Any craft/commercial legs growers on here? Advice needed

[xtsho]

“In recent months, we have noticed an increase in the number of bankruptcy cases involving marijuana assets,”

And that's the jist of it. The reality is that even many with money, knowledge, and connections are not making it and are losing everything.

"Wright and Stratton argued their debts weren’t tied to the marijuana farm, which has yet to post a profit during its five years of existence in Washington state’s regulated cannabis market."

Five years without making a profit. Too many small time growers think that since they've grown a few crops of decent weed all they need to do is get a license, grow it, and they'll be able to sell it no problem. But the reality is that even those that do have buyers are having a tough time turning a profit. It's big business now with billions of dollars flowing in from those with deep pockets that have no problem driving the little guy out and taking over everything. You could probably make more money using the same space and equipment used to grow marijuana by growing exotic flowers to sell to florists.

 

[hotrodharley]

And that's the jist of it. The reality is that even many with money, knowledge, and connections are not making it and are losing everything.

"Wright and Stratton argued their debts weren’t tied to the marijuana farm, which has yet to post a profit during its five years of existence in Washington state’s regulated cannabis market."

Five years without making a profit. Too many small time growers think that since they've grown a few crops of decent weed all they need to do is get a license, grow it, and they'll be able to sell it no problem. But the reality is that even those that do have buyers are having a tough time turning a profit. It's big business now with billions of dollars flowing in from those with deep pockets that have no problem driving the little guy out and taking over everything. You could probably make more money using the same space and equipment used to grow marijuana by growing exotic flowers to sell to florists.

Alaska legal since 2016. It took forever for a shop to open the door to sell. A backlog of license applications. Yet by 2019 at least 45 growers have gone under. About the same number are in state tax trouble at present. It’s obvious you must have deep deep pockets. Not just to get in but especially to stay in. I mean the means to survive personally and to have enough to cover shit like a big tax payment or three without letting anything in the business suffer.

The solution is to deschedule cannabis so that greedy ass Wall Street and the banking industry can come in with loans. Otherwise it’s a rich man’s game.

 

[Johnny Lawrence]

I'm sorry, but threads like this are stupid AF. "Oh bro, now that it's legal, me and a couple of homies who have little to no experience actually growing want to get rich off of legal weed. Any advice for us would be greatly appreciated."

Fucking pathetic, sorry.

 

[70's natureboy]

I will be amazed if large scale warehouse grows can match the quality of small scale craft growers.

 

[xtsho]

I will be amazed if large scale warehouse grows can match the quality of small scale craft growers.

Some can some can't but that's not all that relevant when the big boys control seed to sale. You might have the best fire around but they won't buy it from you to sell in their dispensaries. The consolidation going on doesn't leave much room for the small grower. As an example, here in Portland there a small craft breweries closing all the time because they can't turn a profit. Yet InBev which is the largest brewer in the world controls half the beer market. The small guys that have something they want get bought out. The other guys get forced out. The same thing is going on in the cannabis industry.

The top three selling beers in America are Bud Light, Coors Light, and Budweiser. That's despite the fact that there is much higher quality beer out there. So quality although a factor isn't the biggest factor. The biggest factor is money.

 

[Psychonautic83]

I care about the quality difference but am not willing to pay the price difference. My stuff is mid level, I think, but it's still better (and cheaper) than flower I've bought from dealers or dispensaries. I think these are additional problems.

 

[hotrodharley]

Here’s some stuff related to legal growers. Someone will be paying a fine at best. Loss of license definitely possible and has happened before.

 

[Treytopnotch]

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.

Go to your local banks that won’t be regulated by your federal government that’s how you will secure loans from a bank. Also having a good credit score won’t hurt and any other requirements normally you would need to start any other business should look good before you ask for a loan