Table of Content

    Do you want to start a Medical Marijuana Dispensary business plan?

    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 lookup 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.

    Executive Summary

    2.1 About the Business

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

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    2.2 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.

    2.3 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

    2.4 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:

    Medical Marijuana Dispensary Business Plans - 3 Years Profit Forecast

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    Company Summary

    3.1 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. So, after completing his nursing studies, he decided to devote his life to helping ailed like cancer patients manage their pain and increase their quality of life.

    3.2 Why is 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.

    3.3 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 business plan mentioned here.

    Step2: Market Research and Brand Development

    Note

    One of the most important things to include in a medical marijuana dispensary business plan template pdf is market research. This helped Jack analyze how his fellow competitors were attracting customers and how he could stand out in the market.

    Step3: 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. Jack decided that he will take the help of other organizations working for pain relief of chronic patients.

    Step4: 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.

    Step5: Promote and Market

    The final step in the initial stages of business development 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.

    Medical Marijuana Dispensary Business Plans - Startup Cost

    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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    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, 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.

    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. This 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.

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    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.

    5.1 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.

    5.2 Marketing Segmentation

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

    Medical Marijuana Dispensary Business Plans - Marketing Segmentation

    Business Plan for Investors

    5.2.1 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.

    5.2.2 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.

    5.2.3 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.

    5.2.4 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%

     

    5.3 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

    5.4 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.

    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.

    6.1 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 use the drug who need it.

    6.2 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.

    6.3 Sales Monthly

    Medical Marijuana Dispensary Business Plans - Sales Monthly

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    6.4 Sales Yearly

    Medical Marijuana Dispensary Business Plans - Sales Yearly

    6.5 Sales Forecast

    Medical Marijuana Dispensary Business Plans - Unit Sales

    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

     

    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.

    7.1 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

     

    7.2 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

     

    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.

    8.1 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

     

    8.2 Break-even Analysis

    Medical Marijuana Dispensary Business Plans - 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

     

    8.3 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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    8.3.1 Profit Monthly

    Medical Marijuana Dispensary Business Plans - Profit Monthly

    8.3.2 Profit Yearly

    Medical Marijuana Dispensary Business Plans - Profit Yearly

    8.3.3 Gross Margin Monthly

    Medical Marijuana Dispensary Business Plans - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Medical Marijuana Dispensary Business Plans - Gross Margin Yearly

    8.4 Projected Cash Flow

    Medical Marijuana Dispensary Business Plans - 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.

    Download Medical Marijuana Dispensary Business Plan in PDF