CBD Business Plan
You’ve come to the right place to create your CBD business plan.
We have helped over 1,000 entrepreneurs and business owners create CBD business plans and many have used them to start or grow their CBD businesses.
Below is a CBD business plan template to help you create each section of your own CBD business plan.
CBD Business Plan Example/h3>
Executive Summary
Business Overview
The New Haven Natural Health is a startup CBD company, offering natural health and healing products and located in New Haven, Connecticut. The company was founded by Jackie Trentham, a natural health and healing advisor for over 5,000 social media customers. Jackie has now reached the point where she wants to extend her services and products to a larger audience to help individuals throughout Connecticut feel better and experience life free from pain, stress and anxiety through CBD and naturally-healing products and services offered by New Haven Natural Health.
New Haven Natural Health will provide a comprehensive array of products and services designed to “build better health naturally” for patrons of the naturopathic center. Products include pain and stress relief via cannabidiol (CBD) products, including tinctures, capsules, topicals, and edibles. In addition, nutritional supplements, organic body and beauty products, prescriptive products and naturally-healing remedies will be offered.
Product Offering
The following are the products and services that New Haven Natural Health will provide:
- Wide variety of premium CBD products, including tinctures, capsules, topicals and edibles.
- Complete product line of natural health solutions for common problems: sleeplessness, aches and pains, allergies, colds and sinus infections, and other ailments.
- Complete line of body care products, including skin creams and lotions, detox bath bombs, body-conscious empowerment tools, prescriptives using CBD for specific health-related complaints, and other tools to help the body naturally improve from injuries, illness or stress.
- Naturopathic Doctor (ND) on staff to answer questions during store hours.
- Consultations and recommendations for better health, healing, stress and anxiety relief.
Customer Focus
Our CBD company will target former and current clients who use CBD for pain relief, stress and anxiety relief and general well-being. They will target patients of area doctors who need pain management for chronic or terminal conditions. They will target the residents of New Haven. They will target social media customers who have had interactions with Jackie Trentham previously or posted on one of her social media platforms. They will also target former customers of naturopathic or chiropractic associates within the New Haven area.
Management Team
New Haven Natural Health will be owned and operated by Jackie Trentham. She has recruited a naturopathic physician, Dr. Jerry Freeman, to assist in the wellness center and advise patients on a one-on-one basis, charging clinic fees for those who request consultations. Jackie has also recruited an associate, Sherylle Mathis, formerly an administrative assistant for Jackie, to become the Administrative Manager for the New Haven Natural Health.
Success Factors
New Haven Natural Health will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team at New Haven Natural Health
- Complete line of premium CBD products, including tincture, capsules, topicals and edibles.
- Comprehensive menu of products and services that focus on wellness and naturally good health, rather than on illness and problems.
- New Haven Natural Health will offer substantial discounts on products for patients who visit the center for consultations.
Download the CBD business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
New Haven Natural Health is seeking $200,000 in debt financing to launch its New Haven Natural Health. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for New Haven Natural Health.
Company Overview
Who is the New Haven Natural Health?
New Haven Natural Health is a newly established full-service natural health and healing center in New Haven, Connecticut. New Haven Natural Health will be the most reliable, cost-effective, and proactive choice for residents in New Haven and the surrounding communities. New Haven Natural Health will provide a comprehensive menu of CBD products and naturopathic services for any adult to utilize. Their full-service approach includes a comprehensive menu of CBD tinctures, capsules, topicals and edibles..
New Haven Natural Health will be able to offer a helpful selection of products and services for anyone seeking pain relief, treatment, and natural solutions to stress or anxiety. The team of professionals are highly qualified and experienced in natural health and healing and CBD products and qualities that ensure customers receive the premium CBD needed for effective pain relief or management. New Haven Natural Health removes all headaches and issues of their clients and ensures all issues are taken care of expeditiously while delivering the best customer CBD products and service.
New Haven Natural Health History
The New Haven Natural Health will be owned and operated by Jackie Trentham, a social media consultant and natural health and healing advisor for over 5,000 social media customers. Jackie has now reached the point where she wants to extend her services and products to a larger audience to help individuals throughout Connecticut feel better and experience life free from pain, stress and anxiety through naturally-healing products and services offered by New Haven Natural Health.
New Haven Natural Health will provide a comprehensive array of products and services designed to “build better health naturally” for patrons of the naturopathic center. Products include pain and stress relief via cannabidiol (CBD) products, including tinctures, capsules, topicals, and edibles. In addition, nutritional supplements, organic body and beauty products, prescriptive products and naturally-healing remedies will be offered.
Since incorporation, New Haven Natural Health has achieved the following milestones:
- Registered New Haven Natural Health, LLC to transact business in the state of Connecticut.
- Has a contract in place at one of the office buildings, where Jackie Trengtham oversee the setup of an office within 10,000 square feet.
- Reached out to numerous contacts to include naturopathic physicians, physician assistants, clinic health care workers and spiritual healers.
- Began recruiting a staff of six individuals, plus a naturopathic doctor for consultations as needed.
New Haven Natural Health Services
The following will be the services New Haven Natural Health will provide:
- Wide variety of premium CBD products, including tinctures, capsules, topicals and edibles.
- Complete product line of natural health solutions for common problems: sleeplessness, aches and pains, allergies, colds and sinus infections, and other ailments.
- Complete line of body care products, including skin creams and lotions, detox bath bombs, body-conscious empowerment tools, prescriptives using CBD for specific health-related complaints, and other tools to help the body naturally improve from injuries, illness or stress.
- Naturopathic Doctor (ND) on staff to answer questions during store hours.
- Consultations and recommendations for better health, healing, stress and anxiety relief.
CBD Industry Analysis
According to market research, the CBD industry and natural health industry is expected to grow during the next five years to over $1 billion.
- The growth will be driven by an increased use of CBD by individuals who want natural solutions and potential health benefits, including pain relief, anxiety reduction, and sleep improvement.
- The growth will also be driven by individuals who utilize CBD for pets.
- The growth will also be driven by medical doctors who increasingly utilize CBD in pain management for chronic or terminal illnesses rather than traditional prescriptives
- The growth will also be driven by a rise in interest due to expanded sales territories and enhanced customer education regarding the effective properties of CBD.
- CBD Industry Costs will likely be reduced as bulk purchase options become normalized.
- Costs will also be reduced by increased production and a further-developed methodization for separating premium strains that are effective in pain control and management.
Download the CBD business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
New Haven Natural Health will target former and current clients who use CBD for pain relief, stress and anxiety relief and general well-being. They will also target former customers of naturopathic or chiropractic associates within the New Haven area.
The precise demographics for New Haven Natural Health are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
New Haven Natural Health will primarily target the following customer profiles:
- Current and former social media followers and clients who use CBD
- Individuals who use CBD for pain management, stress and anxiety relief
- Residents of New Haven, Connecticut
- Patients of medical physicians and natural health and healing companies
Competitive Analysis
Direct and Indirect Competitors
New Haven Natural Health will face competition from other companies with similar business profiles. A description of each competitor company is below.
Serene CBD
Serene CBD is a retail business owned by Stacy Owens, a former CBD sales manager, located in New Haven, Connecticut. The business focus is on customers who want to purchase CBD for sleep improvement and to reduce stress and anxiety levels. Stacy has been in sales of CBD for over ten years and teaches courses in using CBD for pain management.
The business is located on a busy street in midtown New Haven, where heavy foot traffic ensures a constant supply of customers. The business focuses on casual users of CBD rather than those who need pain management and the business also offers a product line of aromatherapy products. The retail shop has a small footprint, but also includes various artwork and jewelry products on displays for sale at retail prices.
Herbal Bliss Supply
Herbal prescriptions are included in the products this wholesale company offers to retail sellers of CBD. Premium strains of CBD are offered, along with mid-grade CBD and Native American indicia for those who use the products in ceremonies. In addition to the CBD product line, Herbal Bliss Supply offers proprietary nutritional supplements, including a vitamin and mineral line of supplements, and condition-specific supplements.
Terry and Janice Sturman own the wholesale store, which services New Haven and the region surrounding the area. They have been in business for five years and have quickly expanded their business from the initial small offerings of CBD to customers, to the bulk quantities they now offer to retail stores and those who need bulk supplies.
Happy Jack’s CBD Dispensary
Happy Jack is a well-known figure throughout New Haven, as he was one of the 1960s “flower children” who roamed the streets of the city discussing issues of the day. He eventually left his group of “hippies” and established the small CBD Dispensary, Happy Jack’s, in 2019. His products are consistent and his flair for the comedic side of CBD eases any uncomfortable moments for newcomers to his CBD dispensary.
In addition to the retail CBD dispensary, Happy Jack’s is a regular provider of CBD products at the New Haven County Fair each year, as well as the Christmas Light Parade and other New Haven events for the entire county. Participants can always find Happy Jack with a smile on his face and recommendations for his favorite weed.
Download the CBD business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
New Haven Natural Health will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team at New Haven Natural Health
- Complete line of premium CBD products, including tincture, capsules, topicals and edibles.
- Comprehensive menu of products and services that focus on wellness and naturally good health, rather than on illness and problems.
- New Haven Natural Health will offer substantial discounts on products for patients who visit the center for consultations. In addition, New Haven Natural Health will offer package promotions for those who seek long-term pain management solutions.
Marketing Plan
Brand & Value Proposition
New Haven Natural Health will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide expertise in the selection of CBD products to meet condition-specific pain needs. This includes sleep improvement, stress and anxiety relief.
- Naturopathic physician on-site when the center is open
- Consultations and referrals as needed
- Product line that complements the CBD treatments and pain management tools
- Package bulk offerings that are discounted for pain management for chronic or terminal illness.
Promotions Strategy
The promotions strategy for New Haven Natural Health is as follows:
Word of Mouth/Referrals
Jackie Trentham has built up an extensive list of contacts over the years by providing exceptional service and expertise for her clients. Her social media clients have indicated they will follow her as she introduces the New Haven Natural Health and they will help spread the word of this new business, along with offering referrals to the company.
Professional Associations and Networking
Jackie Trentham and Dr. Jerry Freeman will continue to network among associations and build industry contacts through national trade shows and naturopathic conventions.
Social Media Marketing
Through the efforts of Jackie Trentham, there are 5,000 social media followers who can be encouraged to refer the New Haven Natural Health to their friends and family members. The social media platforms used, Facebook and Twitter, will continue to provide a wide swath of current and potential customers, patients and clients for the startup company.
Website/SEO Marketing
New Haven Natural Health will utilize their website efficiently. The website will be well organized, informative, and list all the product lines and services that New Haven Natural Health is able to provide. The website will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “CBD for sale” or “CBD near me”, New Haven Natural Health will be listed at the top of the search results.
Pricing
The pricing of products at New Haven Natural Health will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their products and services.
Operations Plan
The following will be the operations plan for New Haven Natural Health.
Operation Functions:
- Jackie Trentham will be the Owner and President of the Center. She will oversee all staff and manage client relations. Jackie has spent the past year recruiting the following staff:
- Sherylle Mathis- Administrative Manager who will manage the office administration, client files, and accounts payable.
- Dr. Jerry Freeman – Staff Naturopathic Physician will provide advice and consultations on-site during business hours.
Download the CBD business plan template (including a customizable financial model) to your computer here <–
Milestones:
New Haven Natural Health will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel and staff employment contracts for the New Haven Natural Health
- 6/1/202X – Finalize distributor contracts for New Haven Natural Health
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into New Haven Natural Health office
- 7/1/202X – New Haven Natural Health opens its office for business
Management Team
New Haven Natural Health will be owned and operated by Jackie Trentham. She recruited her associate Dr. Jerry Freeman, to be the on-site Naturopathic Physician at the New Haven Natural Health and help manage the office and operations.
Jackie Trentham, a social media consultant and natural health and healing advisor for over 5,000 social media customers, has now reached the point where she wants to extend her services and products to a larger audience to help individuals throughout Connecticut feel better and experience life free from pain, stress and anxiety through naturally-healing products and services offered by New Haven Natural Health.
Financial Plan
Key Revenue & Costs
The revenue drivers for New Haven Natural Health are the fees they will charge for products and services to the customers of their retail store.
The cost drivers will be the overhead costs required in order to New Haven Natural Health. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
New Haven Natural Health is seeking $200,000 in debt financing to launch its retail wellness center. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the CBD business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Customers and Clients Per Month: 205
- Average Revenue per Month: $ 47,360
- Office Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
CBD Business Plan FAQs
What Is a CBD Business Plan?
A CBD business plan is a plan to start and/or grow your CBD 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 CBD business plan using our CBD Business Plan Template here.
What are the Main Types of CBD Businesses?
There are a number of different kinds of CBD businesses, some examples include: CBD-infused food and drink, CBD-infused personal care products, CBD-infused medicinal products, and CBD-infused pet products.
How Do You Get Funding for Your CBD Business Plan?
CBD businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a CBD Business?
Starting a CBD business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A CBD Business Plan - The first step in starting a business is to create a detailed CBD business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your CBD 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 CBD business is in compliance with local laws.
3. Register Your CBD Business - Once you have chosen a legal structure, the next step is to register your CBD 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.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your CBD business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. 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.
6. 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.
7. Acquire Necessary CBD Equipment & Supplies - In order to start your CBD business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your CBD 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 CBD business: