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Drew, I want to invest in your weed venture.


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#21 Supa Ben

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Posted 22 August 2014 - 04:00 PM

Our initial annual gross will be around 2m.

 

Damn and they say money doesn't grow on trees. Can you really expect prices to stay high (heh) though with the guaranteed future increases of supply? I'd imagine it will bottom out soon enough like any free market, but you'll probably do well for a few years at least. 

 

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#22 Drew

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Posted 22 August 2014 - 06:25 PM

That's part of the risk. Assuming prices come down to current black-market rates ($10 a gram-ish), we're making about 1.5m a year with four greenhouses.

 

It's a hit, to be sure, but between five people, 1.5m isn't bad I don't think. I don't think prices will ever drop below that, to be honest. We'll see.


Edited by Drew, 22 August 2014 - 06:26 PM.


#23 Blaze

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Posted 22 August 2014 - 06:37 PM

Let me know if you're hiring peons and/or lackeys, McPuff.

#24 Drew

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Posted 24 August 2014 - 10:00 AM

I will! Until we start actually selling product, we won't be hiring anyone. Our investor is covering material costs only, labor comes out of our pockets. We'll probably be looking to bring on some help in around six months or so.

#25 phreak

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Posted 26 August 2014 - 06:25 AM

Those numbers are absurd. I had no idea you could make that much money doing that.



#26 Drew

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Posted 26 August 2014 - 02:21 PM

Cash crop!

#27 Jironimo

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Posted 27 August 2014 - 07:34 AM

Those numbers are absurd. I had no idea you could make that much money doing that.

 

As the legal issues are cleared up, and more and more competitors with deep pockets enter the market, you can expect that it won't be as easy to make a lot of easy money. 



#28 Drew

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Posted 27 August 2014 - 11:51 PM

Yup, which is why you want to get in now before real money enters the market and crowds everyone out. Carve out your niche, and establish yourself in the market early.

 

Thankfully, with the way our state's licensing system is set up, even really wealthy companies wouldn't be able to have more than three times what our current license allows. One license per business, no exceptions. I'm not sure how it works in Colorado, might be different.



#29 Drew

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Posted 27 May 2017 - 08:17 AM

An update! Turns out that taking care of 10000sqft of canopy while everyone involved is working full time jobs and some are going to school is a difficult proposition. We ended up selling about half of our initial product before we decided to sell the enterprise as a whole - the license, land, the name/brand, and all of our production structures. Large companies started flooding the market almost immediately after we got our production up and running (so much for that pipe dream - there was big local money involved), and the per-gram wholesale value plummeted (it's below $3/gram now). I'll be honest, it wasn't as lucrative as we had initially thought when we started out, but the final payout was way more than we put in as a group. A decent investment, but ultimately, it was too ambitious. Oh well!


Edited by Drew, 27 May 2017 - 08:21 AM.


#30 Jironimo

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Posted 30 May 2017 - 05:49 AM

Once this is legalized in IL, WI, or any new state, how long do you think it would be until the big money gets in and then smaller operations make no money. Asking for a friend, I would never get involved with that stuff, but there are some hippies in my family. 



#31 Drew

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Posted 01 June 2017 - 01:08 PM

Once this is legalized in IL, WI, or any new state, how long do you think it would be until the big money gets in and then smaller operations make no money. Asking for a friend, I would never get involved with that stuff, but there are some hippies in my family. 

At this point, unless there are laws preventing out of state investment, it will happen instantly. There are big players in Colorado and Washington who are chomping at the bit to expand. Given how resoundingly successful it has been in every state that has legalized it for recreational use, you will probably see local venture capital step in very quickly, even if discount out of state investors. From this point, it's going to be very difficult for mom and pop operations to get off the ground. You will have to be there day one if you want any kind of chance at success.




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