[snooze]

Originally Posted by Yes4Prop215

since most of us on ICmag don't have a spare million or ten lying around, seed money is basically venture capital money from outside investors, they are the ones driving the CO and WA markets.

CA is heading to rec legal soon, but all the other states are still "med" legal, and in most cases the med market is very strict about who can participate but if CO and CA are any indication eventually those states will want the tax money and loosen regulation, then the people who had already established small local followings can go legal, but thats a big IF. it all depends on your local state, in WA for example i502 is pretty fucking bad and bans all home growing, same with illinois and new york proposed med laws. the black market will still thrive because they made the med market too strict….

in illinois you need to spend 150k+ in permits up front for a cultivation facility, not even including the costs to set up the damn facility in the first place! 25k non refundable deposits are gonna shut most regular folks right out of the game…then an automatic 100k payment to the state. and you can't pay them with a duffel bag full of vac sealed 20s.

And if the license fees are manageable you have to keep 2 million in escrow. 2 million just sitting there making nothing. Ridiculous rule. The 25k was supposed to be refundable in the original plans as well. I'm assuming summing they want this program dead on arrival.

[nastynate420]

The state fees to start up in CO for the highest tier with the ability to have 500 or more patients cost 40.5k, so it's not that expensive. If you can grow and know your not going to fuck up a whole harvest then there's really no way you are going to go bankrupt if you're starting with 250k. Outfitting a 50 light op legit wouldn't be more than 120k including rent for the first 3 months until you harvest and have some cash flow coming in. So that's 160.5k just to get started. Now with 250k you have 90k for fuck ups and paying people. I don't want to sound like I'm lecturing but I've looked into this a lot, and if you have some balls and some cash it can be done.

[Yes4Prop215]

also gotta keep in mind that all the startup money has to pass a financial backgound check....i think thats one of the hardest aspects and biggest hurdles for most turkey baggin green rushers.

it takes quite a while to wash that much cash into the system cleanly....much easier for those who come from wealth or know a very rich investor.

remember, no wire transfers from south america to start your warehouse! lol

[nastynate420]

^true that. Although that wire transfer worked to get his license from the MMED of CO, but not for the feds.

[MrGoodBudz]

I own a center and grow in Lakewood. We are stuck medical until January when we should be going rec/duel. I can tell you it will cost over 500k to start a small operation (mmc/opc) and many months before the first dollar comes in. Without an extra 500k to set you apart in a slightly unique way. Could be a couple to few years before you actually turn a profit as well. I started my company in 2009 with my own capitol and its been a highly competitive experience to say the least. Knowing what I know now. 1m to start would be minimum startup Capitol.

[Photosynthesis]

I wouldn't start with less than 1 million.

This weekend I am going to speak with a Company that has a new warehouse that can handle 360 lights, but they also are wanting to expand to 4 acres of greenhouses.

They are at full capacity right now with their work force, and are only using 1 of their 5 licenses to grow with.

Why aren't they blowing all of this up right now? Money, and people that know what they are doing.

They have been at it since 2008-2009. So they are not new to this business. However Capital, and people are hard to come by these days.

Sounds like a fun project though. Building out 4 acres of greenhouses to solely grow cannabis in seems like most every growers dream.

[nastynate420]

Now that it's legal I'm sure it's going to be moving more towards greenhouse since it's cheaper and the quality is similar. Indoor was for when feds were doing flyovers. Those days in Colorado are numbered.

[nastynate420]

Originally Posted by MrGoodBudz

I own a center and grow in Lakewood. We are stuck medical until January when we should be going rec/duel. I can tell you it will cost over 500k to start a small operation (mmc/opc) and many months before the first dollar comes in. Without an extra 500k to set you apart in a slightly unique way. Could be a couple to few years before you actually turn a profit as well. I started my company in 2009 with my own capitol and its been a highly competitive experience to say the least. Knowing what I know now. 1m to start would be minimum startup Capitol.

I'm not saying you're wrong, I just don't see how you figure those numbers. I don't think it would really cost more than 2 grand per light to set up. So fifty 1k watt's would be 100k. Let's add 20% to be safe, so 120k. Now your build is set up.

100k watts - 10k per cycle electric bill
111 lbs trim workers- 8880 per cycle
3000 sq ft warehouse- 3.6k per cycle rent
employees wage storefront- 10.2k per cycle
storefront rent- 3k per cycle

state fees for type 3 center and optional premise license w/ 2 owners and four employees- 40.5k
county fees for grow facility and shop- 11.5k
upfront cost for the first cycle and all licenses=122.68k
recurring quarterly costs= 35.68k
111 lbs @ .5 GPW every cycle@ 2200/lb= 244k per cycle
@1600/lb= 177k
gross profit per cycle@2200/lb= 208.3k
@1600/lb= 141.3k

That's with 2 people (me and my girlfriend) working "for free" as owners and for 100 lights, so you could cut the costs in half. I also did for grossing .5 gpw which is probably about half of what the growers would actually yield. That also doesn't include using a trimming machine. Pay was 12 an hour for store employees and 20 an hour for grower. I think that you can definitely start up with less than a half mil. Is that perfectly ideal? No. But with the return you get on each harvest, it doesn't really matter. The main thing is finding customers, but using correct advertisement as well as low prices that shouldn't take too long. Also I live in Pueblo, that's why the rent and pay is so low and gross profit per lb so high. I even put in a gross of 1600 per lb which in Pueblo is way under what you'd actually get.

[Photosynthesis]

Originally Posted by nastynate420

I'm not saying you're wrong, I just don't see how you figure those numbers. I don't think it would really cost more than 2 grand per light to set up. So fifty 1k watt's would be 100k. Let's add 20% to be safe, so 120k. Now your build is set up.

100k watts - 10k per cycle electric bill
111 lbs trim workers- 8880 per cycle
3000 sq ft warehouse- 3.6k per cycle rent
employees wage storefront- 10.2k per cycle
storefront rent- 3k per cycle

state fees for type 3 center and optional premise license w/ 2 owners and four employees- 40.5k
county fees for grow facility and shop- 11.5k
upfront cost for the first cycle and all licenses=122.68k
recurring quarterly costs= 35.68k
111 lbs @ .5 GPW every cycle@ 2200/lb= 244k per cycle
@1600/lb= 177k
gross profit per cycle@2200/lb= 208.3k
@1600/lb= 141.3k

That's with 2 people (me and my girlfriend) working "for free" as owners and for 100 lights, so you could cut the costs in half. I also did for grossing .5 gpw which is probably about half of what the growers would actually yield. That also doesn't include using a trimming machine. Pay was 12 an hour for store employees and 20 an hour for grower. I think that you can definitely start up with less than a half mil. Is that perfectly ideal? No. But with the return you get on each harvest, it doesn't really matter. The main thing is finding customers, but using correct advertisement as well as low prices that shouldn't take too long. Also I live in Pueblo, that's why the rent and pay is so low and gross profit per lb so high. I even put in a gross of 1600 per lb which in Pueblo is way under what you'd actually get.

Math looks great on paper. Not so much in the real world.

You are arguing with someone that has done, and is doing what yo want to do.

You have already failed.

[nastynate420]

Originally Posted by Photosynthesis

Math looks great on paper. Not so much in the real world.

You are arguing with someone that has done, and is doing what yo want to do.

You have already failed.

That's what I'm wondering. What am I missing out on. I think that cutting my yield in half and my buildout by 20% should cover any incidentals. Could you be more specific in things that have set you back in the past, or things that cost a lot of money that you weren't expecting? You don't think that 250-300 grand can start up and pay for a small 50 light warehouse, shop, and employees for three-four months until harvest? I'm not trying to talk down on you, just want to hear from someone with experience in the industry.