary business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
• Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
• Acquire Necessary Dispensary Equipment & Supplies - In order to start your dispensary business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your dispensary business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful dispensary business:

• How to Open a Dispensary Business

Where Can I Get a Dispensary Business Plan PDF?

You can download our free dispensary business plan template PDF here . This is a sample dispensary business plan template you can use in PDF format.

Cannabis Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their cannabis businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a cannabis business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Cannabis Business Plan?

A business plan provides a snapshot of your cannabis business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Cannabis Business

If you’re looking to start a cannabis business, or grow your existing cannabis business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cannabis business in order to improve your chances of success. Your cannabis business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Cannabis Businesses

With regards to funding, the main sources of funding for a cannabis business are personal savings, credit cards, and angel investors. Personal savings is the most common form of funding for a cannabis business.

Finish Your Business Plan Today!

If you want to start a cannabis business or expand your current one, you need a business plan. Below are links to each section of a free cannabis business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of cannabis business you are operating and its status. For example, are you a startup, do you have a cannabis business that you would like to grow, or are you operating cannabis businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the cannabis industry. Discuss the type of cannabis business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of cannabis business you are operating.

For example, you might operate one of the following types of cannabis businesses:

• Cannabis cultivation : this type of business grows and harvests cannabis either from an outdoor farm, or from a greenhouse or hydroponics operation.
• Cannabis product manufacturing: this type of business takes cannabis and makes a variety of products for end consumers, such as food, beverages, oils, tinctures, etc.
• Cannabis dispensary : this type of business retails cannabis and cannabis products, for adult use and/or for those with medical cards.
• Vertically integrated operation : this type of business grows and manufactures all or most of its products in-house, as well as retailing them.

In addition to explaining the type of cannabis business you will operate, the Company Analysis section of your marijuana business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of products you manufacture, number of distribution contracts, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the cannabis industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the cannabis industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cannabis business plan:

• How big is the cannabis industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your cannabis business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your cannabis business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: cannabis manufacturers, dispensaries, and consumers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of cannabis business you operate. Clearly, cannabis dispensaries would respond to different marketing promotions than manufacturers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most cannabis businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cannabis businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes alternate pharmaceutical products, or individuals who choose to grow and produce their own cannabis.

With regards to direct competition, you want to describe the other cannabis businesses with which you compete. Most likely, your direct competitors will be cannabis businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of products do they offer?
• Do they distribute to a particular type of dispensary (retail, medical-only, etc.)?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a wider variety of products?
• Will you offer extra services, such as white label services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a marijuana business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of cannabis company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to smokable cannabis, will your cannabis business offer edibles, tinctures and oils?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your cannabis company. Document your location and mention how the location will impact your success. For example, will you sell your products directly to consumers via a storefront? Will you sell via an ecommerce site? Or will you sell your products to other retailers who will then sell to consumers? In this section, document each method by which you will sell your products.

Promotions : The final part of your cannabis marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Signs and billboards
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cannabis business, including marketing; growing cannabis; developing, manufacturing and packaging products; and meeting with prospective distributors/retailers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign a distribution contract with your 25 th retailer, or when you hope to reach $X in revenue. It could also be when you expect to open a cannabis business in a new location.  

Management Team

To demonstrate your cannabis business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing cannabis businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in manufacturing consumer products, or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you produce a single product, or will you have a line of 10 products? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your cannabis business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cannabis business:

• Garden, greenhouse, or hydroponic facility development
• Manufacturing facility build-out
• Cost of production machinery
• Cost of packaging and other supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your facility lease, or an overview of all the products you provide.  

Putting together a business plan for your cannabis business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the cannabis industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful cannabis business.  

Cannabis Business Plan FAQs

What is the easiest way to complete my cannabis business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Cannabis Business Plan.

Where Can I Download a Cannabis Business Plan PDF?

You can download our Cannabis business plan PDF  here. This is a business plan template you can use in PDF format.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of cannabis business you are operating and the status; for example, are you a startup, do you have a cannabis business that you would like to grow, or are you operating a chain of cannabis businesses?

Don’t you wish there was a faster, easier way to finish your Cannabis business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how a Growthink business plan consultant can create your business plan for you.  

Other Helpful Business Plan Articles & Templates

How to Write a Cannabis Business Plan + Free Sample Plan

Sarah Hovet

15 min. read

Updated March 18, 2024

Free Download:  Sample Cannabis Dispensary Business Plan Template

The cannabis industry continues to grow. One of our Bplans writers described going into business in cannabis as a “ once-in-a-generation opportunity ,” with the product rapidly becoming legal for recreational as well as medical use in many states.

Legal cannabis sales were projected to top $33 billion by the end of 2023 , and grow to nearly $57 billion in total revenue by 2028 .

But with so many people jumping on the cannabis bandwagon, it’s important for anyone trying to enter the market to carefully think through their cannabis company before starting. In legal states, the markets have become so saturated that cannabis companies can end up with thousands of pounds of unsold product. Write your business plan and develop your business model with this in mind so you can avoid these issues.  

Remember that a business plan is a living document. You should revisit it on a regular basis as your cannabis company grows. Set time aside to sit down and revise the plan , comparing forecasts to actuals and revising as necessary.  

It is also a good idea to write a formal business plan to prove your professionalism. You can overcome stigma and stereotypes by demonstrating that you have a clear, viable idea for selling a product that consumers want and enjoy .

If you’re ready to get started, download our free sample cannabis dispensary business plan now.

• Executive summary

Your executive summary needs to be concise. Keep it to 1 to 2 pages. But don’t neglect it. Investors will read this section closely to make sure your company will be a good investment for them. It should describe your company, what you do, and what you want from the readers of your executive summary. Once finished, it could stand alone as a summary of your full-length business plan.

Make sure to include information for investors who do not know much about the cannabis industry. Ganjapreneur recommends including polls about the increased demand for cannabis legalization.

Your executive summary will include the following sections:

• Who you are: Your business name, location, and contact information.  
• What you offer and the problem your business solves: What does your company offer and why is it needed? This is your value proposition .
• Target market: Who is your ideal buyer? Be specific.
• Competition: Who else offers similar services?
• Team: Who is on your management team?
• Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. Mention your funding needs.
• Milestones and traction: How have you validated that there’s a need for your company in your location?

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Position your company’s opportunity

The next few sections contain the broad overview of the opportunity your cannabis company will take advantage of. As mentioned, the industry is exploding right now. With the rise of new cannabis companies, it is important to differentiate your cannabis company from the competition, whether you are opening a farm, extraction operation, or dispensary. You can no longer rely on hype to open a successful cannabis company. You need to sell a unique/quality product or service.

Set yourself apart by offering products and services that meet an unfilled need in the market. Products have become more and more diverse, and you can offer a range of flower, pre-rolls, vaporizers, concentrates, edibles, topicals, tinctures, accessories, and more.

Think outside the box when it comes to seizing your opportunity and making your cannabis brand distinct.  Suggestions include opening a unique edibles line , or getting a foothold in the new “ bud and breakfast ” cannabis-friendly lodging industry. There are also products closely related to cannabis that you can explore, such as CBD oils and hemp . The global market for CBD oils is expanding due to their medical efficacy.

Also, think about the specific business model for your company. Common small business types in the cannabis industry include:

• Cannabis producers : The farmers or growing operations who grow the plants and sell them to companies
• Cannabis processors : The middlemen who take the plants from the producers and prepare them to become recreational or medical products, such as extraction operations
• Cannabis retailers : The businesses that sell the products to consumers, such as dispensaries

There are also a wide array of ancillary businesses you can enter. These include delivery, advertising, paraphernalia, and more. These businesses can sometimes be more lucrative—they do not deal directly with cannabis so they are subject to fewer regulations. A number of cannabis tech companies have also begun to take advantage of the opportunity in the marketplace.

• Problem and solution

Describe the problem you have identified and how your cannabis company, whether you are a grower, processor, or retailer, solves that problem.

The problem: For example, imagine a city with an abundance of dispensaries, often upwards of three within a few blocks of each other. The problem is that they sell extremely similar products, and customers in the area are becoming more adventurous and seeking variety.

The solution: You decide to open a boutique dispensary that sells a variety of high-end edibles as well as topicals. Your products are high-quality on their own, and infused with high-quality cannabis. You provide extensive customer service and a variety of rewards options for customers. As a result, your pricing is higher than surrounding dispensaries, but you seek to brand yourself in such a way that your target market will expect higher prices for your quality of product.

• Target market

TAM, SAM, and SOM

This refers to your total available market (TAM), segmented available market (SAM), and share of the market (SOM).

Here, you are looking at the difference between targeting everyone (all the people who are 21 or older in your area), versus your ideal clients (people who are willing to pay your prices for your specific cannabis products), versus the number of customers you think you can realistically reach within your first few years of business.

Legality will impact your TAM. You might have a greater TAM for more widely legal products, such as hemp and CBD oils. The idea here is that not everyone will be an ideal customer. Some sources recommend using social media and demographic information to learn who your ideal customer is. Once you identify your ideal customer, you can tailor your marketing and sales plan to that person.

Buyer persona

Create a character who represents your ideal client. If you are a grower, you are looking to sell to a business, not an individual. What is the ideal kind of business for you to sell to?

Key customers

If you are mainly selling to consumers, you can skip this section and move on. It is more important for companies who are selling to other businesses, like a grower.

Provide details about the dispensaries or other cannabis companies that buy your product. Talk about how they are critical to your success.

Competition and competition matrix

List competitors and analyze what makes them competitive. Once again, the cannabis industry is oversaturated right now.

What differentiates your cannabis company from the one down the street? Will you offer a broader array of products? Or maybe you will offer great in-store customer service, with lots of advising for which products fit customers’ lifestyles.

Read up on some branding strategies to stay competitive in the cannabis industry.

Future products and services

Name the products/services you will offer as your company earns more money and as your market develops new needs. For instance, you might provide a delivery service and send products to customers’ doorsteps.

Maybe your company will develop an app to complement its website, with opportunities for customers to make social connections with each other, such as seeking smoking buddies, etc.

• Execution: How your company will respond to opportunity

The execution section describes how you will maximize the opportunity for your business.

Components of this section include:

• Your marketing and sales plan
• Strategic partnerships or alliances
• Your operations plan
• Your team and company information
• Financial plan
• Milestones and metrics that you’ll need to hit to be viable
• Your key assumptions and risks
• Your funding ask and exit strategy, if applicable
• Marketing and sales plan

This section describes how you will attract more of your ideal customers.

Include these details in your marketing and sales plan :

• Use this model to help:  “For [target market description] who [target market need], [how our business offering meets the need]. Unlike [key competition], it [most distinguishing feature].
• If your prices are higher than the competition’s, you want to make sure you are adding value by providing something they don’t or catering to a different target market. You may consider higher pricing if you sell more specialty products in a more affluent area.
• Finally, pricing can be difficult given the number of products being sold that are new to the market, with little data yet collected as to their performance. Try generating interest in new products with special deals such as discounts on complementary products. BDS Analytics has also generated some area-specific reports on cannabis pricing.
• Promotion : Explain your advertising plan and marketing tactics, whether they are online, print, or networking.
• Strategic alliances : List any people or organizations with whom you are working, such as third-party listing sites. Valuable strategic alliances for a cannabis company might include security staff, pharmacists, attorneys, sales associates, and store managers.

In addition to other digital marketing tactics , your cannabis company should have its own website. It is important to showcase your products with visuals. Consider adding a “menu” with a list of products divided into categories. Include pictures of each product. It’s also a nice touch to customize the site with search boxes for recreational products and medical products, respectively, as well as for indicas, sativas, and hybrids.

And remember: don’t market your cannabis to or near minors. Solely market it to those who are 21 and over.

Often, customers cannot distinguish one brand of cannabis from another, so your most important marketing tactic is to build relationships with your customers and provide them with excellent service.

Sourcing and fulfillment

If you are a dispensary, who grows your cannabis and acts as your vendor? If you grow cannabis, who do you sell it to? Extraction operations? Dispensaries?

A dispensary will need both a storefront where customers view and purchase products, as well as a storage space for products that are not on the shelf yet. You must make sure your dispensary is on a compliant property. Different areas have different laws about compliant properties, such as a minimum legal distance from schools, churches, and residential areas. Consult an attorney to make sure your storefront occupies a compliant property.

Consider your plans for labeling and packaging your product, and establish an inventory system.

For growers, consider growing cycles, climate, and the different production profiles of indoor, outdoor, and greenhouse operations. If you are in the extraction end of the business, read up on technologies that will optimize your operations .

Distribution

Transportation within the cannabis industry remains a developing phenomenon, like many aspects of the industry. Some companies, such as TransCanna, are pioneering transportation and distribution methods from cannabis manufacturers to consumers.

For a product that goes bad before you sell it, the legal methods of disposal are burning or composting.

• Milestones and metrics

Set start dates, end dates, and budgets for specific milestones, for before and after you launch your business. Set measurable, achievable milestones. Milestones can be about any aspect of your cannabis company as long as they emphasize growth. For metrics , decide which numbers to check regularly to track your company’s health.

Metrics for a cannabis company might include:

• Repeat customers
• The rate at which products are selling
• Vendors’ pricing (for a dispensary purchasing from a vendor)
• Dispensaries’ ability to buy your product at its pricing (for a grower selling to a dispensary)

This section should also include details about past successes (traction) and risks:

• Traction: Look back at major milestones you have achieved. Hopefully, they demonstrate that your business model works and that you are filling a need for your market. If you’re looking to attract private funders, this section is important since it shows your initial success .
• Key assumptions and risks : Acknowledge the assumptions you are basing your business on. Set out to prove them right if you can. Also, discuss risks so that investors know you have considered what could go wrong and that you have a plan for dealing with challenges. As mentioned, thickets of legal complications surround the cannabis industry. Demonstrate that you have familiarized yourself with local policies and sought legal counsel. Furthermore, a glut of cannabis companies have arrived on the scene recently. Back up with market research why you stand out from your competitors and are here to stay.

Management team and qualifications

Address who works for you, what do they do, and how much you pay them. Compile the details of their relevant experience and education.

Hiring plans

Outline what positions you might need to hire to fill skills gaps in your management team and how much you plan to pay them.

• Company overview

In this section , include the following information about your company’s legal and organizational structure.

• Mission statement: Your mission statement articulates your goals for what your company does for its customers, employees, and owners. It will read something like this: “Our mission is to provide X (services) for Y (customers) by Z (methods).”
• Intellectual property : List any patents you have or have pending, and mention any core technology you are licensing from another company. Be sure to avoid copyright infringement when you create images and advertisements for marketing your company.
• A review of your company’s legal structure and ownership: Explain your business structure and who owns how much of it. Pay attention to the legalities around cannabis in your state. The National Organization for the Reform of Marijuana Laws, or NORML, also compiled a database of laws and regulations around cannabis in each state. Additionally, check out these tables from the National Conference of State Legislatures.
• The business location: Describe the company’s location and any facilities it owns. If you work as a grower as well as a retailer, include both your farm/greenhouse and your store location. Successful dispensaries tend to go on to open more than one location.
• A brief history of the startup if it’s an existing company: This provides background for potential new employees.

Your financial plan helps you track your finances so you can accurately gauge your business’s performance.

Include these key elements :

• Profit and loss statement : This explains how your business made a profit or incurred a loss in a given amount of time (typically three months) by listing all revenue and expenses, then documenting the total amount of net profit or loss.
• Cash flow statement : Documentation of how much cash the business brought in, how much it paid out, and the amount of its ending cash balance (on a monthly basis).
• Balance sheet : Snapshots how your company is performing at a given moment by including how much money you have in the bank, how much your customers owe you, and how much you owe your vendors.
• Sales forecast :  Projections of what you think you will sell in a given timeframe (1 to 3 years).
• Business ratios : Comparisons of your company’s financials with numbers from the industry profile.
• Personnel plan : Costs of employees.
• Use of funds : Needed if you’re seeking investment or a loan. This section explains how you will use investors’ money, whether for marketing or purchasing inventory.
• Exit strategy : Needed if you’re seeking investment. This section includes a brief plan for how you will eventually sell your company. You could sell it to another company or to the public. List a few companies you might eventually sell to. This is important to investors because it tells them how they will make money from their investment when you leave.

Opening a cannabis company can incur additional expenses, such as the cost of hiring an attorney who can help you navigate complex laws and regulations. Familiarize yourself with license and permit information as much as possible, but also seek professional legal counsel.

Banks typically will not fund a cannabis startup. Due to federal regulations , they must report every transaction involving funds derived from illegal activity—and despite state legalizations, cannabis is still considered federally illegal. Instead, seek private investors to give your cannabis company the money it needs for startup costs. There are a multitude of websites designed to help connect cannabis entrepreneurs with investors . Also, consider personal and private loans. If you are a grower, see if certain grants or other means of funding work for you.

You also typically cannot use banks to deposit the profits from your cannabis company. Some smaller credit unions have begun to open checking accounts expressly for the cannabis industry. MoneyTrac provides dispensaries with kiosks where customers can make cashless payments.

However, prepare to come up with strategies for tracking and storing large amounts of cash for your cannabis business, because these banks remain rare. Consider investing in a safe and security measures such as cameras, if you go that route. For more, check out this article on how to accept payments as a cannabis business to help you assess your options.

The appendix provides a space for any charts, graphs, images, or other items that did not fit in other parts of the business plan. You can include expanded versions of your sales forecasts and other financials.

Now you have read a little more about the ins and outs of the cannabis industry during this time of dizzying growth. We hope you feel better prepared to design a viable idea for your cannabis company and to write your business plan.

Before you get started, be sure to check out our free business startup checklist download.

Sarah Hovet is a senior English and journalism major and creative writing graduate of the University of Oregon Clark Honors College. Her poetry has appeared in Z Publishing’s Oregon’s Best Emerging Poets, and The Rectangle, a publication through the Sigma Tau Delta International English Honor Society, of which she is a member.

Table of Contents

• Position your company’s opportunity

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Medical Marijuana Dispensary Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Healthcare and Medical » Marijuana Dispensary Business

Are you about starting a medical marijuana dispensary ? If YES, here is a complete sample medical marijuana dispensary business plan template & feasibility report you can use for FREE .

Although marijuana is still very much prohibited in most countries and even in some states in the United States of America, some States still allow it as an alternative source of medicine.

If you have interest in starting your own medical marijuana business, then you would need to talk to a lawyer to know if it is allowed in the area you want to establish the business and the limit that is expected of you.

No doubt, medical marijuana business generates huge profits- especially when you are not just into dispensing, but also farming it as well.

The truth is that you can’t just put a ceiling on the profits you can make when you have a farm that legally grows marijuana

A Sample Medical Marijuana Dispensary Business Plan Template

1. industry overview.

The Congress, forty years ago, officially placed marijuana in Schedule of the Controlled Substances Act because the government felt that the drug had a high potential for abuse.

The Medical Marijuana Project was founded in 1995 so as to increase the support of the public towards non-punitive and non-coercive marijuana policies.

According to a 1999 study, the active ingredients in marijuana were useful in treating pain, severe weight loss associated with AIDS and nausea.

Even though some states have slowly begun to adopt legislation that will make it easier for marijuana to be disseminated, with California leading 18 states; the adoption was through public referendum and legislation. In 15 of the 18 states, patients or their caregivers can cultivate plants to grow their marijuana at home.

Also, states vary on how much marijuana plants one can have on hand for medical use, from 1 ounce up to 24 ounces. Additionally, approved conditions for which marijuana can be used as treatment across the 18 states include HIV/AIDS, chronic pain, cancer, glaucoma, multiple sclerosis, severe nausea, epilepsy and other seizures.

While the prosecution of entrepreneurs and the raid of marijuana dispensaries have drastically reduced, the business still poses a number of difficulties for any entrepreneur, especially as regards raising capital, finding investors, and setting up merchant accounts with banking institutions.

According to a survey, 34% of entrepreneurs in this field alleged that regulatory compliance was the number one challenge, while 24% cited financing as the other challenge.

For those hoping to start a marijuana dispensary, you’d first have to check with state officials so as to be properly guided to the local laws and ordinances that will govern your dispensary’s actions, due to the fact that the laws regarding medical marijuana vary from state to state, and there’s not always one department that is set up to govern the medical marijuana dispensary

Recreational Marijuana Stores industry has experienced an exponential growth of 34.2% for the years between 2010 and 2015.

The industry has revenue of $4 billion, with 5,169 businesses employing 74,222 people. Only 23 states and the District of Columbia have laws that permit the use of medical marijuana. 8 of the 23 states, where medical cannabis is legal do not have any dispensaries.

In 2014, more than 1.5 million shoppers purchased legal marijuana from a dispensary, either recreational or medical. Five states have marijuana markets that are larger than $100 million.

Colorado and Washington were the first states to open retail marijuana shops in the united states, and had a combined consumer that purchased marijuana products worth $370 million from 2014.

Marijuana food products is on the rise and is forecasted the hottest movements in the specialty food industry. Various retailers already offer pot-infused pastries, candies and other food items, as producers continue to play a larger role within the billion dollar specialty food industry.

An entrepreneur should as a starting point try out the Department of Health Services, before going through the licensing process.

Also, it is necessary for any entrepreneur going into the medical marijuana business to sign up a physician, who sits on the dispensary or cooperative’s board of directors.

While some states like California do not restrict the amount of dispensaries to a certain zone; other states like Delaware bid out dispensary licenses sparingly.

2. Executive Summary

Tammy Morgan Medical Marijuana Dispensary Store will be located in one of the busiest streets in Los Angeles California, U.S. We have been able to lease a facility for 5 years with the option of acquiring the property once the property is put up for sale.

The facility is well positioned and it matches the ideal picture of a community dispensary store. We are not going to spend much to facelift the facility because before taking over the facility, it was used as a retail shop.

Although the business is launching out with just one outlet in Los Angeles – CA, but we have plans to open other outlets in key locations all around California.

Tammy Morgan Medical Marijuana Dispensary Store will be involved in the retailing of medical marijuana and in future other prescription drugs and over-the-counter drugs once we are able to secure the required license.

We will also be involved in the sale of beauty products, cosmetic, postcards (greeting cards), convenience foods and other related products.

We are in medical marijuana dispensary business to retail medical marijuana as permitted by the law in California to our customers at the lowest prices they can get anywhere in the United States of America.

Our employees are well trained and qualified to handle the wide range of customers that we are positioned to serve. We will engage in the sale of prescriptions at reduced prices both at the counter and online orders.

Tammy Morgan Medical Marijuana Dispensary Store plans to operate a 24 hours 7 days a week dispensary store. We are in business to service both walk – in customers and mail order customers and shipping provisions has been finalized.

Our workforce is going to be well trained to operate within the framework of our company’s corporate culture and also to meet the needs of all our customers. Tammy Morgan Medical Marijuana Dispensary Store will ensure that all our customers are given first class treatment whenever they visit our store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base grows.

As regard prescription drugs and over-the-counter drugs, we will ensure that we get our customers involved in the selection of brands that will be on our racks and also when make some business decisions.

Tammy Morgan Medical Marijuana Dispensary Store is a family business that is owned and managed by Tammy Morgan and Family.

Mrs. Tammy Morgan is going to be the Chief Executive Officer of the business; she has a first Degree in Pharmacy and an MBA from Harvard University.

She has well over 12 years of experience working as a pharmacist and medical researcher with the United States’ government.

3. Our Products and Services

Aside from the dispensary of medical marijuana which is or core products, Tammy Morgan Medical Marijuana Dispensary Store will in future also retail a wide range of prescription drugs from different manufacturing brands to customers who are based in Los Angeles California and every other city where our outlets will be opened.

We will also engage in the sale of beauty products, cosmetic, postcards (greeting cards), baby products, convenience foods and other related products (small scale medical equipment / instruments et al).

4. Our Mission and Vision Statement

• Our vision is to become the largest medical marijuana dispensary store in the whole of California and also amongst the top 5 leading medical marijuana dispensary stores in the United States of America.
• Our mission is to establish a first class medical marijuana dispensary store that will not only retail medical marijuana but also make available a wide range of generic and branded prescription drugs from top pharmaceutical manufacturing brands at affordable prices to the residence of Los Angeles and other Cities in California.

Our Business Structure

Tammy Morgan Medical Marijuana Dispensary Store is a business that will be built on a solid foundation. From the outset, we have decided to recruit only qualified people to man various job positions in our organization.

We are quite aware of the rules and regulations governing the pharmaceutical industry of which medical marijuana dispensary falls under which is why we decided to recruit experienced and qualify employees as foundational staff of the organization.

We hope to leverage on their expertise to build our business brand to be well accepted in the United States. When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. These are the positions that will be available at Tammy Morgan Medical Marijuana Dispensary Store;

• CEO (pharmacy owner, superintendent pharmacist and supervising pharmacist)
• Pharmacist (Manager)

Merchandize Manager

• Pharmacist technician (3)
• Information Technologist (Contract)
• Sales agents (3)
• Cashier (Counter Agent).

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Pharmacist (Manager):

• Responsible for managing the daily activities in the company (dispensary store)
• providing advice about health issues, symptoms and medications in response to customer enquiries
• Responsible for recruiting, training and managing staff
• Responsible for processing prescriptions and dispensing medication
• Responsible for ordering, selling and controlling medicines and other stock
• Responsible for meeting medical representatives
• Responsible for managing the organizations’ budgets
• Responsible for keeping statistical and financial records
• Responsible for preparing publicity materials and displays
• Handle marketing services
• Interfaces with third – party providers (vendors)
• Control the sales floor inventory
• Supervise the entire sales staff and workforce
• Handle any other duty as assigned by the CEO
• Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of drugs and products on our rack
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.

Pharmacy Technician

• Ensures that the store facility is in tip top shape and conducive enough to welcome customers (This includes turning on equipment such as computers, scales, printers and fax machines)
• Ensures that goods and products are properly arranged
• Responsible for processing prescriptions
• Responsible for sterilizing the counter tops, scales, pill counting trays, and other medication measuring devices.
• Handles administrative and bookkeeping tasks, inventory control, stocking shelves, and data entry
• Performs monthly inventory counts, file paperwork, and stock inventory
• Handle any other duty as assigned by the floor manager (Pharmacist)

Sales Agents

• Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyzes the volumes of transactional data generated by customer purchases
• Sources for clients for the company
• Responsible for promoting the company’s image
• Responsible for creating marketing and sales strategies, etc.
• Represents the organization in some strategic business meetings
• Handles any other duty as assigned by the floor manager (Pharmacist)

Information Technologist

• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Cashier (Counter Agent):

• Receives payments on behalf of the organization
• Issues receipt to customers
• Prepares financial report at the end of every working week
• Handles financial transaction on behalf of the company
• Interfaces with our bankers
• Responsible for payment of tax, levies and utility bills
• Responsible for cleaning the store facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the pharmacy facility

6. SWOT Analysis

Tammy Morgan Medical Marijuana Dispensary Store is not looking forward to operate a regular medical marijuana dispensary, but we want to become the biggest medical marijuana dispensary store in California. We want our dispensary store to be the number one choice of all residence of Los Angeles and other cities in California.

We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up our dispensary store.

Despite the fact that our CEO (owner) has a robust experience in retail pharmacy business and medical research, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business.

This is the summary of the SWOT analysis that was conducted for Tammy Morgan Medical Marijuana Dispensary Store;

Our location, the Business model we will be operating on (physical store and online store), opening 24 hours daily and 7 days in a week, multiple payment options, well – packaged medical marijuana, wide range of prescription drugs, home delivery services and our excellent customer service culture will definitely count as a strong strength for us.

Our perceived weakness is the fact that we are just starting out and we may not have the required finance to sustain the kind of publicity that we intend giving the business.

• Opportunities:

The opportunities that are available to medical marijuana dispensary business are unlimited and we are going to position our business to make the best out of the opportunities that will be available to us in Los Angeles – California.

Just like any other retail business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies (healthcare reform). It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new and bigger / well established medical marijuana brand in same location where our outlet is located.

7. MARKET ANALYSIS

• Market Trends

The market trend in retail pharmacy industry of which medical marijuana dispensary business falls under is directly influenced by a country’s healthcare reform policies. The fact that the pharmaceutical industry is highly regulated means that any entrepreneur who wants to run a medical marijuana dispensary business must be ready to play by the book or they will be booted out of business.

Loads of other factors influences the market trend in the industry and it is normal to see bigger medical marijuana dispensary stores cum retail pharmacy stores (especially those with chains of outlets) weathering the storm whenever there are major shaking in the industry.

In essence, the easiest way to build a solid and highly profitable medical marijuana dispensary business cum retail pharmacy business is to engage in opening various outlets in key cities around the U.S. No doubt the industry will continue to grow and become more profitable because the aging baby-boomer generation in Unites States is expected to drive increasing demand for medical marijuana and prescription drugs.

Medical marijuana dispensary stores cum retail pharmacies are now making use of technology to effectively manage their business by plugging financial leakages which happens to be one of the biggest challenges that retail businesses faces. The use of technology, i.e. CRM software et al is very effective in helping retail businesses manage their clientele base.

8. Our Target Market

Tammy Morgan Medical Marijuana Dispensary Store is in business to service a wide range of customers in Baltimore, Maryland. We will ensure that we target self – pay customers (who do not have drug plans), mail order customers, and walk in customers, and what have you.

Generally, those who need medical marijuana ranges from those with severe pain, insomnia, anxiety, glaucoma, HIV/AIDS, epilepsy, nausea, cancer, and any other ailment that the physician deems that the use of the medical marijuana is fit for.

The fact that we are going to open our doors to a wide range of customers does not in any way stop us from demanding and screening prescriptions as required by the law. Our staff is trained to effectively service our customers and still play by the rules governing the industry.

Our customers can be categorized into the following;

• Corporate Executives
• Business People
• Elderly people
• Expectant Mothers
• Sports Men and Women
• Middle aged people – who are usually working stressed from work and may have insomnia.
• The aged who might suffer from severe joint pains and every other age categories who falls under the conditions listed by the physician.

Our competitive advantage

In every business there is competition, however, this competition means that you have been handed a passport to try your best in seeing that you are still visible on the business radar at all times. This is so that we can make our own business work out and so that we can as well compete favorably with others.

The retail pharmacy industry is known to be highly competitive in the U.S and in most parts of the world. The industry is growing and there are alternative ways through which clients / patients can get their medications / prescriptions / drugs.

There are alternative provides like mail-order firms, grocery chains, mass merchants and dollar stores; these are the real competitors in the industry. These competitors ensure that they do all that lies within their powers to gain favorable market share of the available market in any given region.

In this industry, most of the competitive dynamics center around the quality of cannabis dispensed, the service offered, the location where the dispensary is at, discounts offered for the products, and to some extent the brand of the business plays a huge role. Even though competition is stiff especially from the big, well-backed enterprises, smaller enterprises can still get their fair share of the market, if they stay true to the competitive dynamics.

It is a fact that small medical marijuana dispensaries/retail pharmacy store will always struggle with larger medical marijuana dispensaries/pharmacy chains when it comes to pricing power and brand recognition which is why smaller retail pharmacy store always go out of their ways to deliver excellent customer service. It is through top notch customer service that they can secure a fair share of the available market.

Smaller retail pharmacies ensure that each order carries a printout. The printout accompany the medications providing directions on how patient are expected to take the medications, other drugs that should be avoided concurrently, and other useful information.

Tammy Morgan Medical Marijuana Dispensary Store is coming into the market well prepared to favorably compete in the industry. Our store is well positioned and visible, we have enough parking space with good security. Our management staff is well groomed in retail pharmacy and all our employees are trained to provide customized customer service to all our clients.

We are going to be one of the few medical marijuana dispensary stores in Los Angeles that will be open 24 hours a week and 7 days a week. We have enough staff that is ready to run a shift system. At Tammy Morgan Medical Marijuana Dispensary Store, we will ensure that we have a wide range of products (prescription drugs and over-the-counter drugs.

We will also be involved in the sale of beauty products, cosmetic, postcards (greeting cards), convenience foods and other related products) available in our store at all times. It will be difficult for customers to visit our store and not see the product that they are looking for. One of our business goals is to make our medical marijuana dispensary store a one stop shop.

9. SALES AND MARKETING STRATEGY

• Sources of Income

We know that it is very vital to state and act on the ways through which we have decided to raise funds. Our source of income will be majorly in the retailing of medical marijuana and the retailing of prescription drugs and over-the-counter drugs.

Tammy Morgan Medical Marijuana Dispensary Store will also generate income from the sale of beauty products , cosmetic, postcards (greeting cards), convenience foods and other related products.

10. Sales Forecast

One of the true marks of an effective entrepreneur is being able to forecast sales based on the magnitude of work that has been put into the business. It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field.

Below are the sales projections that we were able to come up with for the first three years of operations;

• First Year-: $100,000 (From Walk – in customers): $150,000 (From Mail Order customers)
• Second Year-: $250,000 (From Walk – in customers): $270,000 (From Mail Order customers)
• Third Year-: $500,000 (From Walk – in customers): $550,000 (From Mail Order customers)

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

Also whilst for casting, we know that we   have got to be very realistic with your projections so that we do not lose focus

• Marketing Strategy and Sales Strategy

The marketing and sales strategy of Tammy Morgan Medical Marijuana Dispensary Store will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer medications at lower prices compare to what is obtainable in Los Angeles.

We will also ensure that we have wide range of drug supplies in stock for both quick shipment and store front pick up. All our employees will be well trained and equipped to provide excellent and knowledgeable customer service.

We know that if we are consistent with offering high quality medical marijuana, drugs and excellent customer service, we will increase the number of our customers by more than 25% for the first year and then more than 30 percent subsequently.

Before choosing a location for our medical marijuana dispensary store, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Los Angeles – CA.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time. We have hired experts who have good understanding of the retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Los Angeles – CA.

We do not see hiring the best hands in marketing as a waste of money; rather we see it as a wise investment that will guarantee a lot within a short period of time. In summary, Tammy Morgan Medical Marijuana Dispensary Store will adopt the following sales and marketing approach to win customers over;

• Introduce our business by sending introductory letters to residence, business owners and organizations
• Advertise our business in community based newspapers, local TV and local radio stations
• List our business on yellow pages ads (local directories)
• Leverage on the internet to promote our business
• Engage in direct marketing
• Leverage on word of mouth marketing (referrals)
• Enter into business partnership with hospitals, healthcare provider and health insurance companies.
• Attend pharmaceutical related exhibitions/expos.

11. Publicity and Advertising Strategy

Regardless of the fact that our medical marijuana dispensary store is well located in Los Angeles – CA, we will still go ahead to intensify publicity for the business. We are going to explore all available conventional and non – conventional means to promote our retail business.

Tammy Morgan Medical Marijuana Dispensary Store has a long term plan of opening outlets in various locations all around California which is why we will deliberately build our brand to be well accepted in Los Angeles before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise Tammy Morgan Medical Marijuana Dispensary Store;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around Los Angeles – CA.
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our retail store is located.

12. Our Pricing Strategy

It would be really wrong to go ahead and fix pricing without first determining other factors       that surrounds costing.

This is one of the reason why at Tammy Morgan Medical Marijuana Dispensary Store, we will work towards ensuring that all our products (medical marijuana, prescription drugs and over-the-counter drugs and beauty products, cosmetic, postcards (greeting cards), convenience foods and other related products) are offered at highly competitive prices compare to what is obtainable in The United States of America.

The fact that we are going to be offering our products at cheaper prices does not in any way means that we will sell sub – standard products. Selling our products at a lower price than what is obtainable in our competitors store means that we will only reduce our profit margin and gain sales margin.

• Payment Options

At Tammy Morgan Medical Marijuana Dispensary Store, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money
• Check (only from loyal customers)

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any hitches. This is very vital so that we do not lose focus.

13. Startup Expenditure (Budget)

From research, it can be deduced that starting a medical marijuana dispensary business isn’t something that comes cheap, neither is it for those that are faint of heart. The first set of money to be spent just to make an application before entering this business is usually non-refundable, and is always in thousands of dollars.

The start-up cost also depends on the requirements of the state one would be operating in. some states that you have cultivation location, others don’t.

There are those who have low capital and really want to go into the business, the advise would be to either wait or go into another line in the industry that isn’t dispensary like going into the provision of marijuana infused products including edibles and salves.

This is also not a business that can be operated from home, even if you intend to go into another line of marijuana like growing. They all require a regulatory structure. The items listed below are the basics that we would need when starting our own medical marijuana dispensary business in the United States, although costs might vary slightly;

• The Total Fee for Registering the Business in Maryland – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses for the grand opening of People’s Choice Retail Store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Consultant – $2,500.
• Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (stocking with a wide range of products) – $150,000
• Storage hardware (bins, rack, shelves,) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for Supplies (Assorted bottles, boxes, envelopes, etc. for dispensing and shipment)- $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: $7,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
• The cost of Launching a Website: $700
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $500,000 to successfully set up our medical marijuana dispensary store in Los Angeles – CA. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding/Startup Capital for Tammy Morgan Medical Marijuana Dispensary Store

Tammy Morgan Medical Marijuana Dispensary Store is a private business that is solely owned and financed by Tammy Morgan and family. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas Tammy Morgan Medical Marijuana Dispensary Store intends to generate our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

It is the wish of all business to become so successful so that they can have good succession plans. More often than not, having a good succession plan will help you know the direction your business is headed to. As such, the future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure.

If all of these factors are missing from a business (company), then it won’t be too long before the business close shop. One of our major goals of starting Tammy Morgan Medical Marijuana Dispensary Store is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our product a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin.

Tammy Morgan Medical Marijuana Dispensary Store will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our pharmacy store: Completed
• Establishing business relationship with vendors (wholesale pharmaceutical companies): In Progress

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Cannabis Dispensary Business Plan Sample

Cannabis market size: retail sales.

It is estimated that combined U.S. medical and recreational cannabis sales could rise between $32.5 billion and $35 billion annually by 2024, nearly a threefold increase from estimated annual sales in 2019. Retail cannabis sales are projected to reach $45 billion to $50 billion by 2030, driven in large part by the opening of new markets for recreational cannabis.

How Much Does it Cost to Open a Cannabis Dispensary?

Things to Know Before Writing a Dispensary Business Plan

The cannabis retail business is highly regulated at both the state and local levels. If you intend to operate a dispensary, you will likely need to obtain local permits, such as zoning approval from the local municipality allowing the operation of a dispensary business, before obtaining a dispensary license. State agencies responsible for regulating cannabis licensing have strict requirements for standard operating procedures, employee training, and facility management. It is important to understand these requirements and any other eligibility criteria before writing a dispensary business plan as part of your dispensary license application. The six most important first steps when opening a dispensary can be boiled down to understanding regulatory requirements, researching licensing requirements to ensure you get a license, finding a location, knowing your consumers, writing a dispensary business plan, and raising initial capital.

How to Start a Cannabis Business?

Why do You Need a Dispensary Business Plan?

Cannabis retail business conditions differ from country to country and state to state and if you have planned to set up your own retail business, then you must comply with the laws of your particular location. Licensing requirements depend on the type of business you wish to start, however, all of them include operational plans for your business to submit your application for licensing. Some plans include, but are not limited to: a cannabis business plan , a diversity plan, a security plan, a plan for positive impact, and a plan to remain compliant with local codes and ordinances. Each plan should be tailored to your application and include items required in the regulations.

Also, if you are looking to raise funds through a bank loan or investors, you will almost always need a business plan and/or a investor pitch deck to present to investors. And even if you plan to invest your own funds, you will need at least a financial model to calculate all costs and profits.

How to Write a Dispensary Business Plan

A business plan is a comprehensive document that outlines the company’s goals, operations, management, finances and market data. The most important areas of a cannabis business plan to focus on include the executive summary, financial forecast (with detailed funding analysis), and operating plan.

Cannabis Dispensary Business Plan Sample. Table of Contents.

Executive summary.

Project Scope

Market Opportunities

Start-up Summary

Financial Projections

COMPANY DESCRIPTION

Project scope.

Mission/Vision/Goal

Objectives 

Products & Services 

Key Customers

MARKET OVERVIEW

Global Market Overview

North American Cannabis Market

Cannabis Market in the US and Brief State Market Overview

Cannabis Retail Sector Projections and Perspectives

SWOT Analyses

STRATEGY & IMPLEMENTATION

Online Advertising Obstacles

Alternative Online Advertising Options

Marketing Plan

Cannabis Directories

Launching Strategy

Sales Forecast 

OPERATIONAL PLAN

Location/Facilities

Project Plan

Physical Security Plan

Video Surveillance

Packaging and Labeling

Inventory & Tracking Solution

ORGANISATIONAL STRUCTURE & MANAGEMENT

Financial projections.

Funding Analyses

Direct & Operational Costs

Profit & Loss Forecast

Cash Flow Statement

Balance Sheet

Main Ratios

Income Statements, monthly

Cash Flow Statements, monthly

Floor Plans

Excel financial model that you will be able to edit and customize according to your business needs

Word business plan document template, open and editable

PowerPoint pitch deck template, open and editable

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Cannabis Dispensary Financial Model Sample

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Dispensary Business Plan Template [Updated 2024]

Cannabis Dispensary Business Plan

If you want to start a cannabis dispensary or expand your current cannabis company, you need a well-written business plan.

The following cannabis business plan template gives you the key elements to include in a winning business plan. In addition to this template, to write a solid cannabis business plan you will also conduct market research to help you better understand the legal cannabis industry, market trends, and how to target customers. It will also help you craft your mission statement, marketing plan and strong financial projections.

Sample Dispensary Business Plan

The following sample marijuana dispensary business plan gives you the key elements to include in a successful cannabis business plan.

I. Executive Summary

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

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 legal cannabis industry to ensure the safety and welfare of its customers.

Products Served

[Company Name]’s produces products in the following forms:

• Accessories
• Concentrates

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 cannabis company 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:

II. Company Overview

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

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 cannabis industry

[Company Name]’s Products/Services

Iii. industry analysis.

The outlook for the cannabis 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 cannabis market, California, which leads the country in cannabis expenditure.

In particular, an increase in per capita disposable income is projected to drive demand for cannabis 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, medical marijuana 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.

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

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

Direct and 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 cannabis dispensaries.

Edna Dispensary’s cultivation facility is located in Franklin, but its 2 medical marijuana 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.

The 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 potential customers.
• Products: The company offers a wide selection of 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 team members have 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

• Sell cannabis products
• Maintain the dispensary functionality and aesthetics
• Security measures to ensure the safety of staff and customers

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

[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:

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 cannabis 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.

[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 legal cannabis sales.

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 cannabis 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, cannabis marketing expenses and working capital.

Key Assumptions & Financial Statements

The following table reflects the key revenue and cost assumptions made in the financial model:

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

You can download our dispensary business plan PDF here . This is a business plan template you can use in PDF format.

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How to Open a Cannabis Dispensary in Maryland

Here is the process of starting a dispensary in Maryland through our comprehensive guide. Find out the steps to obtaining a dispensary license in Maryland.

Want to open a dispensary in Maryland but need to know exactly how to go about doing this? If you want to enter the booming cannabis market in Maryland, you're in the right place to learn everything you need to know before opening a dispensary there. With the legalization of adult-use cannabis in 2023, Maryland offers an exciting opportunity for dispensaries to thrive in this rapidly growing industry.

Maryland has been at the forefront of cannabis reform, legalizing medical marijuana in 2014 and decriminalizing recreational use in 2021. Today, the state boasts over 153,000 registered medical marijuana patients, and the cannabis market was projected to reach $1 billion by the end 2024, according to Marijuana Business Daily.

In this guide, we'll cover Maryland dispensary licensing, financing, choosing the right location, cannabis regulations, and more. Whether you're a seasoned cannabis entrepreneur or new to the industry, our blog post will equip you with everything you need to succeed in opening your own dispensary in Maryland.

At-A-Glance: Key Points to Note If You Want to Open a Dispensary in Maryland

• Medical Marijuana in Maryland: Fully legalized with a comprehensive program established.
• Recreational Marijuana in Maryland: Legalized as of November 8, 2022, with sales commencing on July 1, 2023.
• License Availability: The second round of licensing for Maryland cannabis businesses is expected to start on or after May 1, 2024.
• Application Fees: Applicants must pay a fee, which is $5,000 for a standard license or $1,000 for a micro license.
• Market Potential: Research indicates that Maryland's cannabis market could reach $1 billion in sales by 2024, with adult-use sales making up a significant portion.
• Regulations and Local Laws: Vary by municipality, with different rules regarding consumption and dispensary locations.

Is Marijuana legal in Maryland?

  In Maryland, cannabis is legal for both medical and recreational purposes. The state has seen an increase in registered medical marijuana patients and a flourishing cannabis market.

The path to cannabis legalization in Maryland has been marked by significant milestones. In 2014, the state took its initial step by legalizing medical marijuana through the passage of House Bill 881 . This allowed patients with certain conditions to access medical cannabis from licensed dispensaries.

Following that, in 2017, Maryland expanded its medical program with Senate Bill 949 , broadening the range of qualifying conditions and enhancing patient accessibility.

Then, in 2021, Maryland decriminalized recreational cannabis use with the approval of Senate Bill 708 , permitting individuals to possess and grow limited amounts of marijuana for personal use.

These legislative advancements have laid the groundwork for the thriving cannabis industry in Maryland.

Types of Maryland Medical Cannabis Licenses and Associated Fees:

• Grower License: Permits cultivation of cannabis in a commercial facility.
• Application Fee: $6,000 ($2,000 for stage 1; $4,000 for stage 2)
• Annual License Fee: $125,000
• Combined Grower and Dispensary License: Application Fee - $11,000 ($3,000 for stage 1; $8,000 for stage 2), Annual License Fee - $165,000
• Dispensary License: Allows the sale of cannabis for medicinal purposes to patients and caregivers.
• Application Fee: $5,000 ($1,000 for stage 1; $4,000 for stage 2)
• Annual License Fee: $40,000
• Processor License: Enables the processing of raw cannabis plants to create products such as concentrates, topicals, and edibles.

Maryland Adult Use Cannabis License Categories

In Round 1, the Marijuana Control Agency established specific quotas for standard and micro cannabis licenses:

• Micro Licenses: There are allocations for 24 grower licenses, 24 processor licenses, and 8 dispensary licenses.
•  Standard Licenses: The quotas include 16 grower licenses, 32 processor licenses, and 75 dispensary licenses.

Round 2 will introduce on-site consumption licenses for both standard and micro cannabis licenses.

Both standard and micro licenses permit businesses to engage in cannabis cultivation, processing, or retail sales. Micro licenses cater to smaller businesses with limited cannabis operations, and micro dispensaries have the additional option to provide delivery services to patients and consumers.

How to get a dispensary license in Maryland in 2024?

All eligible applicants, meeting the minimum licensure requirements, were entered into a randomized lottery based on license type and the county or region of their application submission.

On March 14 2024, MCA conducted a license lottery for the social equity licensing round. A total of 174 applicants were selected across the micro and standard grower, processor, and dispensary categories.  

In May 2024 or later, the MCA will announce the commencement of Round 2, which will include the availability of standard and micro cannabis licenses, potentially including licenses for on-site consumption.

Converting Medical to Recreational Cannabis License

Starting July 1, 2023, businesses already selling medical cannabis had to request to change their licenses to rec-use if they wanted to sell cannabis to adults. These new licenses last for five years and let businesses grow, process, and sell cannabis to people aged 21 or older.

On the first day of selling adult-use cannabis, 94 out of 100 existing medical dispensaries switched. Together, they made $3.6M from adult sales and over $900K from medical sales.

In total, Maryland shops sold over $10.4M worth of cannabis over the three-day weekend, serving both adult and medical customers.  

Start by Planning your Dispensary business in Maryland

  To plan your Maryland cannabis business effectively, follow these key steps:

• Form a business entity: Establish your formal business structure in accordance with Maryland's cannabis laws . Obtain tax ID numbers and open a business bank account at a cannabis-friendly institution. Consider securing business insurance.
• Write a comprehensive business plan: Develop a detailed dispensary business plan that addresses growth strategies, partnerships, team composition, vision, and more. This plan will undergo scrutiny by the Maryland Cannabis Administration (MCA) as part of the application process. Ensure your plan demonstrates a likelihood of success and includes provisions for employee working conditions, operational safety, diversity, and equity.
• Include essential components in your business plan: Your plan should cover aspects such as the physical location of your dispensary, funding sources, procurement strategies for cannabis products, revenue forecasts, staffing structure, diversity and equity initiatives, environmental and community impact considerations, marketing strategies, safety and security measures, technology use (e.g., point-of-sale systems, digital menus ), and any other relevant details.

Note: The regulatory body overseeing cannabis in Maryland is now known as the Maryland Cannabis Administration (MCA), previously named the Maryland Medical Cannabis Commission (MMCC) before recreational legalization.

Find the Perfect Location to Set Up Your Maryland Dispensary

When selecting a location for your Maryland dispensary, consider these factors:

• Compliance with state regulations is paramount, as dispensaries must not be within 500 feet of schools, childcare centers, playgrounds, recreation centers, libraries, or public parks. Additionally, dispensaries cannot be within 1,000 feet of another dispensary under the same title.
• Municipalities in Maryland have varying regulations regarding cannabis businesses, so it's essential to thoroughly understand local laws. While a location is not required to apply for a dispensary license, including it in your business plan is advisable.
• To find the ideal location, collaborate with a local real estate professional specializing in cannabis real estate and utilize public resources such as city zoning and administration offices.
• Focus on spaces that align with your business plan, offer adequate space, are conveniently located for foot traffic or parking, allow for future expansion, and fit within your budget. Consider renovation costs and evaluate local competition to ensure your dispensary's success.

Securing Funding for Your Cannabis Dispensary

After you've outlined your cannabis business plan, it's time to establish a realistic budget for your dispensary in Maryland.

Your dispensary business expenses typically fall into several categories:

• Real Estate: Consider upfront costs as well as ongoing rent or mortgage expenses. You may also need to budget for initial renovation expenses too.
• Licensing/Application Fees: Factor in the cost of obtaining your license in Maryland. Unlike annual licensing fees, Maryland follows a 5-year renewal process.
• Operational Costs: Account for day-to-day expenses like utilities, professional fees, marketing, and other miscellaneous costs.
• Hardware, Software, Security, and Other Tech: Include costs for necessary technology, which may involve monthly or annual subscriptions.
• Staffing Costs: Budget for hiring employees, covering salaries, benefits, taxes, and related expenses.
• Inventory Costs: Plan for the expense of sourcing and purchasing your cannabis products.
• Taxes: Be prepared for significant tax obligations, as cannabis businesses are heavily taxed and have limited write-off options.

Now, where will you find the funding? Consider these options:

• Self-funding: Use your personal savings or other legal means to finance your venture.
• Friends and Family: Seek loans or investments from close contacts to meet capital requirements.
• Partnerships: Consider forming partnerships where each partner contributes resources.
• Loans: Explore personal or business loans but be transparent about your industry and funding needs.
• State Programs: Investigate assistance programs like the Maryland Department of Commerce's Cannabis Business Assistance Loan/Grant Fund.
• Private Funds: Look into private equity, angel investors, or venture capital to secure outside investment.
• Crowdfunding: Explore crowdfunding platforms to gather support from the public.
• Brokers: Consider cannabis-specific brokerage companies to help secure funding for startup expenses and equipment.  

For the cost to open a dispensary in Maryland, estimates range from $250,000 to $1 million. However, the actual figure depends on various factors specific to your business.

Read our blog post on How Much Does It Cost To Open A Cannabis Dispensary to learn more.

Designing Your Maryland Dispensary Layout

Creating an efficient and welcoming layout for your Maryland dispensary is going to be important for providing a positive customer experience and maximizing operational efficiency.

Here are some key considerations to keep in mind when designing your dispensary layout:

• Compliance with Maryland Cannabis Regulations: Ensure that your dispensary layout complies with all state and local regulations regarding cannabis retail establishments. Maryland has specific requirements regarding security measures, signage, and the separation of retail areas from restricted zones.
• Customer Flow: Plan your layout to facilitate smooth customer flow from entry to checkout. Consider the placement of entrance and exit points, waiting areas, product displays, and checkout counters to minimize congestion and enhance navigation.
• Product Display: Strategically showcase your cannabis products to attract customers and encourage sales. Consider using display cases, shelves, and signage to highlight featured products and provide information about strains, potency, and effects. Make sure that products are easily accessible to customers and comply with packaging and labeling requirements.
• Waiting Area: If required by regulations or space constraints, create a designated waiting area for customers to queue before entering the retail area. Provide comfortable seating, reading materials, and digital displays to keep customers informed and entertained while they wait.
• Consultation Area: Designate a private consultation area where customers can speak with staff members or receive personalized recommendations. Ensure that the consultation area offers privacy and confidentiality, with adequate seating and lighting for comfortable discussions.
• Security Measures: Implement robust security measures throughout your dispensary layout to safeguard both your products and your customers. This may include surveillance cameras, alarm systems, secure storage areas, and controlled access to restricted areas.
• Accessibility: Design your dispensary layout to be accessible to all customers, including those with disabilities or mobility limitations. Ensure that aisles are wide enough to accommodate wheelchairs and that products are displayed at accessible heights.
• Branding and Atmosphere: Infuse your dispensary layout with your brand identity and create a welcoming atmosphere that reflects the values of your business. Consider elements such as lighting, decor, music, and scent to enhance the overall ambiance and differentiate your dispensary from competitors.  

Maryland Dispensary Regulations 2024

In Maryland, dispensaries must adhere to specific regulations that affect their appearance and operations:

• Operational Hours: Dispensaries are limited to a maximum of 12 hours of operation per day, with opening hours not permitted before 8:00 a.m. and closing no later than 10:00 p.m.
• Licensure Display: Dispensaries may be obligated to prominently exhibit valid proof of licensure within their premises.
• Consumer Education: Dispensaries are mandated to prominently display consumer education safety information as provided by the relevant regulatory authority.
• Age Restrictions: Dispensaries must clearly present minimum purchase age and identification requirements to customers.

Maryland regulations introduce several sourcing factors to consider:

• Reserved Potency: Medical patients should have priority access to high-potency products, and dispensaries must maintain a sufficient inventory of medical cannabis items.
• Concentrate Restrictions: Concentrated products exceeding 10mg THC per serving or 100mg per package are restricted to qualified patients and registered caregivers exclusively.
• Social Equity Commitment: Adult-use dispensaries are required to dedicate a minimum of 25% of shelf space to cannabis brands and products from social equity licensees and growers/processors without shared ownership with the dispensary, demonstrating a commitment to promoting social equity in the cannabis industry.

Technology for your Maryland Dispensary

Crafting your technology arsenal is an important step for cannabis entrepreneurs, ensuring seamless operations and compliance with regulations. While some tools are indispensable for adherence, such as robust security systems, others enhance the overall customer journey.

Consider these essential technology components for your dispensary:

Network Infrastructure: Lay the foundation with a reliable network setup to support seamless communication and data transmission.

  Hardware Essentials for Dispensaries:

• TVs for digital menu displays
• Cash drawers for secure cash handling
• Computers to facilitate staff tasks like inventory management
• Tablets or kiosks for self-service
• Barcode scanners for efficient product tracking

Software Solutions:

• E-commerce platforms for online sales
• Payment providers to facilitate non-cash transactions
• Digital menu displays for intuitive browsing
• POS systems for transaction processing and compliance management
• Self-service kiosks to streamline customer interactions
• Loyalty programs to incentivise repeat purchases
• CRM systems for customer relationship management
• HR and payroll tools for efficient staff management
• Accounting software for financial tracking and reporting
• Analytics tools for insights into sales performance

While you may not require every cannabis-specific technology solution, prioritize investments in tools that ensure compliance and enhance the customer experience, aligning with the needs of modern shoppers.

Marketing regulations for your Maryland dispensary

In Maryland, ads about cannabis or related things must follow certain rules:

• They can't lie or trick people.  
• They can't target or interest people under 21.
• They can't show things that make cannabis look cool, or encourage using it to get high.
• They can't advertise on TV, radio, internet, or in print.
• They can't put ads on buildings or public places.
• They can't let others use their logos or names for ads that don't follow the rules.
• Also, cannabis websites must check if visitors are at least 21 before showing anything about cannabis. If someone's under 21 and needs info, there should be a different way for them to see it.

Another thing: Maryland doesn't allow offering cannabis as prizes or rewards in games or contests.

Need Cannabis Dispensary Digital Signage?

Digital signage is an effective way for cannabis dispensaries to engage customers and enhance the retail experience. Many dispensary owners use digital screens in their stores. They're handy for showing what products are available when you can't display them traditionally.

  To learn more about cannabis digital signage read: The complete guide to cannabis digital signage

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Now that recreational cannabis is legal, here's how to start your own pot business.

This summer, Minnesota's recreational marijuana law went into effect, legalizing the possession and use of marijuana for Minnesotans 21 and older and opening up a host of business opportunities in a new statewide industry.

Equipment manufacturers. Growers. Deliverers. Analysts that test cannabis plants and materials. Even event coordinators. All will have a role in the cannabis market ecosystem and a chance to make money off an industry expected to reach $1.5 billion in annual sales by the end of the decade , per cannabis law firm Vicente LLP's analysis.

If you're interested in working in this new field, here's expert advice on the state's law, business formation, insurance and everything else you should do to launch your own cannabis-related business.

Not so fast

That newly created Office of Cannabis Management (OCM) will license and oversee recreational cannabis businesses and will also fold in the pre-existing medical cannabis and hemp-derived markets in Minnesota. The OCM has not yet published license applications, expecting to make them available in early 2025.

And because the office is still searching for a new leader — the person Gov. Tim Walz appointed resigned after her first day amid a scandal — it will need time to write rules and issue licenses for growers, processors and retailers. That means it could take until mid-2025 for marijuana retailers outside of tribal dispensaries to open in Minnesota.

But there's still plenty you can do now.

Find your lane

Choose now which license you'll need to obtain for your business.

There are 16 different licenses for a cannabis business, said Jen Randolph Reise, an attorney and head of business and cannabis law at North Star Law Group. That's more than any other state in the U.S., said Tanner Berris, president of Minnesota Cannabis College, a Brooklyn Center nonprofit founded in 2020 to help prepare the state for the adult-use cannabis market in Minnesota.

"The license that you have will really determine what business you're able to run," Berris said.

License types include wholesale, transporting, medical processor and retailer. Annual application fees vary from $250 to $10,000, with the initial license usually costing at least the same total, if not double.

There are also ancillary business models to choose that do not require adult-use licenses. Those are any non-plant touching businesses, such as consulting, legal counsel and selling equipment used for growing plants, Reise said.

"So many entrepreneurs come to me with ideas about the business that they want to apply for licensing, or they want to create post licensing, and it's super important that we make sure that it's a set of activities that they are able to do under [the cannabis bill]," Reise said.

Those who need help understanding what activities fall under which license types should seek counseling or advisors, Reise and Berris said. Minnesota Cannabis College, for example, has free tutorials online.

Ready your answers

On the application, you will need to explain in detail the business' core team, who has equity and if any of the parties involved qualify as social-equity applicants. A social-equity applicant, for instance, is someone previously convicted for a cannabis-related crime. Anyone applying as a social-equity applicant earns a boost in the process, which makes it more likely the office OKs the business, Berris said.

"In every business, knowing who's on your team is important," Berris said. "But especially when going through that licensure process, it's going to be critical and could make the difference between getting a license or not getting one."

People don't have to own a greenhouse, warehouse, fleet or store when filling out an application, but they should begin searching for those assets now, Reise said. Details in the application, however, are just as crucial.

"It is building that really detailed picture and description of this business plan that you are then going to present to the Office of Cannabis Management, because this application is basically your opportunity to make an argument that you will be a compliant and successful cannabis business," she said.

Make a plan

Once the business founders settle on what kind of license they need, they should research revenue expectations and expenses, including taxes, Reise said. Section 280E of the Internal Revenue Service code, for instance, says that governments tax cannabis businesses on their gross profit rather than their net profit, which makes it hard to make money, she said.

A financial advisor who can help determine if your business idea makes financial sense and is worth the investment, Reise said.

Other actions on a cannabis entrepreneur's to-do list should include creating a limited-liability company, gathering quotes for insurance coverage and setting up a website or app, because it takes Google a while to rank websites to show up in its search engine, Reise said.

Rushing into the adult-use business could be overwhelming for some, so focusing on low potency, hemp-derived sales and related business could be a way to build brand awareness and market share, Berris said. The application fee and initial license fee to be a low-potency retailer is $250 for each, per location.

In addition to general and product-liability insurance, people starting a cannabis-related business should consider buying insurance for crops, equipment, loss of property, protection of goods while in transit, theft or fraud, workers' compensation and inventory, said Cory Lake, the owner of Minnetonka-based Lake Group Insurance who has focused on cannabis-related insurance since 2018.

Most farmers markets ask for a certificate of insurance to sell, and if you are planning to deliver cannabis, you'll need insurance for that, too, Lake said.

People should start fielding insurance quotes now to calculate the costs into their monthly expense, Lake said. They should also brace themselves for the price tag, because cannabis-related insurance will likely be more expensive when compared with other industries, Lake said.

For a small, main street-type business, general insurance can be $1,500 a year, he said. For a cannabis business, it's $3,000 to $3,500.

Insurance companies base premiums on metrics around losses and lawsuits, and "cannabis doesn't have that yet," Lake said. Minnesota is the 23rd state to legalize adult-use cannabis, and reports of theft at dispensaries or fires at cannabis flower groves are low, he added.

"Premiums are also high because nobody wants to be the first involved in a lawsuit," Lake said. "An accident or a product-liability case, the first of those that happens is going to be a big deal, probably very expensive, and I'm sure it will have a national ripple effect."

Types of cannabis business licenses:

License type; Application/Initial license fees

Retail; $2,500; $2,500

Delivery; $250; $500

Manufacturer; $10,000; $10,000

Wholesaler; $5,000; $5,000

Cultivator; $10,000;$20,000

Transporter; $250; $500

Testing facility; $5,000; $5,000

Event organizer; $750; $750

Mezzobusiness (cultivate up to 15,000 square feet indoor, 1 acre outdoor and up to three retail locations); $5,000; $5,000

Microbusiness (cultivate up to 5,000 square feet indoor, 0.5 acre outdoor and one retail location); $500; $0

Hemp manufacturer; $250; $1,000

Hemp retailer; $250 (per location); $250 (per location)

Medical cannabis cultivator; $250; $0

Medical cannabis processor; $250; $0

Medical retailer; $250; $0

Source: Minnesota Cannabis College

Nick Williams is a business reporter for the Star Tribune.

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What Will Adult-Use Marijuana Legalization Mean for Ohio?

Introduction.

On November 7, 2023, Ohio became the 24th state to legalize adult-use cannabis with 57% of voters voting in favor of Issue 2, also known as An Act to Control and Regulate Adult Use Cannabis. This site aims to address questions that many people may be asking, such as when will recreational dispensaries open their doors or how much product will an individual be allowed to purchase, as well as more complex questions, such as what is the expected tax revenue going to be and how might marijuana legalization affect public health and public safety.

The question-and-answer section of this resource is divided into the following subsections: adult-use recreational users, medical marijuana patients, cannabis industry, general questions, public safety impact and public health impact. Each subsection aims to help Ohioans better understand what cannabis legalization could mean for their communities.

It is important to note that the information below reflects the language of the initiated statute passed by Ohio voters. The Ohio General Assembly can make significant changes to any aspect of the statute at any time. 

Within days of the passage of Issue 2, various members of the Ohio General Assembly have proposed making legislative changes to a number of the provisions of the new law. Proposed reforms have been introduced in the General Assembly and legislative hearings continue to be conducted on some of the bills,  including  House Bill 86 ,  House Bill 168 ,  House Bill 341 , and  House Bill 354 .  The table below compares the four proposed legislations to each other, as well as to the currently enacted Ohio Revised Code Chapter 3780 created by Issue 2.

DEPC will continue to monitor legislative proposals, updating this page to reflect any changes that are passed by the Ohio General Assembly (OGA).

Key Takeaways from the Passage of Issue 2

When will ohioans be able to purchase recreational marijuana from licensed dispensaries.

Adult-use dispensaries are likely to begin operating sometime in the summer or early fall of 2024. The Division of Cannabis Control in the Department of Commerce will begin accepting applications for adult-use businesses and testing licenses within six months (early June) of Issue 2’s effective date. Licenses are then required to be allocated within nine months (early September) following Issue 2’s enactment, although the Department of Commerce could act in a speedier fashion.

Until the first recreational dispensary opens in the state of Ohio, Ohioans that do not have an Ohio medical marijuana card will not be able to lawfully purchase marijuana in the state of Ohio.

Key takeaways (if there are no changes by the Ohio General Assembly):

Please note: The Ohio General Assembly can make significant changes to any aspect of the statute at any time. The materials in this section were last updated November 8, 2023.

Additional resources

In addition to content below, DEPC  has produced both research and events that focus on marijuana reforms in Ohio and nationally. The center has produced reports on the estimated tax revenue of adult-use marijuana legalization in Ohio, the existing Ohio Medical Marijuana Control Program, lessons to draw from states that have transitioned from medical to recreational marijuana reforms, h ow to effectively incorporate social equity into cannabis laws and regulations, and more.

The Ohio Initiated Statute Process for An Act to Control and Regulate Adult Use Cannabis

The Coalition to Regulate Marijuana Like Alcohol launched its initiative for adult-use marijuana in summer 2021. Following initial endorsement by the Ohio Attorney General and the Secretary of State's ballot board, the Coalition fell short of the required 132,887 signatures in December 2021. However, by late January 2022, the Secretary approved the additional signatures, and the measure was passed to the Ohio General Assembly, which did not act. A legal tussle over the initial signatures occurring in spring 2022 eventually led to a settlement, allowing the Coalition a streamlined process for the 2023 election. After giving the General Assembly a second chance to act in early 2023, the group embarked on collecting the second round of signatures in early May. Though they initially missed the mark by 679 signatures, an additional 6,545 were approved on August 16, ensuring the measure's spot on the November 2023 ballot.

In an effort to better clarify the process through which an initiated statute can become law in Ohio, DEPC has produced both a visual and an accessible text outline.

Adult Recreational Consumers

Can i grow my own marijuana.

NO – patients and caregivers are not allowed to cultivate their own marijuana.

YES – as of December 7, 2023, adult users are  allowed to grow six plants per individual, with a limit of 12 plants total per residence where two or more adult-use consumers reside at one time.

The vast majority of states (17 of 23) that have legalized adult use allow their residents to grow a limited number of plants for personal use, ranging between two (Montana) and 12 plants (Michigan). In our previous research, we heard from regulators who stressed that effectively managing home grow is necessary for public safety and for limiting the possibility of diversion to the illicit market. Regulators suggested two strategies to limit the potential negative effects of home grow provisions: giving law enforcement agencies clear and enforceable directions and keeping the allowed number of plants relatively low while also incorporating residency limits (limiting the number of plants that can be grown in a residence regardless of how many adults reside there).

• Enables patients to grow their own supply to avoid the uninsurable cost of marijuana
• Consumers can grow specific strains that might otherwise be hard to find in dispensaries
• Potentially creates downward pressure on pricing in the market
• Home cultivation makes enforcement to prevent illegal grows in residential settings more difficult and creates uncertainty among law enforcement as well as the public
• Plants cultivated at home are not tested for harmful pollutants
• Access to marijuana by underage persons may be harder to prevent

For more information, see From Medical to Recreational Marijuana: Lessons for States in Transition .

How much marijuana can I possess?

Possession limits across legalized states vary, but they are generally between 1 - 2.5 oz of cannabis flower in public, with some states having higher limits for concentrates or cannabis infused solid products. The state with the highest permitted possession limit is New Jersey, which permits possession of 6 oz.

The amount of medical marijuana possessed by a registered patient shall not exceed a ninety-day supply:

• Tier I of med. marijuana – 8 oz (226.8g)
• Tier II of med. marijuana – 5.3 oz (150.3g)
• 26.55 grams of Tetrahydrocannabinol (THC) content in lotions, patches, creams, ointments
• 9.9 g of THC content in oil, tinctures, capsules or edible form
• 53.1 g of THC content in oil for vaporization
• Terminally ill patients have higher limits

2.5 ounces in any form except extract, 15 grams of adult use extract. May purchase 2.5 ounces from dispensary per day.

Are there restrictions on how I can consume marijuana?

The smoking or combustion of medical marijuana is prohibited. Any form or method that is considered attractive to children is prohibited. With respect to tetrahydrocannabinol content: plant material cannot have more than 35% of THC content, and extracts are limited to 70% THC content.

No limitation on how cannabis can be consumed. The Division of Cannabis Control will set rules regarding allowable THC content. T he language from the initiative provides additional detail:

• Section 3780.03. Establishment and authority of division of cannabis control; adoption of rules. (C) The division of cannabis control shall adopt, and as advisable and necessary shall amend or repeal, rules on the following: (21) Establishing a tetrahydrocannabinol content limit for adult use cannabis, which for plant material the content limit shall be no less than thirty-five per cent and for extracts the content limit shall be no less than ninety per cent, but that such content limits may be increased or eliminated by the division of cannabis control

Are there employment and other protections for marijuana users?

Employment protection for marijuana use is a complex issue, shaped partially by the continued federal prohibition on marijuana as well as the challenge of detecting how and when past marijuana use may impair job performance. In our annual survey of medical marijuana patients, the fear of losing one’s employment has consistently ranked high as a reason why people abstain from using marijuana. Ohio's employment rules are not unique; the majority of states that have legalized marijuana do not provide employment protections. Three states, Nevada, New York and New Jersey, have enacted laws preventing employers from taking action solely based on the presence of cannabinoid metabolites in the employee’s system or refusing to hire based on individual’s use of marijuana outside of the workplace. However, in all three states employers can continue with drug free workplace policies.

NO – employers are allowed to continue workplace drug policies prohibiting consumption.

However, Act creates additional protections for:

• Concealed Carry Licenses
• Adjudicatory hearings to determine shelter care placement
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• Right to medical care and/or inclusion on a transplant waiting list
• Users cannot be rejected as a tenant but owner can prohibit smoking on premises.
• Officers must have an independent, factual basis giving reasonable suspicion that an individual is operating a vehicle under the influence or a test from the person's blood, blood serum, plasma, breath, or urine.

Medical Marijuana Patients

Under the current language of the ballot initiative, existing medical marijuana licensees would get preferential treatment in regard to adult use licenses. However, the question of whether there will be separate dispensaries for adult-use and medical use is not addressed, and neither is the question of whether separate cultivator locations will be required.

Under the current Ohio Medical Marijuana Control Program (OMMCP) patients are only required to pay existing state and local sales taxes usually ranging between 5.25% and 7.50%. Under the ballot initiative, an additional 10% tax would be levied on purchases of recreational marijuana. The initiative is silent in respect to medical patients, which presumably means that medical marijuana purchases would not be subjected to the additional excise tax. Most states that have legalized adult use marijuana recognize the different nature of use between medical and recreational user and do not impose any additional taxes on patients beyond the standard state sales tax.

Under OMMCP rules, plant material cannot exceed a THC content of more than 35% and extracts cannot exceed THC content of 70%. The initiative proposal would give regulators the power to regulate concentration levels but its text explicitly states that concentration limits cannot be set below 35% of THC content for plant material and 90%, which are the same or higher than the existing OMMCP rules. State regulators will have to make a decision as to whether they want to increase potency limits for medical marijuana patients (assuming that the Ohio General Assembly will not act to change the limits).

How many licenses will be issued and how long will it take?

• Cultivation - Level I Cultivator (25K sqf) & Level II Cultivator (3K sqf) - 37 licenses awarded, 23 Level I and 14 Level II. Initial cap was 12 licenses for each tier. As of August 17, 2023, 13 cultivators received permission to expand. This includes four Level I cultivators who can expand to up to 50,000 sq/ft, and nine Level II cultivators who can expand to up to 6,000 sq/ft.
• Processor – 44 operational processors, plus two with provisional license; initial cap set at 40.
• Testing Laboratory - No limit place on testing laboratory licenses.
• Dispensary – 92 operational dispensaries, plus 41 provisional licenses issued.

There are no official caps on the number of licenses, however, the Division of Cannabis Control will be able to decide whether to issue additional licenses based on the balance of supply and demand in the market. Licenses to current medical marijuana licensees should start being issued within 9 months of enactment.

States have varying regulations for different types of licenses with some limiting how many licenses one entity or one individual can hold at one time to mitigate fears of market domination by large actors. Of the previous 23 states that have legalized adult-use marijuana, ten have enacted license limits based on an established cap or contingent on county population. Arizona limits licenses relative to the total number of pharmacies operating in the state.

• Ability to charge higher licensing fees to support effective regulatory structure
• Because only well-capitalized businesses can enter market due to high fees, it may create a more stable market
• Ability to regulate supply of product and react to changing conditions in the market to prevent oversaturation
• Allows for preferential treatment of certain classes of applicants
• Limits how many entities can enter the industry
• Gives advantage to well capitalized individuals/business, limiting diversity in the industry
• By restricting supply, creates potential for higher prices to consumers
• Necessitates creation of government selection process which can create controversy

How much will licenses cost?

The licensing fees assessed by states for adult-use businesses vary widely from state to state and license to license. In some states, such as Alaska, fees can be as low as $1,000 while other states, such as New York, can assign fees as high as $200,000. There are many considerations that go into determining license fees – states want to ensure that their regulatory structures can be wholly funded by the proceeds from the marijuana industry while at the same time they also need to consider the barrier high fees can create for small and minority-owned businesses. Transparency about the costs of administering a marijuana program and how fees are spent can be helpful in ensuring that fees are not set too low or too high.

• Cultivator Level 1: $20,000 Application fee, $180,000 Licensure fee, and $200,000 Renewal Fee.
• Cultivator Level 2: $2,000 Application Fee, $18,000 Licensure Fee, $20,000 Renewal Fee.
• Processor: $10,000 Application Fee, $90,000 Licensure Fee, $100,000 Renewal Fee.
• Dispensary: $5,000 Application Fee, $70,000 Licensure Fee, $70,000 Renewal Fee.

The licensing and application fees have not been established. The responsibility to set fees upon implementation was given to the Division of Cannabis Control.

Will existing medical marijuana operators get a preference?

• Each medical dispensary will be issued one adult-use dispensary license
• Level I Cultivator shall be issued three adult use dispensary licenses and one Level I Adult use cultivator license
• Level II Cultivator shall be issued one adult use dispensary and one level II adult use cultivator license
• Each dispensary shall be issued one adult use dispensary license at different location if dispensary does not have common ownership or control of any Level I, II, or processor license
• Processor shall be issued one adult use processor license
• Testing lab shall be issued one adult use laboratory license

Most states that have undergone a transition from medical to recreational marijuana market have treated existing medical marijuana licensees as having a preferred status compared to the general population, whether by being able to submit applications ahead of others, having a fast-tracked approval process or being automatically eligible for licenses within the recreational sphere. As with any other policy choice, this carries with it both benefits, such as shorter implementation time, and drawbacks such as limiting the ability of new entrepreneurs and entrepreneurs from communities most affected by prohibition to get involved or be prioritized.

• Shorter implementation timeline due to already established growers and retailers
• Smoother start of adult-use regime due to greater levels of familiarity with marijuana regulations and established record of compliance
• Increases perceived legitimacy of the new industry as existing medical participants have already undergone public scrutiny
• Limits the ability of new entrepreneurs to get involved in the industry, possibly limiting involvement of underrepresented communities
• Possibility of greater concentration of the industry in fewer hands, limiting competitiveness of the market

Will there be any preference for in-state businesses?

The 2016 Ohio medical marijuana law required 15% of all licenses for growing, processing, and selling marijuana be awarded to minority-owned businesses. This part of the law was subsequently struck down in 2018 (for cultivators and processors) and in 2019 (for dispensaries). There are currently no provisions for preferential treatment for minority owned businesses.

Division of Cannabis Control shall issue up to 40 Level III adult use cultivator licenses with preference provided to applicants who have been certified as cannabis social equity and jobs program participants. Division of Cannabis Control shall issue up to 50 additional adult use dispensary licenses who have been certified as cannabis social equity and jobs program participants. The initiative does not appear to have any provisions giving preferential treatment based on residence alone.

Requirements for licenses have changed through the years with multiple states removing in-state residency requirements for their adult-use licenses. States were initially concerned with large corporations entering the market and leaving less economic opportunity for state residents. Currently, six states have provisions requiring resident status to qualify for a specific marijuana license. A majority of states have enacted license provisions granting social equity applicants preference for certain license types. Three states, New York, New Mexico and Connecticut, have implemented social equity programs that require 50% of all licenses must be allocated to a social equity registered applicant.

• Can limit the ability of out-of-state investors to enter the market
• Protects existing small businesses from capture by large players
• Provides opportunity for state residents
• Eliminates a potential red flag that could trigger federal enforcement action
• Limits the amount of capital available to the industry
• Can delay the growth of the industry in localities that lack sufficient capital
• Could expose states to legal challenges from out-of-state business owners

General Questions

How much will the state tax marijuana.

The taxation levels under the legalization initiative falls in the mainstream when compared to other states. Most states impose an excise tax on cannabis of 10-15% in addition to their regular sales tax. Based on available information, New Jersey appears to have the lowest tax burden of 6.625% plus a variable local tax of up to 2%; the state of Washington, on the other hand, levies a 37% excise tax, plus 6.5% state sale tax and additional local state tax.

No special tax levied on medical marijuana purchases. Patients are subjected to regular state (5.25%) and local sales tax (0.25 – 2.25%).

10% Excise tax, plus  regular state and local sales tax, totaling between 15.25% - 17.5% tax levy.

How much tax revenue would Ohio collect from adult-use marijuana?

Advocates for cannabis reform in Ohio and in other states often stress the tax revenue that can be raised through legalization. While predicting future tax revenue is always subject to unforeseen circumstances, our center estimates that by year five of operation, Ohio could see between $276 million to $403 million in annual tax revenues if the tax structure is not altered by the General Assembly . These numbers are small compared to the overall size of the state budget, which for fiscal year 2023 stands at $81.1 billion. In other words, similar to other legalized states, even if tax revenues exceeded our estimates, it is unlikely that they would reach beyond 1% of the overall state budget. 

For more information, see What Tax Revenues Should Ohioans Expect If Ohio Legalizes Adult-Use Cannabis? .

How will money be spent?

Every state with legalized adult-use marijuana has established a plan to allocate marijuana revenue generated through the tax and fee collection. The plans vary widely, with some states focusing on funding education and law enforcement, while others distribute resources to localities, substance abuse programs, social equity programs, research, veteran services and others.

Sales tax from marijuana products goes to the state general fund. There are no designated expenditure areas.

Adult Use Tax fund - all funds initially deposited in this fund and distributed quarterly as follows: 36% for the Cannabis Social Equity and Jobs fund, 36% for the Host Community Cannabis Fund, 25% for the Substance Abuse and Addiction Fund and 3% for the Division of Cannabis Control and Tax Commissioner Fund.

What social equity provisions are incorporated?

Over the last decade, social equity has slowly become a major concern. States whose initial regulations did not include social equity provisions have amended the original legislation to include provisions assisting communities and individuals disproportionately impacted by marijuana enforcement. Almost every state, besides Alaska and Maine, have implemented some form of expungement or record sealing for past marijuana offenders, with 16 states providing for some form automatic record relief for a marijuana-related offense. Additionally, some states have set aside licenses for social equity applicants and established funds to help communities negatively impacted. 18 states have established funds to assist these communities either through reduced licensing fees, loan programs, business assistance, or programs to aid youth development and violence prevention.

Though providing earmarked funds and a list of activities for the cannabis social equity and jobs program, the initiative does not create a clear set of instructions for the use of funds nor specific details on how various activities will be pursued.

No social equity provisions incorporated beyond the 15% set aside for minority-owned businesses that was subsequently struck down in court.

The initiative includes establishment of the cannabis social equity and jobs program in the interest of remedying the harms resulting from the disproportionate enforcement of marijuana-related laws and to provide financial assistance and license application support to individuals most directly and adversely impacted by the enforcement of marijuana-related laws who are interested in starting or working in cannabis business entities. Additionally, Division of Cannabis Control shall issue up to 40 Level III adult use cultivator licenses and 50 additional adult use dispensary licenses with preference provided to applicants who have been certified as cannabis social equity and jobs program participants.

Will my locality be able to prohibit marijuana businesses?

Almost every state has adopted laws enabling localities to completely prohibit or significantly limit adult-use marijuana establishments from operating within their jurisdiction. Localities can prohibit establishments through ordinances or opt-out through voter referendum. Unlike the rest of adult-use states, New Mexico is the only state where the legislation included provisions preventing local jurisdictions from completely prohibiting adult-use licenses from operating.

YES - The legislative authority of a municipal corporation may adopt an ordinance, or a board of township trustees may adopt a resolution, to prohibit, or limit the number of, cultivators, processors, or retail dispensaries licensed under this chapter within the municipal corporation or within the unincorporated territory of the township, respectively.

YES - Localities may adopt ordinances to prohibit adult-use dispensaries but may not prohibit or limit existing operational medical marijuana cultivators, processors, or dispensaries; or an adult use cultivator or an adult use processor, or an adult use dispensary who is co-located with adult use cultivator and an adult use processor, who have, or whose owner have, a medical marijuana certificate of operation at the same location as of the effective date of the act. A municipal corporation or township may vote to prohibit the operation of an adult use dispensary within 120 days of the dispensary license being issued.

Public Safety and Public Health

Marijuana reform, especially legalization for recreational purposes, raises important questions about how such policy change might impact public safety and public health. Because marijuana legalization is a new development and takes various forms in different locales, rigorous research into questions related to effects on crime, impaired driving, youth use of marijuana and other impacts on health and safety has only just begun. To date, research results do not yet paint a clear picture on most of these important questions. The small sample of studies presented in the sections below were selected to demonstrate that, while researchers are starting to explore these questions, data limitations and the relative recency of these changes means that continuing and sustained research is needed to help policymakers design regulations and policies to minimize potential harms and maximize potential benefits.

Will we see an increase in traffic accidents?

To date, researchers have found mixed results when looking at the question of whether marijuana legalization results in higher number of traffic accidents or higher rates of impaired driving.

To assess the effect of legalization on traffic fatalities in Colorado and Washington, a 2020 study by Hansen, Miller, and Weber used a synthetic control approach with data on fatal traffic accidents between 2000 and 2016. The authors found little evidence to support the idea that recreational legalization dramatically increased traffic fatalities. Specifically, synthetic control groups had similar changes in marijuana- and alcohol-related traffic fatality rates, as well as a similar change in overall traffic fatalities, despite not having legal marijuana.

On the other hand, a 2023 study by Adhikari, Maas and Trujillo-Barrera  found that legalization of recreational marijuana resulted in an increase of 1.2 traffic death per a billion of miles traveled, which translates roughly into 1000 excess fatalities on annual basis for all states that have legalized recreational marijuana.

Most studies that have looked at the question of road safety note important data limitations as well as lack of clear understanding of marijuana impairment. For example, Windle and co-authors  found that marijuana legalization and decriminalization were correlated with an increase in positive cannabis tests among drivers. However, they determined that many of these studies were at risk of bias due to potential confounders and measurement error. The authors also emphasized that while more drivers may have tested positive for cannabis, this does not necessarily mean they were driving impaired as tetrahydrocannabinol (THC) can be detected for long periods of time after consumption.

For more information, see Effects of Drug Policy Liberalization on Public Safety: A Review of the Literature .

Will we see an increase in crime rates?

Whether marijuana legalization is linked to an increase or decrease in crime is of great interest to policymakers and researchers. Unfortunately, this question is also very difficult to study due to data limitations that exist in our criminal justice system, the relative recency of legalization and the number of confounding factors present. Nevertheless, several studies have tried to ascertain the relationship between marijuana legalization and crime.

A 2019 study focusing on Colorado found that the opening of medical and recreational dispensaries decreased violent crime in nearby neighborhoods with incomes above the median although it had virtually no impact on aggregate rates of violent and property crimes overall. The authors also found a decrease in non-cannabis drug- and alcohol-related crimes near dispensaries. While they found that vehicle break-ins were elevated within a mile of dispensaries, they concluded that marijuana legalization had a net benefit with regard to crime rates. An additional study  focusing on recreational legalization in Washington and Oregon found that legalization likely caused a drop in crime. Specifically, the authors found that legalization resulted in a significant reduction in rape and property crime on the Washington side of the border compared to both the Oregon side and the pre-legalization years. Furthermore, while marijuana consumption increased, use of other drugs and alcohol decreased.

At the same time, some studies found increases in crime rates after cannabis legalization. For example, using UCR data from 2007 to 2017 to examine the effect of marijuana legalization on crime rates in Oregon, one study  found increases in crime rates for several types of offenses, including property and violent crime. In another study pertaining to crime in Oregon, Wu and Willits  found that the rate of simple assault had increased following legalization. However, they noted that their post-legalization time frame was fairly short and should be reassessed by future research.

Other research found no significant changes in crime following marijuana legalization. For example, using UCR data, Lu et al.  conducted a quasi-experimental study to examine crime rates in Colorado and Washington. They found no statistically significant effects of marijuana legalization on violent or property crime. Similarly, a review study  looking at data from several legalized states indicated that violent crime neither increased nor dropped dramatically following cannabis legalization.

Overall, the literature exploring the relationship between liberalization of marijuana policies and crime seems to suggest that legalizing marijuana is not a threat to public safety.

Will we see an impact on arrest rates?

Unlike other public safety questions around marijuana legalization, whether there is an impact on arrest rates is fairly straightforward. Numerous studies indicate significant drops in the number of arrests following the legalization as well as decriminalization of adult-use marijuana. Firth and co-authors used National Incident Based Reporting System (NIBRS) data on marijuana-related arrests and found that marijuana arrest rates among people over 21 fell dramatically after legalization of marijuana possession in Washington State, and that rates stayed at similar levels following the opening of the retail market. However, while marijuana-related arrest rates for both White and Black adults decreased, relative disparities increased. African Americans previously had an arrest rate 2.5 times higher than the White arrest rate, but this increased to 5 times higher after the opening of the retail market. Similarly, recent research on Colorado and Washington has also found that while cannabis-related arrest rates generally declined after legalization, racial disparities persisted. Thus, while legalization lessens the absolute number of people who come into contact with the criminal justice system overall, more needs to be done to specifically address racial disparities.

Will we see an increase in youth consumption of marijuana?

As with questions about public safety, the research findings on many questions related to public health are mixed. In respect to rate of use, some research indicates an increase in marijuana use overall, while other research shows decreased rates of use among teens. According to a 2021 study  that reviewed existing research on the topics, use in states where marijuana is legal tends to be higher than the average rate of use in the United States, however, this difference mainly pre ‐ ​dates legalization.

In a 2019 report  from the Journal of the American Medical Association, the enactment of adult-use legalization laws showed no significant association with marijuana use or marijuana use frequency among high school students. Similarly, medical cannabis laws did not impact youth usage rates. A 2020 study  that looked at teen use in California and Washington found that both states recorded a drop in teen use post-legalization, which was consistent with data from non-legalized states suggesting an overall national drop in teen use of marijuana. This was later supported by a 2023 survey by the Centers for Disease Control and Prevention, which highlighted that past 30-day cannabis use among U.S. high school students in 2021 was the lowest since 1991, with male teens experiencing a significant decrease from 26% in 2011 to 14% in 2021, and female students use remaining relatively stable with 18% using in 2011 and 16% reporting use in 2021.

As with previous questions, continued rigorous research focused on rates of use among adults and adolescents is needed to ensure that policymakers and regulators have the necessary information to effectively regulate legal cannabis markets. Special attention should be paid to harmful levels of use.

Will we see an increase in emergency room visits?

A number of studies have noted an increase in the number of cannabis-related emergency room visits over the last two decades. For instance, a CDC study from 2023  noted an increase in cannabis-involved emergency room visits for people under the age of 25 during the COVID pandemic, while also noting a statistically significant increase prior to pandemic. However, this study was not specifically focused on states with legalized recreational marijuana or on tracking the impact of such legalization on emergency room visits.

A recent study  looked at cannabis positivity rates in 17 emergency departments across the US with different stages of marijuana legalization. According to the authors, most states experienced a significant increase in cannabis positivity rates as legalization progressed, however, the positivity rates differed. In most states with no cannabis legalization, there was still a significant, albeit smaller, increase in cannabis positivity rates in emergency room visits. Additionally, a study  conducted at two Boston medical centers from 2012 to 2019 showed an increase in both positive THC IA results and cannabis-related ICD-10 codes in the ED, particularly among females, patients aged 30-39, older adults (>59 years), and the highest income bracket. Similarly, a 2018 study  from Colorado noted an increase in emergency room visits for patients between 13 and 21 years of age from 2005 to 2015.

In summary, there has been an observed increase in emergency room visits related to marijuana use in states that have legalized marijuana. It is important to keep in mind though that even states that have not legalized marijuana have seen an increase in emergency room visit, and studies that were conducted in legalized states had some significant limitations. While these limitations are worth noting, there also appears to be a consensus among scholars that regulators should pay specific attention to mandating child-proof containers for cannabis product and prohibiting marketing of products whose packaging mimics popular child-friendly snacks and candy.

Impact on the Workplace

The connection between marijuana legalization and the labor market is of great interest to employers and policymakers alike, prompting questions about changes to the prevalence of workplace incidents, changes in productivity and labor participation, and impact on worker compensation costs. But as with many other questions surrounding marijuana reform, the research to date provides mixed evidence, with very little research being available on the impact of recreational adult use legalization specifically.

In respect to workplace injuries, majority of research to date focuses on whether there is a link between use of marijuana and workplace accidents, rather than on the link between marijuana legalization and injuries. In a 1990 study , prior to any state legalizing an adult-use or medical program, researchers found that individuals that tested positive for marijuana through a urine analysis had 55% more industrial accidents, 85% more injuries, and a 78% increase in absenteeism. A 2023 study found that individuals that consumed marijuana on the job, were nearly twice as likely to experience some form of workplace injury, although there was no negative effect for consumption of marijuana outside of the workplace. In respect to medical marijuana legalization, some research actually showed a positive impact, with a 2018 study finding that legalization of medical marijuana was associated with a 19.5% reduction in expected workplace fatalities for individuals 25-44.

In regard to labor supply, a 2019 study found a positive relationship between medical marijuana laws and labor supply among older adults. For adults 51 years and older, the study showed an increase in probability of full-time employment as well as hours worked. Another study from 2018 found no changes in the labor market following medical marijuana legalization, with employment status, hours worked and wages remaining unaffected.

When it comes to research focused on recreational marijuana legalization, the results are also mixed. While a 2017 study by Maclean et al. found an increase in disability claim applications and longer disability periods after recreational marijuana legalization, another study from 2021 by Abouk et al. showed reductions in workers’ compensation claims and benefits.

Still much unknown on how marijuana policies would change in states under Biden plan

U.S. Attorney General Merrick Garland has proposed loosening the illegal status of marijuana at the federal level – but that doesn’t mean the federal government now condones recreational or medicinal use in the many states that have legalized the drug.

Moving marijuana from the government’s list of the most dangerous and least useful substances, Schedule I, to a less serious Schedule III category was a clear signal that the federal government, at least under President Joe Biden’s administration, wants to ease restrictions on a drug that’s been legal in an increasing number of states for more than a decade.

For years, the federal government has not pursued enforcement of state-legal marijuana operations, and the recent move appears to solidify that approach.

But it didn’t solve the many thorny issues that have resulted from a split between what is legal in dozens of states and what the federal government allows.

It’s unclear exactly what the rescheduling will mean. The Justice Department has not made public the text of Garland’s proposal — a DOJ spokesman declined States Newsroom’s request this week for a copy and state regulators say it has not been shared with them.

Even if the proposal were public, it would be expected to go through changes over months of rulemaking.

Here are some questions covering what is known at this early stage about what rescheduling would and would not do.

Q: Is weed legal now?

Even in states that have legalized recreational use, the federal government would likely still consider the state system as illegal under federal law.

Other Schedule III drugs, including Tylenol with codeine and anabolic steroids, are tightly regulated and available only by prescription at pharmacies.

State-legal medicinal marijuana dispensaries do not fit that description and recreational-use dispensaries are even further from what the Food and Drug Administration requires of Schedule III drugs.

“This does not make marijuana state operations legal,” Shawn Hauser, a partner at Denver-based marijuana law firm Vicente LLP, said on a May 3 webinar. “They are not selling FDA-approved drugs and they are not licensed or meet the control requirements for Schedule III. So cannabis and state-legal dispensaries will remain in violation of federal law.”

Q: What is the difference between Schedule I and Schedule III?

A: Among the most significant is the recognition that the drug may have some medicinal value.

Under the federal Controlled Substances Act, the Drug Enforcement Administration has five levels of drug classifications.

Schedule I is the most restricted level, comprising the drugs most ripe for abuse that have no medicinal value. Other drugs on the list include heroin and LSD.

Because the definition of Schedule I substances includes no medicinal use, it is illegal to even study substances on the list.

Schedule III is the strictest level that acknowledges some medicinal value, making some hopeful that research on the drug could be improved.

“Moving cannabis to Schedule III would be a big step for recognition of the medical uses of cannabis, what voters here recognized by a wide margin in 1998,” the Washington state Liquor and Cannabis Board said in a May 1 statement. “And it would say very clearly that the federal government no longer considers cannabis among the most dangerous drugs.”

Q: How are states preparing?

A: Until they have more details, state regulators cannot do much, Amanda Borup, the senior policy analyst for the Oregon Liquor and Cannabis Commission, said in an interview.

“We really have to wait and see what they release,” she said, referring to the DEA’s rulemaking.

Other states are considering what the impacts might be.

The statement from Washington’s Liquor and Cannabis Board said rescheduling would “hopefully” ease restrictions on cannabis research, while it is “possible” the move would allow state-legal businesses to take advantage of tax deductions available to other industries.

Q: Why does research matter?

A: Marijuana advocates have had trouble providing evidence of any marijuana benefits because research has been restricted, which in turn made it more difficult to show that the restrictions should be lifted.

It could also help establish industry guidelines for ancillary issues. For example, the restrictions on research contribute to a lack of data on what pesticides are safe for use in marijuana cultivation.

Q: How does this affect policy on taxes, banking and criminal justice?

A: On its own, rescheduling likely won’t address several complaints marijuana industry members and advocates have about federal prohibition.

Some are hopeful, though, that the signal from the Biden administration will spur momentum toward other changes.

Most businesses can deduct their costs from their income and pay taxes on their net income. Marijuana businesses cannot take that deduction, known as 280E, according to the Marijuana Policy Project, an advocacy group.

Schedule I status also makes access to the U.S. banking system difficult.

Others complain that making marijuana legal in some states has not been fair to the communities of color that saw the most active enforcement.

Rescheduling would not fix those issues on its own, but advocates are hopeful it is a sign of momentum toward full legalization.

Senate Majority Leader Chuck Schumer and Democratic Sens. Cory Booker of New Jersey and Ron Wyden of Oregon reintroduced a bill last week to de-schdule the drug altogether. The measure includes expanding the 280E tax break and several provisions meant to address social justice.

Q: Could Trump reverse this if he wins in November?

A: Probably, though there’s no indication that’s on his agenda.

It’s unclear what the status of the rescheduling will be when the next Inauguration Day arrives on Jan. 20.

If former President Donald Trump wins back the presidency and the rescheduling is still pending, he could direct the DEA and DOJ to scrap the change.

Trump has not commented on the issue.

The Oregon Capital Chronicle  is a professional, nonprofit news organization. We are an affiliate of  States Newsroom , a national 501(c)(3) nonprofit supported by grants and a coalition of donors and readers. The Capital Chronicle retains full editorial independence, meaning decisions about news and coverage are made by Oregonians for Oregonians.

EBCI inches toward adult marijuana use

Adults may soon be able to purchase marijuana for recreational use from Cherokee’s new dispensary. 

At a work session last week, the Eastern Band of Cherokee Indian’s Tribal Council discussed several questions they had regarding a potential ordinance that would legalize sales of cannabis to any adult with a valid ID.

At the outset of the meeting, Chairman Mike Parker noted that he’d invited regional law enforcement leaders, including Haywood County Sheriff Bill Wilke, Jackson County Sheriff Doug Farmer, Swain County Sheriff Curtis Cochran, Sevier County Sheriff Michael Hodges and Great Smoky Mountains National Park Chief Ranger Lisa Hendy but got no responses.

The work session ultimately led to the discussion of when a vote would be held by Tribal Council, and all indications point to the June meeting, about nine months after EBCI passed a referendum to approve adult use with about 70% of voters in favor.

The first question that arose regarded other legal “hemp” shops that sell cannabinoids such as CBD, Delta 8 and Delta 9. As written now, the ordinance would prohibit those businesses from selling their products unless they were licensed by the cannabis control board. Currently, the only licensed distributer is the Great Smoky Cannabis Company dispensary that opened on 4/20 and has since been serving customers with EBCI-issued medical cannabis cards.

Estimates for how many hemp shops exist on the Qualla Boundary ranged from four to seven.

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Discussion around such businesses included concerns about how products are tested and regulated to whether those establishments may compete with the tribe’s cannabis venture. Currently, the proposed fine for selling cannabis without a license is $5,000.

Although EBCI Attorney General Mike McConnell noted that it may be a more efficient use of time to address the hemp shops later, council members made it clear they wanted to discuss it right then and there.

While McConnell thought enforcement of any ordinance would fall to the Cherokee Police Department, others posited that the tribe’s alcohol law enforcement may be more appropriate.

“It would fall just perfectly for them,” said councilman and former CPD Chief Dike Sneed.

Ultimately, Tribal Council determined that they would have to regulate the hemp shops, to include testing and enforcement. When it came to the competition those businesses may provide, it was clear that most councilmen prioritized the success of Qualla Enterprises, the LLC behind the cannabis venture. Councilman Michael Stamper noted that those shops could market their products dishonestly in a way that could hurt both Qualla Enterprises and consumers.

Cherokee’s dispensary opened last month on 4/20. File photo

“What’s stopping people from saying we have the same product cheaper?” he asked.

 It was brought up that perhaps Tribal Council could ban the hemp shops altogether, considering at least 17 states have already banned Delta 8.

Former councilwoman Teresa McCoy advocated for letting the hemp shops continue to operate as they are. McCoy said she believes in free enterprise, but her real point was that Tribal Council needs to move forward with adult use and figure out the minute details later.

“What you should focus on today is moving forward as soon as possible,” she said, noting that 70% of voters — the same voters who elected Tribal Council — wanted recreational marijuana to be legalized, and it was high time to take the leap.

“Bring these questions up during business committee; that’s where your answers are,” she said. “In the meantime, leave those businesses alone. The more businesses come to this town the more levy we get, because you sure ain’t getting any gaming money, are you?”

Another question raised was, once recreational is legalized, what becomes of the medical program? The initial thought was to do away with it, but after some discussion, it was determined that there’s certainly still room for it. For one, a medical card can be used in other states where reciprocity applies. Tribal Council members also floated the idea of either offering a discount or waiving an excise tax for medical card holders.

And while Tribal Council seemed to lean toward outlawing tribal members growing their own marijuana plants, it was noted that it may be more practical for those with medical cards to grow their own. Also, for those who live off the boundary, it may make more sense for folks to grow their own to avoid transporting marijuana and risking criminal prosecution.

After discussing the specific questions, Councilman Richard French reiterated the point McCoy had made earlier, stating that he thought they would have a clean copy of the ordinance to discuss with the aim of voting on the ordinance in next month’s Tribal Council meeting.

“I’m getting calls every day saying ‘do what we ask youns to do,’” French said.

McCoy returned to the podium and further chastised council, saying that she, like French, thought councilmen would have the ordinance in front of them.

“If you don’t have your information in front of you, I don’t even know why youns are having this discussion,” she said.

However, council members were quick to push back against the urge to rush the ordinance, saying that when considering something of this magnitude, it’s important to take into account every angle before implementation.

“This was the plan, to come in here and discuss these issues so they could get a consensus from us,” Stamper said.

“We’re not kicking the can down the road,” he added.

Principal Chief Michele Hicks agreed.

“We’ve seen examples of rushing into some of our investments that are not paying off, so I think this is good,” he said.

Stamper added that he has every intention of bringing the ordinance to a vote next month.

“As long as we agree, I don’t see any reason to not bring it forward in June,” he said, a sentiment that seemed to be unanimously held.

• eastern band of cherokee indians,
• recreational cannabis,
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When we talk about vitamin, mineral or herbal supplements this is a very large category and there’s no simple “yes” or “no” answer to this. Your physician may run tests to determine whether you need supplements. 

Pasteurization is the process of heating raw milk to reduce the bacterial (both good/beneficial bacteria and bad/harmful bacteria) and viral load. 

If you’re having digestive issues, the cause may not be what you think.  First, and most importantly,  if you are experiencing pain or discomfort, diarrhea or constipation lasting for several days, it is important to speak to your health care provider to rule out any serious health problems and to potentially be tested for celiac disease or other illnesses.  

Question: If there is a long list of ingredients that sound like chemicals on a food package, should I avoid buying it? 

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