The answer on this question depends on many factors, including location, premises size, your goals and objectives.

 $100,000 Scenario

  • $15,000 legal fees
  • $38,000 for six months rent
  • $20,000 for a space improvements
  • $400 for display cases
  • $50 office supplies
  • $150 for security system
  • $75 for a sign
  • $300 for product bottles and $31 for jars to store the products
  • $50 on labels (all white)
  • plus salaries for manager and guard
  • plus deals with growers and manufactures

= approximately $100,000-$150,000 start-up expenses

$1 million Scenario

  • $50,000 legal fees & insurances
  • $150,000 building renting (includes security deposit)
  • $70,000 inventory, packaging supplies
  • $2,500 website design and development, hosting
  • $70,000 marketing campaign
  • $150,000 space improvements including finishing/painting, kitchen, office space, bathrooms, etc.
  • $67,500 security system including multiple camera feeds and metal/weapons detectors
  • $50,000 furniture, display counters, refrigerators, freezers, multiple POS/cash registers, registration computer, commercial label printer, storage hardware and shelving, etc.
  • $7,000 computer software
  • plus salaries for director, managers and guards
  • plus deals with growers and manufactures

= approximately $750,000-$1,000,000 start-up expenses

Average sales per square foot for a cannabis shop is about $1,750. More established operations boast 40-50% profit margins, while newer shops may only see 20% due to their lack of strategic partnerships and vendor relations.

Sample of a revenue model for a cannabis retail shop:
Revenue = $4,375,000 (100%)
-Direct Costs = $2,346,356(53%)
Gross Profit = $2,028,644 (47%)
– Operating Expenses = $906,740 (21%)
Operating Income = $1,121,904 (26%)

'70% ready to go' business plan templates

Our cannabis retail financial model and cannabis retail business plan template will help you to estimate all revenue and cost line-items monthly over a flexible seven year period, and then sums the monthly results into quarters and years for an easy view into the various time periods.

Some estimations for different cannabis growing scenarios you can find from our article about cannabis growing business.

Should you have any questions, please do not hesitate to contact us

Related Post