Bangi has acquired a 7000 square foot Building .. here is the breakdown of a 7500 sq.ft. Grow , Keep in mind this is a first year profit after startup costs Including Grow Equip.. Lighting system , Building improvement , Admin Expenses, Other Expenses,alarm and security system.License and fees, that are incurred in first year setup .. After that we can assume a much larger profit in the next years grow , after initial setup costs .... $1,000,000 Profit .. and yes they do include $55,000 in taxes ..payout .Cannabis Cultivation Business Setup, sample
Warehouse 7,700 sq.ft. for about 1,000 plants with estimated yield of 350 lbs., 4 harvests a year.
Cannabis Cultivation Initial investments:
Warehouse rent – $50,000
Build out, improvements – $60,000
Growing equipment – $150,000
Lighting system – $120,000
Alarm & Security System – $45,000
Licensing & legal fees – $55,000
Direct costs (first months before profit) – $200,000
Administrative expenses – $50,000
Other expenses, incl. salaries – $100,000
Total = $830,000.
Cannabis Cultivation Direct & Operating Costs
Direct expenses include electricity, water, labor and packaging costs.
Good lights are one of the most important factors when growing cannabis indoors. You can achieve yields of around 1.3-1.5 gram per watt of light.
Lets try to calculate how much electricity does it take to grow cannabis indoors for our scenario:
Cost Electricity – $0.1478/kWh
Number Hours: 1,440 light hours:
Vegetative Stage 720 hours: 40 days of 18/6 schedule
Flowering Stage 720 hours: 60 days of 12/12 schedule
Wattage: We supposed to use 145,000 W system.
$0.1478 kWh x 1,440 hours x 145 kW = $30,870
However, one thing that’s very important to remember when doing any estimations is that although your grow light may account for a lot of your electricity bill, fans and pumps and other things in your grow room also take electricity. These other items cost 3/4 as much electricity as the grow light. It will be plus about $23,150.
So, total electricity costs will be about $55,000. Water costs will be no more than $700.
Growing solutions, including nutrients – $7,000
Cloning – $1,500 (excl. labor and electricity)
Lab testing – $5,250
Packaging, transport & storage – $3,000
Grow Light Bulbs – $1,500
Other Supplies – $1,750
Direct labor – 7-8 employees, $50,000
Taxes – about $55,000
Thus, the direct cost of growing the cannabis will be around $180,700 or $516 a pound (42% of wholesale price). It doesn’t include administrative, marketing, distribution costs and taxes, which varies depending on the location.
Cannabis Cultivation Annual Gross Profit, sample
Sales are about 1,400 lbs. per year:
Revenue + $1,750,000
Direct costs – $750,000 (42.8%)
Gross Profit = $1,000,000 (57.2%)
