How Much Does It Cost to Start a Cannabis Grow Business?
Before starting a cannabis grow business, it is necessary to have a rough estimate of the cost.
The calculation gives you a complete idea of the money you need to have a commercial setup. Without calculation, you might waste all your money and put everything in the drain.
In this article, we will discuss various factors you need to keep in mind for calculation the cost of the business. We will give you an estimated cost of all things, but the cost varies with different factors.
Let’s dive into it.
Grow Room Setup Cost
Grow Space
The most important thing to start a cannabis grow business is the grow space. If you already have a grow space, such as a room or backyard, then you are a lucky guy. You can save a lot of money.
But if you are planning for a large commercial space or you don’t have any space indoors, you need to buy or rent one. It will drastically increase the cost of your cannabis grow setup.
The price of a grow space depends on the state or area where you live, the size of the property, and various other factors. No one can give an exact quote except a real estate agent. However, you can expect $20-$30 per square foot.
It is better to get in touch with the real estate agent in your area to get a quote. He can guide you better and help you find a suitable place for the cannabis grow business.
While selecting the area, you need to keep other expenses in mind, such as flooring, coloring, reflective sheets, and other necessary things.
Grow Lights
Once you have the grow space, you need to get suitable grow lights. You are going to create a complete cannabis grow setup indoors, so you need to mimic the sunlight with the help of grow lights.
The grow lights are very important for a grow setup because the yield and growth of the plants depend on them. While selecting grow lights, beginners usually get confused because there are different types of lights, and it is hard to select one of them.
There are mainly three types of grow lights, and those are,
· Fluorescent lights
· High Intensity Discharge (HID)
· LED Grow Lights
Note: Incandescent lights are also used for grow rooms, but they are inefficient, which is why they are not preferred for cannabis grow businesses.
Fluorescent lights are the first option for beginners or a small cannabis grow business. These are quite cheap and can be easily installed. They are better than incandescent bulbs in terms of efficiency.
But keep in mind that these are not suitable for a large business as the light is not directed and strong enough and the efficiency is low. You can buy a CFL bulb for $10-$50, depending on the wattage.
HID (High Intensity Discharge) lights are quite powerful, and they were preferred before the introduction of LEDs. These lights can be used for all the phases of plants, and they are excellent for optimal growth.
However, these are quite powerful, so there are chances of burns if cannabis growers do not pay attention. One HPS bulb will cost you around $15-$50, and you also need to buy the holder and accessories.
LED grow lights are the most preferred type of lights used for cannabis grow businesses. For commercial use, there is nothing better than LEDs.
The most important advantage of LED grow lights is their efficiency, which is about 80–90%. Thus, cannabis growers can save a lot on electricity bills. Moreover, the life span of these lights is incredible, around 15–20 years.
The light emitted by LEDs is directed in a particular direction. Therefore, it focuses on the plants. Due to high efficiency, there is a minimal amount of heat emitted from LEDs, so it does cause any harm to the plants.
The features of LED grow lights are exceptional. Their brightness can be controlled according to the growth stage of the plant. You can also select the optimal spectrum according to the plant.
LED grow lights are perfect for a cannabis grow business. You can install them according to the grow space. They have different controls for optimal growth.
The cost of LED grow lights depends on the features, quality, controls, wattage, and various other factors. One LED grow light can be anywhere between $20-$1500.
Climate Control & Humidity Control
You need to maintain a certain humidity level and temperature in the grow area. First, you need to measure them. You can use a thermo-hygrometer for this purpose. It will cost you $10-$20.
For temperature control, you need an air conditioning or HVAC setup. There is no exact cost for this because it depends on the climate and grow area.
Humidity can be controlled using fans. We will discuss its cost in the ventilation section.
Irrigation Systems
For the irrigation system, you need a suitable water pump to send water to the plants. Along with the pump, you need water pipes.
These are one-time investments. You can buy a water pump for $50-$700, according to your needs. You can also install several pumps. The water pipes are not very expensive; you can buy them for $0.5–1 per foot.
The running cost of the irrigation system will be electricity, and most importantly, the water bill. Depending on your usage and the cost of water, the bill could be $500-$1000.
Ventilation System
The ventilation system is necessary for a grow house. It plays various important roles.
There are different things used to create a perfect ventilation system, such as oscillating fans, exhaust fans, intake fans, and carbon filters.
The price depends on the size, ratings, features, and specifications. You can calculate the total estimate of these things according to the number of pieces you need.
The cost of these things are,
Intake fan: $30-$500
Exhaust fan: $50-$500
Oscillating fan: $30-$150
Carbon filter: $40-$250
Electricity Cost
Electricity cost depends on the usage.
First, you need to calculate the power rating of all electrical devices. For instance, if you are using two intake fans, two exhaust fans, and two carbon filters, then you need to check the power ratings of all these things.
Then notice the number of hours you operate these things. After that, calculate the number of units you consume each day or per month. This way, you can calculate the total cost of electricity according to the cost per unit in your area.
You can get an estimate of the monthly electricity cost. It could be $500-$1500 or even more, depending on the cannabis grow space.
Consumables
There are three important consumables for the cannabis grow operation, and they are soil, fertilizer, and seed.
You need these three things to start a cannabis grow business. Apart from these things, you also need to take care of pest control.
It is good to have an estimate of these things as well because these are the necessities.
Soil
If you are planning to have a cannabis grow setup in soil, your choice is excellent.
Soil has almost all the nutrients and everything your plants need. It ensures proper irrigation and water availability and helps in the optimal growth of the plants.
Soil is easily available in online stores, and you can get it for about $8 to $20 per cubic foot.
You can also go for a hydroponic cannabis grow setup. It is often preferred for large commercial businesses. The cost of hydroponics is also around $15 to $35 per plant.
Fertilizers
Your plants also need fertilizers to show optimal growth at the right time. It can be achieved easily with the help of fertilizers.
The cost of fertilizers depends on your needs. If you have chosen soil, then you will need less fertilizer compared to hydroponics.
You can buy fertilizers for $30 per liter or $50 per kg.
Seeds
Female seeds are picked for cannabis because they are the ones for producing consumable flowers. Moreover, if there are male plants around the female ones, your yield won’t be as good as you want. There will be more seeds in it.
Thus, female cannabis plants are the only option to get the optimal yield. Because of technology, we have feminized seeds.
These special seeds are genetically engineered to produce female plants. There are no chances of male plants. You can use these seeds for your cannabis grow business.
Seeds are available in different price ranges, depending on the type and quality. You can expect $10-$15 per seed.
Other Supplies & Equipment
There are various supplies and equipment you need for a cannabis grow setup. We are going to list them and give a rough estimate.
Grow pots: $3 to $5, depending on the size and quality (fabric pots)
pH test kits: $10 for a testing kit and $20 for a control kit
Trimming equipment: $10-$25 for a pruner
Stakes: $10–15 for a pack of 12
Zip ties: $5–10 for 100 pieces
Personal safety protection gear: Glasses = $20–25, Suit = $3–5, Gloves= $0.2
Drying racks: $15–30, depending on the size
Storage receptacles: bottles and jars are easily available for $3 to $5, and containers are available for $50 or more.
Labor Costs
You cannot manage a large or commercial cannabis grow business on your own. You need a few people to work in the area.
There can be 5, 10, 15, or 20 people, depending on the size of your grow room. You can also divide the labor into shifts.
When you start a cannabis grow business, you need to create a hierarchy of employees. The first person would be the expert cannabis grower. He can be the manager of the grow space and can have a salary of around $75,000 to $150,000. You can have one or more experts.
Keep in mind that you cannot rely on one expert, so there should be at least two.
Then, you have the maintenance staff, cleaning staff, and plant caretakers. You can hire them for $15 to $40 per hour.
This way, you can calculate the overall cost of the labor working in the grow space.
Final Thought
We have seen all the factors that should be kept in mind while calculating the cost of a cannabis grow business. The cost depends on your needs, the equipment you use, and the grow area you have. Thus, you need to do a customized calculation.
After selecting the grow area and talking with a real estate agent, you can move to the calculation of room setup, consumables, employee cost, and other things.
After taking all these factors into your calculation, you will have a complete idea of the cost of setting up a cannabis grow business.
