We bootstrapped our indoor cannabis cultivation business to 200k monthly revenues with a 40% profit margin. It took us 3 years. With the additional expansion opportunity on our license, this could be increased to 1.2M/mo!
We have built our canopy out to 3,700 sq ft of indoor flower in our 9,500 sq ft building which is on a long term lease at a very attractive price around $1.20/sq ft. Our original license was for 5,000 sq ft canopy, and there is underutilized space in our building. The city has told us that we can add a distribution license if and when we are ready to allocate space for it and do the necessary build out.
The most exciting aspect of our growth trajectory is that the city has increased our allowable canopy to 22,000 sq ft. They understand we have invested heavily in our building, and so suggest that we can find a second, larger property, and include it on the existing license!
We have a great relationship with our landlord, and can leverage that to acquire a favorable lease on this second building.
Waiting for our profits to reinvest in this expansion would take a couple years, and one of the partners is already involved in another distribution company, so we think the business might be in better hands with an owner who is prepared to invest in this expansion.