The cost of starting a cannabis company has changed so much. As we enter into a possible recession the cost of everything has gone up! So how much does it cost to open a Cannabis Business, today?
Every cannabis business model and state will vary in cost but this is a quick estimate of ballpark figures for a start-up company in the “Green Rush”.
Remember, there are so many unique variables, this estimate simply shows the minimum investment and can be higher from state to state. Cost depends on your license type, business model, and location.
License Fee
State- 1-10K
Local- 5-20K
Real Estate
Purchase- $200-$300 Sq Ft
Lease- 8- 20K per month
Renovations
Interior- $60-$100 Sq Ft
Fixture, Furniture, & Equipment- 50K-500K and above
Utilities- $3-410 Sq Ft
Security- $125-$500K
Employees
Budtenders- $15-20 per hour
Managers- 50K-60K per year
Specialist i.e. Growers, Extractors- 60K-70K per year
Bonus, Worker’s Compensation, Benefits and Contributions- 10K-50K per employee per year
Team
Inventory- $400-$5000 per lbs
Emergency Reserve- 6 months of all expenses
Insurance- $5K- 45K Annual Premium
CPA-$3K-10K
Legal-$5K-$30K
Business/ Compliance Consultant- $5K-$75K
Marketing
Intellectual Property
Branding
Website
Social Media
Budget- $5K-$500K
Community Engagement
Donations- $5K-$50K <
Investment in community initiatives- $5K- $50K <
To sum up, the cost of a start-up cannabis company requires a minimum investment of $800K- $2 Million
As you can see, operating a profitable cannabis business is not for the weak. Most multi-state operators still have not figured out how to crack the code. So, having a strategic plan for reducing startup and long-term costs will be one of the most important inputs to putting your business on the path to profitability and growth.
For more details go to http://www.cannascapital.com
Cimone Casson 