Retail Cannabis Dispensary:
At Bountiful Buds Delights we pride ourselves on serving our community and consumers with a safe and secure experience to obtain high-quality cannabis & products. Our team operates with professionalism, compassion, and knowledge of the industry, leaving our consumers feeling like part of the BBD family Our goal is to provide Cannabis education to current and new consumers, eliminating the stigmatism that surrounds Cannabis. BBD upholds a commitment to invest in Cannabis education, especially as it relates to patient care, health and wellness.”
Bountiful Buds Delights (“the Company”) will be a cannabis retailer in New Jersey, providing quality cannabis and top-tier brands in its dispensary. Not only will the products be top of the line, but the mission behind the Company and the values it upholds will act as the main pillars in building the Bountiful Buds Delights brand. The Company will in place educational programs for both medicinal and recreational cannabis users and take steps to destigmatize the industry.
The Company brings in a widely diverse background, with experience from all walks of life. The BBD team is made up of minorities, women and veterans looking to enter the Cannabis industry and make a footprint socially and economically for those that are normally disadvantaged. BBD’s character aligns with the Office of Diversity and Inclusion and will provide the foundation of our business.
The Bountiful Buds Delight management team is made up of a dynamic group of individuals who strongly believe in the health benefits of cannabis and cannabis-related products.
The values of BBD will work parallel to the guidelines and regulations of the CRC (Cannabis Regulation Commission) together with focus on the principles of the Office of Diversity and Inclusion.
With patient care at the forefront, BBD is striving to meet the needs of Cannabis patients and provide education of Cannabis use for medicinal purposes. Our target clientele will be current medicinal patients, as well as new consumers looking to educating themselves on the medicinal benefits of Cannabis. This is inclusive of consumers looking to utilize Cannabis for recreational purposes. Together, the team will work on building a high-regarded and trusted brand in the local community.
Value Proposition:
Bountiful Buds Delights is a minority-owned business that will seek to hire employees from the local community, supporting them in their roles and
providing job opportunities that provide
financial stability.
The core value of BBD is to educate and participate in building the community surrounding our location. BBD will be actively working on building an alliance with the already established medical community to strengthen our educational initiatives of Cannabis and continued growth of our core values.
As a minority-owned business, Bountiful Buds Delights will look to encourage diversity in the industry, in turn creating Economic vitality, uplifting communities, And promoting productivity and resilience.
Bountiful Buds Delights (“the Company”) will be a cannabis retailer in Newark, New Jersey, providing quality cannabis and top-tier brands in its dispensary. Not only will the products be top of the line, but the mission behind the Company and the values it upholds will act as the main pillars in building the Bountiful Buds Delights brand. The Company will in place educational programs for both medicinal and recreational cannabis users and take steps to destigmatize the industry. The Company brings in a widely diverse background, with experience from all walks of life. The BBD team is made up of minorities, women and veterans looking to enter the Cannabis industry and make a footprint socially and economically for those that are normally disadvantaged. BBD’s character aligns with the Office of Diversity and Inclusion and will provide the foundation of our business. The Bountiful Buds Delight management team is made up of a dynamic group of individuals who strongly believe in the health benefits of cannabis and cannabis-related products. The values of BBD will work parallel to the guidelines and regulations of the CRC (Cannabis Regulation Commission) together with focus on the principles of the Office of Diversity and Inclusion. With patient care at the forefront, BBD is striving to meet the needs of Cannabis patients and provide education of Cannabis use for medicinal purposes. Our target clientele will be current medicinal patients, as well as new consumers looking to educating themselves on the medicinal benefits of Cannabis. This is inclusive of consumers looking to utilize Cannabis for recreational purposes. Together, the team will work on building a high-regarded and trusted brand in the local community.
Market Size:
On Election Day 2020, New Jersey residents overwhelmingly voted to legalize adult-use marijuana, setting into motion the formation of a billion-dollar market.1 Over the next two years to 2023, Marijuana Business Daily projects the State’s adult-use marijuana industry to generate $1.2 billion-$1.5 billion in annual retail sales.2 Existing licensed marijuana companies will receive the first licenses; however, customer demand is expected to outpace supply, making New Jersey a lucrative recreational marijuana market for new entrants. The State’s regulatory cannabis commission will be issuing new licenses and priority will be given to businesses owned by minorities, women and disabled veterans. The limited number of available cannabis licenses in New Jersey will also mitigate competition and increase the value of companies for licensees. Over the next five years to 2026, the Retail Marijuana industry in the U.S. is projected to grow at an annualized rate of 19.7% to $45.7 billion
Marketing and Distribution:
Marketing for Bountiful Buds Delights will be done through a variety of channels, with digital marketing being the primary driver. To reach its main target consumer demographic of medical cannabis patients, the Company will invest in advertisements through local cannabis publications, radio, social media platforms, and websites that are frequented by the target market. Social Media will be used to target and advertise to the desired demographic, based on their interests and geographic location. Of all the adults with internet access in the U.S., up to 80% use social media, with an average of 2.7 hours spent on social media a day. The Company will look to creating engaging and informative content to reach this large percentage of consumers. Bountiful Buds Delights LLC will aim to get involved in community events related to marijuana to organically promote the business and build a strong word-ofmouth referral network. Word-of-mouth marketing has been seen to be one of the most effective types of marketing. strategies, due to the trust created from individuals passing along information to others in their friend groups and families. Moreover, the Company will look to develop reciprocal referral agreements with nearby alternative health care providers and other medicinal dispensaries. Additionally, a combination of patient outreach and consumer education programs will be implemented to further dispel any negative stigmas surrounding medical cannabis use while growing the trust and Bountiful Buds Delights brand within the community. Bountiful Bus Delights will teach cannabis basics to help local Newark residents understand the uses, benefits, regulations, and safety concerns surrounding marijuana. Future goals include the development of education classes into patient support groups. Bountiful Buds Delights intends to offer an environment where those seeking guidance and a connection with others struggling through the same hardships can interact, and share stories, advice, and encouragement. Networking, word of mouth, and obtaining positive PR through industry-related media outlets and community engagement initiatives will round out the marketing strategy. The Company will aim to spend between 2-5% of its yearly sales revenue on marketing.
To achieve the Company’s objectives, Bountiful Buds Delights is seeking $5,00 0,000 in total funding in exchange for a 30% equity stake in the Company. The funding will be utilized in the dispensary buildout, license acquisition, staffing, operations, and marketing initiatives. Bountiful Buds Delights’ financial model shows consistent growth for the brand over the next five years. By year five, plans call for the Company to achieve $19.8M in annual gross revenue, with a net profit of $5.3M or approximately 27%.
Bountiful Buds Delights will provide quality cannabis and consumer education for both medicinal and recreational customers. The Company’s management team brings in a widely diverse background, with experience from all walks of life. The Bountiful Buds Delights management team is made up of a dynamic group of individuals who strongly believe in the health benefits of cannabis and cannabis related products. Together, the team will work on building a high-quality and long-lasting brand. Members of the Bountiful Buds Delights team come from a variety of backgrounds and have complimentary skill sets.
The team of five committed and enthusiastic individuals will aim to draw on their own personal trials and tribulations to develop a brand that will set them apart from rivals. The Company’s management team has held positions in fields which include counseling, IT and tech, health, and regulatory management, on top of service in the navy. Management consists of an incredibly dedicated group of minority entrepreneurs made up of men and women. Through the team’s extensive experience, Bountiful Bids Delights will look to cultivating trust within its community while becoming a trusted hub for knowledge and information surrounding cannabis and the industry.
Bountiful Buds Delights has opted to tackle the obstacles in the industry head on, by building its business in an underserved community, familiar to the team, as opposed to taking the easier route and locating the business somewhere less impacted by the criminalization of cannabis. Additionally, Bountiful Buds Delights will look to create a new job market and grow a broader market for medicinal patients and recreational consumers within Newark, while giving back to the community through financial contributions and the development of community outreach programs.
Bountiful Buds Delights will be a cannabis dispensary for medicinal consumers followed by recreational consumers that will specialize in providing high-quality products at competitive prices. The Company will sell flower products, concentrates, edible cannabis products, pre-rolled joints, and other products, such as cannabis smoking devices and branded apparel. Moreover, Bountiful Buds Delights will focus on providing both medicinal and recreational consumers with a wide range of different cannabis strains to obtain the health benefits of cannabis. The initiatives of BBD will surround continuous education on breaking through the stigmatism of cannabis, its holistic benefits and ensuring consumers are aware of the effects of cannabis consumption for health and personal use.
Along with its products, the Company has implemented accessible, high-quality cannabis education programs for both recreational and medicinal cannabis products. Medicinal users treat cannabis just like they would any other prescribed medicine. In general, medicinal users consume marijuana to treat ailments like body pain, migraines, insomnia, and anxiety. This group is known for using cannabis and cannabis-infused products for therapeutic reasons and are generally not interested in using marijuana for recreation, instead often opting for hybrids or products containing indica strains, which enable more full-body benefits Bountiful Buds Delights will hire and train knowledgeable staff members to ensure high levels of customer service and strict adherence to regulatory compliance. Safe, secure, and convenient product delivery will be provided directly from the dispensary to the customer’s home. Bountiful Buds Delights will be committed to providing customers with a safe environment, dependable education, and exceptional service and support. The Company’s goal is to always provide a pleasant customer experience, where people feel comfortable, at ease, and free to ask any questions.
Community Engagement Plan :
As regulations allow for increased competition in many markets, such as cannabis dispensaries, manufacturers, and distributors, cannabis businesses must find new ways to creatively garner positive attention, while staying compliant with regulations. No matter the size or reach of the organization, businesses in the cannabis industry are highly encouraged to engage with their immediate communities. Not only does this demonstrate an investment in the well-being of neighbors, but it can provide long-term benefits, such as brand loyalty and improved public image. Bountiful Buds Delights will also focus on providing medicinal cannabis to patients, with initiatives like patient-to-patient care, free medication and services to patients in need, or supporting local nonprofits. Partnerships with scientists and health professionals are key resources for dispensaries. The Company will need medical, political, and scientific allies to help press for increased funding for research and for recognition of work, and testimonies by scientists to policymakers strengthen the claims of patients and advocates. Additionally, Bountiful Buds Delights has taken advantage of its unique position to address gaps in knowledge about medical cannabis by establishing their own extensive research agenda. In addition to having a high-quality supply of multiple strains of cannabis often lacking in other research facilities, Bountiful Buds Delights may explore the possibility of having members who are willing to share their experiences and to participate as subjects in medical cannabis research. By going beyond a basic social responsibility program and really engaging with its community, the Company can be a force of good that extends beyond just its valued customers out into the community and into the world. Bountiful Buds Delights will focus on providing customers with credible and valuable consumer education related to cannabis use and abuse, as well as the new laws related to recreational cannabis use in New Jersey. The Company is passionate about empowering the local community and will look to give back through the following ways.
1. Food and Clothing Drives
2. Opening a Community Center for Youth
3. Family BB Q’s & Customer Appreciation Days
4. Consumer Education Classes
TARGET Market:
There are several market categories within the Medical and Recreational Marijuana Stores sector. Demand is heavily influenced by how socially acceptable marijuana usage is. This frequently varies throughout generations, with younger generations being more supportive of legalization. Support is further divided into those who support both recreational and medicinal marijuana use and those who just support medical marijuana use. Medical marijuana has a bigger market share than recreational marijuana, since it is legal in more states. However, as more states permit recreational usage, the gap between medicinal and recreational acceptability has narrowed. Another shrinking gap is the difference in use between genders. According to Eaze, a cannabis delivery service in the San Francisco area, in 2018, 62.0% of new customers were men and 38.0% were women. In 2019, the gap decreased to 54.0% men and 46.0% women, and in 2020 closed even more to 52.0% men and 48.0% women. These developments indicate that the sector is gradually becoming more acceptable and incorporated into society.
Economic Impact Plan:
The American Civil Liberties Union (ACLU) of New Jersey released its Baseline Cannabis Justice Plan16, a platform of requirements that the state's new cannabis industry must put in place to meet a basic standard for justice, focusing on how to prioritize meaningful public input in the community reinvestment process, how to create an inclusive and accessible industry, and how to share information with the public. The complete Baseline Cannabis Justice Plan outlines preliminary approaches for the Cannabis Regulatory Commission (CRC) to execute legalization in an equitable and just manner.
To achieve the Company’s objectives, Bountiful Buds Delights is seeking $5,00 0,000 in total funding in exchange for a 30% equity stake in the Company. The funding will be utilized in the dispensary buildout, license acquisition, staffing, operations, and marketing initiatives. Bountiful Buds Delights’ financial model shows consistent growth for the brand over the next five years. By year five, plans call for the Company to achieve $19.8M in annual gross revenue, with a net profit of $5.3M or approximately 27%
Financial Objectives:
The following tables detail the funding the business will need to bring the vision to reality. USE OF START-UP FUNDING TOTAL START-UP FUNDING EXPENSES Total Amount Being Requested $5,000,000 Licensing Fees4 $12,000 Total Funds Already Received $0 Legal & Professional Fees $50,000 Total Funding $5,000,000 Grand Opening Advertising $10,000 NEW START-UP FUNDING BEING REQUESTED Website/Online Ordering Platform $15,000 Bank Amount Being Requested $0 Total Start-up Expenses $87,000 Line-of-Credit (LOC) Requested $0 LONG-TERM ASSETS Investor Amount Being Requested $5,000,000 Purchase Retail Building $2,500,000 Total Amount Being Requested $5,000,000 Dispensary Buildout $500,000 START-UP CAPITAL AND LIABILITIES Security System $75,000 Loss at Start-up (Start-up Expenses) ($87,000) Computer Systems $12,500 Total Funds Received & Requested $5,000,000 Point of Sale Terminals (7) $15,000 Cash Balance on Starting Date $1,175,500 Vault $10,000 Display Cases, Fridges & Office Furniture $125,000 Total Long-Term Assets $3,237,500 SHORT-TERM ASSETS Working Capital $1,175,500 Inventory $500,000 Total Short-Term Assets $1,675,500 TOTAL EXPENSES & ASSETS Total Start-up Expenses $87,000 Total Start-up Assets $4,913,000 Total Funding Requirements $5,000,000 .
ALLOCATION of Funds As shown in the tables above, the total start-up funding needed to successfully implement this venture is $5M, which is being requested from investors. As depicted, $87K will be used for start-up expenses, $3.2M will be used for the purchase of long-term assets, $500K will be used for inventory, and the remaining balance of $1.2M will be used for working capital.
Bountiful Buds Delight will eventually be taking the first step in addressing the harms and inequalities of marijuana enforcement by keeping its focus on equality and racial justice throughout the regulatory process. Bountiful Buds Delights has the potential to strengthen its local economies and redress existing inequities in both urban and rural areas of New Jersey, while aiming to provide economic opportunities to communities that have been disproportionately affected by the war on drugs. The cannabis industry currently employs nearly 250,000 full time jobs, more than four times the number of coal industry workers in the country. 17 And these figures merely scrape the surface of a business that is still illegal at the federal level and in roughly 80% of states. According to an RCG Economics and Marijuana Policy Group research on Nevada, legalizing recreational marijuana may sustain over 41,000 employment and produce over $1.7 billion in labor income through 2024.18 According to New Frontier's research on the benefits of federally legalized marijuana, national legalization may produce 1 million jobs by 2025, likely coming from the rapidly expanding industry.19 Farming, processing, distributing, and selling marijuana-based goods would necessitate the hiring of workers. Furthermore, many opportunities in ancillary sectors connected to legal cannabis but not directly involved in its manufacturing and delivery would become readily available. These might include software developers, financial services, construction firms, and a variety of others. By opening a retail opportunity in its local neighborhood, Bountiful Buds Delights with undoubtedly be contributing to the success of small-scale farmers will keep cannabis dollars recirculating through rural communities in New Jersey.
The following is a listing of the primary competitive advantages of the Company upon entering the market.
• The Bountiful Buds Delights management team is comprised of talented and experienced individuals with very diverse backgrounds.
• Social Activity surrounding the Company’s engagement plan is all-inclusive and supports at-risk individuals and cannabis users
• Bountiful Buds Delights is a minority-owned business, giving the Company access to partnerships and cross-certification panels like the New Jersey LGBT Chamber of Commerce
• Possession of a limited number of dispensary licenses
• High-quality products at unbeatable prices
• Wide variety of products tailored towards obtaining specific effects and health benefits
• Strong focus on customer service
• Marketing strategy
• Industry-leading employee training
• Customer education procedures
• Promotional pricing strategies
• Convenience of location and ambiance of the dispensary
BARRIERS to Entry Government Regulation:
Prospective marijuana store operators must navigate a variety of legal issues before beginning operation. Recent favorable policy stances from the federal government on medical marijuana caused many operators to enter the industry during the last five-year period. Barriers to entry have decreased as 33 states have passed legislation legalizing some level of cannabis sales. While states provide a legal avenue for operators to open dispensaries, regulations are extensive and costly for prospective operators, who must obtain the required licenses and permits.
Capital Requirements:
Although marijuana stores incur limited capital costs because of the low-tech nature of the industry, operators are impeded by their relative inability to obtain financing from traditional sources. To open a dispensary, operators must acquire a location, hire employees, purchase inventory, and buy advertising, among other things. However, because the cultivation, distribution, and use of cannabis remain illegal at the federal level, traditional financial institutions have been hesitant to provide financing to new entrants. As a result, new operators have been forced to rely on personal savings, loans from family members and friends, and private investors to enter the industry, limiting entry. However, in 2014, the Obama administration effectively gave the green light to financial institutions to provide access to capital for industry operators in states where medical cannabis is legal. Consequently, obtaining access to capital is anticipated to become somewhat easier for potential operators over the next five years. Bountiful Buds Delights will ensure it meets and exceeds all state regulations related to opening and operating its business. Recent favorable marijuana policy stances from the federal government signal that regulatory risk is decreasing for industry operators. Furthermore, the industry’s limited ability to obtain financing from traditional sources represents a strategic advantage for Bountiful Buds Delights, as it will possess adequate funding to launch operations .
By year 5, investors are projected to receive a 530% return on investment (ROI). The projected valuation is based on an EBITDA multiple of 10.3X. 2