The legalization of cannabis in many countries and territories has a very positive impact on the sales of cannabis and cannabis products. Worldwide, the sales of marijuana have seen major leaps and bounds. By the end of 2021, the global sales for cannabis is expected to reach more than $31.4 billion by 2021. This according to a report from the Brightfield Group, a cannabis market research firm that tracks the industry of marijuana around the world.
Profit from marijuana business
If you are a marijuana enthusiast, you have the opportunity to turn your lifestyle into a business. There is so much profit to gain from doing business for marijuana.
To better illustrate how much, on average, the amount of money a marijuana grower can earn, here is a very easy to digest explanation on how much you can make from Marijuana. Please note that this explanation cannot actually compute the actual profit for marijuana. There are many factors that interplay that will affect a business’ profit.
There are many ways to virtually compute the value of your garden. To be able to tell whether you will make a profit, we can compute your capital the cost of buying and using tools for growing marijuana indoor as well as the cost of growing and packaging your crops. Please understand that a business in marijuana will rely heavily on excellent financial computations.
One growing cycle – cost and profit
Below is a scenario on the cost and profit of one growing cycle – 3 months. We hope this will help you imagine how it is to do business in marijuana. The result of this little computation will be the profit potential in growing marijuana.
10 x 10 feet room
To give you a scenario, imagine yourself owning ten by ten feet room for growing marijuana. For a garden this size, at a minimum, you will be needing five 1,200 watts of lamp to light up your indoor garden. The cost of each lamp will be $350.
Then you will have to set up the soil, the flowerpots, water, fertilizers and other miscellaneous items which may cause around $500. Running the garden, the cost for the utilities will be around $750 for three months.
In total, at a basic level, you will be spending around $2,650 in cultivating your marijuana during your first 3 months as a grower. You will have to remove the cost of buying the lamps after the first cycle. Nevertheless, during your first quarter as a grower, expect to spend $2,650 in the actual farming.
After this, you will have to add the cost for drying and processing your leaves into different packages. You will also have to add the cost of shipping. All in all, you will spend around $350 on this part.
Initial capital of $3,000
Therefore, the total cost of gardening, processing and transporting of your marijuana will require an initial capital of $3,000. This value does not account the use of other technologies such as hydroponic gardening, which would add up to your capital.
Now, to compute for your profit, you will have to compute the amount of your total sales for the harvested crops.
Marijuana yield
On average, you can expect a harvest of 1.2 kilograms for every 1,200-watt lamp. So, if you have 5 lamps, you will be harvesting around 6 kilograms from your garden. Drying the marijuana will remove as much as 25% from the total weight. So, by the end of drying, process you will have 4.5 kilograms of marijuana after.
$24,000 profit
If you are going to sell each gram of weed for $6, you can expect to get a total of $27,000 gross sales. After this, you can subtract your capital, which is $3,000, to get the profit.
By the end of your first planting season, you will earn a total of $24,000.
Yields vary according to strain
Remember, this is just the basic computation. A lot of factors are at play here. First of all, there are high yielding marijuana varieties that will allow you to harvest more. There are also marijuana strains that are more expensive than most.
However, in most cases, the more expensive a strain is, the smaller their yield are. You should also include the cost of labor if you will have gotten any assistance in growing or selling your crops.
Hopefully, this little scenario has given you a basic insight on how much you can make from marijuana.
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Interesting related article: “Some interesting facts about the CBD industry.“