Any craft/commercial legs growers on here? Advice needed

So my state is legalizing cannabis next year and of course everyone is excited for it. Myself and a few friends are serious about wanting to jump into the mass cultivation business and maybe get like a warehouse and put together a startup, but the costs are astronomical. My state is like 30K alone just for licensing and application fees. That's just to apply! That's not gonna even include equipment and furniture, warehouse rent, security, etc... Then they require a certain number of employees at a certain level etc there's just a numerous amount of BS that's required in Illinois. We planned on getting a business plan together after we do our research and possibly trying to acquire fundings and loans because we are broke lol. And we really didn't want to staff a bunch of employees. We just want to keep it at our core 4-5 people who would be the split owners.

Do you all think it's possible to break through as a new startup in this industry. And for those who are in the business of craft or commercial growing what advice do you have. Any advice is appreciated whether it's funding, equipment, legal, staffing.

How much capital is actually required for something on the smaller scale maybe 2000 Sq ft?

What kind of grows do you have and whats the Sq footage?

What kind of equipment would you recommend?

What's your staffing like?

What's your monthly spending and monthly profit like?

There's just so many questions that there's no public info on that I'd like to ask. I'm really passionate about this and want to do this for life.


Thanks.

Have you all established a LLC yet.I wouldn't think they would license to 5 individuals.

Schwagg#12 said:

Have you all established a LLC yet.I wouldn't think they would license to 5 individuals.

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Haven't done anything yet. Looking for advice first before making any moves. But we could come down to once licenser and the rest would just be equal investors. However we have to work it out is fine.

I think the main struggle would just be getting funding.

Schwagg#12 said:

Have you all established a LLC yet.I wouldn't think they would license to 5 individuals.

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I spoke to an attorney and he told me I would need 2 million hahaha. His estimates seem crazy but I think he factored in fully purchasing the real estate upfront which I would definitely not do. I would just rent.

Armyofsprout said:

So my state is legalizing cannabis next year and of course everyone is excited for it. Myself and a few friends are serious about wanting to jump into the mass cultivation business and maybe get like a warehouse and put together a startup, but the costs are astronomical. My state is like 30K alone just for licensing and application fees. That's just to apply! That's not gonna even include equipment and furniture, warehouse rent, security, etc... Then they require a certain number of employees at a certain level etc there's just a numerous amount of BS that's required in Illinois. We planned on getting a business plan together after we do our research and possibly trying to acquire fundings and loans because we are broke lol. And we really didn't want to staff a bunch of employees. We just want to keep it at our core 4-5 people who would be the split owners.

Do you all think it's possible to break through as a new startup in this industry. And for those who are in the business of craft or commercial growing what advice do you have. Any advice is appreciated whether it's funding, equipment, legal, staffing.

How much capital is actually required for something on the smaller scale maybe 2000 Sq ft?

What kind of grows do you have and whats the Sq footage?

What kind of equipment would you recommend?

What's your staffing like?

What's your monthly spending and monthly profit like?

There's just so many questions that there's no public info on that I'd like to ask. I'm really passionate about this and want to do this for life.


Thanks.

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You can forget any loans from any institution anywhere. No banking. Get used to it. Everything is cash.

You will have to foot the bill for the facility and all expenses for months before you can ever sell your first gram.

Your facility will require all kinds of mechanical and electrical by experts. Especially the electric.

This is a taste. It’s not for the faint of heart. It’s a rich man’s game. By design. Welcome to legal cannabis. Where huge numbers of eager entrepreneurs are squashed and left holding the bag on any taxes Michigan imposes.

Armyofsprout said:

I spoke to an attorney and he told me I would need 2 million hahaha. His estimates seem crazy but I think he factored in fully purchasing the real estate upfront which I would definitely not do. I would just rent.

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Listen to him. For a limited license 500 square foot grow a person needs about $75 just to get licensed and the lights on. Rent? Get real. I mean get real. It’s still against federal law. Renting to anyone knowingly while they’re operating illegally can usually kick in a clause on nearly all mortgages making payment in full due immediately. Most commercial landlords are buying the building or have a second on it. They’re not going to risk that. It’s common for people to initially get a rental just to have the landlord get real nervous.

Here in Mi that's what they're reporting that is cost abouts 1-2 mil. to get started.

hotrodharley said:

Listen to him. For a limited license 500 square foot grow a person needs about $75 just to get licensed and the lights on. Rent? Get real. I mean get real. It’s still against federal law. Renting to anyone knowingly while they’re operating illegally can usually kick in a clause on nearly all mortgages making payment in full due immediately. Most commercial landlords are buying the building or have a second on it. They’re not going to risk that. It’s common for people to initially get a rental just to have the landlord get real nervous.

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Yeah that's what I figured. Damn that's all a bitch. Rich mans game it is I see

Couldn't you also get a decent sized house tho and get licensed as well and just grow out of there? I mean the risk is higher sure. But if it's your house that's your risk and I may be wrong but I don't believe you have to report your business to your mortgage bank. Then just take the time you need to stack the capital to move to a warehouse from the there.

Guys we need to toss around ideas to get the little guys going lol. Fuck these big corps

I actually found a site that list cannabis rental property and it looks like someone is willing to rent in my city for $1500 a month for a small storefront which is reasonable to me. 900 ft2 from the looks of it but it'll do the job.

https://www.420property.com/listing/brand-new-renovation-storefront-on-historic-irving-park-road/

If you were able to do it in your house and you have a fire your insurance company will deny any and all claims.

Armyofsprout said:

I actually found a site that list cannabis rental property and it looks like someone is willing to rent in my city for $1500 a month for a small storefront which is reasonable to me. 900 ft2 from the looks of it but it'll do the job.

https://www.420property.com/listing/brand-new-renovation-storefront-on-historic-irving-park-road/

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You're wanting to be the wholesaler/grower and retailer?

Schwagg#12 said:

You're wanting to be the wholesaler/grower and retailer?

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Nah just a grower. If I got a small storefront I would just tint up the windows and put no signage up and just use all the space.

Most of your running costs aren't tax deductible (lights, fans, etc etc) because of plant cultivation laws. Due to federally illegal status you can't deal normally with banks or enjoy typical financial protections. I'd be wary, mom and pops are going to start losing everything in Oregon with those overages.

Edit: You will definitely need to own the business vertically to maximize profit margins as prices drop. Split your plants and use bottoms for value added products and have the tops for your top shelf flower. It's going to be tough and competitive. That means you need to have your own lab to make value added products and run the dispensary selling direct to customers.

Psychonautic83 said:

Most of your running costs aren't tax deductible (lights, fans, etc etc) because of plant cultivation laws. Due to federally illegal status you can't deal normally with banks or enjoy typical financial protections. I'd be wary, mom and pops are going to start losing everything in Oregon with those overages.

Edit: You will definitely need to own the business vertically to maximize profit margins as prices drop. Split your plants and use bottoms for value added products and have the tops for your top shelf flower. It's going to be tough and competitive. That means you need to have your own lab to make value added products and run the dispensary selling direct to customers.

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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.

I feel like it's possible for the little guy. Where's there a will there's a way.

@DoubleAtotheRON runs a Craft Bud grow op, though I know little of the details and how it translates to other states.
Maybe ask him about costs privately.

I imagine these folks are right and it takes some $$.

Im reading all the costs and oppotunities for a lover of weed and growing to get involved and tbh im really wondering why you all voted legal,,,

That said why not turn to illegal growing again, use to be you Americans were good at that at some point in history?

Kingrow1 said:

Im reading all the costs and oppotunities for a lover of weed and growing to get involved and tbh im really wondering why you all voted legal,,,

That said why not turn to illegal growing again, use to be you Americans were good at that at some point in history?

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I'm pretty sure illegal growing has gone nowhere lol. It's still vastly around

Armyofsprout said:

Yeah that's what I figured. Damn that's all a bitch. Rich mans game it is I see

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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.