Medical Marijuana Clinic Business Plan and SWOT Analysis

Medical Marijuana Clinic Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Medical Marijuana Clinic Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Medical Marijuana Clinic business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Medical marijuana in the United States has become one of the most complex businesses operate. This is because on the federal level, cannabis is still illegal. However, a majority of the states have now enacted some pieces of legislation that allow for the direct sale of cannabis products to the general public provided that they are requested by a physician. Additionally, there are a number of businesses that are operating in states that allow for the recreational sale and use of cannabis as well. As such, this nascent industry is going through a number of changes and can be highly creative in states that allow it. However, one of the frequent and ongoing threats relating to these businesses is that the federal government may force a shutdown of this industry. Given the new administration, this may be occurring on some level. It is unknown what the future brings for the medical marijuana and medical cannabis industry.

One of the most difficult aspects of starting these types of businesses is developing the medical marijuana clinic business plan. The underlying costs can be substantial given that the pricing of cannabis fluctuates on a week to week basis. Additionally, there are substantial expenses relating to the ongoing operations of these businesses beyond just the rent, utility, and payroll expenses. Most of these businesses have to operate on a cash basis given that they cannot have bank accounts. As such, security is one of the major components to operating these businesses on a bigger basis

Within the business plan, you should have a 3 year financial model that focuses on the anticipated profit and loss, cash analysis, balance sheet, breakeven analysis, and business ratios that are common to the industry. The profit and loss statement needs to be done very precisely given that, again, there are a number of underlying variable costs that must be accounted for on an ongoing basis.

The medical marijuana clinic marketing plan can be somewhat minimal. Given the extremely high demand for these products, simply announcing that you’re in business and where you’re located is sufficient enough to drive traffic to the location. Additionally, prescribing physicians will often direct their patients to medical marijuana clinics that can provide them with the cannabis products they need in regards to their specific ailment.

A SWOT analysis is usually a good idea to do given the unique nature of this business. As it relates to strengths, the high gross margins from cannabis sales is substantial. Weaknesses include competitive threats as well as ongoing issues relating to changing registration. This is going to be one of the most difficult aspects of operating a medical marijuana clinic over the next 10 years unless there is a substantial change to federal law. Threats involving these businesses also solely relate to ongoing regulation changes.

Enclosing these businesses can be extremely lucrative in West Coast markets. Recently, a number of states on the East Coast and parts of the Midwest have provided for some level of legalization of medical cannabis. As such, entrepreneurs that enter this industry are awarded very high profits given the substantial risks associated with the development of these companies. Once, potentially fully legalized, the prices were related to cannabis are expected to plummet substantially. However, in the short term these can be highly profitable companies.

Medical Marijuana Clinic Business Plan (text of the plan – sample images only)

The purchased plan’s figures are specific for a medical marijuana clinic.

1.0 Executive Summary

The purpose of this business plan is to raise $160,000 for the development of a medical marijuana clinic and pharmacy while showcasing the expected financials and operations over the next three years. Medical Marijuana Clinic, Inc. (“the Company”) is a New York based corporation that will provide medical marijuana to customers in its targeted market. The Company was founded by John Doe.

1.1 The Products and Services

The primary operations of the business will be the distribution of medical marijuana to customers within the target market. The Company will earn gross margins of approximately 20% on all marijuana distributed the business. At the onset of operations, the Company will have one full time pharmacist and an assistant manage the distribution of marijuana to customers in accordance with state laws.

Medical Marijuana Clinic, Inc. will sell raw marijuana buds as well as candies, cakes, sodas, and other edibles that contain THC (the active ingredient in cannabis).

The third section of the business plan will further describe the services offered by the Medical Marijuana Clinic.

1.2 Financing

Mr. Doe is seeking to raise $160,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following:

  • Development of the Company’s Medical Marijuana Clinic location.
  • Financing for the first six months of operation.
  • Capital to purchase the Company’s inventory of marijuana products.

Mr. Doe will contribute $10,000 to the venture.

1.3 Mission Statement

Medical Marijuana Clinic’s mission is to become the recognized leader in its targeted market for providing medical marijuana in accordance with state laws to the local general public.

1.4 Management Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.


1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals that have medical marijuana prescriptions within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Medical Marijuana Clinic, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Medical Marijuana Clinic requires $160,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Medical Marijuana Clinic, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Medical Marijuana Clinic. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the products offered by the Medical Marijuana Clinic.

3.1 Sales of Marijuana

As discussed in the executive summary, the business will be engaged in the legal sale of medical marijuana to patients that have an appropriate prescription for usage of medical marijuana in accordance with state law. The business will sell raw marijuana buds of many different types of strains. The business will acquire its inventories from licensed producers of marijuana within the state.

The business will also sell a large number of “edibles” which are cooked goods and confections that contain THC (again, the active ingredient within marijuana and cannabis).

Mr. Doe is currently obtaining the proper licensure so that the business can distribute prescription medical marijuana from its retail location.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the medical marijuana industry, the customer profile, and the competition that the business will face as it progresses through its business operations.

Currently, the economic market condition in the United States is in a state of moderate growth. Unemployment rates have declined while asset prices have risen substantially.

However, pharmacies and medical marijuana clinics operate with great economic stability as people will continue to require medications despite drawbacks in the general economy.

4.2 Industry Analysis

It is currently estimated that the sale of medical marijuana is a $900 million industry within the United States. The advent of this industry has occurred over the past seven years, and many more states are expected to continue to allow for sales of medical marijuana. The industry currently employs approximately 15,000 people (which includes dispensary workers as well as marijuana growers).

There are a number of legal issues that come with operating a medical marijuana clinic. At this time, marijuana remains an illegal substance (for any purpose) per federal government law. However, many states (23 states in total as of 2014) through their legislation and popular vote have allowed for the growth, distribution, and sale of marijuana for medical purposes. The landscape of this industry in regards to legal matters is expected to continue to change significantly over the next five to ten years.

4.3 Customer Profile

Medical Marijuana Clinic’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include:

  • Annual household income exceeding $50,000
  • Lives or works no more than 15 miles from the Company’s location.
  • Will spend $100 per visit to the Company’s medical marijuana dispensary.

4.4 Competition

This is one of the sections we discuss in the purchased document.

5.0 Marketing Plan

Medical Marijuana Clinic intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Medical Marijuana Clinic.

5.1 Marketing Objectives

  • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
  • Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
  • Establish relationships with referring physicians.

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow the Medical Marijuana Clinic to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public.

The Pharmacy will also use an internet based strategy. This is very important as many people seeking local services and products, such as medical marijuana clinics, now the Internet to conduct their preliminary searches. Mr. Doe will register the Medical Marijuana Clinic with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing hours of operation, directions, applicable licensure, available marijuana strains, and applicable laws pertaining to obtaining medical marijuana.

The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the medical marijuana clinic that the Company is selling.

6.0 Organizational Plan and Personnel Summary

7.0 Financial Plan

7.1 Underlying Assumptions

The Company has based its proforma financial statements on the following:

  • Medical Marijuana Clinic will have an annual revenue growth rate of 16% per year.
  • The Owner will acquire $160,000 of debt funds to develop the business.
  • The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Company’s revenues are not sensitive to changes in the general economy. As discussed earlier, the business provides marijuana medication to its customers and as such, the business will not suffer any major declines in revenues despite deleterious changes in the economy.

7.3 Source of Funds

7.4 Profit and Loss Statements

7.5 Cash Flow Analysis

7.6 Balance Sheet

7.7 Breakeven Analysis