Medical Marijuana Dispensary Business Plan

1. Medical Marijuana Dispensary business plan for starting your own business

Medical dispensaries have existed for hundreds of years to help the general population gain access to life-saving drugs. With the advancement in science, researchers have been able to find more and more medically useful drugs in nature. One of these plants found in nature is called hemp which is grown to create medical marijuana.

Many people have started developing their own hemp farms in the hopes of getting ahead of this business. So, if you are planning to do the same, you can learn how to develop a hemp farm business plan from this document. In this medical marijuana dispensary business plan sample, we will detail all the components that make up a business of this nature.

If you don’t have an affinity for writing up a document like this on your own, you can also look up services that help you how to start a medical marijuana dispensary. Either way, you will need a solid foundation for your dispensary to gain investors for business plans.

2. Executive Summary

The Business

Leaf Medicos will be a medical marijuana dispensary started by Jack Goodwill. The dispensary will procure and provide medical marijuana to medical users in Portland, Oregon. It will offer different strains of marijuana to the patients under the care and observation of medical specialists.

Management of Medical Marijuana Dispensary

Management of a business is the key to its success and longevity. And the success of a medical clinic business plan depends a lot on how much you stick with it. To have a smooth-running business, you need to ensure that all aspects of your business are managed efficiently and appropriately.

You can ensure that your business is well-managed, you should follow a medical marijuana dispensary business plan template like this one. If you don’t want to follow an existing sample, you can also look into business planning services for the development of a good management plan.

Customers of Medical Marijuana Dispensary

More stressful work environments and the state of the world have deteriorated everyone’s health so much that our customers will not be limited to one domain or another. We will have customers from different walks of life in need of pain relief. The most regular customers of the dispensary will include:

• Chronic Pain Patients
• Anxiety/Stress Patients
• Recreational Users
• Military Veterans

Business Target

The target of Leaf Medicos will be to become a safe and reliable source of medical marijuana to chronic patients living in Portland. That way they won’t have to seek out dangerous sources of pain relief.

The financial targets that Leaf Medicos wants to achieve in the first 3 years of launch are demonstrated below:

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3. Company Summary

Company Owner

Jack Goodwill will own and operate Leaf Medicos. As a nursing student, Jack was always in support of chronic pain patients using natural and medical marijuana for relief. Jack knew how to write a cannabis cultivation and dispensary business plan so, after completing his nursing studies, he decided to devote his life to helping ailed cancer patients manage their pain and increases their quality of life.

Why The Leaf Medicos Being Started

Jack notices that even though medical marijuana was legalized, there was still a lot of stigma surrounding its usage, most of which was because there were no safe and reliable sources of obtaining it. Therefore, he decided to start up a business to procure medical marijuana for patients in need so that they won’t have to resort to a dangerous source.

How The Medical Marijuana Dispensary will be managed

Step 1: Planning is Key

Running a medical dispensary of any kind requires a lot of effort, time, and planning. In order to ensure that your business is sustainable as well as profitable, you have to figure out all the details including how to get medical marijuana dispensary license. If you want to learn how to become a medical marijuana dispensary, you can take a look at the medical cannabis business plan examples mentioned here.

Step 2: Market Research and Brand Development

Step 3: Fund your Business

When learning how to set up a medical marijuana dispensary, learning how to fund your business is essential. In this phase, you will analyze your financial constraints and figure out how you will be procuring the funds to start your dispensary. In the pre-written business plans for the marijuana dispensary, Jack decided that he will take the help of other organizations working for pain relief of chronic patients.

Step 4: Pick a Location

In order to open a business that has to deal with people, an office or location is needed. Jack decided to rent a shop in the commercial center of Portland to start his dispensary.

Step 5: Promote and Market

The final step of how to build a business plan for marijuana dispensaries is to make a marketing plan and then stick to it. This is a part of every business plan including a hospital business plan. So, Jack developed a plan to advertise his business and implement it.

Start-up Expenses
Legal	$114,400
Consultants	$0
Insurance	$22,200
Rent	$31,600
Research and Development	$10,000
Expensed Equipment	$51,200
Signs	$3,400
TOTAL START-UP EXPENSES	$232,800
Start-up Assets	$222,400
Cash Required	$109,000
Start-up Inventory	$39,000
Other Current Assets	$222,000
Long-term Assets	$287,000
TOTAL ASSETS	$879,400
Total Requirements	$1,112,200
START-UP FUNDING
Start-up Expenses to Fund	$232,800
Start-up Assets to Fund	$879,400
TOTAL FUNDING REQUIRED	$1,112,200
Assets
Non-cash Assets from Start-up	$1,140,800
Cash Requirements from Start-up	$112,000
Additional Cash Raised	$50,000
Cash Balance on Starting Date	$35,000
TOTAL ASSETS	$1,337,800
Liabilities and Capital
Liabilities	$18,200
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$51,100
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$69,300
Capital
Planned Investment	$1,112,200
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,112,200
Loss at Start-up (Start-up Expenses)	$156,300
TOTAL CAPITAL	$1,268,500
TOTAL CAPITAL AND LIABILITIES	$1,337,800
Total Funding	$1,112,200

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4. Services

If you want to know “how do you start a medical marijuana dispensary, one of the first things you will need to figure out is the domain of the business. By figuring out what the domain of your company will be in creating a business plan for marijuana dispensaries, you can agree on a list of services that your business will provide.

Jack wondered “how do I open a medical marijuana dispensary”, which highlighted the type of his business. This further helped him find out how he would serve his customer groups. The services that Jack included in his medical marijuana dispensary business plan pdf include:

Procurement/ Sale of Different Strains

Leaf Medicos will arrange different strains of medical marijuana varying in intensity and use for its patients. And it will do so through proper and legal channels so that neither the dispensary nor its customers have to face any issues in the usage of the drug. The main strains include:

• Sativa Cannabis
• Indica Cannabis
• Hybrid Cannabis

Consultation with a Medical Specialist

For better guidance of its customers, Leaf Medicos will also hire a medical specialist part-time who can guide a person on what strain of marijuana they should use for a specific ailment if any. This will be in line with the responsibility of the store to ensure that there is no misuse of the drug by addicts.

Delivery Services

The dispensary will provide a delivery service to the patients who regularly need the drug but cannot visit very often due to their ailments.

Regular Medical Usage Recommendations

Our last service will be for people who suffer from mental disorders such as anxiety and PTSD. Our medical specialists will contact their psychiatrist to prescribe any strain of the drug if needed for a better quality of the person’s day-to-day life.

5. Marketing Analysis Of Medical Marijuana Dispensary

One of the core requirements of any business plan, be it a private medical practice business plan or a  medical marijuana dispensary business plan, is a good marketing analysis. The weed dispensary business plan, allows a business to determine its customers, their likes and dislikes, and gaps in the market. Understanding that, starting a medical marijuana dispensary and keeping it profitable becomes relatively easier.

To start his business, Jack analyzed the medical marijuana dispensary start up costs to determine the prices of his own company’s services and products. He analyzed the previous, current, and future markets trends to start an impressive marijuana dispensary business.

So, if you don’t know how to develop a good marijuana dispensary business plan but you want to learn, you can follow this template.

Market Trends

According to Fortunly, 93% of American voters believe that medical marijuana should be legalized in all states. As of February 2022, medical marijuana is legal in 37 states. It is also free of tax in a lot of these states. There are an estimated 3.6 million medical marijuana users in the US.

According to Statista, the marijuana industry is expected to have a market share of $37 Billion by 2024. The industry is rapidly growing along with the increase in acceptance by the public as well as medical professionals.

Marketing Segmentation

The target market that was found for Leaf Medicos as a result of research and analysis includes the following groups:

Business Plan for Investors

Chronic Pain Patients

Our primary customers will be the people who suffer from chronic pain as a result of diseases like cancer and arthritis. It is normal for doctors to recommend medical marijuana to these patients to relieve them of their constant pain and increase their quality of life. So, Leaf Medicos expects to serve these customers the most often.

Anxiety and Stress Patients

A big portion of the population suffers from stress as well as anxiety that is detrimental to their health. To make their daily life easier, these people resort to the usage of medical marijuana products in chewable form. We expect to regularly receive these people as well.

Recreational Users

A lot of people use marijuana recreationally to relax and calm down after stressful events. Leaf Medicos will guide these people in the usage of different strains according to their needs.

Military Veterans

Military veterans often suffer from PTSD which can affect their normal lives when they return. Leaf Medicos will help them not only find help to cope with their experiences, but the medical specialist will also prescribe medical marijuana to them, if needed, to help their normal life.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Chronic Pain Patients	38%	51,900	62,280	74,736	89,683	107,620	10.00%
Anxiety & Stress Patients	34%	41,800	50,160	60,192	72,230	86,676	10.00%
Recreational Users	15%	21,700	26,040	31,248	37,498	44,997	10.00%
Military Veterans	13%	21,300	25,560	30,672	36,806	44,168	11.00%
Total	100%	136,700	164,040	196,848	236,218	283,461	10%

Business Target

• To become a safe source of a drug that is often misused
• To guide patients and relieve their pain and stress symptoms
• To maintain customer satisfaction above 95%
• To earn a net profit of $10k/month by the end of three years

Product Pricing

As there are a lot of medical marijuana dispensaries popping up online and otherwise, our prices will be economical for our patients. Leaf Medicos will also implement supervision regarding the provision of medical marijuana to its customers.

6. Marketing Strategy

To open a medical marijuana dispensary, you will need to learn how to get marijuana dispensary license. This step can be common in other business plans like retail pharmacy business plan too.

To gain attention in the market, your business plan for cannabis dispensary should include effective ways to market it and to cover the cost to open a marijuana dispensary.

You can follow the marketing plan below to learn how to become a marijuana dispensary.

Competitive Analysis

• We have excellent care plans for our patients. They can consult with our medical specialist at any time to discuss their usage of the drug.
• Our customers don’t need to show up at our dispensary to order. They can do so through our website.
• We implement safety and supervision practices so that only those people who use the drug who need it.

Sales Strategy

• We will advertise our services through local ads and social media
• We will form partnerships with medical centers and hospitals so they can refer their chronic pain patients to us.
• We will offer discounts to people who need to regularly use our products due to an extreme ailment.

Sales Monthly

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Sales Yearly

Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Sativa Cannabis	3,200	3,392	3,596
Indica Cannabis	2,650	2,809	2,978
Hybrid Cannabis	2,250	2,385	2,528
Consultation	350	371	393
TOTAL UNIT SALES	8,450	8,957	9,494
Unit Prices	Year 1	Year 2	Year 3
Sativa Cannabis	$150.00	$174.00	$201.84
Indica Cannabis	$160.00	$185.60	$215.30
Hybrid Cannabis	$175.00	$203.00	$235.48
Consultation	$500.00	$580.00	$672.80
Sales
Sativa Cannabis	$480,000.00	$590,208.00	$725,719.76
Indica Cannabis	$424,000.00	$521,350.40	$641,052.45
Hybrid Cannabis	$393,750.00	$484,155.00	$595,316.99
Consultation	$175,000.00	$215,180.00	$264,585.33
TOTAL SALES	$1,472,750.00	$1,810,893.40	$2,226,674.52
Direct Unit Costs	Year 1	Year 2	Year 3
Sativa Cannabis	$50.00	$55.00	$57.75
Indica Cannabis	$55.00	$60.50	$63.53
Hybrid Cannabis	$60.00	$66.00	$69.30
Consultation	$150.00	$165.00	$173.25
Direct Cost of Sales
Sativa Cannabis	$160,000.00	$186,560.00	$207,641.28
Indica Cannabis	$145,750.00	$169,944.50	$189,148.23
Hybrid Cannabis	$135,000.00	$157,410.00	$175,197.33
Consultation	$52,500.00	$61,215.00	$68,132.30
Subtotal Direct Cost of Sales	$493,250.00	$575,129.50	$640,119.13

7. Personnel Plan

A good medical marijuana dispensary business plan sample involves a focus on the workforce as well. This is necessary for a non-medical home care business plan as well. Understanding the importance of a good dispensary system, Jack outlined the workforce needed to make a good dispensary.

Company Staff

You can follow the following workforce structure if you want to learn how to start medical marijuana dispensary.

• 1 Receptionist
• 1 Medical Specialist
• 2 Drivers for Delivery
• 1 Web Developer
• 1 Sales Executive

Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Receptionist	$25,000	$27,500	$30,250
Medical Specialist	$30,000	$33,000	$36,300
Delivery Drivers	$44,000	$48,400	$53,240
Web Developer	$23,500	$25,850	$28,435
Sales Executive	$23,500	$25,850	$28,435
Total Salaries	$146,000	$160,600	$176,660

8. Financial Plan

Just ensuring a lot of sales does not make your business successful. You have to implement good management of your resources too. That way you don’t end up as a medical marijuana business for sale.

In the financial plan for his medical marijuana dispensary business plan, Jack determined not only what it would cost to sustain the business but also how to get these funds. So, if you are wondering how much does it cost to start a marijuana dispensary, you can guess from the financial plan of Leaf Medicos.

Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.20%	8.26%
Long-term Interest Rate	8.40%	8.44%	8.47%
Tax Rate	24.03%	24.21%	24.60%
Other	0	0	0

Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,500
Assumptions:
Average Per-Unit Revenue	$231.00
Average Per-Unit Variable Cost	$0.62
Estimated Monthly Fixed Cost	$163,800

Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$1,472,750	$1,810,893	$2,226,675
Direct Cost of Sales	$493,250	$575,130	$640,119
Other	$0	$0	$0
TOTAL COST OF SALES	$493,250	$575,130	$640,119
Gross Margin	$979,500	$1,235,764	$1,586,555
Gross Margin %	66.51%	68.24%	71.25%
Expenses
Payroll	$146,000	$160,600	$176,660
Sales and Marketing and Other Expenses	$145,000	$148,000	$156,000
Depreciation	$2,300	$2,350	$2,500
Leased Equipment	$0	$0	$0
Utilities	$2,900	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$2,900	$3,000	$3,200
Payroll Taxes	$24,000	$25,000	$27,000
Other	$0	$0	$0
Total Operating Expenses	$325,200	$344,050	$370,560
Profit Before Interest and Taxes	$654,300	$891,714	$1,215,995
EBITDA	$654,300	$891,714	$1,215,995
Interest Expense	$0	$0	$0
Taxes Incurred	$130,860	$178,343	$243,199
Net Profit	$523,440	$713,371	$972,796
Net Profit/Sales	35.54%	39.39%	43.69%

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Profit Monthly

Profit Yearly

Gross Margin Monthly

Gross Margin Yearly

Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$51,000	$55,080	$59,486
Cash from Receivables	$22,000	$23,760	$25,661
SUBTOTAL CASH FROM OPERATIONS	$73,000	$79,570	$85,936
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED	$74,000	$79,000	$85,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$42,000	$42,000	$45,000
Bill Payments	$27,000	$28,000	$31,000
SUBTOTAL SPENT ON OPERATIONS	$69,000	$70,000	$76,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$69,000	$74,520	$80,482
Net Cash Flow	$21,000	$23,000	$25,000
Cash Balance	$27,000	$30,000	$33,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$24,000	$26,880	$30,213
Inventory	$4,300	$4,816	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$282,000	$315,840	$355,004
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$19,400	$21,728	$24,444
TOTAL LONG-TERM ASSETS	$24,400	$27,328	$30,744
TOTAL ASSETS	$294,000	$329,280	$370,440
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$18,700	$20,944	$23,541
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$53,000	$57,770	$63,547
Earnings	$193,400	$210,806	$231,887
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$329,280	$370,440
Net Worth	$293,400	$319,806	$351,787

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.25%	8.03%	8.90%	3.00%
Percent of Total Assets
Accounts Receivable	9.21%	10.20%	11.31%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.11%	2.34%	2.59%	2.40%
Total Current Assets	149.80%	151.00%	152.00%	158.00%
Long-term Assets	11.55%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.90%	4.94%	4.98%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.59%	7.65%	7.72%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.60%	97.15%	99.87%	99.00%
Selling, General & Administrative Expenses	93.56%	96.09%	98.78%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.50%	42.62%	43.81%	33.90%
Main Ratios
Current	34	35	36	32
Quick	33	33.8	34.645	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	74.08%	74.89%	75.00%	75.00%
Pre-tax Return on Assets	96.30%	101.12%	106.17%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.56%	34.60%	35.67%	N.A.
Return on Equity	55.80%	57.53%	59.31%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	35	N.A.
Accounts Payable Turnover	15.6	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.5	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$244,000	$257,664	$272,093	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.85	0.87	0.89	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

FAQ

1. How do I write a business plan for a dispensary?

You can take help from the medical marijuana dispensary business plan above to write your own.

2. How do I open a medical marijuana dispensary in California?

If you want to know how to open up a marijuana dispensary, study the related business plans like the one provided above.

3. How do you start Cannabusiness?

Starting a marijuana dispensary involves making a business plan and planning all aspects of the business.

4. How much do dispensary owners make in Oklahoma?

Owning a marijuana dispensary or any other dispensary allows their owners in Oklahoma to earn between $25k to $50k annually.

5. Is it hard to start a marijuana business?

Starting a marijuana business can be challenging, as it is a heavily regulated industry. The federal government still considers marijuana an illegal, controlled substance, so businesses must comply with various state and local laws and regulations. Additionally, the industry is very competitive, so it is important to do research, create a solid business plan, and secure financing. Potential business owners must also acquire a license or permit from the state and local government and meet the requirements of organizations like the Food and Drug Administration (FDA) and the Drug Enforcement Administration (DEA). With the right preparation, however, it is possible to successfully launch a marijuana business.

Download Medical Marijuana Dispensary Business Plan in PDF