Edibles Business Plan
You’ve come to the right place to create your Edibles business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Edibles companies.
Below is a template to help you create each section of your Edibles business plan.
Edibles Business Plan Example & Template
Below is an Edibles business plan template and sample to help you create each section of your own business plan.
Executive Summary
Business Overview
Delta Snacks is a new edibles shop located in downtown Portland, Oregon. Our shop provides a wide variety of edible products that will appeal to a large demographic, including gummies, baked goods, and chocolates. In addition to selling handcrafted edibles that we make in our store, we aim to provide the best customer service in the industry and create a welcoming environment for everyone interested in our products. Whether someone is trying edibles for the first time or is coming back for their favorite product, we guarantee that they will leave the shop satisfied.
Delta Snacks is led by Eric Pettis, who has been in the edibles business for five years. Before starting Delta Snacks, he worked at several edibles and cannabis shops, spending most of that time in management positions. As such, Eric has an in-depth knowledge of the edibles/cannabis business, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides of the industry. He also has in-depth knowledge of edibles recipes and what ingredients are needed to make the best quality edibles and cannabis products.
Product Offering
Delta Snacks provides a large inventory of edibles that will appeal to a wide customer base. All products are made from scratch in our shop and sold on our shelves or online. Some of our products include:
- Gummies
- Hard candies
- Baked goods
- Chocolate
- Mints
- Fruit chews
Customer Focus
Delta Snacks will primarily serve residents who live and work in downtown Portland, Oregon. The city is filled with young and middle aged adults who are open to trying and experimenting with edibles. There is also a large population of residents who are living with chronic pain or other issues that can be eased by using cannabis products.
Management Team
Delta Snacks is led by Eric Pettis, who has been in the edibles business for five years. Before starting Delta Snacks, he worked at several edibles and cannabis shops, spending most of that time in management positions. As such, Eric has an in-depth knowledge of the edibles/cannabis business, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides of the industry. He also has in-depth knowledge of edibles recipes and what ingredients make for high-quality edible products.
Success Factors
Delta Snacks will be able to achieve success by offering the following competitive advantages:
- Location: Delta Snacks will set up shop in a high-traffic area in downtown Portland that is easily accessible to many residents.
- Variety of products: Edibles are our specialty, so we will offer a much greater variety of products than our competitors.
- Moderate pricing: Cannabis products can be quite pricey, and soaring demand only makes this worse. Delta Snacks will remain competitive by selling our products for affordable prices and offering coupons and deals to returning customers.
- Management: Our management team has years of experience in the edibles business that will help our business market its products better than the competition.
Download the edibles business plan template (including a customizable financial model) to your computer here
Financial Highlights
Delta Snacks is currently seeking $525,000 to launch. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital. Specifically, these funds will be used as follows:
- Store design/build: $200,000
- Equipment: $50,000
- Initial inventory: $100,000
- Three months of overhead expenses (payroll, rent, utilities): $100,000
- Marketing costs: $50,000
- Working capital: $25,000
The following graph below outlines the pro forma financial projections for Delta Snacks.
Company Overview
Who is Delta Snacks?
Delta Snacks is a new edibles shop located in downtown Portland, Oregon. Our shop provides a wide variety of edible products that will appeal to a large demographic, including gummies, baked goods, and chocolates. In addition to selling handcrafted edibles that we make in our store, we aim to provide the best customer service in the industry and create a welcoming environment for everyone interested in our products. Whether someone is trying edibles for the first time or is coming back for their favorite product, we guarantee that they will leave the shop satisfied.
Delta Snacks is led by Eric Pettis, who has been in the edibles business for five years. Before starting Delta Snacks, he worked at several edibles and cannabis shops, spending most of that time in management positions. As such, Eric has an in-depth knowledge of the edibles/cannabis business, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides of the industry. He also has in-depth knowledge of edibles recipes and what ingredients are needed to make the best quality edibles and cannabis products.
Delta Snacks’ History
Delta Snacks is run by Eric Pettis, who has been in the edibles business for five years. He previously managed a cannabis shop but noticed that the shop was located in an undesirable location. He also believed that the shop did not sell a wide enough variety of edible products, which were extremely popular. He decided to start his own edibles store that would be in a more convenient location and offer a greater variety of options.
He has spent the past year researching recipes and testing his products. After creating a perfect initial line of edible products, Eric incorporated Delta Snacks on January 1st, 2023 as an S Corporation. He has been primarily running the business online from his home but has found a potential retail location to start selling products in-store. Once the lease is approved, all operations will run from there.
Since incorporation, the company has achieved the following milestones:
- Found a retail location and signed a letter of intent to lease it
- Developed the company’s name, logo, and website
- Created the initial product list
- Created the online store and began selling products
- Began developing a social media presence
- Began recruiting key employees
Delta Snacks’ Services
Delta Snacks provides a large inventory of edibles that will appeal to a wide customer base. All products are made from scratch in our shop and sold on our shelves or online. Some of our products include:
- Gummies
- Hard candies
- Baked goods
- Chocolate
- Mints
- Fruit chews
Industry Analysis
There has never been a better time to open an edibles business. With increasing public popularity and more lax state and local laws, sales of edibles and other cannabis products are increasing exponentially. We expect these trends to continue as laws become laxer and the general public becomes more interested in these products. As more people educate themselves about the benefits of these products, a larger customer base will be interested in buying them.
According to several research sources, the edibles market is expected to grow substantially at a compound annual growth rate (CAGR) of 32.4% annually over the next 10 years. Very few other industries are experiencing this kind of growth, which shows just how much demand there is for edibles.
Download the edibles business plan template (including a customizable financial model) to your computer here
Customer Analysis
Demographic Profile of Target Market
Delta Snacks will serve the community residents of Portland, Oregon and its surrounding areas.
Portland is a progressive community that overwhelmingly voted for the legalization of cannabis. The community is always eager to buy edibles and other cannabis products, especially from local businesses. The community primarily consists of middle-class workers who are in need of products that can help them relax or cope with pain after a long day of work. The city also has a large population of young adults and middle aged residents who are more open to using cannabis products than other generations.
A demographic profile of Portland is as follows:
| Total | Percent | |
|---|---|---|
| Â Â Â Â Total population | 1,680,988 | 100% |
| Â Â Â Â Â Â Â Â Male | 838,675 | 49.9% |
| Â Â Â Â Â Â Â Â Female | 842,313 | 50.1% |
| Â Â Â Â Â Â Â Â 20 to 24 years | 114,872 | 6.8% |
| Â Â Â Â Â Â Â Â 25 to 34 years | 273,588 | 16.3% |
| Â Â Â Â Â Â Â Â 35 to 44 years | 235,946 | 14.0% |
| Â Â Â Â Â Â Â Â 45 to 54 years | 210,256 | 12.5% |
| Â Â Â Â Â Â Â Â 55 to 59 years | 105,057 | 6.2% |
| Â Â Â Â Â Â Â Â 60 to 64 years | 87,484 | 5.2% |
| Â Â Â Â Â Â Â Â 65 to 74 years | 116,878 | 7.0% |
| Â Â Â Â Â Â Â Â 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Delta Snacks will primarily target the following customer profiles:
- Millennials
- Gen Z
- Medicinal users
Competitive Analysis
Direct and Indirect Competitors
Delta Snacks will face competition from other companies with similar business profiles. A description of each competitor company is below.
Hemp House
Established in 2019, Hemp House has quickly become a popular location for cannabis products in Portland, Oregon. They offer a variety of products to their customers, including vape pens, edibles, oils, and more.
While we expect Hemp House to continue to thrive, its location is inconvenient to much of the city. To visit the shop, most customers must drive downtown and pay for parking. Delta Snacks’ location will be far more convenient for customers who live on the outer edges and suburbs of Portland, Oregon. Furthermore, their selection of edibles is small and will not be able to compete with our inventory.
Local Leaf Snacks
Local Leaf Snacks opened in 2021 as the city’s center for edible cannabis products. Whether it be chocolates, gummies, brownies, or anything else, Local Leaf Snacks has you covered.
While they are popular for their edibles, all of their products are sourced from other companies. Local Leaf Snacks does not make its own edibles. Delta Snacks will have the advantage of selling locally-made edible products.
City Cannabis
City Cannabis is a popular location for cannabis products. The shop is large and sells a wide variety of vapes, edibles, topicals, and more. City Cannabis has been the most popular spot in Portland, Oregon for cannabis as it was the first major business to open up after cannabis became legal in the state. Therefore, it has become a small tourist spot, which has boosted its traffic and customer base.
However, while City Cannabis’ selection is impressive, their edibles inventory is still smaller than ours and not locally sourced. Individuals looking for local edible products will be more interested in frequenting Delta Snacks.
Download the edibles business plan template (including a customizable financial model) to your computer here
Competitive Advantage
Delta Snacks will be able to offer the following advantages over their competition:
- Location: Delta Snacks will set up shop in a high-traffic area in downtown Portland that is easily accessible to many residents.
- Variety of products: Edibles are our specialty, so we will offer a much greater variety of products than our competitors.
- Moderate pricing: Cannabis products can be quite pricey, and soaring demand only makes this worse. Delta Snacks will remain competitive by selling our products for affordable prices and offering coupons and deals to returning customers.
- Management: Our management team has years of experience in the edibles business that will help our business market its products better than the competition.
Marketing Plan
Brand & Value Proposition
Delta Snacks will offer the unique value proposition to its clientele:
- Convenient location
- Excellent customer service
- Wide variety of edible products
- Online ordering service
- Friendly, customer-focused environment
- Moderate pricing
Promotions Strategy
The promotions strategy for Delta Snacks is as follows:
Social Media
Delta Snacks will maintain a solid social media presence to further engage with customers and get suggestions for new products and improvements. Our social media accounts will offer unique promotions and discounts that customers can utilize.
Word of Mouth Marketing
Delta Snacks will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The company will be incentivizing its existing customer base to encourage their friends to come by and check out our selection.
Website/SEO
Delta Snacks will invest heavily in developing a professional website that displays all of the features and benefits of its products. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.
Customer Loyalty Programs
Delta Snacks will create a winning customer loyalty program to keep its best customers coming back again and again. The program will include discounts, deals, and promotions that non-loyalty customers will not have access to.
Pricing
Delta Snacks pricing will be moderate, so customers feel they receive great value when visiting our shop. Pricing will be similar to or lower than the nearby competition.
Operations Plan
The following will be the operations plan for Delta Snacks.
Operation Functions:
- Eric Pettis will be the Owner and Manager of Delta Snacks. He will oversee the general operations and executive aspects of the business.
- Eric is joined by Amber Smith who will act as the Assistant Manager. She will train and manage the staff as well as oversee general production of our products.
- Eric will hire an Administrative Assistant to help with the administrative, marketing, and bookkeeping functions of the company.
- Eric will also hire several employees to run the store and help make the edibles.
Download the edibles business plan template (including a customizable financial model) to your computer here
Milestones:
Delta Snacks will have the following milestones complete in the next six months.
- 02/202X Finalize lease agreement
- 03/202X Design and build out Delta Snacks
- 04/202X Hire and train initial staff
- 05/202X Kickoff of promotional campaign
- 06/202X Launch Delta Snacks
- 07/202X Reach break-even
Management Team
Delta Snacks is led by Eric Pettis, who has been in the edibles business for five years. Before starting Delta Snacks, he worked at several edibles and cannabis shops, spending most of that time in management positions. As such, Eric has an in-depth knowledge of the edibles/cannabis business, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides of the industry. He also has in-depth knowledge of edibles recipes and what ingredients make for high-quality edible products.
Financial Plan
Key Revenue & Costs
Delta Snacks’ revenues will come from the sales of its products. The company will have a large selection of high-quality edible products to cater to a broad spectrum of customers in its target market.
The major costs for the company will be inventory costs, staff salaries, and rent. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.
Funding Requirements and Use of Funds
Delta Snacks is currently seeking $525,000 to launch. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital. Specifically, these funds will be used as follows:
- Store design/build: $200,000
- Equipment: $50,000
- Initial inventory: $100,000
- Three months of overhead expenses (payroll, rent, utilities): $100,000
- Marketing costs: $50,000
- Working capital: $25,000
Download the edibles 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 pay off the startup business loan.
- Average number of daily customers:
- Year 1: 20
- Year 2: 50
- Year 3: 75
- Year 4: 100
- Year 5: 130
- Average order value: $30
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 |
Edibles Business Plan FAQs
What Is an Edibles Business Plan?
An edibles business plan is a plan to start and/or grow your edibles 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 Edibles business plan using our Edibles Business Plan Template here.
What are the Main Types of Edibles Businesses?
There are a number of different kinds of edibles businesses, some examples include: Baked goods, Beverages, and Candy.
How Do You Get Funding for Your Edibles Business Plan?
Edibles 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 an Edibles Business?
Starting an edibles 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 An Edibles Business Plan - The first step in starting a business is to create a detailed edibles 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.Â
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your edibles 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 edibles business is in compliance with local laws.
3. Register Your Edibles Business - Once you have chosen a legal structure, the next step is to register your edibles 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 edibles 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 Edibles Equipment & Supplies - In order to start your edibles 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 edibles 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.Â
Other Helpful Templates
Cleaning Business Plan Template
Mortgage Broker Business Plan Template
Bed and Breakfast Business Plan Template