wanting to start, have 2.5 mill capital ...

Hi guys,

got funding for 2.5 mill, can get up to 3 if need be, but looking for info one some basic things:

-what is usual payback time, as in how long does each mill take to receive back in profit?

-maybe there is a simple count of light per pricing, but looking to see what is usual cost per lamp for the building construction, from my view point the highest asset is the building laying out correctly

-whats you point of view for state that has the best place to set down roots?

-the competitors, what is the usual competitor? huge investors, or small guys trying to make it big time?

-what is the usual layout of big investors, how many millions do they usual invest?

-has anyone looked into the future to see when flooding the market happens, and what will happen to all the businesses?

-thoughts off the top of the head how many lights 2.5 million is gonna do? I was thinking 200 as the building is going to be the main costs with plumbing, electrical, HVAC, and such.. and when I say this not some cheap shit put together ram shackle, something that would be featured in forbes for " professional operation" sorta build,,



I have some ideas to save money such as electric bills, but I am a closet grower wanting to go big, bu have to see how the investment side runs and if it is worthwhile to get into the game, love growing but never run something like this ever

thanks

from closet to 2.5 mill grow,,, yowza good luck dude, sounds like you have some opportunity, hope ya get it figured out, stay safe.

im subbed if nothing else to add

habeeb said:

Hi guys,

got funding for 2.5 mill, can get up to 3 if need be, but looking for info one some basic things:

-what is usual payback time, as in how long does each mill take to receive back in profit?

-maybe there is a simple count of light per pricing, but looking to see what is usual cost per lamp for the building construction, from my view point the highest asset is the building laying out correctly

-whats you point of view for state that has the best place to set down roots?

-the competitors, what is the usual competitor? huge investors, or small guys trying to make it big time?

-what is the usual layout of big investors, how many millions do they usual invest?

-has anyone looked into the future to see when flooding the market happens, and what will happen to all the businesses?

-thoughts off the top of the head how many lights 2.5 million is gonna do? I was thinking 200 as the building is going to be the main costs with plumbing, electrical, HVAC, and such.. and when I say this not some cheap shit put together ram shackle, something that would be featured in forbes for " professional operation" sorta build,,



I have some ideas to save money such as electric bills, but I am a closet grower wanting to go big, but have to see how the investment side runs and if it is worthwhile to get into the game, love growing but never run something like this ever

thanks

Click to expand...

the part in bold is what stands out for me most.

theres always a lot of threads like this, people who wanna start a massive op and seem not to know how. its kinda like wanting to be a professional football player then asking everyone where you should kick the ball.

best advice would be to work yourself up from a closet first, small steps.

Well to start you have to intellectually systemize what you do in such a way it can be scaled and labor delegated (which may find is not reasonable at some point).

If you expect to spend 7 + figures on something you are not familiar with you have a huge learning curve and will need to fill it via an adequate and worthwhile consultant who can create an operating environment and the procedures to run it that you will be able to manage.

Once you determine your operation and workflow requirements you can put together an adequate business plan, but imho at this point you don't even have proof of concept, i.e. can your capacities scale to perform relatively equal to how you perform now.

I think your overall business education/experience/savvy are the largest assets/deficits in your success. Even experienced growers would have to understand the size/scope of expenses, and controlling inventory/labor/revenue to thrive. Most private small businesses go under in the first 5 years, and having minimal hands-on large scale growing skills will be 1 more straw on the camel's back.

You along with MANY others with money & political clout are jumping on the weed money train, only those with a sound marketing plan, good business plan..long & short term...have a chance. Then the thieves who steal your product come, then the CPA's that steal your money with business advice, then the Fed's since it's still a crime in the US, then the taxman...and hire security, you'll need that too. Insurance on the business and building will be difficult, and dealing with banks are a serious problem also.

Other than that, I'll be that "small guy" competing for your customers...actually I'll be taking most of them, because my overhead is lower..and I'll be tougher to "find" than you are

buy out 2016 ca outdoor grows>transport to nyc>profit

hup234 said:

buy out 2016 ca outdoor grows>transport to nyc>profit

Click to expand...

There is a big difference between starting a commercial grow house, then selling to local brokers,,,versus investing in product and shipping it across multiple state lines(Fed offense),,,then finding buyers in NY who can peddle your product, without just shooting you first..you have to make connections and street credit and reputation to take that task on intelligently

Nothing ventured, nothing gained. Same as a closet grow, just bigger. I would reserve a mil for unforseen newb mistakes. Biggest issue will be finding trustworthy people to work. Pay them very well. And security will be huge.

A botany degree would be a bare minimum for whoever is running the op.

Best of luck to you!

2.5 Million equals direct to Medical Patients. Get three tested high CBD strains, start making Rick Simpson oil, or be prepared to cater towards whatever each state allows in a non-smoking form.

Don't even mess with black market, or buds at that point.

I assume as a business you have calculated percentages for each aspect. What is your R&D cap?

Peace

thanks for the info guys, but does anyone have actual numbers?

yes I'm a closet grower, no I've never done "illegal" huge operations as that's not me..

I know quite a bit as I've been reading for ten years and been growing near that.. I just can't manage it all on my own scaling to an operation that big but I have plans for automating the grows as the best I can ( bluelab controllers ) and massive plumbing systems, coupled with electronics as far as I can go with automation..

I am going to start conversations with a consultant soon but wanted some ballpark figures before getting in talks with anyone firstly paying them, and second if there is no point then I move on to something else..

if anyone knows me, I grow something different, and I find the market would like a difference then some OG... that gives me about 8 strains, but also plan for CBD room / and sativa room


I don't want to talk logistics yet, I want to talk numbers... is it feasible? what is everyone else doing? whats the rate or return? what happens when market gets saturated and things slow down? who's up and running and still going while who has shut down and why?

I plan to bring tot he table some game changers in the form of the cheapest elecrical rates possible, automation, massive layout first and foremost for expansion and the unseen to transfer over, super clean and super efficient rooms where I know time is wasted and how in growing.. I've done hand water to mixing all sorts to outdoor to hydro and every near setup imaginable I've done and I know the shortcuts and how to design the building for max efficiency.. the biggest things I don't know yet is PM prevention and pests, but I have never had pest problems outside of gnats as I don't intend to use clones and never have and never will.. all moms will be done from seed...

this isn't some shamble put together system I'm thinking, as it's super controlled hvac with superior filtration, dosers and controllers, hell every week with an automated system, the only maintenance is pruning / staking / raising lights until chop. and I'm sure some pest control bi-weekly in biological form.

as said I'm more interested in numbers at this point if I should proceed on..

I would love to talk anything growing, but would like to know some numbers first and foremost if there should be future talk.. I'm all ears

as someone mentioned, I would pay very well, as it's not all about profit to me, but I need to re-coup investment first and foremost as that much money missing makes people unsettled.. someone mentioned security, I plan on at least a 20 camera system with in my mind, steel doors a few other gizmos to cover theft and the bad employee with tracking and gps things ( once again in my mind ), some barbed wire, dogs, flood lights, and all sorts going through my head... also speakers in the grow rooms for the enjoyment, hahaha

If I were in your shoes I would be looking ate the following variables

I would put a chunk of money down on property in a location where the values are on the rise in a market that has a growing established legal pot market, this reduces your liability overall and gives investors tangible assets that won't depreciate.

With this model you can make your break even point taxes and operating expenses and then you can scale from there, breaking even or even showing a small profit initially as you develop a market and your product offerings.

Warehouse under million with adequate services, buy it outright. Put aside 1 year op expenses and start with 24 - 36 lights while you establish market share and grow your own capacities. Don't blow all the money unless you have a concrete business plan and the support to execute it correctly. You can complete big goals in small steps and keeping the scope of what your doing within a manageable grasp is essential.


Don't bite off more than you can chew, if you even have marginal success you lay groundwork for being a worthy person to invest in. Fuck it up and you won't be.

^ thanks

well I got in contact with some consultants.. we'll see what they say, apparently someone who is not named yet but is a guru in the field of all things marijuana so I'll see who this ends up being.. I wouldn't think it would be Jorge but who knows??? my minds is blown to think what pot rockstar has opened up a consultant company?????

25 light in CA around 40k a cycle in recurring costs. Id say CA is fertile ground to get your start, legal enough anyways. Permits rolling out in 2018.

oceangrownkush said:

25 light in CA around 40k a cycle in recurring costs. Id say CA is fertile ground to get your start, legal enough anyways. Permits rolling out in 2018.

Click to expand...

does that include lease ?

Hi. I can help you. We just did 2 facilities and I had 5 dispensaries. I also helped to open about 15. Hit me at littcalifornia@gmail.com

well I'll let you guys know what I find out.. sounds like a phone call ,then possibly a fly to layout a plan..

kinda feel silly as he was telling me about clients that did 40 million for 4 facilities .......... some of these guys don't play around

habeeb said:

well I'll let you guys know what I find out.. sounds like a phone call ,then possibly a fly to layout a plan..

kinda feel silly as he was telling me about clients that did 40 million for 4 facilities .......... some of these guys don't play around

Click to expand...

Yeah, the largest facilities that I know of in Denver right now are over 250k square feet, 5000 lights. Their HVAC build out was 2000 tons of water chillers. $4 million+ HVAC build out cost.

^^pretty baller.
Been waiting for someone to go Willi Wonka on the weed scene
And start a massive super grow. Got to be a load of stoner millionaires
Out there?

In fact if someones got a spare half billion, I'm down.

mack 10 said:

^^pretty baller.
Been waiting for someone to go Willi Wonka on the weed scene
And start a massive super grow. Got to be a load of stoner millionaires
Out there?

In fact if someones got a spare half billion, I'm down.

Click to expand...

There's a number of super facilities under construction in Colorado. There's going to be a crash in the prices sometimes in 2016 and only the cheapest producers will stay in the business of cultivation. I expect a lot of businesses to be sold or go out of business.

I also know of a general contractor that just bought over 300 acres to build out greenhouses and rent them out.