Business or Hobby

[Jackalope]

I recently had a legitimate offer of help to go in business. So much is involved in that situation. Moving would be the biggest. If I were to make that decision then there are millions of more questions.

The biggest is how much it would change growing for me. The best thing in life is to be able to make money doing the things we love. This is a opportunity to do what I have always wanted. Just because I can grow great pot does not mean I can make a living doing it. Thing is I can grow great pot.

We all know it is 90% genetics. Even a fare grower can get great buds out of great genetics. How much they get and how much better it could have been will always be there. But anyone one can grow. Grow well enough to make money at it is a whole different story.

I am positive I can identify the good from the bad. I have no problem believing I could find the right genetics to grow. There is just so much more involved when it comes to being a business. It seems every election we gain more medical and recreational states.

Here are just a few of my big questions.

Where is the right environment to start?
Can a small operation still make money?
Can I produce enough without going hydro?

That is just 3. So many more.
Any answers or more other questions from you guys would be appreciated.

 

[TurboBucket]

In Michigan it takes a pretty sizeable investment just to meet the regulatory requirements set forth. It's like $5000 just for the application. Then you have to pay for the license another $1200 out something like that. Not to mention all the infrastructure investments required for even the smallest license of 500 plants. Different states are different obviously but the little guy being priced out by big Govt seems to be a very common tend.

 

[Orlando Scout]

Congrats on the offer Jackalope I believe you would do great brother you actually have a love for growing. Most starting a marijuana business are doing so simply out of greed. GL!!

 

[Jackalope]

In Michigan it takes a pretty sizeable investment just to meet the regulatory requirements set forth. It's like $5000 just for the application. Then you have to pay for the license another $1200 out something like that. Not to mention all the infrastructure investments required for even the smallest license of 500 plants. Different states are different obviously but the little guy being priced out by big Govt seems to be a very common tend.

My point exactly. So Michigan is out. The person offering has the cash for any investment involved. Price is not my biggest concern but it is a concern. The 500 plant thing is my problem. With that kind of business environment great weed will be gone in a few years. Production and business get in the way of quality. If and when I do anything it will be small batch type stuff. Growing only the very best of my genetics for market.

Good for you Turbo. Your weed will be better than the open market stuff by then.

 

[Jackalope]

I think a medical state is going to be my best option to keep things small and manageable. I am still disabled that has not changed. The fact that I can spread any work out through a 12 hour cycle is the only reason I could do this in the amounts I would need for a business.

Move or wait is also a question. So much is changing now days

 

[Jackalope]

When you really look at it. There will never be a place of business for the small guy in the marijuana industry. Laws and limitations are always going to lean toward big business and government control. One thing I know for sure. Almost all those laws are going to make quality marijuana harder and harder to get.

 

[Orlando Scout]

I agree with you on the quality, I've noticed a huge difference from the time my state went medical to now. When medical first went legal up here the bud was top shelf, but as times gone the quality has gone as well. That's what brought me to growing, paying $50 for a 1/8 that just makes you pissed cuz all you got was a headache. Now that it's rec everyone is going to think their some master grower and flood the market with even more bunk weed.

 

[TurboBucket]

I agree with you on the quality, I've noticed a huge difference from the time my state went medical to now. When medical first went legal up here the bud was top shelf, but as times gone the quality has gone as well. That's what brought me to growing, paying $50 for a 1/8 that just makes you pissed cuz all you got was a headache. Now that it's rec everyone is going to think their some master grower and flood the market with even more bunk weed.

Not quite. Maybe the Black market. The dispensary market will get tight. It's all seed to sale through big money growers with the new laws.

No more caretaker buds for sale in shops when the new laws go in to effect.

it's only the licensed growers 500+ plants, stackable licenses, biggest one I heard rumors of was 3x1500 plant licenses.

 

[Orlando Scout]

Not quite. Maybe the Black market. The dispensary market will get tight. It's all seed to sale through big money growers with the new laws.

No more caretaker buds for sale in shops when the new laws go in to effect.

it's only the licensed growers 500+ plants, stackable licenses, biggest one I heard rumors of was 3x1500 plant licenses.

I guess only time will tell, I can't see how have more plants means quality is going to be better, but we can hope. I know where I live your better off buying from a small time grower than large scale. The small scale (hobby) growers put more love and time into their grows which normally equals better quality. These big commercial grows will be dumping so much $ in to get started quality will take a back seat to quantity. I hope your right for the sake of my fellow Michigander's, but I have my doubts.

 

[TurboBucket]

My response was to this

Now that it's rec everyone is going to think their some master grower and flood the market with even more bunk weed.

Under the new law caretakers can only receive monetary compensation from a designated patient. Can not sell flowers cuts or seeds without one of the big licenses.

I agree everyone else is boned quality wise. While scale does not guarantee a bad product an emphasis on profits always contributes. Our state putting the lowest tax on the industry may help, but I doubt it, the companies will just be more profitable. I haven't bothered with dispensary herb in the past 5 years been from the same couple small time guys till I started mine. For the quality, safety, and it's not 50 1/8th. ouch

 

[BobbyZ]

Remember the gold rush... The only people that truly got rich where the ones selling the equipment and catering to the miners.
I would personally pass on growing a lot, unless it was measured in acreage and I had a kick ass tractor. I would focus on growing the tip top shelf (micro brews for lack of a better term). A specialty, a niche market.
But I only grow for myself, so what do I know...

 

[Orlando Scout]

I to only grow for myself, I do gift some out to fellow Vet's in need but never for a monetary gain. You make a very valid point @TurboBucket, let's hope our states low tax helps.

 

[Orlando Scout]

My response was to this



Under the new law caretakers can only receive monetary compensation from a designated patient. Can not sell flowers cuts or seeds without one of the big licenses.

I agree everyone else is boned quality wise. While scale does not guarantee a bad product an emphasis on profits always contributes. Our state putting the lowest tax on the industry may help, but I doubt it, the companies will just be more profitable. I haven't bothered with dispensary herb in the past 5 years been from the same couple small time guys till I started mine. For the quality, safety, and it's not 50 1/8th. ouch

Sorry bro my bad I misunderstood you, I just hope the quality gets better for those who need and can't grow for themselves. I'm sure at first it's going to be hectic and quality may take a dive, but should be able to get some top shelf like in Cali and Colorado here soon. I may go to a dispensary once in awhile just to see the difference between what I grow, and what's "professionally" grown. I think it will be cool to compare.

 

[Dwight Monk]

Depends on how the State handles the licensing, mistake Oregon made was handing one to anybody that paid the fee and met the requirements (which vary all over the place from State to State, here has to be fenced or indoor and security cameras and all kinds of tracking regulations to make it complicated to be in compliance), so now there is a glut on the market and the old "supply and demand" thing kicks in until a bunch go belly up or unless the Feds allow Interstate commerce then OR would be golden . As last two years I have seen figures that stated approx 2-3x more was grown here than what was sold the previous year, and that's not counting any of the Blackmarket grows, so prices have crashed so much at both the Dispensaries and the Street ($100 or less an oz for quality stuff even with the Sin Tax added in for legal), so only the really "top shelf" stuff goes for a premium (and the high CBD to THC ratio medical stuff, which seems to be only shortage currently affecting prices so that is a niche market still currently that profitable). As for those prices hard to grow Indoors as electricity cost and all the others costs don't leave anything for profit (if there even is any at those prices), as costs me more to grow my own but advantages of I know what chemicals (if any) were used in growing it, and it has Hobby value for me as I'm my Wife's Caregiver and I don't get out of the house really so something to do besides be on computer all day.

 

[Jackalope]

Ground floor when your state goes medical is the place to be. Then you just become a caretaker for a few people and your good.

If they are doing licencing like that there may be room for the small guy. If you could consider 500 plants small LMAO. It really is when you figure in mother plants, clones, Plants in all stages of flower. With 10 strains thats only 50 plants each to have a steady market of them.

Then when your stuff is better then the guy that has the 3x1500 site. Don't charge more. Yes people will pay more for yours. If you don't raise your prices they will quit buying the crap at the same price and only buy yours. If this was done then big business would have to catch up.

Thats never going to happen but the dream sounds nice.

 

[Jackalope]

My response was to this



Under the new law caretakers can only receive monetary compensation from a designated patient. Can not sell flowers cuts or seeds without one of the big licenses.

I agree everyone else is boned quality wise. While scale does not guarantee a bad product an emphasis on profits always contributes. Our state putting the lowest tax on the industry may help, but I doubt it, the companies will just be more profitable. I haven't bothered with dispensary herb in the past 5 years been from the same couple small time guys till I started mine. For the quality, safety, and it's not 50 1/8th. ouch

Its the whole monetary thing that helps. Water Electric and a few other things can be covered for there. A big savings if you run big lights.

 

[TheFertilizer]

Remember the gold rush... The only people that truly got rich where the ones selling the equipment and catering to the miners.
I would personally pass on growing a lot, unless it was measured in acreage and I had a kick ass tractor. I would focus on growing the tip top shelf (micro brews for lack of a better term). A specialty, a niche market.
But I only grow for myself, so what do I know...

I've been saying this for many years now, and felt as if I'd missed the boat.

However, there was a company that I could have gotten hired-on at here in my state, but I decided against going for it because the legal atmosphere left it in a gray area. They were recently shutdown and all of their employees are out of a job.

Meanwhile, all the equipment representatives that sold the company thousands upon thousands of equipment, can go right along happily selling to others, or probably back to them when they open up business in a more legal area. Equipment vendors have it made.


Seems like one trend I've noticed a lot is that most growers aren't getting paid nearly as much money for their product as people would imagine. I've heard of growers selling to stores at $1-3 dollars per gram, wholesale, before it even gets to their shelves. One of the problems it the burgeoning concentrates market. It makes the stores more money, faster, with more returning customers, and the processors can buy crummy cannabis for literally pennies on the gram and then turn it into fairly high-quality concentrate. Even more are able to turn it into complete garbage that still sells.

The demand for "quality" flower seems to be diminishing rapidly.

On the other hand, I think your instincts are right about genetics. One area you can still make money in is breeding seeds, and that comes with it's on benefit of having insanely high profit margins. Of course, it's not going to make you rich, but there are a lot of people who want to grow themselves, and are beginning to be pretty discerning with the genetics they purchase.

One thing that puts you at what is seemingly a disadvantage as a breeder though is that the dispensaries can go and buy your seeds, and grow it out themselves, and so it would be very difficult to have truly "exclusive" strains. However, that same disadvantage works to your favor as well, because there are a lot of dispensaries that try to get cheeky and have their own "exclusive" strains per store, and there's nothing to stop you from marketing some of your own genetics as a direct competitor.

It would be great to see another legitimate breeder get into the area, but I think the unfortunate thing is that a lot of breeders aren't really that legitimate, so you'd be kind of wading into a sea of cynicism and doubt.

 

[Jackalope]

Well said. I have thought of the seed market. As we all have seen damn near anything and everything sells to someone. Still you have to find a way to stick out in the middle of all those genetics. Something that is going to be real tough if you don't have or fake a big named strain with super high THC.

What was really depressing was looking into medical states. No way a good grower could move to one of them and find a few people to grow for. For stuff like that you have to be there before hand or when it starts. Yes new people get their cards everyday but most of them get spread out to people already supplying others. My brother in-law was issued one in Oregon. Never got his pound plus he was supposed to get.

Each state varies so I am sure it is different in some places. The whole moving thing is kind of out though.

 

[saltybluegrass]

My point exactly. So Michigan is out. The person offering has the cash for any investment involved. Price is not my biggest concern but it is a concern. The 500 plant thing is my problem. With that kind of business environment great weed will be gone in a few years. Production and business get in the way of quality. If and when I do anything it will be small batch type stuff. Growing only the very best of my genetics for market.

Good for you Turbo. Your weed will be better than the open market stuff by then.

i owned a locksmith business but wasn’t an owner/manager - i was a good worker bee that didn’t expand his professional chops- Stay true to your talent. Don’t stray or incorporate others talents in yours - let the right people do the right jobs and concentrate on your expertise- If business overtakes quality enough to bother you then back out and start anew.

 

[saltybluegrass]

i owned a locksmith business but wasn’t an owner/manager - i was a good worker bee that didn’t expand his professional chops- Stay true to your talent. Don’t stray or incorporate others talents in yours - let the right people do the right jobs and concentrate on your expertise- If business overtakes quality enough to bother you then back out and start anew.

Because you’re a good shoe cobbler doesn’t make you a businessman
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