Want to learn how U Cann Grow can help you reduce all of these risks?
The Risks We Help You Reduce
If you are an investor who understands the importance of risk mitigation, here are the main risks that U Cann Grow has identified when helping our clients join the Canadian cannabis micro cultivation industry.
Licensing requires an investor to:
1. Lease a building ($50k/year)
2. Build it out to spec (Health Can.)
3. Submit an application to HC
4. Wait for 6-12 months, paying rent
5. If there are resubmissions, wait another period of 6-12 months
6. Get licensed and start operating
2°C too hot can mean $2/g less.
Cannabis is a sensitive plant and any change in environmental conditions or mishandling of the plant by new staff can result in a drop in quality and as a consequence a drop in price.
Despite producing high-quality cannabis, how can you be sure that you will have a buyer?
Will you need to spend extra money on sales and marketing just to get a better price? Is the investment even worth it?
Everyone wants a job in the cannabis industry. Unfortunately, most aren't qualified or simply don't care about the plant itself - making for an inferior product at an inferior price.
Finding good talent that cares about making a difference is very difficult, and risky, in the cannabis industry.
Whether it be pests, or whether it be a defective pump or thermostat, if something bad happens during production you may have to sacrifice an entire crop. Being able to identify risks early requires the right expertise.
The larger a business, the more complex of a system it becomes.
In fact, with cannabis production, scaling often compromises your quality, which as a consequence lowers your sale price, and you lose that entire economy of scale you set out to achieve.