How to Prepare a Business Snapshot

What's in a Business Snapshot

If you’re a cannabis store owner, you may consider selling or entering into an acquisition. Before you go through the process, it’s essential to have a comprehensive business snapshot ready. This snapshot should highlight the unique aspects of your store, the financial metrics, customer metrics and inventory metrics. Let’s look at how to prepare your cannabis store for an acquisition. 

Here are 4 things you must do to follow to help you through the process:

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  Unique aspects - This is your time to shine! It's the storytelling piece that the data doesn't show. Where your location is, who your co-tenants are, and why you are important to the community are all helpful. This contextualizes the data that will follow. 
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  Financial Metrics - When preparing your business snapshot, make sure that all financial information is up-to-date and accurate—this includes revenue, profit margins and expenses. It will also be helpful to include any forecasts or projections that show where you expect the business to be in the coming months or years.
• Customer Metrics - It’s also important to provide details on who your customers are and how they interact with your store. This can include things like customer loyalty programs and customer segmentation analysis. You should provide information on customer lifetime value (CLV), which can help potential buyers understand the long-term value of acquiring your business. 
• Inventory Metrics - Finally, it will be helpful to provide detailed information about your inventory levels and related costs such as aging inventory or special partnerships. Make sure that any inventory reporting is current and up-to-date so potential buyers don’t have any surprises when they review the data. Providing these details will help them understand what they are getting into if they decide to move forward with the acquisition process.

Preparing a comprehensive business snapshot is essential for the acquisition for your cannabis store. Make sure that all financial metrics are up-to-date and accurate, as well as details on customer loyalty programs and customer lifetime value (CLV).

Don’t forget inventory metrics either; make sure any inventory reporting is current so potential buyers don’t have any surprises when they review the data before deciding whether to enter into an acquisition agreement. With this in mind, you will increase the chances of making a successful sale of your cannabis store!

By doing this due diligence, you’ll be able to present buyers with a clear overview of the current state of your cannabis store and make them more likely to consider the business changeover.

Whether you need help preparing your cannabis business snapshot or have any questions at all regarding acquisitions in the industry, reach out to us, and we can help!