Dispensary Business Plan (HarborLeaf Dispensary)

Executive Summary

HarborLeaf Dispensary is a planned single-location cannabis dispensary, which is located in Sacramento, California. We deal with adult-use cannabis products to customers who visit the store in person. Our product selection includes flower, pre-rolls, vape cartridges, edibles, concentrates, tinctures, and topicals, along with other permitted accessories. All sales follow state and local rules, including ID checks, purchase limits, and required product tracking.

HarborLeaf operates strictly as a retail-only business. We do not cultivate cannabis, manufacture products, operate delivery-only services, or allow on-site consumption. This approach keeps operations focused and aligned with local regulations.

Our target customers are:

• Residents aged 21+ (within a 5–7 mile radius)
• Repeat local consumers
• Regional visitors & tourists

The Dispensary is owned by three members. Managing member Alex Morgan owns 65% of the business and runs it day to day. This includes staff, inventory, cash handling, and regulatory contact. The other two partners own the remaining 35% combined. They do not take part in daily operations.

Market Opportunity

California has the biggest legal cannabis market in the country. Within the state, Sacramento is an active and established retail market, generating approximately $197,425,846 in legal cannabis sales in 2025.

And the demand is supported year-round by a combination of residents, office workers, visitors, and tourists.

Funding Requirements & Revenue

HarborLeaf’s revenue is generated entirely from retail cannabis sales. Sales are expected to grow steadily as the business establishes local awareness, builds a repeat customer base, and maintains consistent store operations.

The business projects $1,305,000 in revenue during Year 1, $1,694,000 in Year 2, and $1,971,000 in Year 3.

HarborLeaf Dispensary requires $625,000 in startup funding. This amount is based on the actual costs required to meet state and local laws and serve responsibly during the early months of business.

All startup funding comes from owner and partner equity.

Startup funds allocated across the following areas:

• Licensing and setup costs
• Store buildout and upgrades
• Initial inventory
• Opening expenses and cash reserves required upgrades
• Security systems

The business is not using bank loans, SBA programs, or other debt.

Business Overview

The business is structured to run a single, well-managed location with disciplined inventory, predictable costs, and direct owner oversight. HarborLeaf’s objective is not rapid growth, branding, or volume-driven tactics, but long-term approval security, operational consistency, and reliable service for adults seeking legal access within Sacramento’s regulated retail market.

Our mission is to operate a tightly controlled, license-stable cannabis retail store that prioritizes execution over expansion.

Legal and Organizational Details

Ownership Structure

Alex Morgan serves as the Managing Member with a 65% ownership stake, taking full responsibility for the company’s daily operations. This includes:

• Overseeing regulatory compliance
• Staff management
• Inventory logistics
• All communications with state and local agencies

Alex applies several years of experience from regulated retail environments to maintain the high standards of discipline required for a dispensary. And by drawing on a background in vendor coordination and strict operational reporting, Alex can implement the systems necessary to protect the business license and manage risk.

The remaining 35% of the company is held by two passive partners who provide capital but are not involved in the business’s decision-making or daily activities.

This centralized structure ensures that leadership remains focused and accountable.

Business Model

HarborLeaf serves as a retail-only cannabis dispensary, dealing with regulated cannabis products directly to adult consumers through a walk-in storefront. All stocks are sourced exclusively from state-licensed distributors, wholesalers, and manufacturers, and all transactions are tracked through the state’s seed-to-sale system.

Value is delivered through in-person service, clear pricing, and consistent product availability. Customers pay at the time of purchase, which supports steady cash flow and limits financial risk. This business is also not engaged in the following activities:

This narrow business model reduces operational risk, lowers startup costs, and aligns with Sacramento’s local approval process for cannabis retail.

Market Analysis

As cannabis retail rules become more established and more consumers choose licensed dispensaries, the U.S. cannabis industry continues to grow steadily. According to Statista, total cannabis revenue in the United States is projected to reach $47 billion in 2026. With an estimated annual growth rate of 3.36 percent, the market is expected to expand further, reaching approximately $55.43 billion by 2030.

In the national landscape of the USA, California maintains its position as the premier legal cannabis market in the United States. This data from the California Cannabis Industry Association confirms that the state’s licensed retail sector achieved $4,032,242,526 in annual sales for 2025, leading all other states despite market maturation.

Consumer demand for regulated products remains resilient, even with the significant taxation, price volatility, and competition from the illicit market.

Target Customers

Sacramento provides a strong local customer base for legal retail cannabis. The city’s population is estimated at approximately 524,802 residents in 2026, supported by steady growth and a stable local economy.

The age profile further strengthens this demand, with adults between 18 and 64 forming the majority of the population. The 30 to 34 age group represents the largest single demographic segment, aligning closely with typical retail cannabis consumers.

This demographic profile fits well with HarborLeaf’s target market. Most customers are expected to come from nearby neighborhoods and regular city activity rather than long-distance travel. HarborLeaf primarily serves:

• Adults 21 and older who live or work within a 5 to 7-mile radius
• Local customers who make repeat purchases from licensed dispensaries
• Visitors and tourists seeking legal retail options while in Sacramento

These customer groups reflect typical walk-in traffic patterns for downtown and centrally located dispensaries.

Customer decisions in this market are driven by practical factors rather than brand attachment. Most customers choose where to shop based on:

• Convenient location and easy access
• Short and predictable wait times
• Clear, upfront pricing
• Reliable product availability

Dispensaries that maintain consistent inventory, efficient service, and transparent pricing are more likely to attract repeat customers and build steady foot traffic. This creates a strong opportunity for a well-managed storefront focused on reliability and day-to-day execution rather than promotional tactics.

Competitive Landscape

Competitive Gaps Observed

Through local market research, we identified recurring challenges among existing operators:

• Customer experience varies by shift or staffing level.
• Inconsistent compliance practices and documentation.
• Overcrowded product assortments that complicate inventory control.
• Limited engagement with surrounding neighborhoods once licensing is secured.

These gaps create operational risk and reduce long-term stability.

HarborLeaf Positioning in the Competitive Market

HarborLeaf is positioned around clarity, control, and accountability. We are operating with:

• A smaller, more manageable storefront
• A curated SKU mix designed for turnover and compliance
• Visible security and professional procedures
• Owner-operated management presence on-site
• Predictable hours and standardized workflows

Rather than pursuing aggressive volume tactics, we prioritize consistency, inspection willingness, and regulator confidence. This approach supports both approval outcomes and long-term sustainability.

Products and Services

Industry data shows that 29% of female cannabis consumers prefer non-flower products, while 15% of male consumers also choose non-flower options.

To serve both groups, HarborLeaf carries a mix of flower and non-flower products, covering different preferences without overloading inventory.

At launch, the dispensary plans to stock about 120 to 150 SKUs. Products are chosen based on sales performance, reliable suppliers, and ease of tracking in the state’s seed-to-sale system. This keeps inventory manageable while meeting everyday customer demand.

Core Product Categories

HarborLeaf Dispensary offers a selected range of compliant cannabis products designed for regular adult-use purchases and consistent inventory control.

Accessories

Accessories are limited to items permitted under state and local rules and do not include any unregulated merchandise.

Licensing, Zoning, and Site Eligibility

The proposed business location has been selected and secured based on full eligibility under the City of Sacramento cannabis zoning regulations. Zoning compliance was confirmed before lease execution to eliminate location-based approval risk.

Key zoning factors have been verified as follows:

The lease for the premises includes explicit landlord consent for cannabis retail use. No conditional zoning approvals, temporary occupancy permits, or speculative site assumptions are included in this plan.

Licensing and Permit Requirements

HarborLeaf Dispensary operates in full compliance with California state cannabis law and City of Sacramento regulations. All required local and state licenses are obtained before commencing operations.

Local Approval Strategy

Local authorization is the controlling prerequisite for state licensing. HarborLeaf’s approval strategy is structured around complete and accurate submissions to reduce the risk of corrections, delays, or resubmissions.

Each application is reviewed internally against zoning approvals, lease terms, and operating procedures before submission. Required materials include:

• Ownership disclosures and background information
• Premises diagrams and floor plans
• Security and surveillance plans
• Operating procedures and compliance controls
• Community and neighborhood impact materials, where required

This approach ensures alignment across all submitted materials and regulatory expectations.

State Licensing Strategy

Following receipt of local authorization, HarborLeaf submits its adult-use retailer license application to the California Department of Cannabis Control. Local approval is a required prerequisite for state licensing.

State application materials mirror local submissions to maintain consistency across disclosures, procedures, and premises documentation. Submissions include:

• Entity and ownership information
• Proof of local authorization
• Security and access control plans
• Inventory tracking and recordkeeping procedures
• Financial disclosures required by the state

The business uses the state-mandated track-and-trace system (Marijuana Enforcement Tracking Reporting Compliance – METRC) for all inventory movement and reporting.

HarborLeaf does not begin operations until all required state and local approvals are formally issued.

Ongoing Regulatory Compliance

HarborLeaf maintains regulatory standing through strict operational controls and executive accountability.

The following protocols ensure the business remains in full compliance with city and state mandates:

• Deadlines and Filings: A centralized calendar tracks all permit renewals and reporting dates to avoid fines or licensing disruptions.
• Records Management: All corporate and financial documents are kept in audit-ready condition. Any changes to ownership or management are updated immediately within regulatory filings.
• Executive Oversight: The Managing Member is directly responsible for monitoring law changes, filing taxes, and enforcing safety and security standards.
• Inspection Readiness: These systems ensure the facility is prepared for unannounced inspections and continuous inventory auditing.

Marketing and Sales Strategy

HarborLeaf’s marketing and sales approach is built around visibility, trust, and repeat purchasing within strict regulatory limits. Monthly marketing spend is controlled and tied directly to measurable outcomes, at approximately $4,000 per month.

The strategy prioritizes compliant channels that reliably drive in-store traffic, supported by local outreach and disciplined spending controls.

Marketing Channels

Early Promotions

During the first 60 to 90 days, HarborLeaf uses limited, controlled promotions focused on first visits and product trial.

Initial offers include:

• First-visit discounts tied to a minimum purchase
• Fixed-price bundles on select products to encourage category trial
• Loyalty enrollment at first purchase, with rewards earned after repeat visits

Promotions are applied to specific items or categories rather than storewide price cuts. This protects margins and keeps pricing stable.

Customer Acquisition Plan

HarborLeaf’s customer acquisition strategy focuses on local foot traffic and repeat purchasing rather than heavy discounts or broad advertising. Most customers are expected to come from nearby neighborhoods, daily city activity, and visitors already seeking licensed dispensaries.

New customers are introduced through walk-in visibility, compliant digital listings, and in-store experience. First-time offers are limited and tied to initial purchases to encourage trial without lowering long-term pricing.

After the first visit, retention is driven by consistent service, clear pricing, and accurate menus. Customers are guided toward products that match their preferences and budget, reducing friction during repeat visits.

Ongoing communication is limited to opt-in email and SMS updates related to product restocks and category availability. This keeps engagement useful and avoids over-promotion while supporting repeat store visits.

Sales Strategy

Sales execution is defined by standardized efficiency rather than aggressive persuasion:

• Standardized Transactions: Staff follow a uniform process to ensure a consistent experience. Conversations focus on product facts, formats, and legal compliance rather than sales targets or upselling.
• Transparent Pricing: Clear pricing at the shelf and Point of Sale (POS) eliminates confusion and speeds up the checkout process.
• Inventory Rotation: Inventory data is reviewed weekly. High-turnover “consistent sellers” are prioritized for shelf space, while slower-moving items are rotated out to maintain a fresh, uncluttered menu.
• Performance Tracking: Staff are evaluated on accuracy and transaction speed, supporting a stable, predictable retail environment.

Marketing Controls and Restrictions

All marketing activity adheres to the following rules without exception:

• No youth-targeted messaging or imagery
• No unapproved health or medical claims
• No mass advertising outside permitted platforms
• All messaging reviewed for state and city compliance

Compliance review is embedded into campaign planning rather than handled after execution.

Operations Plan and Compliance SOPs

HarborLeaf’s operations are structured to support steady daily sales while maintaining full regulatory compliance. Clear staffing roles and defined daily procedures ensure accountability, consistency, and inspection readiness.

Operating Hours and Store Flow

The facility operates from 9:00 AM to 9:00 PM daily.

Daily protocols include the following key phases:

• Pre-Opening Readiness: Staff execute comprehensive security sweeps, confirm surveillance functionality, and verify the integrity of storage areas. Initial inventory counts and cash drawer reconciliations are logged to establish an accurate baseline before sales commence.
• Operational Standards: Age verification is mandatory at the entrance before sales floor access is granted. A second identification check occurs at the point of sale, where the system enforces legal purchase limits and updates inventory in real time.
• Closing Procedures: Post-operational tasks involve final cash reconciliation, METRC entry reviews, and the sanitization of all workspaces. All cannabis products and currency are moved to secure storage once management confirms that daily reports align with physical counts.

This structured workflow maintains a transparent audit trail and ensures that the facility remains prepared for inspections at any point during business hours.

Staffing Plan

HarborLeaf performs under an owner-managed structure to maintain direct control over compliance and daily performance. All employees complete required compliance training before their first shift.

Training covers age verification, customer interaction rules, inventory handling, METRC procedures, and daily SOPs (Standard Operating Procedures). After that, every employees sign acknowledgment forms confirming they understand and are committing to follow all procedures accordingly.

Customer Compliance Controls

All customers must be verified as 21 years of age or older using valid government-issued identification. Purchase limits are enforced through the point-of-sale system. On-site consumption is not allowed under any circumstances. Compliance signage outlining age requirements, purchase limits, and store rules is clearly posted throughout the store.

Inventory Controls

HarborLeaf maintains strict inventory controls to ensure all cannabis products are tracked accurately from intake through sale or disposal. Inventory procedures are designed to meet California’s seed-to-sale requirements and support daily operational accuracy and loss prevention.

Seed-to-Sale Tracking System

All cannabis inventory is tracked using METRC, the state-mandated seed-to-sale tracking platform.

This tool is used to record product information, on-hand inventory, sales activity, adjustments, and destruction. Inventory records in METRC are kept aligned with physical stock and point-of-sale data at all times.

METRC entries are reviewed daily to confirm that all inventory movement is recorded correctly and that no items remain in an unverified or pending status.

Product Intake Procedures

All cannabis products are received only from licensed distributors. Deliveries are accepted during designated intake windows to maintain control and accuracy.

Upon delivery, staff verify the distributor manifest against the physical shipment, including product type, quantity, SKU, and lot number. Once verified, products are logged and accepted in METRC on the same business day. Products are not placed on the sales floor or into storage until METRC acceptance is complete.

Storage and Access Controls

Access to storage areas is restricted to authorized staff only. Inventory is organized and segmented by SKU and lot number to support accurate counts and traceability.

Storage controls reduce the risk of loss, misplacement, or unauthorized handling and support fast reconciliation during audits or inspections.

Returns, Adjustments, and Destruction

Returned or unsellable products are handled using a state-compliant quarantine process. Items are removed from active inventory and clearly labeled to prevent accidental sale.

All adjustments and destruction activities are documented in METRC. Destruction is conducted following state rules and is witnessed and recorded as required. Documentation is retained for inspection and audit purposes.

Facility and Premises Plan

HarborLeaf’s facility is designed to support compliant retail operations, controlled customer flow, and secure inventory handling. The premises layout balances customer experience with regulatory requirements, ensuring visibility and access control.

Premises Overview

HarborLeaf operates from a leased retail storefront of approximately 2,000 square feet. The space is configured to separate public areas from restricted operational zones, allowing for efficient retail activity while maintaining strict control over inventory and staff-only areas.

The premises support daily retail operations, secure product storage, regulated receiving, and administrative compliance functions within a single, well-defined footprint.

Store Layout and Flow

Customer and staff movement within the store follows a controlled, logical sequence to ensure age verification, transaction security, and inventory protection.

This layout supports orderly customer flow while preventing unauthorized access to restricted areas.

Tenant Improvements &  Buildout Requirements

Tenant improvements are limited to required operational and compliance upgrades, including:

• Reinforced vault walls for secure inventory storage
• Security wiring to support cameras and alarm systems
• ADA restroom upgrades to meet accessibility requirements
• Compliant lighting for sales and storage areas
• Ventilation improvements for proper airflow and safety

These improvements ensure the facility meets regulatory standards and supports daily operations.

Completed and Planned Improvements

• Reinforced vault walls to meet storage security standards.
• Dedicated security wiring to support cameras and alarm systems.
• ADA restroom upgrades to meet accessibility requirements.
• Compliant lighting to ensure visibility in sales and storage areas.
• Ventilation improvements to maintain air quality and staff comfort.

These improvements ensure the space meets regulatory expectations and supports safe, consistent daily operations.

Premises Documentation

All premises documentation is prepared for licensing and inspection review. Scaled floor plans are submitted as part of the license application and reflect the final operational layout.

Included in documentation:

• Accurate room dimensions
• Entry and exit points
• Camera placement and coverage areas
• Restricted access zones
• Vault and receiving room locations

This documentation supports transparency and allows regulators to verify compliance with access control and surveillance requirements.

Utilities and Systems

The facility is supported by utilities designed to prevent operational interruptions and maintain compliance systems.

Reliable connectivity and backup power reduce the risk of reporting failures or security lapses.

Security and Cash Handling Systems

HarborLeaf’s security and cash handling framework is built to protect regulated inventory, cash assets, and staff while meeting local and state requirements. These systems are designed around continuous monitoring, managed access, and documented handling procedures.

Surveillance System

The facility is equipped with a continuous video surveillance system covering all required areas, including exterior entrances, interior access points, the sales floor, point-of-sale counters, inventory storage, receiving areas, and cash handling locations. Cameras operate at all times, including non-business hours, and footage is recorded and retained according to regulatory requirements.

Surveillance footage is available for inspection, incident review, and internal audits. Camera placement is coordinated with the submitted floor plans to ensure there are no blind spots in sensitive areas such as the vault, receiving room, or cash storage locations.

Alarm and Emergency Systems

Monitored alarm systems protect the premises against unauthorized access, particularly outside operating hours. Alarm coverage includes exterior doors, restricted interior zones, and inventory storage areas. The system is supported by backup power to maintain functionality during electrical outages.

Emergency procedures are established for alarm activation, system failure, or safety incidents. These procedures outline response steps, notification protocols, and documentation requirements.

Access Control

Access within the facility is segmented based on function. Access permissions are assigned according to job role and reviewed periodically. Temporary or visitor access to restricted areas is controlled and logged when required, maintaining a clear record of who enters sensitive zones.

Access control overview:

Cash Handling Model

The business operates under a defined cash handling structure to reduce exposure and errors. Cash transactions occur only at designated point-of-sale locations. Cash drawers are assigned per shift, counted at opening and closing, and reconciled against sales reports.

No single employee controls cash from the transaction through storage. Responsibilities are divided between sales staff, supervisors, and management to maintain accountability and reduce risk.

Cash Storage and Transport

Cash is stored in secure, access-controlled storage when not in use. Storage locations are monitored by surveillance and protected by alarm systems. Cash movements within the facility follow documented procedures and are limited to authorized personnel.

Transport of cash is scheduled and documented to avoid predictable patterns. Movement records are retained to support audits and insurance requirements.

Insurance Coverage

HarborLeaf maintains insurance coverage appropriate for a licensed cannabis retail business to protect the facility, inventory, cash handling activities, and daily operations. Coverage includes general liability insurance to address customer or third-party claims, property insurance for the leased premises and tenant improvements, and inventory coverage for regulated cannabis products held on site.

The business also carries crime and cash coverage to address risks related to cash storage and transport, as well as workers’ compensation insurance for employees, as required by state law. Insurance policies are reviewed regularly to ensure coverage levels remain aligned with store activity, inventory levels, and regulatory expectations.

Financial Outlook

The business is capitalized with $625,000 in equity funding, consisting of $375,000 in owner contributions and $250,000 in passive investor equity. No debt financing is used.

Startup Costs

Income Statement (3 Years)

Note: This income statement reflects a post-280E environment following federal rescheduling. All ordinary business expenses, including rent, payroll, marketing, and compliance costs, are fully deductible. Net income shown represents the amount retained after normal operating expenses, not a 280E-restricted view.

Cash Flow Statement (3 Years)

Beginning Cash (Start of Year 1): $0

Balance Sheet

Statement of Changes in Equity

Notes

Inventory

Opening inventory of $110,000 reflects initial cannabis stock purchased pre-opening. Subsequent changes represent normal operating inventory fluctuations. A decrease in inventory represents a source of cash, while an increase represents a use of cash.

Accounts Payable

Accounts payable represent standard supplier payment terms within regulated cannabis distribution and are maintained at a normalized operating level. No interest-bearing debt is assumed. Accounts payable are maintained at a steady operating level consistent with supplier payment terms and do not scale materially with revenue growth.

Property & Equipment

Property and equipment include interior buildout, security systems, POS hardware, safes, and fixtures capitalized at cost. Architectural, permitting, licensing, legal, and pre-opening marketing costs are expensed as incurred. Assets are depreciated on a straight-line basis over estimated useful lives. Of the total startup costs, approximately $455,000 represents capitalized property and equipment, with the remaining costs expensed as incurred.

Equity

The company is capitalized with $375,000 of owner equity and $250,000 of passive investor equity. No debt financing or owner distributions are assumed during the projection period.

Liquidity

Opening equity funding provides sufficient liquidity to absorb early operating losses through break-even. Management believes existing cash reserves are adequate to support operations until sustained positive EBITDA is achieved.

Break-Even Analysis