Total production will depend on the strain selected, the growing method used, and how well growing conditions are controlled. Total revenue will depend upon the weight and the variety of marijuana grown. The most potent marijuana, with the highest retail price, does not necessarily produce the greatest amounts. There are some varieties that produce in huge abundance but are not as potent or as fragrant, so they don’t command the highest price per pound.
Roughly, there are three options to grow cannabis: outdoor, indoor and greenhouses. Outdoor cultivators produce one harvest per year in the fall, whereas indoor cultivators produce year-round and can generate between 4 and 6 harvests per year. Greenhouse cultivators combine elements of both – exploiting natural light, while leveraging infrastructure and technology – to produce between 1 and 4 harvests per year, though sophisticated, well-equipped greenhouses can run year-round on schedules analogous to indoor production.
As the cannabis industry grows, so does the competition and the investment needed to start. Most states require an address on the application of where you intend to set up your facility. This allows the licensing committee to verify the location meets all the requirements and restrictions. However, this also means you will need to have the place rented out or purchased before the application is submitted.
The following scenario assumes a company sets aside 3,600 sq ft space for growing marijuana. As with the other financial examples, these numbers are examples only to demonstrate what might be a typical result. These numbers demonstrate the profit potential in marijuana cultivation.
Generally, these structures use little energy. Heating can be as simple as installing natural gas root level blowers. A blackout system may be used to ensure the ideal 12-hour cycle for flowering, but also used to keep heat in at night. Water systems that run on pump and reservoir systems can be upgraded to water filtration add-ons depending on water quality.
You’ll follow these simple steps:
Research genetic strains acclimated to your particular area. Something that grows well in one area may not grow well elsewhere. Learn about conditions that may arise and strategize. Plan and test your methods so you can learn from your mistakes.
This year has also offered an exclusive perspective on the issues Canada’s legal market has faced including less local demand, a still persistent black market, over-building, and an almost non-existent export market.
Crowdfunding, self-funding, or family and friends can be a good option
However, if you’ve never sought investment before, and if you don’t have a proven track record, your odds of raising significantly decrease, and you will likely be looking at your sources as crowdfunding or from friends and family .
Be realistic about the time it takes to sell. Harvests can be unpredictable. Sometimes, the harvest date may be later than expected. Plan for delays in every stage, and be sure not to shorten trim and cure time.
Deciding your business’ grow method is exciting. Nevertheless, it is critical to know your environment and its growing patterns before settling on the grow operation that’s right for you.
Create a business plan and strategy for your cannabis cultivation company
As laws have changed, the legalized marijuana playing field has changed as well. Some states, like Michigan, have developed regulations to appeal to smaller growers. Restrictive limited-license states like Nevada, Florida, and New York have become more attractive to already licensed owners, and newer businesses would likely have to buy an existing license. Look for funding opportunities in states with easier regulations
Plan to be able to tolerate at least a year of growing before harvesting a few abundantly producing plants. These will be your cash crops. Pheno-hunting and acclimating plants to the environment takes time.
This refers to your total available market (TAM), segmented available market (SAM), and share of the market (SOM).
Your financial plan helps you track your finances so you can accurately gauge your business’s performance.
Competition and competition matrix
There are also a wide array of ancillary businesses you can enter. These include delivery, advertising, paraphernalia, and more. These businesses can sometimes be more lucrative—they do not deal directly with cannabis so they are subject to fewer regulations. A number of cannabis tech companies have also begun to take advantage of the opportunity in the marketplace.
Consider your plans for labeling and packaging your product, and establish an inventory system.