Considering building a 30x42 metal bldg on my property. I’m legally zoned. Inside build out with flower and veg rooms. Other smaller rooms. Mini split hvac systems and 16 led lights in flower room. (600w). 2 month perpetual cycle. Medical MJ just approved here. Very strict requirements.
Should I pursue this? Funding in place.
Would a 16 light craft grows be profitable enough? Conservative 80-100 pounds a year estimated. Flower only. Grow consultant involved. Expandable to 32 lights total with complete build out of interior.
That’s a good place to start. If you need info about lighting your space, you might want to check with @dbrn32 He can probably lead you in the right direction as to whom to ask about other questions you may have as well. Good luck!
I have no idea what expected revenue would be in your market, but very few of these are extremely profitable in my area. It’s assuming all of the risk and liabilities of grow without any guarantee of having a marketable and profitable product. You will most like have to compete with big pharma portion of cannabis market in that they will have multiple cultivation, processing, and dispensary licenses. So they can choose to grow and process their products without profit and take all of their money when it goes to end consumer. It’s extremely difficult for the little guy to be competitive with how most of the states have their laws written.
@PurpNGold74 is pretty familiar with this stuff and may have more precise info.
This is the kicker. We have no idea how things will shake out in 2-3 months.
But just for the heck of it…
18 x 18 is 328 ft ². Should be small enough even with the veg area to get the smallest license. Thatll be about $2500 first year licensing and ~$1000 a year after. Covering insurance… i cant even get into as im not really sure but itll possibly be your biggest starting cost.
If u can make ALL that 328ft work? I can see you getting about 80 plants CRAMMED into it. If u grow them perfectly? 6-8 oz a plant. 80 x 6 480 oz every 2 months (if ur rolling the veg into flower and can stagger a harvest a month, ull either lose some space or time somewhere, so I just said 2 months).
Now the big question is… how will supply and demand effect your cash per oz. if they are saling it mainstream for $400 an oz, u shouldnt be expecting half… u know our state government… think $125ish if we lucky.
125 x 480 = $60000. Every 2 months.
Take into account the cost of leasing the building, electricity, insuring, security (also gonna be a biggie) and eating most of those costs until month 3-4ish… im sure if you could make it to two harvests and have everything break perfectly… you may see a slight profit. The thing is like Rob said, big companies can laugh at those upfront costs and drop their initial sale prices to wreck the little guy.
And all this is very very loose and general. With stoner math so try not to quote me.
Ill ask around n see how the insuring and security rates are looking.
Our restrictions are such that only residents for at least 3 years can license. Grow or dispensary. I’m hoping to find a niche with craft strains as I definitely understand the big boys can bury you quick. I do have the advantage of extremely low overhead as the bldg will be mine, on my property. My buildout will be considerably less than typical.
But, if price is driving the market I understand you must have buyers, no doubt. My understanding is that most of the good bucks are made in new areas the first 2-3 yrs, then prices drop and stabilize as inventory builds.
Still doing my do diligence and not in a rush at this point.
This is correct in most states. Im hoping the same is true here. But tbh? The only indoor growing will probably keep prices high and profits high a bit longer here. If outdoor was an option, it would help patients costs and probably stabilize profits, demand, etc in a couple years
I doubt seriously that our state will ever legalize outdoor grow or recreational. Been living here my whole life.
With the consulting help i am considering, i believe i will be able to harvest 1.5 pd per light/unit AFTER EVERYTHING IS DIALED IN. I would also have enough space in the bldg to double the the grow and veg areas. Not to mention the vertical possibilities.
Its so asinine though. We grow all kinda stuff outdoors. Heck 60% of the state is farmland (lowballing haha). But we cant grow THE CASH CROP outside? Assbackwards indeed
And that 1.5 is definitely doable, but u gotta keep inmind, every grow wont be without bumps. One mold infection can wreck whole rooms and humidity this morning was 96%… or one weak cutting could make a table $5 a gram dirt… gotta plan for the pitfalls and lowball ur estimates every turn. Anything over that, is house money
Yep. But our backasswards state probably won’t approve it until other states ruin our market. I see interstate sales happening b4 outdoor grow. Maybe greenhouse can get an approval?
This what happens when government gets involved in things. And the main reason i have always suggested we need to be careful what we ask for. These politicians aren’t making weed legal, they’re making it acceptable to buy from them.
Btw, I don’t have visions of getting rich. My wife is abt to retire and she has the green thumb, i the business experience. I will continue with my regular work and will until I see enough profits to also retire. No doubt there will be tons of work to do, especially if we hit phase 2.
Until the big boys really ramp up they will have a hard time supplying there own dispensaries, then wholesale will follow shortly. Independent non grow dispensaries will have to buy from somewhere, and many will want craft grown versus production warehouse produced
If we can net 100k a year and both retire then that will be a win. Hoping for better, but I’m pretty conservative.
I think you have enough in your favor that it’s worth digging into. I think for me to feel good about it i would need to be confident that my initial investment would be more than covered in those first 2-3 years. Even then doesn’t keep a megafarm from just bringing on a resident and starting to build through them. For all intents and purposes these companies have unlimited funds and can do what’s they want but they’re also slow and clunky about everything. I would 100% expect them to start putting squeeze on craft grows once they start moving in.
