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Executive Summary………………………………………………………...3
Introduction…………………………………………………………………..4
Concept………………………………………………………………………5
Feasibility…………………………………………………………………….6
Marketing…………………………………………………………………….10
Operations…………………………………………………………………...12
Finance……………………………………………………………………....16
Sources of Data……………………………………………………………..18
Executive Summary
Green Cloud Events is a newly founded company that is focused on Cannabis related events
services. We sell Cannabis infused food and drinks to interested companies and affluent
Green Cloud Events aims to deliver a high-end luxury networking image. We are currently
working closely with our Cannabis industry partner companies and suppliers to keep our
business innovating with the newest trends and products.
The business will require $60,000 for start-up capital with 15% of that coming from the
entrepreneurs, 6% from CEO and 3% of each leadership team position.
As a part of our business plan we will engage the following Investor and Partner:
Who We Are
Green Cloud Events was founded by four young entrepreneurs who saw an opportunity to do
something unique in the market. By jumping in to a brand new industry like Cannabis, Green
Cloud Events want to stake their claim to a share of a rapidly expanding market. The executive
leadership team is:
We each use our own industry expertise to complement each other in our day to day. Together
we believe that hard work and determination are essential to creating something successful.
Our goal is to deliver an experience that clients cannot find anywhere else.
Concept
Green Cloud Events (GCE) is a start-up, exclusive luxury cannabis events company that we
have opened up in Richmond Hill located in the GTA. As a brand new market has opened up in
Canada, we strive to be the best and stay the best in the business as we take pride in our
connections and products. We will be providing a full exclusive membership to our clients in the
cannabis industry from medical to recreational use under the Government of Canada's
Cannabis Act, Bill C-45. The clientele we encourage to join our membership targets the 40 to 65
year old market as they are more experienced in the cannabis industry. They have the savings
to take the time to join an exclusive cannabis networking event from time to time. The
Our company does have a direct and indirect competitors. Our direct competitors involve the
Canadian government, through the LCBO, who are taking on the role of sales and distribution
for the cannabis industry once it is legalized. Shoppers Drug Mart is another potential direct
competitor considering the news about their pharmacy carrying certain strains and making it
available to the public. As for our indirect competitor, we have The Cannabis Social, an
American company located in California. We consider them indirect competitors as this
company does have the same business idea as us and they may consider expanding into the
Canadian market. However, they are looking to stay within California based on research from
blogs.
Green Cloud is made up of 4 members and shareholders along with investor Aphria who will
loan us who will loan us $51,000 to use for start up costs in return for advertising and promotion
concessions. Rocio Correa (CEO) Ambitious and very visionary, with many years experience in
events and connections within the investment community. Former Vice-President at Premier
Events. Randal Liu (Vice-President of Operations) Brings a wealth of knowledge and a track
record of success in event planning. He served as Account Director at Monarch Events Group
for the last 4 years. Apolina Mukungilwa (Vice-President of Marketing and Public Relations)
With the knowledge and passion to connect with consumers, she served as Marketing Director
at BBDO for the last 3 years. She brings years of industry knowledge and experience. Aslihan
Arikan (Vice-President of Business Development and Client Relationships) Known throughout
the industry for her skill and knowledge, the former PR Director at Edelman Ltd. for the last 3
years brings credibility and creative thinking to our team.
Feasibility
Location:
Green Cloud Events will be located in Richmond Hill on the Markham - Richmond Hill border
line, in the heart of the Greater Toronto Area within the province of Ontario. Our office is located
in the commercial business district of Richmond Hill. The city is a growing community and is
developing a larger role in the GTA. Located between two major highways, Hwy 407 and 404,
we are perfectly positioned to execute events not just within Toronto but also places like
Hamilton, Barrie and Oshawa. The GTA contains roughly 6.4 million people, with another
650,000 in Durham Region and another 1.3 million in Peel Region. This gives us a potential
market of over 8 million people, including some of the biggest businesses and most influential
people in Canada. A 2017 article in the Huffington Post ranked Canadian cities by their average
net worth. Of the top 10 cities, we have easy access to 4: Toronto, Hamilton, Oshawa and
Site:
The site is located at 205 - 100 Mural St Richmond Hill, Ontario. Our office is 730 square feet
and will be our primary site for the planning of all events as well as the required administrative
and logistical tasks. We will own our computer hardware but will rent office furniture, which is
available on site through building management. The site has a parking lot with space for dozens
of cars. Our space will have two offices and a reception area. Guests will be greeted at
reception and then escorted into one of the offices for meetings. As we do not anticipate much if
any walk in traffic, pedestrian activity is not a concern for us. More advantageous is the easy
access to major highways which we will require for travelling to event sites.
Site Expenses:
The lease agreement with building management contains a cost of $15/SF in base rent, with an
additional $14.50/SF for expenses such as heat, air and building maintenance. This is an
approximate gross rent of $29.50 per square foot. For our 730 square foot office, this is a
monthly cost of $1,795. Furniture for the space will be an additional $200 a month and we will
buy a sofa at a cost of $1,500.This lease is for 3 years with an option to renew for an additional
3. Snow removal, cleaning services and maintenance are handled by the building management
company.
Although it is currently somewhat difficult to properly forecast what the market will be for
recreational Cannabis, it is becoming clear there is a strong market. Experts estimate that by
2019 the market value will be near $6 Billion. Statistics Canada shows a clear trend towards
increased marijuana usage from 2010 onward and marijuana producers have become some of
the most successful offerings on the Toronto Stock Exchange. Ontario itself contains 48
licensed marijuana producers all waiting for the anticipated legalization of July 1st, 2018. Some
of the earliest adopters of the market such as Canopy Growth Corp, Aphria and Aurora
Cannabis have become billion dollar companies employing hundreds of people. Clearly the
consensus is that there is a strong market in Canada for marijuana offerings. With the increased
acceptability of marijuana use will come a market for people who want to incorporate marijuana
into their events. This is where our opportunity lies.
Competition:
One of the advantages of focusing on cannabis related events in that the entire industry is very
new. For companies that move quickly there is an opportunity to establish themselves before
the competition. By rapidly building a name for ourselves we hope to position ourselves as a
market leader before others. In terms of potential indirect competition the American company
Sales Forecast:
The recreational market is estimated to be worth roughly $6 billion dollars once legalization
takes places this July. Our investor Aphria employs 150 people and had $20 million in revenue
during 2017. We want to target 10% of that revenue, or $2 million. We will sell yearly
memberships for $500 as well as charging for luxury galas ranging from $200 - $1000 a ticket.
Our product line will aim to simply break even in the first year. We will target sales of 3,500
memberships, for a total of $1.75 million in revenue for year one. An additional $250,000 in
revenue will be generated through ticket sales for events. Assuming an average ticket price of
$600 we would need to sell 417 tickets to achieve our revenue target. We will target 3 events
throughout the year with an average of 139 people per event. For year 2 we are assuming a
10% increase in revenue, the equivalent of $1,925,000 in revenue from memberships, requiring
sale of 3,850 memberships. $275,000 in revenue from events will require sales of 459 tickets,
an average of 153 people per event. Product revenue will target $100,000 in year 2. Total year
2 revenue will be $2.3 million. For year 3 we will target a 20% increase or $2.31 million in
membership revenue, requiring 4,620 sales. Events revenue will be $330,000 from 550 ticket
sales. Again assuming 3 events a year, this is an average of 183 people per event. Product
revenue will target $120,000. Total year three revenue will total $2,760,000.
Connection. We are a very connected business, keeping in touch with our clients and partners.
As a new business in the industry it is very important that we stay connected with our clients as
they are our main priority.
Visionary. We are the cutting edge business in the market. Vision is our view of the future.
Vision is the portrait of our hopes and dreams. It is our mental picture of what is to come.
Powerful. We are a business that is recognized as elite by the whole industry. With our
knowledge and connections, we create the experiences no one else can.
Business Name:
In the world of weather phenomenon, a “Green Cloud” is known to be a warning sign that a
powerful tornado may be present. The name Green Cloud Events projects that we are a strong
upcoming business in the industry, ready to takeover the Cannabis market as it grows in power
and influence. We chose our logo to provide a visualization of our company's purpose: To
create visionary events.
Service/Product Mix:
Green Cloud will be offering both products and services to its clientele, 80% of the business
focus will be on Events and 20% will be on a limited line of products. The first year we will have
3 events and will sell 3 different products at each event. Our beginning product line will have
cannabis oil, rolling papers and a cannabis brownie. Technology will be one of the main focuses
for Green Cloud. Areas of the business that will use technology are on both the product side
and the events that will be organized by Green Cloud. Technology also brings improvement in
the effectiveness of extraction technologies which can reduce our cost of goods as time goes
on. Technology will also increase the variety of delivery methods and speed up the activation
and timed release of cannabinoids, offering customers new experiences. With technology on
our side Green Cloud will be able to create new products and offer new experiences to set
ourselves apart. We will target 3 events a year in April, August and December. The product line
will be offered exclusively through events at first, with potential expansion to website sales in
later years.
Pricing:
The recreational marijuana market is estimated to be worth $6 billion dollars a year. Our plan is
to sell yearly memberships for $500 as well as charging for luxury galas ranging from $200 -
$1000 a ticket. Membership will grant members discounted tickets to events, draws for free
Distribution:
Distribution is direct from Green Clouds to the cannabis end-user, but Green Clouds is acting
as an intermediary for several products that come from the manufacturer and other products
from our partner Aphria. We will receive delivery of cannabis oil and brownies from Aphria. Our
papers will be made by Canadian Lumber Co, a rolling paper company, and branded with our
logo. Green Cloud will be distributing our products to events that we will organize, using
different venues. All products will be coming from Green Cloud’s head office which is located at
205-100 Mural St Richmond Hill ON. Clients who order products from Green Cloud will have
the option of picking up the products from Green Cloud’s head office.
Promotion:
Green Cloud is a luxurious company that is focused on Cannabis related events services. We
are a private company targeting 40 to 65 year old who have experience in the cannabis industry
or are looking to invest. In order to promote our events and services, e-newsletters will be sent
to our prospective clients through email. Our events and services will also be promoted through
our partner company Aphria to increase our target market. We will promote our own brand at
the annual Lift - Canadian Cannabis Awards, to reach our target market on a larger scale. This
event will promote our name to the cannabis enthusiasts that are always looking for what is new
in the market and what is trending. Cost of advertising with Lift will be $10,000 yearly. We will
use our website for the focus of our promotion. On site promotion will take place during our
grand opening event where our products will have Green Cloud logos on them and will be given
to our clients as free samples.
Promotion Evaluation: Green Cloud will evaluate its promotion methods by engaging with
guest who have our memberships and VIP memberships by asking them to take surveys and
answer questions regarding our product and services that we have offered to them. This will be
done twice a year so that we are able to keep up with our customers needs. This will help us
create an analysis on the type of service that will make our clients happier.
Green Cloud Events is located at 205-100 Mural St. in Richmond Hill, ON. We will be renting
office space within the building and will be renting office furniture through the building
management company. Our computers will be our own personal laptops. We will require phone
and internet connections within the office with wifi enabled. We have two offices, and a
reception area. The total size is 730 square feet. We also need to purchase 2 microwaves, a
small fridge and a color printer. A company van will be required for events, we will rent a
Leased Vehicle
Rental Vehicle
Floor Plan
Logistics:
For our line of products, we will receive cannabis products from Aphria which we will brand with
our own logo. Rolling papers will be delivered from Canadian Lumber Co. We will maintain a
minimum 100 units of each product and reorder 300 units each time inventory falls below 150
units. Over time these numbers will be adjusted to maintain lower inventory levels based on
improved speed as the system is developed. In the beginning all sales will be done through our
events, so no shipping is required on our part.
Our primary focus will be on providing luxury marijuana related events through our
memberships and ticket sales. We will need to work closely with a variety of food and beverage
vendors, venues, and entertainers to make sure we are keeping up with the trends and
providing the best possible experience. Events will be developed by Randall with consultation
from the whole team. From there a plan and budget will be created and vendors will be
contacted.
We will use venues that hire temporary staff including servers, bartenders and performers as a
part of the cost of the rental. Assuming a cost of $5000 per 100 guests, rental cost will be $50 a
person. At an average of 139 guests per event, each venue rental will cost an average of
$6950. For three events this will total $20,850. We will need to have legal counsel for the
partnership agreement, at a cost of $5000. Accounting services will be required at a cost of
$2000 yearly.
All Cannabis products will be provided by Aphria or Canada Lumber Co and sold at event
venues. For liability reasons we will not allow marijuana or cannabis products not provided by
our company. We will begin with existing Aphria products rebranded with our logo with the
option for customization based on the success of the brand. Cannabis provided at events will
have an estimated cost of $10 a gram based on figures provided by the Ontario government.
Our costs for providing marijuana at events, based on an estimated amount of 500 grams per
event for 3 yearly events will be $15,000. Quality control for the products will be provided by
Aphria with a visual inspection done by our personnel when receiving deliveries. The success of
events will be gauged through member feedback, including comment cards, online surveys and
direct conversation at events.
Systems:
We will be using Microsoft Office, including Word to create contracts and proposals, Access for
our client database, Excel for our financials and Outlook to communicate with our clients and
vendors. We will use the WorkFront software to manage all projects. We will need Adobe
Photoshop, Adobe Design and Adobe Acrobat for marketing campaigns and other graphics.
Organization:
● Rocio Correa, as CEO, will be responsible for managing all aspects of the company
while developing the vision for our brand. She will also handle accounting.
● Randal Liu, VP of Operations, will be managing the projects and handling logistics.
● Apolina Mukungilwa, VP of Marketing & Public Relations will be managing all the
marketing campaigns as well as handling member issues and all media releases.
● Aslihan Arikan, VP of Business Development will be working on developing new
members as well as overseeing the company product line.
The owners will not take a paycheque in the first year, but will each receive a percentage of
sales based on their ownership agreement. Salaries will be established in the second year
based on company performance.
Regulations:
Our office space will be maintained to appropriate codes by the building management. For our
products we will need to comply with Health Canada regulations on the sale and consumption of
each item. We will also need to ensure that Aphria is maintaining the standards required in the
Finance
Balance Sheet End (Year 1)
ASSETS
CURRENT ASSETS
FIXED ASSETS
Equipment $1,820.83
LIABILITIES
CURRENT LIABILITIES
COSTS
EXPENSES
Rent $21,540.00
Utilities (internet/phone) $1,452.00
Equipment Lease $2,400.00
Car lease for 12 months $12,456.00
Van rental cost $1,350.00
Insurance (Car and Business insurance) $3,000.00
Depreciation expense $179.17
Accounting Services $2,000.00
Car Maintenance and fuel (80/week) $4,460.00
Legal fees $5,000.00
Advertising $10,000.00
Trademark $450.00
Supplies $2,400.00
NET PROFIT
The beginning of a new industry is always an exciting and challenging time. GC Events plans to
jump into the cannabis market at the very beginning, offering something new and exciting. It is
our hope that with modest startup costs and a key partnership with an industry leader we can
launch a successful and growing business.
In year one we will keep our risk and costs lower by renting or leasing wherever possible. Our
office, cars and furniture are all rented for modest fees and flexible terms. The key of year one
will be to save on everything possible, the 4 team members will need to invest large amounts of
their own time to make the business successful. Outreach to prospective clients and engaging
In year 2 we are projecting to have a large amount of equity in the business. At this time we will
need to carefully re-evaluate and plan our next steps. We are estimating a 10% increase in
revenue for year 2, with our product line also beginning to generate a profit. A choice will also
need to be made about hiring additional employees, as until this time the 4 team members are
the only dedicated staff we have. Our focus in this year will be on developing industry
relationships, with an eye towards serving as a keynote speaker at various cannabis events to
expand our exposure. A larger office may also be purchased at this time. Our goal will be to
build the equity in the business with an eye towards expansion.
In year 3, with an estimate of 20% revenue growth we will continue to plan for our expansion.
The next market we will be targeting is in British Columbia, in particular the Vancouver area.
The build up equity in the business along with additional revenue will allow us to absorb the start
up costs of establishing ourselves in a new market. Likely there will be additional cost as we hire
a team to handle any B.C. business we do. We will also recommit to working with current
suppliers, perhaps pushing for customization of products based on our loyalty and success.
Complete repayment of our loan to Aphria in this year will also give more financial flexibility.
Year 3’s focus will be on expansion and establishment in our new market along with steady
growth in our Toronto area business. With two locations online we can turn attention to year 4
and more aggressive expansion.
Sources Of Data