I ask this because if my home state legalizes marijauana and I get a loan from a bank to buy a building and supplies to sell and open a dispensary, would it be a profitable business to be in? Sent from my LM-V350 using Grasscity Forum mobile app
I can say you need a serious amount of study if you ever even try to go commercial a 3-5 years study on horticulture or at least a degree in business ...minimum the only reason why your state will go weed free is due to peer pressure and of course the Tax gathering good luck
You can guarantee by the time its legal the big boys already signed the deals to move in. Either get serious funding from some big hitters or go niche, gastro style like the many breweries throughout Europe do.
You ask so many questions it's kind of funny. This is a forum to learn so I understand. Just kind of funny seeing all the threads. Haha
For sure it's a profitable business. Check this: In 2016, marijuana sales in North America grew by a massive 30 percent, and sales are projected to reach $20.2 billion by 2021.
You're going to need a very large loan. I hope you have a ton of collateral, you're going to need it.
How much would you guess start up would cost for a small commercial operation / and how much square footage would you base that off of?
How am I supposed to know? Evey state is going to be different but it isnt going to be cheap. I worked on one of the first dispensaries here. Probably close to a million for the building not to mention all the licensincing and hurdles they had to jump through...maybe 2mil plus on the low end for a small time dispensary
If you have to ask how to calculate this the bank is probably going to say no. Also they're not big on commies being a capitalist institution.
Also. Remember this starting any. Major financial business, at least I was told this when thinking of making a un iron construction company. 1. If you dont have the million dollars to throw in the garbage dont even try. 2. If it is any type of bidding involved the big cats will almost make it impossible for you because they can lose money at first which a new business owner with loans can not. Different factors play in with growing weed. What happens when all money is spent on setup and initial investment the a major disease or bug infestation hits and runs all crops. No way to bounce back and everything saved through life now gone. Just a couple things to think about. With that being said there are many people who overcome these odds and become successful, hope you are one if you decide to take the dive.
Well said, and appreciated! I’m definitely moving forward. I have another year of two before I pull the trigger on the first major step (hiring a consultant), but I want to have my first iteration of the business plan created and vetted as far as a newcomer can possibly hope to achieve through heavy research and scouting. Money shouldn’t be too much of an issue, I’ve got a good chunk packed away to put in....not enough mind you, but a good head start. Time will tell! Sent from my iPhone using Grasscity Forum
Targeting NJ for the coming months / year, but New England and NY are also in the table as well Sent from my iPhone using Grasscity Forum
Really depends on the rules of the state you are getting into. Generally speaking a growing operation has razor thin profit margins and like everyone has mentioned prior you will need to be able to financially operate about a million dollars in the red for at least a couple of years. Growers rarely make it in this business only growing. You will need to be vertically integrated otherwise the competition will more than likely push you out. Keep in mind that there are cannabis companies that have been doing this for over a decade legally and a portion of them are in every legal state Growers have been doing their thing for generations.