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PAGE 1
www. cannabusinessplans.comPRESENTER: 2017 January
Purpose: Do good for the People and Planet.
Cannabis InvestorPitch Deck
PAGE 2AGENDA
Project/VisionMarket OpportunitiesCustomers/Competitors
1 Sales Strategy
3
4
5
6 Ownership/Team
Yields/Sales Forecast
2
7 Operational Plan
Investments9
8 Financials
PAGE 3PROJECT/VISIONTo build a successful commercial cultivation facility and create a recognizable brand in a rapidly growing industry. CannaFarm is a new company which is intending to penetrate into the cannabis cultivation market, starting with one greenhouse in California. Our goals: Own and operate a marijuana
cultivation facility in the state of California.
Sell high-grade cannabis wholesale to dispensaries and edible manufacturers.
Our vision is to become the stable and profitable marijuana cultivation company and also expand our facilities to 5 greenhouses.Our mission is to establish an innovative marijuana growing brand with affordable prices to the residence of City and other Cities in California.
PAGE 4MARKET TODAY
The passage of initiatives in California, Nevada, Massachusetts, Maine, Florida, Arkansas, Montana, and North Dakota will add $7.4 billion to the 2020 market forecast bringing the overall market projection for legal adult-use and medical sales in the U.S. to $22.8 billion by 2020. That brings the compound annual growth rate (CAGR) to 28%.
According expert projections, it is the best time for Canna Farm to launch business and “dip into” the fastest growing and budding sector.
2014
2015
2016
2017
(proj
ected
)
2018
(proj
ected
)
2019
(proj
ected
)
2020
(proj
ected
)05
10152025
National Legal Sales of Cannabis
in b
illio
ns o
f do
llars
Source: http://cannabusinessplans.com/cannabis-legal-market-size-projections/
PAGE 5MARKET TRENDS
By 2020 legal cannabis market would see a whopping $22.8 billion in total annual sales.
Recreational cannabis sales will account for more than half (53%) of the overall market by 2020.
The biggest driver of growth in coming years is the legalization of marijuana in some forms by more states.
Source: http://cannabusinessplans.com/cannabis-legalizing-status-map/
PAGE 6KEY CUSTOMERS/COMPETITORS
Number of LicensedRetail Marijuana Businesses
as of August 1, 2016 Stores 440Cultivations 583Product Manufacturers 198Testing Facilities 15
Number of LicensedMedical Marijuana Businesses
as of August 1, 2016 Centres 531Cultivations 801Infused Product Manufacturers 242Testing Facilities 13
CompetitorsDirect competitors for CannaFarm includes marijuana growers and whole sellers in California and also oil and concentrates manufactures.
CustomersMain customers are dispensaries and manufacturers of edible products and also whole buyers in the state of California.
PAGE 7SWOT ANALYSES
S• In California the
weather conditions are ideal for cultivating cannabis outside
• Diversification of greenhouse cultivation and outdoor cultivation
• Greenhouses will alow significantely decrease electricity bills and increase profit while competitive prices
W• Product liability / legal
issues• Enhanced risk of
banking / financial / IRS scrutiny
• Crop loss possibility due to pests, heat, human error
• Difficulties with finding employees. Location is a bit remote and not much depth in local workforce
• High energy consumption
O• High growth industry • Trend toward greater
cannabis legalization, including the use of cannabis for recreational purposes
• Global Market
T• A significant drop in
wholesale pricing• Enforcement of
federal law, uncertainty with president election
• Possible California law changing
• Indicators of a slowed global economy
PAGE 8ADVERTISING STRATEGY
Three most effective strategies for legal marijuana companies are direct marketing at industry conferences and other events, building communities around marijuana-related concerns such as health and wellness and aggregating online cannabis publishers, which don’t raise any legal concerns.
420 Network Marketing themselves as “the advertising network for alternative lifestyle brands”, 420 Network offers both CPC and fixed price advertising options.
420 Click
Women Grow
Cannabrand
Offering targeted Pay Per Click ads that display across their network of cannabis related websites, 420 Click can be a great option for getting service in front of an interested audience, and only be charged when someone clicks an ad. Founded in 2014, Women Grow is now the largest national network of cannabis professionals with Monthly Events for women & men in 45 cities across the US & Canada.Full-service cannabis branding agency, dedicated to the marketing of cannabis products and services
Mantis Offers a solid and growing network of sites including The Cannabist, Leafly, The Daily Chronic, and more. Mantis reaches 6 million unique visitors each month.
PAGE 9
Website with detail information.SEO optimization. Maintaining a high ranking in the Google and Bing/Yahoo search engines
Mass Mailing using MailChimp or other services, noteworthy monthly newsletter
AdWords. Testing various keywords to select familiar to topic and at the same time acceptable by Google’s algorithm: green, medicine, 502, infused, relaxing, stimulating, enhanced, alternative therapies, alternative medicine, natural, and others.
Business events and conferences.Business and industry associations.
The total marketing
expenses is estimated
over $70,000 for the first
year
MARKETING PLAN
Advertising and articles in the thematic Magazines, including Dope, Cannabis Now, 420 Magazine, Marijuana Venture, MG Magazine
Alternative Online Advertising Options, including Mantis, 420 Network, 420 Click, Women Grow, Cannabrand
PAGE 10OWNERSHIP/TEAM
Performs management and market analysis functions. Researches cannabis industry protocols and business operations options. Manages the team of independent contractors. Oversees the completion of team tasks, evaluates work, and determines progress points. Interfaces with potential business subscribers, patients/customers, and affiliates.
X: 50% ownership, Managing Director
Performs management and market analysis functions. Researches cannabis industry protocols and business operations options. Manages the team of independent contractors. Oversees the completion of team tasks, evaluates work, and determines progress points. Interfaces with potential business subscribers, patients/customers, and affiliates.
Y: 50% ownership, Operational Director
The organizational structure is designed to maximize personnel, while maintaining flexibility in size and scope.
Boar
d of
Di
rect
ors Marketing
Director/Partner
Managing Director/Partner
Growers
Trimmers
Packaging Assistant
Sales Representatives
PAGE 11OPERATIONAL PLAN
Series10
2
4
6
8
10
12
Series1
While most businesses in any industry try to keep startup costs as low as possible, that isn’t necessarily the best way to proceed when opening a grow. Creating a cost-efficient cultivation site often involves investing in technology and processes that may result in a big near-term hit. Optimally, our goal is to be able to produce quality cannabis for $1 a gram.
PAGE 12REVENUE GENERATION MODEL
Marketing Processes
Marketing Strategies
Marketing Skills & Activity
Marketing ToolsLead Generation
(Marketing)
Sales Processes Sales Strategies Sales Skills &
Activity Sales Tools
Lead Conversion (Sales)
Client Fulfilment Processes
Services Diversification
Client Fulfilment (Customer Service)
CLIENTS
PROSPECTSLOYAL CUSTOMERS
PAGE 13YIELDS FORECAST
Year 1 Year 2 Year 3 Year 4 Year 5 -
200,000 400,000 600,000 800,000
1,000,000 1,200,000 1,400,000 1,600,000 1,800,000
224,000
1,344,000 1,344,000 1,344,000 1,344,000
-
112,000 224,000 280,000 280,000
OutdoorGreenhouse
As growing stage will start from January 2018, sales are projected to be started from the 2018 summer and they will significantly increase from the second year. Company intends to mix outdoor cultivation from April to October period and all around year greenhouse cultivation.Growth rate for revenue is about 550% for the second year and about 10% for the third year.
PAGE 14REVENUE FORECAST
Year 1 Year 2 Year 3 Year 4 Year 5 (2,000)
-
2,000
4,000
6,000
8,000
10,000
- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
Gross Profit Net Income Operating Expense
$00
0
Last week indoor flower spanned from $1,000 to $3,500 per pound; the median price was $2,000. Greenhouse flower spanned from $1,200 to $3,000 per pound; the median price was $1,500. Outdoor flower spanned from $1,000 to $2,000 per pound; the median price was $1,300. Deal sizes for indoor
flower ranged from 0.5 to 100 pounds.
Deal sizes for greenhouse flower ranged from 1 to 320 pounds.
Deal sizes for outdoor flower ranged from 1 to 200 pounds.
PAGE 15REVENUE FORECASTYEAR 1 YEAR 2 YEAR 3
Revenue 224,000 1,456,000 1,568,000Direct Costs 304,193 954,853 951,307
Gross Profit -80,193 501,147 616,693-36% 34% 39%
Operating ExpenseLegal Fees & Licensing 10,000 3,333 3,333Building maintenance 0 0 0Equipment maintenance 0 0 0Administrative expenses 3,600 3,600 3,600Administrative Salaries 0 0 0Community Service, Improvements 1,000 2,400 2,400Sales & Marketing 12,400 74,000 79,600Misc. 4,500 6,000 6,000
Total Operating Expense 31,500 89,333 94,933
Operating Income (EBITDA) -111,693 411,813 521,760% of revenue -49.9% 28.3% 33.3%
Depreciation and Amortization 24,798 26,143 26,143Earnings Before Interest & Taxes (EBIT) -136,491 385,670 495,617Income Tax 0 99,672 198,247Net Income -136,491 285,999 297,370
PAGE 16PROJECT’S CASH FLOW
YEAR 1 YEAR 2 YEAR 30200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,0001,800,000
$350,000
$1,000,000
$1,700,000Year 1
Construction & Growing
Yearly revenue of about
$200,000
Year 2
Yearly revenue of about $1,000,000
Year 3
Yearly revenue of about $1,500,000
The total investment required for the first year that the business starts operating is approximately $330,000: Owners - $150,000 and Loans - $180,000.Initial investments would cover start-up costs and fixed expenses until profit stability is achieved during first year.
PAGE 17INVESTMENTS
$100,000 Greenhouses
$30,000 Legal Fees & Licensing
$3,000$30,000$70,000
Administrative Expenses
Salaries
Sales & Marketing
$70,000 Land & Development
$330,000Investments needed
Security Equipment$30,000
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