Dispensary Financial Models

Financial models for a dispensary detail the cash flows of the business based on either assumptions or market data from your existing operations. Financial models are often required for your dispensary application. if you do not have enough liquidity to open your dispensary, financial models are required to get investors interested in the business opportunity that dispensaries offer.  In this article, we help you understand the dispensary business, potential competition in the current market scenario, and your end customers. We will assist you in developing an exhaustive financial model and dispensary plan and will really mentor you in understanding what it takes to launch and grow solid and profit-making cannabis dispensaries.

 The dispensary financial plan is the most important document which is required to be prepared before opening a cannabis dispensary. There are seven critical areas of focus that every “business plan” should locate, so as to acquire licensing approval and captivate potential and future investors.

Over the past 10+ years, we have helped many entrepreneurs and startup owners to create solid business plans for their medical marijuana or adult use cannabis dispensaries. 

Your business needs models and ours are updated all the time for new states that are legalizing cannabis for social equity businesses and other entrepreneurs. 

If you are a cannabis license owner, or hopeful, I can help.

Thomas Howard was on the ball and got things done. Easy to work with, communicates very well, and I would recommend him anytime.

You need a dispensary model if you want to grow your business or to start a new dispensary. A dispensary business plan will encourage you to gather funding from potential investors, this enhances the chances of your business’s success.  Plus, it may be required by the state or city for your license.

Your financial dispensary business plan is a comprehensive document that should be reviewed and updated annually as your cannabis business grows.

Potential investors are going to study the financial outlook section of your business plan. This financial model consists of three key items: forecasts, financing, and future projections.dispensary financial models

This model helps you with estimated values and projections based on past results or projected future data based on assumptions from the market data. It will help you in locating sources of new capital and how to utilize the funds optimally. 

A cannabis business can be ensured about their future projections which are based on accurate data. Our experts will assist you in financial planning and resource allocation with the help of this model.

Key Elements of a Dispensary Financial Model

The dispensary financial model includes:

  • income statements, 
  • balance sheets, 
  • cash flow statements,
  • sources of funds, 
  • operating expenses, 
  • capital expenditure, and 
  • personnel scheduling.

Income Statement

An income statement is popularly called a Profit and Loss statement or P&L. It reflects the total revenues and then subtracts actual costs incurred to show whether the business is making a profit or loss.

While formatting income statements, you need to rely upon “key assumptions” For example, how many units will be sold 2 or 500? And how much sales will expand by 2% or 10% per year? The choices of assumptions will greatly influence the financial projections for your cannabis business. 

It is vital to do regular research on the real day-to-day operation of the business. Key assumptions are based on daily facts and figures of the business.

Balance Sheets

It reflects the total assets and liabilities of the business over a period of time. Suppose, you are spending $1,000,000 on a dispensary, it will not give you an immediate return. We assume it as an asset that aims to assist you to generate profits for years to come. Similarly, a bank loan of $2,000,000, doesn’t require to be paid off immediately. It comes within liability that the business will pay back over time.

Cash Flow Statement

The cash flow statement will assist the business in calculating how much investment is required to expand the business and to make sure that the business never runs out of funds.

Capital Expenditure Schedules – Mechanical, Electrical, Plumbing (MEP)

Planning for the MEP system and operating expenses are vital for a cannabis business. Maintenance and replacement costs are vital if the business is running at full capacity. Planning detailed maintenance costs, system replacement or repair costs, and system life expectancy is essential to avoid unexpected shutdown/failure.

While developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dispensary.

Operating Expenses

There are many hidden costs of a cannabis business. No doubt, the cannabis industry is growing faster than an optimally nute’d veg plant, but there are many hidden costs and business owners need to tackle them. These operating costs are more than any typical startup – by a wide margin.

Due to the cannabis’ hybrid legal status (legal in some form in two-thirds of the American states but comes under illegal substance at the federal level), the cannabis daily operating expense schedule comes with plenty of built-in costs that several startups don’t have to struggle with.

Personnel Schedules

This schedule has payroll taxes and benefits which includes social security, medicare, FUTA, SUTA, worker’s compensation, other employee benefit program, etc.

It anticipates an annual salary increase in future years to come. The personnel schedule is vital to ascertain the future cost of the business. It is a rough draft based upon the future salaries of the business personnel.

We like to have the operating expenses and personnel expenses for dispensaries to be grouped in their own area because you cannot deduct these expenses from your taxes.  Well, you can, but the IRS will audit you and the costs are just too great. 

Startup Funds, Operating capital, Depreciation, Amortization term

This dispensary financial report is vital to investors. It describes the sources of funds a business is raising, and how to apply these funds in the future of the business. 

It is a brief representation of the facts and figures that how much is needed to raise. Various elements like sources of funds like owner’s equity, long or short-term liabilities, operating capital, fixed assets, etc.

Cannabis Dispensary/Retail Model

Custom made and instant access

Our financial dispensary model will give you instant access to all the future projections, facts, and revenue. The model is very much customizable. Put your own assumptions and the model will automatically create a set of future projections.

Easy to read

The dispensary model can easily be managed without you being a pro in excel. Simply put the data in the key assumptions and the model will give to the project future graph. Prior knowledge of financial details, VBA, or excel expertise is not required. Our financial gurus have created a comprehensive model that will make your job easy. We update it all the time and you get the updates during your engagement with our firm. 

Summaries and operational metrics

This dispensary model gives you revenue generation plans, expense forecasts related to COGS and administrative costs. It has a built in customizable income statement, cash flow statement and P&L.You can use it for future pitches and presentations.

Business Succession Planning with Trusts-3This article aims to help the dispensary owners by explaining the structure of the financial model and its return.

This template helps you in making important decisions about the cannabis business. It is the best “plug-and-play” template which is very adaptable and gives you the right to manage or edit the key assumptions depending upon the nature of your cannabis business,

Forecasting cash flows for your dispensary

 It calculates the business forecasts automatically. A perfect tool to evaluate and understand your cannabis venture, a one-stop solution to all your initial problems. This tool can be used to lure prospective investors. The cannabis business is not easy, investors need solid data and projections to invest.


We covered a lot about how important a financial model is for your dispensary business. This model gets refined over time as you are actually in operation.  We’ve made lots of models and explain all of them in better detail in our content you get after you buy one of them, and we are having a webinar about our financial model where we explain it all. Please check it out. Feel free to contact us about your dispensary financial model needs. 

Do you want a FREE Quote?

Give us a call about what you are looking for and we’ll let you know if we can help and how much we think it will cost. 

Thomas Howard

Business Lawyer & Consultant

At Collateral Base we help clients get organized, licensed, capitalized and exert their rights in court. We have #GoodProblems

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