If the bill passes

[BBFan]

Think Marlboro. Kleenex. Coke (as in Coca Cola).

Branding would be the only way to go- no offense but anyone can replicate your formula (given the tools, info, and ingredients).

You're right, distribution is key. Delivering a consistent and reliable product is critical. Start now! Don't call it "White Widow", call it "NorCalHal Skunk" (or whatever). Anyone can put White Widow on the shelf, but only you can put your brand there. Grass roots marketing (pun intended) will get you out front now, before the big changes come. What's in a can of Budweiser that isn't in a can of no name (no offense to any AB people) beer? Same thing with Marlboro- it's a cigarette- but people ask for it by name and will often go elsewhere if it's not available. Because they know what they're getting. You need to create demand for your product when similar product is available.

I don't know any particulars about your situation and that's the way it needs to stay for now. Shelf exposure is critical for your success- even if it means reducing margin. If you are truly convinced that this bill (or a variation of it) is inevitable- than now is the time. Long term no one would be able touch you because only you can sell "NorCalHal Skunk". Branding will be the only way to compete. Customers will know when they pick up your product, they know what they're getting. Trademark dress and copyrights could be established sooner rather than later- or people will bootleg your brand!

It is exciting to think that this could be a reality in our lifetime!

 

[umbra]

Umbra- I would say things are a lot different in the rest of the country compared to what is happening in Cali. How many states now allow mmj, 13? But none is yet where Cali is. And this bill would certainly change everything.
I know a few bankers myself and none would touch such a loan- potential for bad publicity would be too great. Way too conservative. Are you serious about opening a dispensary? The cost of money is down right now but still extremely tight. I would think that if your plan is sound, private money would be much more accessible, and for something many are passionate about, probably not too much more expensive and with less restrictions. I would think celebrities would be better investment partners than spokepeople. I can't think of a better investment out there right now.
When we can talk legally (without our foil hats), I would enjoy discussing this at length.

I will talk to you later. I have looked into sub chapter s corp and nonprofit corps. My accountant is on board as well. Venture capital is not a problem, my own money is enough to get things off the ground. Warehouse is about 100,000 sq.ft. I have a strong tie to med community already in my area that was established 20 years ago when my mother died on cancer. Just waiting for it all to come together. I have plenty to do in the mean time.

 

[greenfriend]

On the east coast, things are a little different. But with NJ getting ready for mmj there will be opportunities that CA has enjoyed for sometime. I already have a business plan written for starting a dispensary, the warehouse space, application for a license from state, and my fiance is a vp of a major bank, that is on board for a small business loan. I also have some celebrity endorsements that I can use. And now I'm becoming a strain junkie. Time to smaoke a fatty.

bout time for some east coast folks to do it like we have been doing in cali, legalized or not. jmo i wouldnt rely on a loan for starting something like a mcd. i guarantee not a single mcd in cali got a bank loan. they started with angel investors and a solid manufacturing operation. wish you the best in your endeavor

 

[greenfriend]

I will talk to you later. I have looked into sub chapter s corp and nonprofit corps. My accountant is on board as well. Venture capital is not a problem, my own money is enough to get things off the ground. Warehouse is about 100,000 sq.ft. I have a strong tie to med community already in my area that was established 20 years ago when my mother died on cancer. Just waiting for it all to come together. I have plenty to do in the mean time.

man 100,000 sq ft? i dont think you need that much space. to completely supply a mcd i estimate bringing in 2 lbs a day. if each plant produces avg 2oz, you would need about 900 plants to do that.

i fit 36 plants in a 4x8 tray, so you would only need about 800-900 sq ft for flowering including space for 5 ton AC and other machinery, maybe 400 sq ft for veg, mother, and cloning, and another 400sq ft for trimming, processing. so 2000sq ft w/ proper electrical. 600 amp main breaker would do ya

 

[umbra]

man 100,000 sq ft? i dont think you need that much space. to completely supply a mcd i estimate bringing in 2 lbs a day. if each plant produces avg 2oz, you would need about 900 plants to do that.

i fit 36 plants in a 4x8 tray, so you would only need about 800-900 sq ft for flowering including space for 5 ton AC and other machinery, maybe 400 sq ft for veg, mother, and cloning, and another 400sq ft for trimming, processing. so 2000sq ft w/ proper electrical. 600 amp main breaker would do ya

yep

 

[The Effen Gee]

If marijuana was legalized nationally or even on a state level, you bet your butt banks would loan out money for even venture biz.

Money is money and marijuana profit margins DO NOT lie.

Many bank ceo's know this, especially smaller credit unions due to the fact that most have tried weed...or many still do.

 

[umbra]

This why I am already talking to bank executives. Plus I'm sleeping with her.

 

[goneindawind]

i read some where dat the fda has been patenting weed for a while now and i also read a high times mag back a couple yrs ago dat said dey could dna test the buds and figure out where it came from so if they could do these things then i fear dey might relase a strain and when it has mixed intomost strains dey can claim who have has dat dna in their plants to pay a tax or patent fee i heard this a couple yrs back and this was da first thing i thought of when i herd they wanted to legalize

 

[nvthis]

If phonics is so great, how come it's so damn hard to read??

 

[BBFan]

If marijuana was legalized nationally or even on a state level, you bet your butt banks would loan out money for even venture biz.



Money is money and marijuana profit margins DO NOT lie.



Many bank ceo's know this, especially smaller credit unions due to the fact that most have tried weed...or many still do.

No offense Effen, but personal experience would say otherwise. Recognize that:



1. Banks are not big on new ventures. Ask any dot com where their initial funding came from.



2. Banks are not big on politically charged investments. Banks make their money by loaning you someone else's money and will not risk offending someone (and who will then thereby withdraw their money) by having questionable investments in their portfolio. Banks are a business like any other and will play it towards the "safe" side, certainly initially, by avoiding anything that may offend someone's social values. By the time there is social acceptance, it's too late. Look also to what is going on in the Netherlands and the future of "tolerance" there.



3. Profits realized during prohibition do not equate to those garnered in a regulated and legal industry. You are not currently dealing with a free market. And there will be regulation- it will grow (regulation) exponentially as more politicians look for revenue streams. I mean, the government is currently looking at taxing the miles you drive because gas taxes are going down as automobiles become more fuel-efficient.



4. Margins will change drastically- a critical aspect of any business entities' success is relative to "Barriers to Entry", and unfortunately there are none here. The government (as per the pending bill) will usurp those currently exorbitant profits.



5. Establishing credibility through admission of involvement in an ongoing criminal activity does not bode well as a reference.



6. Asset based lending, beyond real property, will also be difficult to come by, as you are not investing in a single large piece of equipment with sustainable value but rather smaller equipment purchases with rapid depreciation.



7. Asset based lending on receivables is viable, however you must first have the receivable to borrow against.



Bootstrapping, Angel networks, VC groups will be where the money comes from. Should legalization occur, my belief is that you will need to "Go Big, or Go Home". Sound and sustainable business practices will be the key to success. If you are in such a position, start now by developing brand loyalty.

 

[NorCalHal]

Umbra. None of the dispensaries were started with any type of bank funding .
I know 2 dispensary owners and they both started for under $20000.

Basically, you don't really grow your herb, you buy it from other "patients".
The money u will need will be for initial leasing (or buying) a storefront.
Then security of course. and a few employees's.
Vendors will be lining up to show you thier herb in hopes you will buy it up. You will never have a shortage of folks tryin to sell u thier herb. The money flips FAST and increses FASTER. I looked very hard into opening one, but personally, I enjoy growing more then anything. If you have any questions, feel free to ask, or even better, come out to Cali for a week and I'll give u a tour of well ran dispensaries, along with poorly ran ones.

Best of luck bro!

I think if you try to grow your own and also sell it thru a dispensary u own, that is BIG trouble. BIG.
The reason I worry is that is what a guy I know did, and he was the one who was busted by the feds and charged with "Running a continuing Criminal Enterprise" ,which gave him 22 years in a fed penn. I think if u grow a ton and resell it theu a store front, and u are in charge of it all, it could be bad news.
I think it safer to just do one or the other. This is just for the case of opening a dispensary in NJ.
Wheres the money? Growing or operating a dispensary? Dispensary, hands down.

 

[city]

Instead of growing all the way. I would set up a name for yourself that will make it like anyother business. Setting up a plant as your trade mark won't work till your name is on it.
Your business name here:
Then patent the plants. Get seeds from some Humbolt nut job and pay him/her well for there specific cross strain.
Instead of a full grow,harvest,sell
Do hydro farm. Sell clones and ship. Like the plants you find at the store.. that's how they do basil and lettuce.
After you get established then start seling your grow select buds that you do at your shop for a premo price all organic type stuff..
That's my thought. Thanks

 

[umbra]

Umbra. None of the dispensaries were started with any type of bank funding .
I know 2 dispensary owners and they both started for under $20000.

Basically, you don't really grow your herb, you buy it from other "patients".
The money u will need will be for initial leasing (or buying) a storefront.
Then security of course. and a few employees's.
Vendors will be lining up to show you thier herb in hopes you will buy it up. You will never have a shortage of folks tryin to sell u thier herb. The money flips FAST and increses FASTER. I looked very hard into opening one, but personally, I enjoy growing more then anything. If you have any questions, feel free to ask, or even better, come out to Cali for a week and I'll give u a tour of well ran dispensaries, along with poorly ran ones.

Best of luck bro!

I think if you try to grow your own and also sell it thru a dispensary u own, that is BIG trouble. BIG.
The reason I worry is that is what a guy I know did, and he was the one who was busted by the feds and charged with "Running a continuing Criminal Enterprise" ,which gave him 22 years in a fed penn. I think if u grow a ton and resell it theu a store front, and u are in charge of it all, it could be bad news.
I think it safer to just do one or the other. This is just for the case of opening a dispensary in NJ.
Wheres the money? Growing or operating a dispensary? Dispensary, hands down.

Thanks Hal. This type of info is so valuable. Dispensary was the way I was thinking...but I would also qualify as a med patient. Clearly, my experience is as a grower. Money is not my only motivation, which is why setting up non profit is a direction I was thinking. We will see how it plays out. I was not looking to start today...but planning is really the key to success here IMO. When and if the green light is flicked I will be ready.

 

[NorCalHal]

Filing as a Non-Profit is a MUST. All dispensaries currently operating legally in the Bay Area are filed as Non-Profit. Alot of thier income is spent on other "care" items for patients,all free of charge.
As "CEO" of a non profit, you decide what your salary is. What you feel is "fair". Wide range here.

Off to work, Have a good day!

 

[umbra]

Hal, we are definitely on the same page. Talk to you soon.

 

[nvthis]

Wheres the money? Growing or operating a dispensary? Dispensary, hands down.

Just a thought... Hal, you mentioned in an earlier post (maybe even a different thread?) that there was big money to be had in cloning. I propose that if this passes into law there should be a serious evaluation considering the sale of clones. They say during the (other) California gold rush not many miners were actually successful, but the folks selling shovels? Yeah, they were rich men.

 

[greenfriend]

Just a thought... Hal, you mentioned in an earlier post (maybe even a different thread?) that there was big money to be had in cloning. I propose that if this passes into law there should be a serious evaluation considering the sale of clones. They say during the (other) California gold rush not many miners were actually successful, but the folks selling shovels? Yeah, they were rich men.

true, the dispensary that Hal mentioned probably makes the same amount selling clones as they do selling medicine. at $12 ea. and a limit of 48 per person, they still usually sell out within an hour of opening. A high volume quality clone factory would be very lucrative. But it usually involves knowing several breeders and getting the best strains.

 

[greenfriend]

Basically, you don't really grow your herb, you buy it from other "patients".
The money u will need will be for initial
I think if you try to grow your own and also sell it thru a dispensary u own, that is BIG trouble. BIG.
The reason I worry is that is what a guy I know did, and he was the one who was busted by the feds and charged with "Running a continuing Criminal Enterprise" ,which gave him 22 years in a fed penn. I think if u grow a ton and resell it theu a store front, and u are in charge of it all, it could be bad news.
I think it safer to just do one or the other. This is just for the case of opening a dispensary in NJ.
Wheres the money? Growing or operating a dispensary? Dispensary, hands down.

Hal why would supplying your own dispensary be big trouble. As far as the CA AG's guidelines, dispensaries are only supposed get medicine from members of that dispensary or collective. If I started a dispensary, as a med patient, would automatically be a member of the collective, allowing me to supply the dispensary.

Also it costs less, you make more, and you know the exact origin all the product. For example if I sell a lb. of stuff i grew to a dispensary i might get $3000-4000. they resell it for $6000-7500 a lb. Why not control all aspects of the operation?

 

[MasterSensi]

Decriminalization not Legalization is the solution for our community. If it were just something that leo overlooked on a small scale then our woes would subside greatly without the capitalist machine pumping out MJ lights.

 

[goneindawind]

Hal why would supplying your own dispensary be big trouble. As far as the CA AG's guidelines, dispensaries are only supposed get medicine from members of that dispensary or collective. If I started a dispensary, as a med patient, would automatically be a member of the collective, allowing me to supply the dispensary.

Also it costs less, you make more, and you know the exact origin all the product. For example if I sell a lb. of stuff i grew to a dispensary i might get $3000-4000. they resell it for $6000-7500 a lb. Why not control all aspects of the operation?

Yes, but the feds still see marijuana as a crime, so running something like that is like running a big time drug dealing operation not a legal bisness. Thats why the feds gave the two guys who ran the club in modesto a mandatory 20 year lid for running a criminal enterprise which is complete **. If anything were to change i would hope it would be sentences like this. And im always high so im sorry if my spelling typeing and grammar are a little off sometimes.