Financial Planning

Development of bespoke financial models based on historical inputs specific to the selected corporate structure, facilities, and market conditions.

Bespoke Financial Plans & Modeling

Financial planning is crucial for every business, regardless of industry, size, or lifecycle. For cannabis businesses, a financial plan must be accurate, realistic, and easy to understand. For startups, financial projections are essential for design, funding, and setting timelines.

A startup pro forma is a financial projection that demonstrates your business model’s viability. Many cannabis startups lack the historical data required for most pro formas. Our team leverages our historical experience and expertise to create financial models tailored to your business structure, facility, and market conditions.

Our comprehensive financial models, ranging from basic calculations to complex formulas, account for variables such as sales volumes, prices, material costs, tax rates, and more. Our financial experts collaborate with your team to build pro forma models—income statements, balance sheets, and cash flow statements—that are realistic, actionable, and tailored specifically for the cannabis industry.

Ready to get started? Contact us today to learn more or schedule a free consultation!

Cannabis Financial Planning

Financial planning is an essential part of every business, regardless of industry, lifecycle, or size. A financial plan must be logical, accurate, and realistic but also straightforward and easy to understand. For new cannabis businesses, the preparation of financial plans and projections is essential to the business planning process and plays a vital role in design, funding, and timelines.

Licensing And Compliance

Understand the legal requirements for cannabis operations, including obtaining licenses and ensuring compliance with local, state, and federal laws. Choose the right business structure—sole proprietorship, partnership, LLC, or corporation—based on liability, taxation, and fundraising needs. For licensing help, we offer Cannabis Licensing & Application services.

Budgeting And Cash Flow Management

Create a budget covering startup costs, expenses, and revenue projections. Carefully manage cash flow, especially with the cannabis industry’s unique banking and payment challenges.

Tax Planning

Cannabis businesses have unique tax considerations due to federal illegality. Consult with a cannabis tax professional to ensure compliance and maximize deductions.

Capital Raising And Financing

Identify funding sources for your cannabis business, such as savings, loans, partnerships, investors, or crowdfunding. Understand the risks and benefits of each option.

Exit Strategy And Succession Planning

Create an exit strategy for selling or transferring your cannabis business. Succession planning ensures long-term sustainability, especially for family or partner transitions. Consult financial planning professionals and stay informed about local cannabis laws and regulations.

Staying Up-To-Date With The Changing Cannabis Market

Stay informed on the evolving cannabis market through industry news, trade associations, conferences, and professional networks. Market research and analysis will help guide informed business decisions.

Investment Opportunities In The Cannabis Industry

Beyond operating a cannabis business, consider investing in cannabis stocks, ETFs, or private equity. Conduct thorough research and consult investment experts to enhance profits with the right strategy.

Other Services

Frequently Asked Questions

Is it legal to operate a cannabis business?

The legality of cannabis varies by jurisdiction. It’s important to understand the specific laws and regulations in your area before starting or investing in a cannabis business. Some regions have legalized medical and/or recreational cannabis, while others may still have strict restrictions or outright prohibitions.

How can I obtain financing for my cannabis business?

Traditional financing options may be limited for cannabis businesses due to the federal illegality of cannabis in many countries. However, alternative funding sources, such as private investors, venture capital firms, or cannabis-specific lending institutions, may be available. It’s important to research and network within the cannabis industry to find potential financing options.

What are the tax implications for cannabis businesses?

Tax regulations for cannabis businesses can be complex due to the conflicting federal and state laws. It’s crucial to work with a knowledgeable accountant or tax professional who specializes in cannabis taxation to ensure compliance and maximize available deductions. Tax requirements may include income tax, excise tax, and other industry-specific taxes.

How can I manage cash flow effectively in the cannabis industry?

Cash flow management can be challenging in the cannabis industry due to limited banking options. Establishing a strong relationship with a cannabis-friendly financial institution can help streamline payment processing and banking services. Implementing robust accounting practices and regularly monitoring cash flow can also help manage expenses and maintain financial stability.

What insurance coverage do cannabis businesses need?

Cannabis businesses face unique risks, including theft, product liability, and regulatory compliance. It’s essential to work with an insurance provider experienced in the cannabis industry to assess your specific risks and obtain appropriate coverage. Typical insurance policies for cannabis businesses may include general liability insurance, product liability insurance, property insurance, and crop insurance.

Contact Us

Enough about us. We want to hear more about you, your project, and your vision! Get in touch with a real live person today. Don’t worry, we don’t have a long, confusing phone menu, and your email isn’t going to the abyss, we promise. At Catalyst, we provide the service and support we’d want to experience ourselves!