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The cannabis industry is on a growth trajectory as an increasing number of states legalize it, making it an appealing time for entrepreneurs to consider getting in on this market's ground floor. Cultivation is an attractive avenue. A prosperous grower can increase market share as the industry continues to gain traction across the nation. To be successful, however, requires careful planning in the construction of your cannabis cultivation facility.
Invest Today for Tomorrow’s Growth
Starting any new business is a long-term investment. Short-sighted planning increases costs over the long term and results in a lost opportunity. While it might be tempting to focus on getting up and running quickly to take advantage of the promise offered in the current legal cannabis cultivation market, it is not advantageous to cut corners. Building a successful business requires that you fully understand your company's goals and the upfront costs associated with constructing a new facility.
Understand Your Goals
It is important to have a clear picture of where you want your company to be in one year, five years, and ten years down the road. While it's entirely possible that things can change over that time, having an idea of your goals helps you envision you determine the path you need to take to get there. Some essential tips to consider when developing your cannabis cultivation business model:
- Understand the regulatory structure: You must have a firm grasp on the current state and local regulations for cannabis cultivators before you move forward with planning and construction.
- Research the market: Examine local and regional consumer buying habits as well as the competition. While the time may be ripe for opening a recreational cannabis cultivation business, certain areas are currently saturated, making it potentially necessary to rethink your plans as to where and what type of cultivation is most likely to succeed.
- Plan your facility design: Many new business owners build for what they expect their business to look like upon opening versus ten years into the future. Even if you don't plan to use the entire facility, building it now still allows for organic scaling as your business grows.
Understand the Upfront Costs
It is critical to have a complete understanding of all of the upfront costs associated with constructing a new cannabis facility before you break ground. Too many people run out of money before their project is complete because they forget essential line items in their budget.
Gather estimates for each phase of construction from contractors who work on similar facilities, and don't forget to include utility installation. Finally, be sure to allow some wiggle room in the budget should there be delays or unexpected issues that result in higher expenditures.
About CannGen Insurance Services
For more information about our comprehensive insurance solutions for the cannabis, CBD, and hemp industries, please visit our website at www.canngenins.com or email marketing@canngenins.com.
