InSpire Can Help Finance Your Commercial Grow Room Design Plans
Whether you are just designing your indoor cannabis grow room or totally retrofitting your existing operation, InSpire has financing options for you. There are several benefits to financing your operation with InSpire’s help:
✔ Direct Access to Capital
Reduce the number of hoops you have to jump through to finance your cannabis business.
✔ Privately Funded
Private funding is the best avenue to securing cannabis financing in the U.S.
✔ Seamless Integration with InSpire Systems Providers
You’ve got a lot to keep track of, but when you finance with InSpire the process becomes part of your whole InSpire experience— seamless and trusted.
✔ Acting as a Fiduciary Partner
Our responsibility is towards the success of your business. Our financing options are just another way we work to ensure your operation grows into the business you imagined.
How Much Does It Cost to Grow Cannabis Indoors?
Starting a new indoor cultivation facility is no small feat— or cost. For a 7,700 square foot warehouse with about 1,000 plants in the facility, it is estimated that the initial investments will be around $830,000. That breaks down to:
- Warehouse rent – $50,000
- Build out, improvements – $60,000
- Growing equipment – $150,000
- Lighting system – $120,000
- Alarm & Security System – $45,000
- Licensing & legal fees – $55,000
- Direct costs (first months before profit) – $200,000
- Administrative expenses – $50,000
- Other expenses, incl. salaries – $100,000
Of course, what state you are running your business in will make a huge difference. While the startup costs are no joke, the right commercial grow room design can help ensure you keep your operating expenses down and maximize the yields of every growing cycle.
Why Is Financing Difficult in the Cannabis Industry?
Even though cannabis is legal in some fashion in the majority of states in the U.S., financing remains elusive through traditional means. That’s because the Federal government has yet to approve banking laws for the industry. Since cannabis is still classified as a Schedule I drug by the Drug Enforcement Agency, banking is prohibited. Several laws have been proposed recently to amend this, with some passing the House of Representatives.
Even though hemp, a close cousin of marijuana, has been de-scheduled by the Federal government and made legal for commercial growing applications, that didn’t immediately solve the banking crisis for hemp growers. Today’s cannabis can’t go to traditional banks for loans, so private equity funds are the primary avenue for most companies to find capital.
Navigating the challenges of growing cannabis indoors can be hard enough, but adding in the complexity of finding funding for your business venture is just another added stress. InSpire is here as your trusted partner and advisor through it all.