Table of Content
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:
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
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.
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 |
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.
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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.
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
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% |
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.
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