Question

Cannabis bussiness plan:

1. Competence analyses (Strengths, Weaknesses: You must be providing the information in a table)
2. Price Policies, sales and distribution
3. Operation descriptions (you can use a flow chart as a complement in your description)
4. Analysis of initial costs, "Start-up costs" (Must meet the requirements in the guide questions.)
5. The statement of position, "Income Statement"
6. The income and expense statement pro-forma (Income projection)

Answer 1

Meaning of cannabis business plan: It is plan related to the businesses of companies or industries dealing with the product "cannabis".

a.Competence analysis: The competence analysis basically is a means to mensurate skills, knowledge and capabilities of  anything like company or an individual.

Competence analysis of cannabis business plan in terms of strength and weakness is as follows:

Strengths	Weaknesses
Boost employment opportunities as it is a fast growing industry now a days.	It is may be illegal to do business of cannabis in some areas as legal authorities of various countries and states do not allow this.
Cannabis business has a wide scope of growth as it enhances the health.	The scope of getting deductions is narrow in case of business man having a business of cannabis.

b. Pricing policies: It refers to the way in which any company address the price of products and services the particular company dealing in. There are various policies that the business plan of any cannabis business can consider out of which some are as follows:

Price skimming: It is the price policy availed by those ,going to sell their new product initially at high prices.

Penetration pricing: It is the price policy availed by those, going to sell their product at low prices for cutting the market share of their rivals.

Value-based pricing: It is the pricing policy that is based on the attitude of the consumer as it is all about finding that who can pay and what amount they can pay for the particular product.

Sales: The business plan of cannabis business should include all the related factors to the sales like:

• How the product can be positioned in the target market: By explaining the target consumers that how your product is distinct from the rival's product.
• How to promote the product: The things like distribution of sample at the initial stage can be undertaken to increase the sales in the future.

Where the product can be offered for sale: There should be a proper plan regarding this as it is the last step under the execution of sales portion under the cannabis business plan.

c. Operations description: This portion of business plan should include all the related things that are to be used while operations get started. For instance:

• What type of technology will be used by the company.
• What type of equipments are needed to run the operations.
• What is to be done for the security related issues.
• How the distribution of the target product take place.
• What skills set should be required in person who is to be appointed by the company.

d. Analysis of initial costs: There should be a proper plan regarding the analysis of initial costs under the main plan of business as profit or loss of any business is fully dependent on it. The analysis of initial costs of cannabis business can be done in these ways:

• A person going to start this business should be well known about the costs involved in procurement of finance, raw material and labor for the business and it can be analyzed by keeping a track record just like bills of purchases etc. and comparing them with sale invoices.
• A person should be well known about the costs involved in legal formalities like licensing etc.
• A person should be well known about the costs of constructing a infrastructure as special infrastructure is required for these type of businesses.

So one should keep a track record on initial costs and keep searching about various alternatives to earn profit after initial stage.