Any craft/commercial legs growers on here? Advice needed

[hotrodharley]

What If I just want to sell direct to dispensaries. You need multiple licenses for all the other stuff and I'm not trying to get into that much.

You’ll need a cultivators license. Now check on the required security measures and the 24/7 video surveillance of absolutely every corner of your operation. This goes to the state so good broadband required. Also odor control. Anyone snickering at that hasn’t received a citation for detectable odor outside the boundaries of your property. In Alaska they pay $50 an ounce for bud and $15 an ounce for everything else you retain. This is before you can ever offer it for sale. Plant material that’s trash? Duly recorded and into a locked garbage container outside. With a dedicated video camera on this dumpster.

This is just the crap off the top of my head.

 

[xtsho]

"Do you all think it's possible to break through as a new startup in this industry."

No

 

[Armyofsprout]

You’ll need a cultivators license. Now check on the required security measures and the 24/7 video surveillance of absolutely every corner of your operation. This goes to the state so good broadband required. Also odor control. Anyone snickering at that hasn’t received a citation for detectable odor outside the boundaries of your property. In Alaska they pay $50 an ounce for bud and $15 an ounce for everything else you retain. This is before you can ever offer it for sale. Plant material that’s trash? Duly recorded and into a locked garbage container outside. With a dedicated video camera on this dumpster.

This is just the crap off the top of my head.

Yeah that much I know. The business license here is around 30K. I was thinking of leasing a small space that's willing. And trying to get together maybe 200k thru investors and personal loans etc to startup and cover ffe and rent. Not trying to do super large but maybe around 1000-2000 Sq ft.

 

[Armyofsprout]

Geez you all have no hope anymore lol

 

[xtsho]

Geez you all have no hope anymore lol

Well when the industry is evolving into billion dollar companies there isn't much room left for newer startups on a shoestring budget to even get their foot in the door. Even if you do get a grow going what are you going to do with the weed you grow? You can't just walk into a dispensary and expect them to buy it. Most already have agreements with suppliers. Are you going to also put up the money to open your own dispensary? Because you're going to need an outlet for the weed and opening a dispensary requires different licenses and a storefront with additional costs.

Taking a personal loans out to start a grow op at this stage in the game is a fool's errand and an almost guaranteed way for someone to find themselves in debt with nothing to show for it. Not to mention the unhappy investors that will likely never see any return on their money. 200k is nothing compared to the billions being put into the industry by big players that can, have, and will continue to undercut the smaller guys and drive them out while they consolidate the market into a few large multinational megacorps.

How are you going to compete with the giants out there?

"Emerging marijuana giant Curaleaf Holdings says it will pay $875 million, mostly in stock, for Chicago cannabis company Grassroots. Curaleaf claims the deal will make it the largest marijuana company in the world.

Wednesday’s acquisition is the second blockbuster deal for Massachusetts-based Curaleaf this year. In May, it announced plans to buy Portland’s Cura Cannabis in an all-stock deal initially valued at nearly $950 million."

https://www.oregonlive.com/business/2019/07/curaleaf-says-it-will-be-worlds-largest-cannabis-company-after-875-million-deal.html


If you proceed I wish you the best of luck but I don't see a happy ending with this endeavor.

 

[Psychonautic83]

What If I just want to sell direct to dispensaries. You need multiple licenses for all the other stuff and I'm not trying to get into that much.

This is pretty well covered now, as is said the illegal market is still there if your a skilled grower charging reasonable prices. Your customers will appreciate being able to skip the 25%ish state tax.

 

[leather lungs]

Good luck with your venture!!! But reality sucks...

 

[hotrodharley]

Geez you all have no hope anymore lol

I was enticed to move notth of the Alaska Range. This guy had all the financing but wouldn’t say exactly how much he had access to. Sharp business guy who made a lot of money in the scrap business in California. They needed a grower who was an Alaska resident.

He pulled out before we even got started after discovering the $100K he had pegged for it would barely get a building. Much less get us on line.

He had consulted with a lawyer here and the state licensing board.

“Goddamn it’s going to set us back almost $500K before we can even harvest any. Let’s do this illegally”

I have an idea. Let’s not. He went back to California. Blew all his money before they went legal.

 

[Armyofsprout]

I was enticed to move notth of the Alaska Range. This guy had all the financing but wouldn’t say exactly how much he had access to. Sharp business guy who made a lot of money in the scrap business in California. They needed a grower who was an Alaska resident.

He pulled out before we even got started after discovering the $100K he had pegged for it would barely get a building. Much less get us on line.

He had consulted with a lawyer here and the state licensing board.

“Goddamn it’s going to set us back almost $500K before we can even harvest any. Let’s do this illegally”

I have an idea. Let’s not. He went back to California. Blew all his money before they went legal.

Ha! 500k sounds reasonable. If I could get going for that I'd do it.

 

[xtsho]

Good luck even getting a license. They are not issuing many at all in Illinois. I guess they saw what happened here in Oregon where they gave them out like candy.

https://www2.illinois.gov/IISNews/19996-Adult_Use_Cannabis_Summary.pdf

WAVE 1 •
Department of Financial and Professional Regulation o May 1, 2020: The agency awards licenses for up to 75 new dispensing organizations •

Department of Agriculture o July 1, 2020: The agency awards up to 40 licenses for processors, up to 40 licenses for craft growers, and licenses for transporting organizations. 4 §

WAVE 2 •
Department of Financial and Professional Regulation o December 21, 2021: The agency awards up to 110 licenses for new dispensing organizations •

Department of Agriculture o December 21, 2021: The agency awards up to 60 licenses for craft growers, up to 60 licenses for processors, and licenses for transporting organizations. o

Licensing costs for new entrants to the market §

Craft growers • Non-refundable application fee $5,000 • License fee $40,000 §

Processors • Non-refundable application fee $5,000 • License fee $40,000 §

Transporting organizations • Non-refundable application fee $5,000 • License fee $10,000 §

Dispensing organizations • Non-refundable application fee $5,000 • License fee $30,000

So even if you get a license you'll have used up at least $45k of that $200k. You then need a location where you'll have to commit to a minimum one year lease, invest in security, a system and software for tracking everything, grow equipment, You'll need employee's so you'll have payroll to make for months before you'll even have any product, etc... You'll burn through that $200k in no time and if anything goes wrong you're SOL. If everything goes right and you make it to your first harvest you will then have to find buyers for your weed which will be difficult in the legal market coming in as an outsider.

 

[xtsho]

You're going to need one of these

I may sound like an ass but I'm just trying to save you some pain. There is so much money being thrown at this that unless you have deep pockets or connections they won't even let you play.

And in Illinois they are giving preference to those that already had medical licenses. Even if you could raise the money the chances of getting a license are slim to none.

Keep the day job and have fun growing for your personal use. Make it interesting and start breeding. The chances of you being successful pursuing a cannabis business at this stage with your limited resources makes this an endeavor not worth undertaking. Like I said, I'm not trying to be a jerk but just a realist. We all have dreams. But we all wake up.

 

[Armyofsprout]

You're going to need one of these

I may sound like an ass but I'm just trying to save you some pain. There is so much money being thrown at this that unless you have deep pockets or connections they won't even let you play.

And in Illinois they are giving preference to those that already had medical licenses. Even if you could raise the money the chances of getting a license are slim to none.

Keep the day job and have fun growing for your personal use. Make it interesting and start breeding. The chances of you being successful pursuing a cannabis business at this stage with your limited resources makes this an endeavor not worth undertaking. Like I said, I'm not trying to be a jerk but just a realist. We all have dreams. But we all wake up.

Sign. It doesn't hurt to dream. Maybe one day soon all this will come to fruition when the politicians get their head out of their asses

 

[Armyofsprout]

I think it'll calm down in a few years when the pressure is off and more recreational laws pass. I can see federal laws changing in 3-5 years. The presidents need to get behind it.

 

[DoubleAtotheRON]

I'll chime in and give you some insight as far as Oklahoma goes. We run a 600 sq ft grow op. Craft bud only. This is a new buildout inside of an existing 30x40 steel building. The rest was renovated into a processing room. Oklahoma law is NO lic. limitations. You can have a grower, Dispo, Processor, Researcher, or Transport lic. for $2500 each year. ... $500 a year to the Oklahoma Bureau of Narcotics. So far, in the past year of legalization, we have around 4300 lic growers, but!... not all of those are operational. My estimate is about 20%. It does cost to start up, and you WILL need cash.. and only cash. You cannot get a loan for anything remotely related to the Federal ties, and that includes banks. Full on build out for 600 sq ft was around $60,000. And that was without an existing steel building.. add another $30,000.00 and we own it outright, including the 12 acres of land. I don't know why IL. has such high fees for lic, but every State is different.

 

[Armyofsprout]

I'll chime in and give you some insight as far as Oklahoma goes. We run a 600 sq ft grow op. Craft bud only. This is a new buildout inside of an existing 30x40 steel building. The rest was renovated into a processing room. Oklahoma law is NO lic. limitations. You can have a grower, Dispo, Processor, Researcher, or Transport lic. for $2500 each year. ... $500 a year to the Oklahoma Bureau of Narcotics. So far, in the past year of legalization, we have around 4300 lic growers, but!... not all of those are operational. My estimate is about 20%. It does cost to start up, and you WILL need cash.. and only cash. You cannot get a loan for anything remotely related to the Federal ties, and that includes banks. Full on build out for 600 sq ft was around $60,000. And that was without an existing steel building.. add another $30,000.00 and we own it outright, including the 12 acres of land. I don't know why IL. has such high fees for lic, but every State is different.

see that's not bad at all. And the reason for Illinois laws is because it's been run by crooks ever since the AL Capone days all the politicians are crooked. You should see the money the state makes off bogus parking tickets and city sticker tickets it's insane. The costs of everything here is insane and the laws are mad unjust which is why everyone wants OUT of Illinois. The politicians want to ensure that the money ONLY touches their hands and no one else's. They want the poor to stay poor. I'm Highly considering going to another state where the costs aren't as much to grow. See for what you're talking about in oklahoma that's definitely doable.

 

[DoubleAtotheRON]

see that's not bad at all. And the reason for Illinois laws is because it's been run by crooks ever since the AL Capone days all the politicians are crooked. You should see the money the state makes off bogus parking tickets and city sticker tickets it's insane. The costs of everything here is insane and the laws are mad unjust which is why everyone wants OUT of Illinois. The politicians want to ensure that the money ONLY touches their hands and no one else's. They want the poor to stay poor. I'm Highly considering going to another state where the costs aren't as much to grow. See for what you're talking about in oklahoma that's definitely doable.

Yes.. for some people, it IS doable. I had a career for 32 years up until the 1st of August. I got fired for owning and operating a Cannabis grow op. .. it's ok tho, I've spent many years preparing to retire, but I just didn't plan on doing it this early at 51, but Im done!.. and quite happy about it!

 

[Armyofsprout]

Yes.. for some people, it IS doable. I had a career for 32 years up until the 1st of August. I got fired for owning and operating a Cannabis grow op. .. it's ok tho, I've spent many years preparing to retire, but I just didn't plan on doing it this early at 51, but Im done!.. and quite happy about it!

Fuck em relax and get that legal cannabis money. I wish I could right now.

 

[DoubleAtotheRON]

Fuck em relax and get that legal cannabis money. I wish I could right now.

Best advise I can give is to move to a State that is coming on to legalization. Watch the news and pay attention... and save some cash.

 

[DoubleAtotheRON]

Brother, you already see the light. Now hear this - the rich fuckers CANNOT GROW! They know money. All about it but none have ever risked the family name of reputation taking part in years of illegal activity. Growers get a “contract” that’s unenforceable for anything. Therefore they are underpaid and fired at will.

@hotrodharley Brother, I have seen this first hand here in Oklahoma. Big boys think they want to play in the legal Cannabis industry and they fail. They end up paying some jackass from CO (no offense) $100,000 for 90 days to come "consult" about their grow op. They spend 90 days here giving general directions equivalent to growing tomatoes, and then disappear back to the Rocky Mountains. That's some funny shit.

 

[hotrodharley]

You're going to need one of these

I may sound like an ass but I'm just trying to save you some pain. There is so much money being thrown at this that unless you have deep pockets or connections they won't even let you play.

And in Illinois they are giving preference to those that already had medical licenses. Even if you could raise the money the chances of getting a license are slim to none.

Keep the day job and have fun growing for your personal use. Make it interesting and start breeding. The chances of you being successful pursuing a cannabis business at this stage with your limited resources makes this an endeavor not worth undertaking. Like I said, I'm not trying to be a jerk but just a realist. We all have dreams. But we all wake up.

It’s been over 2 years here since bud started being sold legally. There’s already a list of growers behind on the tax, there’s a backlog of applicants and there’s already at least 7 that have gone tits up. The above is pretty sound advice.