Considering a Hemp Operation? Here’s How to Start
If you’re looking to start a new business this year, you may want to consider hemp. Since the 2018 Farm Bill, the hemp industry has grown considerably, with new companies reaping profits.
Starting a new business can be difficult, but it’s made much easier by having a plan in place and partnering with the right people. Choosing the ideal hemp industry insurance partners, finding hemp seed and soil experts, and investing in the right staff can all give you a leg-up over the competition. To start your new hemp business on the right foot, however, you’ll first need to establish the fundamental components on which your company can grow.
Is Growing Hemp a Profitable Business?
When starting a new enterprise, it’s essential to know whether you’ll actually make money from it. Luckily, the burgeoning hemp industry has led many farmers to realize increased profits as they convert plots of land to hemp cultivation.
However, you should note that hemp can have a high upfront cost. High-quality seeds are expensive, and though the profits they bring will more than make up for the initial investment, their cost can be a barrier for entry to some.
Furthermore, labor costs can be price-intensive, as well. If you already have a large-scale operation for cultivating other plants, you may be able to quickly convert the automatic process to handle hemp, too. However, many companies will require manual labor at the beginning. Again, with efficient processes and profitable products, you’ll still come out ahead, but you should understand these initial investments.
What Should Be in Your Hemp Business Plan?
Your business plan should serve as the main governing document of your business in its early stages. So, the plan should be comprehensive and layout in precise detail the many components to success. Ideally, your plan should help answer these questions:
- Where will your business operate?
- How many seeds do you need to purchase and plant?
- How much will seeds and equipment cost?
- Do you need specialized tools and equipment?
- Who is your competition?
- Who is your target buyer?
- Are you protected by hemp industry insurance?
What Equipment Will You Need?
To be a full-fledged hemp cultivator, you’ll need to think about the equipment that helps you in these key areas:
- Preparing or tilling the soil
- Planting seeds
It can be easy to convince yourself you need state-of-the-art equipment and tools to be successful. However, if you’re starting small, you can likely purchase used equipment at a lower cost without losing efficiency or reliability. You should also take steps to protect your new-to-you equipment by purchasing hemp industry insurance coverage. Insurance can protect you if your equipment breaks down or if there’s an issue with your crop.
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 email@example.com.