Dispensary Business Plan Template

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.

Below is a dispensary business plan example to help you create each section of your own 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:

  • Edibles: 
    • Hard candy
    • Gummies
    • Chocolates
    • Baked goods
  • CBD Oils
  • Flower Pre-rolls
  • Bulk flower
  • Vape Pens
  • 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 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 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 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:

  • Edibles: 
    • Hard candy
    • Gummies
    • Chocolates
    • Baked goods
  • CBD Oils
  • Flower Pre-rolls
  • Bulk flower
  • Vape Pens
  • High Kite apparel and accessories


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 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 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:

 TotalPercent
    Total population1,680,988100%
        Male838,67549.9%
        Female842,31350.1%
        20 to 24 years114,8726.8%
        25 to 34 years273,58816.3%
        35 to 44 years235,94614.0%
        45 to 54 years210,25612.5%
        55 to 59 years105,0576.2%
        60 to 64 years87,4845.2%
        65 to 74 years116,8787.0%
        75 to 84 years52,5243.1%


Customer Segmentation

High Kite will primarily target the following customer profiles:

  • Gen Z
  • Millennials
  • Gen X
  • Boomers
  • 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:

  • 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, 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.


Pricing

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 product 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

 

Management Team

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. 

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 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 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 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

 

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
  FY 1FY 2FY 3FY 4FY 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 1FY 2FY 3FY 4FY 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 1FY 2FY 3FY 4FY 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

Dispensary Business Plan FAQs

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.

There are three main types of dispensaries:

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

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