Posted on

how much money can you make growing weed

How much money can you make growing weed

When I was released, I was hired as a trainee at the Wimbledon branch. That was 10 years ago now. Since then I’ve gained several promotions and now I’m area development manager. The progression is really good. All managers are hired from within the company.

When I was inside my wife said: “This is the last time I’m putting up with this shit. You need to knock it on the head.” She was under immense pressure. I’d been the breadwinner and then she had to deal with all these bills and everyone emptying her bank account. She was forced to pawn her jewellery to make ends meet. At the time I was bored in prison and I came across an ad for Timpson in the prison wing, which promised a 16-week trial on release and, if successful, a full-time job. I started training at its in-prison centre – which is kind of like a big shop – five days a week for six months. At first I didn’t enjoy it. I never thought I’d be any good at working with my hands. But then I discovered I was. But full credit to the people running the academy – it was all down to their dedication and knowledge.

I was a career criminal from a young age – I never really had a job. My friend and I set up a fake record label which concealed our income and tax. Instead I grew cannabis for many years. It felt easy, and although it’s quite time-consuming, the rewards are good. But we became greedy. We rented a five-bedroom house in Wimbledon and set up a million-pound grow room. If it had worked out, that would have been my pension. However, a garage next door to the house discovered we were growing weed after the person we’d employed to get rid of the waste became lazy: rather than dumping it in the river like he was supposed to, he left it in their bin. The garage called the police. I remember visiting the house and seeing big burly cops outside. That’s never a good sign. I drove straight home and gutted my house because I knew it wouldn’t be long until they came knocking. Unfortunately they found a partial fingerprint of mine on one of the timers inside the grow room. It was enough to convict me. I was sentenced to three years. Was that my first time in prison? No, I’d been in a couple of times before. One was a 16-year sentence. But I can’t talk about it.

My wife earns double what I do and is the saver. I spend money like water and have a low regard for it. Looking through my statements, it’s shocking to see how much I spend on buying breakfast and coffees. I drink five coffees a day – that’s a lot of money. Over a month, it’s a good £200 on coffees. That’s before the bacon rolls and sandwiches. I’m going to try to stop spending so much. My wife put my bank cards in the washing machine to stop the contactless part working to try to rein in my spending. I’m just used to always having money. When I came out of prison, we were getting rid of our old bed and, as we were taking it out, we found £1,000 in there. It had been there for five years. I had no concept of money – it was always just something that you got and then spent.

We are mortgage-free on our house in London. We have a place in Scotland we rent out which pays the mortgage. However, at the moment we don’t have any tenants, so I’m paying £700 a month on that. That leaves me with £2,000 a month spare. After bills, the rest of the money I earn is spent on luxuries. I might spend about £200 on a date night with my wife. She loves the theatre. I’m not a massive fan, but we’ve seen Phantom of the Opera 12 times. I don’t even like it but I know every word. I’ve just managed to score tickets to a Harry Potter play she’s been trying to see for the last three years.

How much money can you make growing weed

When it comes to revenue, yield is king. Grow space will of course be a key component. When it comes to strategically planning your grow in advance, you typically want to stuff your grow with as many plants as possible, while not damaging the potential quality of the product. Naturally, a larger space will allow you to produce a higher yield. The grow space is also the key limiting factor on how much money your grow can produce.

Putting it all together, take a look at the model below and try influencing the returns by pulling on the three levers (size, state and lighting system). This is a useful reference point before diving into some of the details how and why these are the most important factors of profitability.

The state of your grow is surprisingly important in its potential profitability. The three ways in which the state make the biggest impact on profitability are license expense, revenue from wholesale price per pound and the operating electric bill.

#2) The state where the grow is located

The ideal lighting system setup to grow quality cannabis is a hotly contested topic, far above the scope of this article. Nevertheless, in most grows, the lighting system is very important from an accounting and financial perspective as it is among the only fixed assets. The lighting system impacts the financial viability of a new grow in three primary ways. First, the initial upfront cost of equipment is typically a material cost and some lighting systems will be cheaper than others. Secondly, the total yield of the grow can be reliant on how many watts your lighting system is comprised of meaning your lighting system makes a direct impact on revenue figures. Finally, you will pay for additional wattage through the electric bill in your year over year expenses.

When it comes to the year over year operating expense, the electric bill will routinely be one of your largest costs. Although what equipment and lighting system you install will play a big factor in this expense, your state will determine how much you are paying per kilowatt hour. Once again, if profitability is your primary motive, you would ideally have your grow supplying lighting, cooling etc to your plants basically 24 hours a day. In 2019, the price per kilowatt hour ranged from a low of 9.37¢ / kWh in Louisiana all the way to 32.76¢ / kWh in Hawaii, more than 3 times larger. Considering the impact the state can have on initial capital requirements by way of license, in potential revenue for your grow and year over year electric expenses, it is apparent why it is an extremely important consideration.

#1) The size of the grow space

The State the Grow is Located and

For year-over-year operating expenses, size will play a primary role in both lease and license costs. When planning any grow, it is prudent to assume there will be an escalator on the annual cost for both the lease and license. While not a direct contributor to the electric bill, your total grow space of course quantifies the maximum dimension this expense will be. Also consider direct labor. You could probably take care of a 500 square foot grow yourself. How about 10,000 square feet? 50,000? As the scale of your operation increases, you will need to increase headcount to accommodate all of the work.