Becoming a MMC?
- Thread starter smokajoe
- Start date
TruenoAE86coupe
Moderator
LoL i can not answer this one, but lots and lots of money, plus you must wait until the moratorium is lifted. SoCOMMJ or Eyecandi are the ones to ask on this.
SoCoMMJ
Well-Known Member
Not to discourage you, but consider that numerous dispensaries are closing down across the state at a fairly rapid rate due to market saturation [excessive competition]
Once you have taken the above statement under SERIOUS consideration, probably the easiest way right now is to buy up an existing business.
Currently there is an MMC license moratorium that lasts until July 2011. There is talk in the current legislative session of extending that to 2012.
If you decide to start from scratch, be prepared for a excessively painful process.
First you have to get local approval from your city [or county] if they have a process in place.
Next you have to apply for state MMC and OPCL[cultivation] licenses.... $8,750 application fee.[this does not include license fees of an undetermined cost]
The trick here is you have to have leases established before you can apply for an MMC license.
Another catchy part is patient count... Before you can grow plants you have to have patients assigned to the MMC for the plant count. So getting started there might be tough, you can't just toss a thousand seeds once you get a license.
In short, it's too lengthy of a process to describe via an internet forum. It can be a good idea to shell a few bucks at a lawyer first to get some direction. Starting an LLC is probably a good idea somewhere along the line.
If you have more specific questions feel free to post them. Asking how to start an MMC is kind of vague, as it is a significantly large undertaking.
Once you have taken the above statement under SERIOUS consideration, probably the easiest way right now is to buy up an existing business.
Currently there is an MMC license moratorium that lasts until July 2011. There is talk in the current legislative session of extending that to 2012.
If you decide to start from scratch, be prepared for a excessively painful process.
First you have to get local approval from your city [or county] if they have a process in place.
Next you have to apply for state MMC and OPCL[cultivation] licenses.... $8,750 application fee.[this does not include license fees of an undetermined cost]
The trick here is you have to have leases established before you can apply for an MMC license.
Another catchy part is patient count... Before you can grow plants you have to have patients assigned to the MMC for the plant count. So getting started there might be tough, you can't just toss a thousand seeds once you get a license.
In short, it's too lengthy of a process to describe via an internet forum. It can be a good idea to shell a few bucks at a lawyer first to get some direction. Starting an LLC is probably a good idea somewhere along the line.
If you have more specific questions feel free to post them. Asking how to start an MMC is kind of vague, as it is a significantly large undertaking.
eyecandi
Well-Known Member
sorry, was down in the Spings visiting another RIU member all day (awesome time brudda!!). but, SoCo nailed it.
however, I will slightly disagree with the part about closing due to saturation. while that IS a part of it, the other 2 key components are: 1)owners who can grow, but don't know business and are getting themselves in bad positions because of that lack. and 2)owners who know business, but can't grow worth a shit (or keep screwing those that do, so run themselves out of business). both scenarios are playing out all over Colorado and several of those businesses are failing. like any new business boom, there are a lot that will fail due to lack of real business knowledge. a lot of people getting into this business thinking they will make a ton of $$$, not realizing it really IS an actual business that requires a lot of time, energy and $$.
my 24cents (inflation)
however, I will slightly disagree with the part about closing due to saturation. while that IS a part of it, the other 2 key components are: 1)owners who can grow, but don't know business and are getting themselves in bad positions because of that lack. and 2)owners who know business, but can't grow worth a shit (or keep screwing those that do, so run themselves out of business). both scenarios are playing out all over Colorado and several of those businesses are failing. like any new business boom, there are a lot that will fail due to lack of real business knowledge. a lot of people getting into this business thinking they will make a ton of $$$, not realizing it really IS an actual business that requires a lot of time, energy and $$.
my 24cents (inflation)
SoCoMMJ
Well-Known Member
Yeah....that, and there are very few people in this business with the ability to establish relationships of any duration.
Growers were required to partner under the "employment" of dispensaries. Growers think that dispensaries are ripping them off and dispensaries think growers are ripping them off. Partnerships dissolve due to incompatibility then both sides end up with nothing.
We were smart and lucky enough to keep everything in house. I manage the garden and production, and the prettier one manages sales, patients, and the front end. We hired in highly trusted employees when we could no longer work 18 hour days. No reliance on anybody from outside of our walls has proven to be the key to success thus far.
It's not so different from when we were on a smaller scale as caregivers.
Growers were required to partner under the "employment" of dispensaries. Growers think that dispensaries are ripping them off and dispensaries think growers are ripping them off. Partnerships dissolve due to incompatibility then both sides end up with nothing.
We were smart and lucky enough to keep everything in house. I manage the garden and production, and the prettier one manages sales, patients, and the front end. We hired in highly trusted employees when we could no longer work 18 hour days. No reliance on anybody from outside of our walls has proven to be the key to success thus far.
It's not so different from when we were on a smaller scale as caregivers.
disposition84
Well-Known Member
One of the shops I frequent here in COS has absolutely been exploding with
business, and the only reason for shutting down they'd see would be the laws.
When I asked how he's doing so well he kinda smirked at me and laughed, asking
if I was wondering how he's managing to stay afloat in this flooded market.
He simply said something along the lines of, with good dank, a fair price, and a
friendly personality you'd be amazed how far you can get. I used to never have
to wait in lines when they first opened, but now every time I go I'm at least behind
two people.
Like SoCo is doing, they are a two man partner setup as well which helps on their
profits as well. He said they're each able to pull in about 65k this first year they
were open which seems like a nice amount for a start up, and they had to buy all
their product upon initially opening until they could get their harvests going. He threw
the figure of about 120k out for startup until about the first 4 months when your
first harvests come in to keep things operating. And said it costs them roughly 15k
a month for their 25kw grow room and dispensary shop. I really have no frame of
reference in these things I was simply asking him for some honest basic numbers of
what it really takes to get a dispensary legally going.
I can't speak for Denver or Boulder as those markets seem even more flooded than
here in COS, but I definitely am not giving up my dream
business, and the only reason for shutting down they'd see would be the laws.
When I asked how he's doing so well he kinda smirked at me and laughed, asking
if I was wondering how he's managing to stay afloat in this flooded market.
He simply said something along the lines of, with good dank, a fair price, and a
friendly personality you'd be amazed how far you can get. I used to never have
to wait in lines when they first opened, but now every time I go I'm at least behind
two people.
Like SoCo is doing, they are a two man partner setup as well which helps on their
profits as well. He said they're each able to pull in about 65k this first year they
were open which seems like a nice amount for a start up, and they had to buy all
their product upon initially opening until they could get their harvests going. He threw
the figure of about 120k out for startup until about the first 4 months when your
first harvests come in to keep things operating. And said it costs them roughly 15k
a month for their 25kw grow room and dispensary shop. I really have no frame of
reference in these things I was simply asking him for some honest basic numbers of
what it really takes to get a dispensary legally going.
I can't speak for Denver or Boulder as those markets seem even more flooded than
here in COS, but I definitely am not giving up my dream
eyecandi
Well-Known Member
I totally hear that SoCo. Me and my better half run the warehouse + relationships and our biz partner takes care of the financial side (I was never great at number crunching).
disposition - sounds about right, but our electrical rates are better I think (@ 19KW currently between veg and flower). It is not cheap and those that do not plan ahead properly for the 1st year of business will find themselves in a bad spot. I know of one grow that didn't plan properly, spent most of their $$ on equipment .... had a couple hickups in the first several months of production .... then couldn't pay for electricity .... Excel shut them off and hosed the grow. lots of $$ down the toilet.
Just remember, it's a real business like any other and to plan properly. Do not give up on the dream, just make sure to refine it and plan properly.
disposition - sounds about right, but our electrical rates are better I think (@ 19KW currently between veg and flower). It is not cheap and those that do not plan ahead properly for the 1st year of business will find themselves in a bad spot. I know of one grow that didn't plan properly, spent most of their $$ on equipment .... had a couple hickups in the first several months of production .... then couldn't pay for electricity .... Excel shut them off and hosed the grow. lots of $$ down the toilet.
Just remember, it's a real business like any other and to plan properly. Do not give up on the dream, just make sure to refine it and plan properly.