Are you about starting a marijuana cultivation business? If YES, here is a complete sample marijuana cultivation business plan template & feasibility report you can use for FREE.
Starting a marijuana cultivation business is one sure way of earning good money in the United States of America owing to the fact that the usage of marijuana is now becoming acceptable in a host of states. Marijuana cultivation is known to be a profitable business in recent time; it has evolved from small scale backyard garden into a global industry.
If you have an interest in starting your own marijuana cultivation business, then you need to talk to a lawyer to know if it is allowed in the area you want to establish the business and the limit that is expected of you.
It is important to state that starting a marijuana cultivation business comes with its own fair share of challenges. An aspiring entrepreneur can either choose to start the business on a small scale or on a large scale depending on their financial status.
If you have decided to go into marijuana cultivation, then you should ensure that you carry out thorough feasibility studies and market survey. Here is a sample marijuana cultivation business plan template that can help you to come up with yours.
A Sample Marijuana Cultivation Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Marijuana cultivation business is categorized under the Plant & Flower Growing industry and players in the industry grow nursery plants, such as trees and shrubs; flowering plants, such as cannabis, foliage plants, cut flowers, flower seeds and ornamentals; and short rotation woody trees, such as Christmas trees and cottonwoods et al. These flowery and nursery plants can either be grown under cover or in an open field.
The Medical & Recreational Marijuana Growing industry consists of Indica marijuana products and sativa marijuana products.
The Medical & Recreational Marijuana Growing industry is indeed a fast growing industry and pretty much active in countries such as united states of America, Columbia, China, Ecuador, Italy, France, United Kingdom and Singapore et al.
Statistics has it that in the United States of America alone, there are about 223,123 registered and licensed marijuana cultivation companies responsible for employing about 763,189 people and the industry rakes in a whooping sum of $6 billion annually.
The industry is projected to enjoy 28.3 percent annual growth between 2013 and 2018. It is important to state that there is no company with a lion share of the available market in this industry in the United States of America.
A recent report published by IBISWorld reveals that the Medical and Recreational Marijuana Growing industry, which includes both employer and non – employer establishments that grow marijuana for medical and recreational use, flourished over the five years to 2018.
Watershed legalization victories in recent years, most notably during the 2016 election cycle, proved that the cannabis industry is one of the fastest growing industries in the US. In 2016 alone, eight states passed initiatives to legalize marijuana.
According to New Frontier Data, over one-third of the US population now live in states with newly expanded access to legal marijuana. Consumer attitudes are also accelerating legalization efforts at the state level.
Aside from the fact that marijuana is grown outdoors, either on natural soil or in pots of pre-made or commercial soil, it can also be grown indoors in a soil-like medium under artificial light, adding fertilizer when the plants are given water.
Cultivating cannabis indoors is more complicated and expensive than growing outdoors, but it allows the cultivator complete control over the growing environment. Plants of any type can be grown faster indoors than out due to 24-hour light, additional atmospheric CO2, and controlled humidity which allows freer CO2 respiration.
One thing is certain about marijuana cultivation business, if you are able to conduct your market research and feasibility studies, you are not going to struggle to sell you’re your produce because there is always a ready market for products from this industry.
2. Executive Summary
Wilfred Jackson® Marijuana Farms, LLC is a registered and licensed marijuana growing company that will based in Bowling Green, Kentucky – United States of America and we will sell our products in and around Kentucky because we know that our products will be in high demand due to the demographic composition of Kentucky.
Wilfred Jackson® Marijuana Farms, LLC we will be involved in growing Indica and sativa marijuana products for medical and legal recreational use. Wilfred Jackson® Marijuana Farms, LLC is in the plant and flower growing industry because we want to leverage on the vast opportunities available and advancement in the agriculture industry.
We are well positioned to become one of the leading marijuana growers in the United States of America, which is why we have been able to source for the best hands and resources to run the business with. We have put process and strategies in place that will help us employ best practices when it comes to bringing out the best in this line of business.
Wilfred Jackson® Marijuana Farms, LLC is a private registered company that is owned by Wilfred Jackson and his immediate family. The company will be fully managed and financed by Wilfred Jackson and his immediate family members at least for a period of time before welcoming other investors.
3. Our Products and Services
Wilfred Jackson® Marijuana Farms, LLC will be involved in the growing of marijuana for medical and legal recreational use for the United States’ market. We will ensure that we do all that is permitted by the law in the United States of America to maximize profits and achieve our business goals and objectives.
We will cultivate and supply;
- Indica marijuana products
- Sativa marijuana products
- Other related plants
4. Our Mission and Vision Statement
- Our Vision is to become one of the top 10 marijuana growers not just in the United States of America but also on the global stage.
- Our mission statement as a marijuana cultivator is to go into full – time commercial cultivation of marijuana and other similar nursery plants and flowers that will not only be patronized in the United States of America, but also exported to other parts of the world. We want our marijuana plant to flood the nooks and crannies of the United States.
Our Business Structure
Wilfred Jackson® Marijuana Farms, LLC is a Marijuana cultivation business that intends starting small in Bowling Green – Kentucky, but hopes to grow big in order to compete favorably with leading marijuana growing companies in the industry both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operation.
At Wilfred Jackson® Marijuana Farms, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Operating Officer
- General Farm Manager
- Administrator / Accountant
- Farm Workers / Field Workers
- Sales and Marketing Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
General Farm Manager
- Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
- Supervises other section managers
- Provides advice on the management of farming activities across all sections
- Responsible for carrying out risk assessment
- Uses IT systems and software to keep track of people and the growth of different species of marijuana
- Ensures that farming goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied.
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily farming activities across the various farming sections.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Responsible for training, evaluation and assessment of employees
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Responsible for financial forecasting and risks analysis.
- Accountable for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Farm Workers/Field Workers
- Responsible for carrying out core farm activities
- Handling common plant problems
- Handles Sod installation / hydro – seeding
- Handles weeding or fertilizer and / or pest control application
- Handles farm maintenance services
- Assists in transport working tools and equipment from the office (store) to site and back to the office
- Works closely with the General Farm Manager to achieve the organizations’ goals and objectives
Sales and Marketing Officer
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
6. SWOT Analysis
Wilfred Jackson® Marijuana Farms, LLC do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard marijuana cultivation business that will favorably compete in the United States of America.
As a world – class marijuana cultivation company, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Wilfred Jackson® Marijuana Farms, LLC;
Our strength as a marijuana cultivation company is the fact that we have healthy relationships with loads of major players in the industry; both suppliers and buyers within and outside of the United States. We have some of the latest marijuana cultivation tools and equipment that will help us grow these plants in commercial quantities with less stress.
Aside from our relationship and equipment, we can confidently boast that we have some the most experienced hands in the marijuana cultivation industry in the whole of Bowling Green – Kentucky under our payroll.
Our weakness could be that we are a new marijuana cultivation business in the United States; it might take some time for our organization to break into the market and gain acceptance especially from well – established companies who are leading purchaser of marijuana crops. Another weakness is that we may not have the required cash to promote our business the way we would want to.
The opportunities that are available to us cannot be quantified, although industry has been significantly restricted by an increasing amount of proposed regulations. In particular, medical marijuana remains a Schedule I controlled substance under federal law, despite state-level legalization.
Following legalization in many states during the 2016 election cycle, and expected legalization in the upcoming 2018 cycle, beneficial regulation is expected to create an opportunity for the industry. Good news is that the growing acceptance of medical and recreational marijuana will fuel industry expansion. We are ready to take advantage of any opportunity that is available in the industry.
Medical marijuana products struggle to compete against conventional healthcare services and products due to the alternative and unconventional nature of their treatment. External competition from traditional drugs and healthcare providers is expected to grow in 2018, representing a potential threat to the industry. So also, economic downturn is a threat for our business.
It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new marijuana cultivation company in same location where our target market exists and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
A notable trend shows that prior to the establishment of the first legal cannabis market in Colorado, United States, growers of the plant in the American State of Washington experimented with the use of cannabis waste for pig food.
In early 2013, potent cannabis waste products were mixed into the feed of four pigs during the last four months of their lives, resulting in a weight increase of 20 pounds (9.1 kg) to 30 pounds (14 kg) that was registered before the pigs were sent to slaughter in March 2013.
Washington State’s draft regulations prescribe that cannabis waste must be “rendered unusable prior to leaving a licensed producer or processor’s facility,” and adds that mixing it with food waste is acceptable. The European Food Safety Authority reported in 2011 that “no studies concerning tolerance or effects of graded levels of THC in food-producing animals have been found in literature.”
It is on record that revenue generated by marijuana cultivators / plants and flowers grower industry has maintained positive growth. This is so because in recent time, a growing number of individuals earned additional income, resulting in high demand. As a matter of fact, external factors such as demand from dispensaries impact industry performance.
Another common trend in the marijuana cultivation line of business is that most players in the industry are no longer concentrating only on cultivating marijuana. They now find it easier to run their own marijuana dispensary and delivery business.
8. Our Target Market
The end users of marijuana and also those who benefits from the business value chain is all encompassing; it is far – reaching. In view of that, we have created strategies that will enable us reach out to various individuals and businesses that would need our cultivated marijuana. Below is a list of the people and businesses that we will specifically market our products to;
- Medical marijuana dispensaries
- Production companies that make use of marijuana as raw materials
- Those with severe pain, insomnia, anxiety, glaucoma, HIV/AIDS, epilepsy, nausea, cancer, and any other ailments that the physician deems that the use of the medical marijuana is fit for
- Middle aged people – who are stressed from work and may have insomnia.
- The aged who might suffer from severe joint pains, and every other age category that falls under the conditions listed by the physician.
Our Competitive Advantage
Wilfred Jackson® Marijuana Farms, LLC is fully aware that there are competitions when it comes to selling marijuana plant, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in Bowling Green – Kentucky.
We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable farming processes that can help us sell our produce at competitive prices, good network and excellent relationship management.
Economies of scale, production of premium goods/services and ability to alter goods and services produced in favor of market conditions are part of what we will be bringing to the table. So also, our competitive advantage lies in the power of our team and we have healthy relationships with loads of major players in the industry.
We have some of the latest marijuana farming tools and equipment that will help us grow these plants in commercial quantities with less stress. Aside from our relationship and equipment, we can confidently boast that we have some the most experienced hands in the marijuana farming business in the whole of Bowling Green – Kentucky under our payroll.
Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round business that will also operate a standard medical marijuana dispensary and delivery business. With this, we will be able to take advantage of all the available opportunities within the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
Our sales and marketing team will be recruited based on their vast experience in the marijuana cultivation industry and they will be trained on a regular basis so as to meet their set targets and the overall business goal of Wilfred Jackson® Marijuana Farms, LLC.
Our goal is to grow Wilfred Jackson® Marijuana Farms, LLC to become one of the leading marijuana cultivation companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Bowling Green – Kentucky but also in other cities in the United States of America.
Over and above, we have perfected our sale and marketing strategies first by networking with stakeholders in the industry who are likely to become our customers. Wilfred Jackson® Marijuana Farms, LLC will adopt the following strategies in marketing our cut flower;
- Introduce our marijuana cultivation company by sending introductory letters alongside our brochure to businesses that deal in marijuana and other key stake holders in the United States of America.
- Advertise our business in relevant business magazines, newspapers, TV and radio stations
- List our business on yellow pages’ ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Join local chambers of commerce and industries with the aim of marketing our products
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
Wilfred Jackson® Marijuana Farms, LLC is in the marijuana cultivation business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.
We will generate income for the business by growing Indica and sativa marijuana products other related plants for medical and legal recreational use.
10. Sales Forecast
From the survey conducted, we were able to discover that the sales generated by an average marijuana cultivation business depends on the size of the farm, and other related plants that they are involved in.
We have perfected our sales and marketing strategies and we are set to hit the ground running. We are quite optimistic that we will meet or even surpass our set sales target of generating enough income/profits from the first year of operation and build the business from survival to sustainability.
We have been able to examine the marijuana cultivation business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some workable assumptions in the industry.
Below are the projections that we were able to come up with for the first three years of running Wilfred Jackson® Marijuana Farms, LLC;
- First Fiscal Year: $140,000
- Second Fiscal Year: $300,000
- Third Fiscal Year: $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown, natural disasters and unfavorable government policies that can impact negatively on household spending. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.
Below are the platforms you can leverage on to boost our marijuana brand and to promote and advertise our business;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
- Install our billoards in strategic locations all around Bowling Green – Kentucky
- Distribute our fliers and handbills in target areas
- List our marijuana cultivation farm in local directories / yellow pages
- Advertise our marijuana cultivation business in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo.
12. Our Pricing Strategy
Some of the factors that will help you sell your harvested marijuana at the right price that will guarantee that you make profit are dependent on your strategy while some of the factors are beyond your control.
We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for our marijuana is to sell them at competitive prices hence we will do all we can to ensure that the prices of our farm produce are what other marijuana farmers would look towards beating.
One thing is certain, the nature of marijuana cultivation business makes it possible for farmers to place prices for their farm produces based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your harvest the better for your business.
The fact that we are going to be offering our products at cheaper prices does not in any way means that we will sell substandard products. Selling our products at a lower price we will only reduce our profit and gain sales margin.
- Payment Options
The payment policy adopted by Wilfred Jackson® Marijuana Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payments options that Wilfred Jackson® Marijuana Farms, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
From all statistics and facts available to us, we have been able to come up with an estimate of what we intend spending to establish our marijuana cultivation business in Bowling Green – Kentucky. This is what it would cost us to setup Wilfred Jackson® Marijuana Farms, LLC in Bowling Green – Kentucky, U.S;
- The Total Fee for incorporating the Business (marijuana cultivation business) in United States of America – $750.
- The budget for key insurance policies, permits and business license – $2,500
- The amount needed to hire business consultants – $2,000
- The amount needed to acquire/lease a farm land – $50,000
- The amount required for preparing the farm land (for the cultivation of marijuana seedlings and fencing et al) – $30,000
- The cost for acquiring the required working tools and equipment / machines / flower pots et al – $200,000
- The amount required for purchase of seedlings and mineral nutrients solutions – $20,000
- The Cost of Launching an official Website – $600
- The amount required for payment of workers for a period of 3 months – $100,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000
Going by the report from detailed research and feasibility studies conducted, we will need an average of $300,000 to start a medium scale but standard marijuana cultivation business in the United States of America. A marijuana farm does not require an office space, most people that run marijuana farms operate directly from their farms. But we have decided to open a small liaison office; a place where administrative jobs will be carried out.
Generating Funds/Startup Capital for Wilfred Jackson® Marijuana Farms, LLC
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, it might not become a reality. Finance is a very important factor when it comes to starting a marijuana cultivation business.
Wilfred Jackson® Marijuana Farms, LLC will be owned by Wilfred Jackson Cephas and her immediate family members. They are the only financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Wilfred Jackson® Marijuana Farms, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our marijuana plant a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Wilfred Jackson® Marijuana Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of farm land in Bowling Green – Kentucky: Completed
- Conducting Feasibility Studies: Completed
- Startup Capital Generation: Completed
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed farm tools, machines and equipment: Completed
- Creating Official Website for the Company: In Progress
- Creating awareness for the business (Business PR): In Progress
- Farm land Treatment, Health and Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (marijuana merchants, transporter/haulage and suppliers of seeds, mineral nutrient solutions, pesticides and insecticides): Completed