Financial Forecasting & Budgeting
Where the business is going, expressed in numbers you can act on and defend to a lender.
Where the business is going, expressed in numbers you can act on and defend to a lender.
What's Included
Why This Differs In Cannabis
Forecasting in a maturing cannabis market has to account for price compression as a base case rather than a downside — markets that opened at premium pricing have consistently compressed as license counts grow. A forecast holding today's prices flat for five years is not optimistic, it is wrong.
The tax line compounds it. Under 280E, taxable income moves differently than book income, and a forecast that does not model both separately will misstate cash requirements in the years it matters most.
Price compression is the base case, not the downside.
Why MCA
We have served licensed cannabis operators since 2015 — one of the first firms in the country to build a practice around it — and we have worked with more than 100 operators across 30+ states. Cannabis is all we do, and all we have ever done.
Frequently Asked
How is this different from projections?
Largely the same discipline. Projections are typically a fixed deliverable, forecasting is ongoing and updated.
What time horizon?
Three to five years typically, with detailed monthly cash flow for year one.
Do you update these?
Quarterly if you are on an ongoing engagement.