- Written By: MV Editorial Team
Los Angeles Cannabis Business Plan Lawyer
No matter what industry you intend to enter, you need a viable business plan to ensure you start off on the right foot. The cannabis industry is no different. A cannabis business plan serves as your blueprint to profitably and effectively entering the cannabis world. You’ll use your business plan to acquire funding from investors, set up distribution deals, contract with vendors, and obtain the proper licenses. Your business plan includes not only your administrative efforts, but also your plan for tackling the various regulatory requirements imposed by state and federal law. Drafting a business plan is not to be taken lightly. You’ll need to take into account state and federal taxation, licensing requirements, and federal prohibitions and restrictions, on top of breaking down the numbers for asset purchase, distribution, marketing, and other aspects of your enterprise.
The California cannabis business lawyers at McReynolds Vardanyan, LLP are at the forefront of this rapidly-changing industry and are ready to help you get your cannabis business up and running. We will walk you through what a business plan typically includes, how to account for all of the necessary sections and calculations, and how to set yourself up for success in the growing Cannabis business arena. Our cannabis business plan legal team will bring our years of experience in the industry and business law generally to bear in generating the strongest business plan for your new cannabis enterprise.
What Goes Into an Effective Business Plan?
A proper business plan has a number of important elements, and it must be drafted in a way that clearly communicates your plan for your cannabis enterprise. If you and your partners are not strong writers, you will want to retain a writer to help draft your business plan. You’ll also want to incorporate assistance from other experts including accountants, experienced entrepreneurs, and business law attorneys. Your business plan should make clear that, although you are starting a cannabis business, your enterprise will not be run with a stereotypical “stoner” approach–you are a business person, and you intend to run a profitable enterprise.
Some of the key parts of your business plan will include:
- A summary of your business and business model. What is your value proposition? What does your business bring to the table that is special or unique? What are your short-term and long-term goals?
- Market and competitive analysis. You will need to demonstrate that you understand your intended market and how best to reach them. Who are your intended customers? Who are your competitors? How will you outmaneuver your customers?
- Your team. Who are your business partners? What do they bring to the table? Do you have an established business person on board, rather than solely friends and associates who are starting a business for the first time?
- Financial projections. Based on your evaluation of the market and your competitors, you’ll need to draw up sales projections for one, five, and ten years of your business operations. Investors want to see that you have crunched the numbers so that they know their investment is worthwhile.
- Starting a business can rarely be done with available cash on hand. If you need to obtain financing, include a plan for how much you will need to secure and how you intend to acquire that capital.
- Corporate structure and operations. Your cannabis business attorney can walk you through your options for structuring your business. There are advantages and disadvantages to corporations, partnerships, limited liability partnerships, and other business structures. The corporate structure should serve your business interests and the nature of your enterprise.
- Regulatory compliance. The cannabis legal landscape is complex and rapidly evolving. Your business plan should address how you intend to comply with licensing and other regulatory requirements, evidencing your thorough consideration of all potential sources of liability. How does your intended plan reflect the changes implemented by the Adult Use of Marijuana Act (AUMA), the Medical Marijuana Regulation and Safety Act (MMRSA), and other applicable laws? How does it account for anticipated future changes to laws and regulations, including changes at the federal level?
These are just a few of the important elements to any cannabis business plan. Talk to a seasoned California cannabis business attorney at McReynolds Vardanyan to discuss your emerging business, what to consider when drafting your business plan, and how to go about creating the most effective business plan given your intentions, your team, and your circumstances.
Our Cannabis Business Plan Lawyers are Here to Help You
If you are interested in setting up a cannabis business in Los Angeles or Southern California, or if you have questions regarding your current cannabis, hemp, or CBD business, call McReynolds Vardanyan, LLP in Glendale at 818-855-2115. Our California cannabis business lawyers are available 24/7 and are ready to help you step through the legal hoops necessary to get your budding business off the ground quickly, competently, and legally.
