A Business proposal

So I have thought about asking for help for a while now and Im just gonna bite the bullet and ask you guys how to do this.

Id like to write up a proposal for opening a new disp and grow. This would be shown to some people I know on the east coast (im hoping to open in the NYC area) so they can decide wheather or not to get into MMJ when it starts to gain some traction in the state.

My only problem is I have no idea where to start on this kind of thing. I want to be able to write up two levels of commitment really. one with alternate energy sources and one more mainstream (basically a HUGE operation and one regular sized)


Any advice is appreciated. Ill check back after work on this.
Thanks guys.

Approach it like ANY business proposal. Research your initial expenses, to the letter, be PRECISE. Calculate your projected income over the first year (I am assuming you will choose a year as the return time-period), and subtract a third AT LEAST. This allows for the fuckups and tweaks that are bound to happen and be needed. I usually work with HALF what I calculated as projected income. This leaves you an error-margin to work in and keeps you from having your legs broken (figuratively speaking). Then subtract your personal 'salary' for the re-payment period. You are also going to need to calculate your operating expenditure, power, nutes, substrate, pest control, security, etc, and subrtact this from projected income. Now you have an idea of what you can realistically offer an investor, and whether or not getting a backer is actually going to be worth your while. From what is left, calculate what you would offer as a return on investment. Make sure this return is higher than can be offered by investing in other stuff, like stocks and bonds etc. So there is more homework there too.

These are all things I would like to see if approached with an investment opportunity. If it all looks good, I still have a few questions: How are you going to make certain the competition does not eat you up? What is the marketing strategy? Having a high quality product is great, but remember there are going to be many other guys with the same idea, as there always is. Is the price you are going to be offering for your goods/service SUSTAINABLE? How did you make sure about this? I want to see the full market research or I'm out. I make most of my money investing in ventures brought forth by other people, and i HAVE LOST A LOT. Most potential investors will have all these concerns.

If you want my advice: You know your shit with reefer, right? So get a business partner that loves BUSINESS as much as you love weed. It is a specialist field. No matter what the cost of such know-how, having a good, preferably qualified marketing strategist is going to pay itself back a hundred fold.

It is a beautiful dream you have, and I wish you the best.

Business proposals take a lot of work. The statistics go you spend twice as much time writing up and researching for a business proposal then you do on the actual business. The more research you do the better you look leave no stone unturned and write it like your life depends on it.

Take me with you.

thepaintedchef said:

Business proposals take a lot of work. The statistics go you spend twice as much time writing up and researching for a business proposal then you do on the actual business. The more research you do the better you look leave no stone unturned and write it like your life depends on it.

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Agreed! Its where the real work is. Every second you put into the research returns itself tenfold in both profits and peace of mind.

TY mad for the detailed answer of what I have to look forward to. I am just so dismayed to see these business owners who want to get into MMJ but have no idea of what they are doing hire some of the stupidest "growers" Having been in the industry for well over a year now I am confident I could do a better job by far.

chef c said:

Take me with you.

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If things go they way I hope I could have several opportunities for people.

I'm always looking to supply shops

BadAndy said:

TY mad for the detailed answer of what I have to look forward to. I am just so dismayed to see these business owners who want to get into MMJ but have no idea of what they are doing hire some of the stupidest "growers" Having been in the industry for well over a year now I am confident I could do a better job by far.

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I can tell you why quality suffers when going 'commercial'... You have to remember that all of a sudden, everything runs on a schedule. There's no waiting an extra week or two for a perfect finish, there's no taking extra time to trim a batch of bud better, when stock needs to come in, it needs to come in. You miss a beat, you lose customers. As a business owner, one will always be wise to choose the guy that is ON TIME every time above anything else. That always has the bulk ready. Demand is ALWAYS higher than supply!! That is why people are opting to work with 'caregivers' instead of dispensaries. A caregiver has only a few people to take care of, and can always produce MAXIMUM quality because he knows his precise demand. But if he takes on too many patients, this changes, and to keep all his customers he WILL have to sacrifice quality. Both my daughter's godfathers have made their livings off cannabis for over 10 years, so I'm really talking reality mate, not making this up.
Conversely, if you as a dispensary owner employ too many growers in order to achieve top quality all the time, you will end up with another problem: Nobody likes sitting on stock. So if you are not moving stock at the exact pace it is being produced, what happens is the prime bud gets offloaded to somewhere else while you try to flog what you have. Trust me, NOBODY is going to have to sit on good reefer for long at all. And you will end up burning your bridges this way too. This is the last thing you want, word gets around, and you don't want to be known as the guy that keeps the grower, the big risk-taker, sitting in an uncomfortable position.
These are all factors you need to consider brother. The cannabiz is truly cut-throat!!!

If you are serious, this is a link to the standard format for writing a business plan. It takes some time to get through it all, but the end result is what you would take to a bank or other funding source. http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/how-write-business-plan

BadAndy said:

I am just so dismayed to see these business owners who want to get into MMJ but have no idea of what they are doing hire some of the stupidest "growers" Having been in the industry for well over a year now I am confident I could do a better job by far.

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So I re-read this post and I seem just so egotistical. What I mean to say is having been in the industry I feel like I can be an asset to those who have a limited amount of experience and usually no contacts that are really informed on what to grow or how to grow it and how to set it all up on a commercial scale.