Cannabis Growth, Real Estate, and Funding Tips
Acquiring suitable real estate to house a medical marijuana facility can be a burdensome task for people who want to break into the burgeoning marijuana industry. Funding is another big problem for individuals that want to get into the cannabis industry. The lack of support from financial institutions means that cannabis entrepreneurs have to be self funded or look for investments before they can enter the industry. As with any business it can be very difficult to secure investments in your company or idea.
If you are wondering how to become a cannabis grower in Michigan there are a lot of things that you need to know. First, the field is growing rapidly and is attracting more and more attention with each passing day. Second, the market is expected to grow exponentially, some economists estimate the cannabis industry to generate over 100 billion USD by the year 2029. This article will be a brief walk through of what you should know when growing cannabis and what you can do to secure funding and real estate to start a cannabis facility.
Starting a Cannabis Business – things you should know
As stated above the marijuana industry is one that is exploding in popularity today. However, new entrepreneurs often find it difficult to get the capital necessary to start their business. The capitalization requirements for the license alone range from $150,000-$500,000. That is just what you need to show on paper in order to qualify. Additional hurdles are presented when new entrepreneurs attempt to enter the marijuana industry without already owning suitable real estate. Suitable real estate can be difficult to acquire since not only can it be extremely expensive, but zoning restrictions make certain real estate ineligible for use as a marijuana facility. So even finding a property that you think would be perfect for your new cannabis business may not be a viable piece of real estate. So on top of securing funding for your new business you also need to do your due diligence…or hire a good real estate agent.
Different ways to medical marijuana
Medical marijuana growing as with most every other business involves a lot of moving parts. Other than real estate and capital funding, there are also other areas that cannabis business owners need to focus on, like what type of marijuana they would like to grow, how they would like to grow it, what method they will use for curing and storing prior to sale…etc. People new to the marijuana industry will have to not only balance securing funding and finding suitable real estate but also determining what growing method and process are right for them. Different growing methods are dictated by factors such as commitment, money, time, and circumstances. New cannabis entrepreneurs need to understand that growing cannabis using different methods comes with different benefits as well as disadvantages.
When it comes to medical marijuana growing, any method can work out for those who put a dedicated routine and process into their cannabis grows. However, the outcome is not solely determined by how dedicated you are to your crops, there are multiple factors at play here. Specifically, we are in Michigan which means indoor grows are what will dominate the economic landscape. With indoor grows you have to maintain temperatures, make sure the environment is clean, beware of spider mites, and always make sure the crops are properly watered. Those are just some of the basics. Entrepreneurs who want high-quality cannabis will be required to put a great amount of effort into their operations regardless of which method they are using to grow marijuana.
An insight cannabis growing methods
Now, you may be wondering where or how to begin. The first step is getting clones or seeds to get grow operation started. Clones are salvaged pieces of other plants that can then be raised into their own plant. Once, the first step is taken, you should choose a growing method. Let us have a look at a few different ways you can grow medical marijuana..
1.Plain Dirt
Using plain dirt for cannabis growing is one of the traditional methods. You can grow cannabis like you would grow any other plant. However, you need to make sure that the soil is good and properly fertilized and watered.
Plain Dirt
Using plain dirt for cannabis growing is one of the traditional methods. You can grow cannabis like you would grow any other plant. However, you need to make sure that the soil is good and properly fertilized and watered.
Pros:
This method is usually cheaper and easier than most other methods for growing marijuana in Michigan or any other state where marijuana is legalized.
Normal quality fertilizers can be used for this method
Cons:
There are chances for losing a cannabis crop or getting varying results plant to plant based on the imbalance of nutrients and minerals in the soil.
Yields may not be equal to the other cannabis growing methods.
2. Rock Wool/Coco Fiber
Making use of inert mediums rather then soil for holding the roots eliminates the problems concerning quality of the soil.
Pros:
This method is as easy as the plain soil method.
The yields are better when compared to growing cannabis in plain soil.
It is simple and cheap just like plain soil method.
The procedure is usually cleaner with little mess and fewer bugs.
Cons:
Needs special fertilizers that are pretty expensive.
Needs Coco fiber which is not too expensive but can be difficult to find locally
3. Hydroponics
Hydroponics by definition is about having the roots of the plant come in direct contact with the nutrients as well as have access to the oxygen in the water. This method does not use soil at all and involves growing the plant in a water base. Mediums like gravel, perlite, rockwool…etc are usually used to support the roots. Special fertilizers will be added lightly to water that has poured through the growth medium. An immediate difference between the roots grown in soil and those that are grown in hydroponics, can be identified.
Pro:
This method will increase the rate of growth up to 25%.
Yields generated from the individual plants will be up to 30% more.
Cleaner yields .
Increased accuracy in Ph levels.
Cons:
The hydroponics method can be very expensive.
Reservoirs to hold and mix the water and nutrients are required
Professionals are needed to service and install the equipment
Where to get help for starting cannabis business
Now that you have a brief introduction to the beginning of a marijuana grow operation, you may be interested in pursuing a state and municipal license. In order to make those applications as successful as possible you will need not only assistance from an attorney but also a suitable piece of real estate for your operation to be run out of. We at Michigan Cannabis Properties can assist you with any of your potential real estate needs. We stand ready to advise you on what properties we know of that will fit your plan. Additionally, we work closely with attorneys to ensure that you are protected each step of the way. Please reach out to us if you are interested in acquiring real estate for your future or current medical marijuana business. We can be reached at (248)234-4060.