Having a good business plan helps you to realize your vision and follow through your passion. In this episode, Anthony Frischknecht shares some tips on creating a good business plan. Building a company, especially in the cannabis industry, can be challenging and it takes good planning and serious understanding of the whole landscape to be successful. Listen to this podcast episode to learn more about the importance of having a plan when starting your own business.
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Creating A Good Business Plan
I wanted to start working with you on some stuff on your business plan. Everybody talks about these and how important they are. I agree, they are extremely important, no matter how big or how small. I’d like to start with you guys, talking about your vision. Once you see your company and where it’s at or where it isn’t, you may have stumbled into the situation without a business plan and you saw some success and were able to get to this far. You may have seen some huge success or you may be stuck. The vision of where you’re going and ideas of how you’re going to get there is crucial. It’s something that’s going to drive you to success. Money is great but when you don’t have it, it’s not as powerful as a motivator as you think it might be.
I hear people talk about passion as their motivation, which I think is a huge one as well. I learned something about visions. It’s easy to shoot for a goal, understand where it’s at and achieve it. You don’t have the same feeling that you thought you would by achieving that goal. Some of that may have to do with your vision wasn’t big enough. Your plan wasn’t bigger than you. I’ve been guilty of doing this several times. As I progressed in my business life, in my entrepreneurial life, I’m learning more and more about vision and what that matters. For me, vision isn’t a dollar sign. What I mean by that is it’s not, “I want to make $1 million.” What’s going to drive me to achieve something that is way beyond, but my mind will comprehend? It’s been hard for me to stretch like that. It’s easy to set goals that you can attain because you feel you’re getting somewhere and it’s foreign for you to shoot for the moon and hit the moon. There is a saying, “Shoot for the moon. Hit the stars.” That’s a ceiling.
As I contemplate that and think that through, it’s true and it’s limiting me in several of my business ventures. I’m working through that on not setting a limit or a ceiling on where I want to be. However you find it, I think it is your journey and your vision. The vision and passion go together because vision seems to be, one, I see an idea of that’s out of this world that starts building the passion in me. Two, it starts working on things. For instance, this show is something that I’ve been working hard on, yet I’ve never done this before. Some of you out there are probably saying, “We can tell.” To be open to everybody and honest, this is something that is built into my vision for where I want to be. I am doing things that I’d never done before and it’s creating a bigger passion each time I did an episode with you guys. These times in the cannabis industry are extremely difficult. If you haven’t figured that out yet, you will soon.
The reason why I have created this show is to help you guys out there. I have been through so much stuff and many ups and downs. I’m hoping that some of this can resonate with you and you can use this in your day-to-day to build your passion. If I can give you one thing per episode that you can take and use in your business, it would be incredible to me. I have been extremely fortunate and successful in this industry. I feel that there are many others that can. I know there’s a big business and big money guys out there, but there are many more entrepreneurs. I want to create a community of you guys that can work together on projects and opportunities. There are many opportunities in this industry and so much more than one person or one business can attain. If there are people out there that connect from what I am doing, that’s all I want. I want you guys to win because there are many small business owners that become successful. This is a huge drive for me. As I built some of my companies, it was very rare that there was anybody outside of my little circle that was helpful. I like that the times are changing. With the digital information we’re receiving and being able to talk to anybody around the world at any time, it’s truly amazing.Money is great and all, but when you don't have it, it's not a powerful motivator as you think it might be. Click To Tweet
I hope I can reach a few of you guys out there that are having a tough time and you don’t know where to turn. Building that plan and understanding where to start is huge, also understanding why you’re stuck. That has to do with your plan. Get back to this whole thing about your plan and where you want to be. We need to spend some serious time thinking about it. I would even say take a weekend somewhere in the mountains or next to a beach and say, “I’m going to work on my business plan.” That’s all you do. If you’ve got your business partner or I would say even your wife, hopefully she’s supportive of what you’re doing. Don’t bring that into the situation if that’s not the case. I have nothing against wives out there, but it’s challenging enough to be a business owner and start something new without having negative stuff coming in and people trying to shoot down your dream. Work on that plan and for the first year, revisit that plan because it’s going to change. Your business plan is more about being fluid. It’s about pointing you in a direction.
For you out there that are like, “I don’t know what I’m going to do.” It always change, but it’s much better than having nothing. Having nothing is like having a boat in the water without an engine. You can’t go anywhere. You float around. This is another very important step to this process in getting to success. I started several businesses without one. I didn’t get crap from it. Coming down to it is I got a lot of experience, but one of them was you need to have a plan to success and along the journey, things are going to change. It is how it works. It’s not bad though. It’s good for keeping you in the right direction and understanding if this doesn’t fit into my plan, does it fit into anything that I’m doing? Let’s get rid of it. With all the opportunities out there in this industry, it’s easy to get derailed and to see another shiny object. Go to an industry event, there are many bells and whistles out there. If you’re not focused on where you’re headed, it’s easy to be like, “We can do this. What about that? Why don’t we do this? This is making money. Why don’t we do that?” Unless it has anything to do with where you want to go, it’s a waste of your time.
To simply put, it’s wasting your time. We only have so many hours in the day that it makes something happen. You can’t afford to waste your time. Take some time and think about where you want your business to be in 2 years, 5 years and 10 years. Push yourself out to that. I never thought past three years and then I went to five. I’m starting to think about ten years. It’s only because I’ve seen the progress that’s happened. If you’d asked me a few years ago, would I think about ten-year investments or would they think about ten-year opportunities? I’ll answer no. There are very few people in my life that I can talk to about ten-year opportunities. It’s very hard for the human mind to grasp the amount of distance between where you are now and where you are next.Always shoot for the moon and hit the stars. Click To Tweet
When you think about that, it’s ten years. That’s 120 months. It’s understanding how far you want to be. To add that, one of the things that I didn’t learn until much later, what’s your exit strategy? Think about that too. You don’t have to know all the details, but think about what your exit strategy is going to be because that’s going to help you in many ways. You will see if you think about those key points to your plan, you’d be like, “I remember when I was putting this together and somebody brought up an exit plan.” Whether you remember you get it from me or somebody else, it doesn’t matter. That’s a huge part of understanding when it’s time to move out of this into something new or when it’s time to cash your chips in. I talk about this in my book, From Black Market to The Man: 10 Steps To Becoming a Multimillionaire In the Legal Cannabis Industry. If you are interested, go check that out on my website, tonyfrischknecht.com. You can also find it on Amazon, just type in Anthony Frischknecht. Thanks a lot. I’ll talk to you soon.
- From Black Market to The Man: 10 Steps To Becoming a Multimillionaire In the Legal Cannabis Industry
About Tony Frischknecht
Born and raised in Colorado, Anthony always enjoyed the challenge of starting and building a business. That is why it became a natural progression at the age of 25, he became an entrepreneur, with two small construction companies. In 2005, he got his start in the medical marijuana industry in Fort Collins, Colorado, building a small MJ caregiving business, Highway to Healing.
By the time he was 35, he had two dispensaries with sales of $6.5MM annual revenue, including two indoor grow facilities, with a combined 20,000 square feet of production in Denver, Colorado. All four locations consisted of 19 city and state licenses. Anthony then joined a group of five industry leaders and started a successful cannabis brand O.penvape in late 2012. The maker of vaping products and edibles posted a top-line sales of $100 million in 2016 and sells a product every nine seconds. Its busy lab creates over 1 million grams of concentrated cannabis oil a year and it buys 10 tons of marijuana a year. Organa Brands is the only cannabis company with products on the market in 10 states, including at 1,200 dispensaries. Subsequently, Anthony has moved on to other ancillary businesses involving small scale extraction and commercial grow technologies.
If you ask Anthony about his favorite part of this industry? His response, “watching how fast it is evolving. It’s becoming a real industry and getting accepted by many, many of those who used to be skeptics. “ Due to this, we are seeing great leaps in innovation and technology. And this is exactly why Anthony says he is in admiration of this industry.
Anthony has been successful in the Cannabis industry for over 14 years and has been featured on the cover of Newsweek: October 29, 2012; The New Pot Barons and Cannabis Business Times: September/October 2016; Ten Questions