This article is the third in a series called, “So you want to start a canna biz?” created in partnership with Good Tree Capital. Here, we’ll cover is how much it costs to open a cannabis business, including fees, applications, and other specifics of the cannabiz.
Earlier in our canna biz series, we introduced future cannabis business owners to an important formula for making a profit. But while the equation for running a successful business is fairly simple, optimizing the inputs to costs is not.
Savvy business owners contain costs while maximizing revenue. And because every cannabis business incurs costs before earning revenue, it is important to take a deep dive into the largest cost drivers and develop tools for containing them.
To get to the bottom of cannabis business costs, Good Tree Capital canvassed real borrowers—and the internet—to get a sense of how much cannabis operators were paying for some of the big-ticket items.
With so many unique variables at play, the table below was created to offer general, directional guidance on the cost of starting a cannabis business, but remember, they will vary depending on business type and location.
The cost of opening a cannabis business
|Application fee (non-refundable)||$2,500||$30, 000||$100,000|
|Annual registration/renewal fee||$5,000||$60,000||$100,000|
|Real estate||$128/sq ft||$240/sq ft||$393/sq ft|