How to Write a Cannabis Business Plan for a Successful Entrepreneur Pathway

How to Write a Cannabis Business Plan for a Successful Entrepreneur Pathway

To pave an entrepreneur pathway in the Cannabis industry, you need experienced guidance and a smartly laid roadmap. Entering this highly regulated industry with a good Cannabis Business Plan is the key to success. It aids in sailing through compliance, cost efciencies and growth strategy in the most effectve way. Read on...

Canadian Cannabis Industry The cannabis industry of Canada is blossoming with each passing year. In June 2021, the industry witnessed a monthly record sale of $319 million. It is expected to touch USD6.7 billion by 2026. At present, dried cannabis is topping the charts in the Canadian market with a sale of $1.3 billion in 2021.

On the other hand, the edible cannabis market surpassed a sale of $100 million in 2020. However, it is stll a highly untapped segment with immense potental for growth.

Cannabis Business Plan The cannabis business plan is a well-laid roadmap that leverages your entrepreneurial journey to help improve your odds of success. The cannabis industry is seeding novel prospects to new entrepreneurs.

As the industry is taking small steps towards maturity, many changes are happening.

The growth of edible cannabis market is one such positve change that is atractng many entrepreneurs seeking to start a retail cannabis business. in additon to this, the launch of farm gate sales in Canada has open optons for small growers. They can now sell their products directly to the consumers. This new step will not only create ample opportunites for small growers to fourish but also help them secure their place in the industry.

Points to Consider in a Cannabis Business Plan The cannabis business plan is a writen prototype of your Entrepreneur Pathway that you can refer to

at every phase of the business establishment. Therefore, it becomes imperatve to draw a clear picture of your business that makes it clear for you and your clients why they should want to frst visit and return to your business. However, it isn’t a simple cut-and-dry process. Being an entrepreneur, you must consider – ·

Cannabis Licensing – The Cannabis Regulatons of Canada has set-up special licenses to permit business actvites in this highly regulated cannabis industry. For instance, license for cultvaton, license for processing, licensing for analytcal testng, license for a retail store and so on. Therefore, complete knowledge and understanding of these licenses are pivotal to apply for the correct one for your entrepreneur pathway. Besides these licenses, compliance with the federal, provincial and local guidelines is a must.

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Cannabis Legalizatin – The Cannabis Act was implemented in October 2018 to control and regulate the cultvaton, processing, sale and distributon of cannabis across Canada. The Act aims to keep cannabis away from the reach of youth, and criminals in order to protect public health and safety. Additonally, cannabis businesses need to follow the GMP & GPP standards.

As a result, every province has its own rules and regulatons related to legalised cannabis businesses. Hence, staying abreast of these legalites helps in drafing a detailed Cannabis Business Plan to back your entrepreneur pathway.

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Ciirdinated Cannabis Taxatin Agreement – Under this agreement, the federal and provincial governments co-ordinate to administer and implement cannabis dutes. Except for Manitoba, all other provinces have ratfed a revenue split of 25/75. It is followed by a cap on the revenue share of federal government at $100 million on annual basis for the frst 24 months. Besides this, provinces like Ontario, Saskatchewan, Alberta and Nunavut exercise additonal dutes on cannabis products.

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Banking & Insurance – Despite Cannabis being legalised across Canada for recreatonal and medical purposes, the industry stll faces major problems when it comes to banking and insurances. This is a major reason why the edibles segment of cannabis industry is growing at a much slower pace. Banks are apprehensive in working with cannabis businesses and insurance companies do not want to extend their services to them. So, if you have made up your mind to enter this ever-growing industry, get in touch with BDC, Farm Credit Canada and The Cannabis Commerce Associaton of Canada.

So, if you want to tap into this not yet fully tapped segment and carve out an Entrepreneur Pathway for yourself, a well-writen Cannabis business plan is the way to ensure you cover all important consideratons to start!