So you want to start up an extraction lab, huh?
Congratulations. You are about to embark on one of the greatest market opportunities in your lifetime. That is, the conversion of plant flowers into useful consumer and medical products. We believe in the market fundamentals and have written this general guide to help you map the process of becoming a rock star extractor.
We specialize in helping people seize the opportunity by bridging the science, engineering and operations gap. Sometimes the idea and glamour of owning your own business can be shattered when faced with the prospect of just the sheer amount of work you see in front of you. We are here to help you traverse that bathtub.
When considering opening or running an extraction business, there are many things that need to be done to do the proper due diligence.
- You need a location with a good market for extracts.
- You need to shop the local market for ideas on what are the best products to sell.
- You need to understand what are your target patient products.*
- You need to do a proforma showing that you will be profitable with all appropriate inputs.*
- You will need to understand standard COGs.*
- You will need to understand the ramifications of 280E (in the US) on your business structure.
- You will need to take a breather and laugh a little.
- You will need to understand extraction business liability and risks with the business you are running.
- You need to know how to run a extraction business.*
- You need to account for the amount of cash it will take you to build-out, permit, and startup.
- You need a building with the proper operating permits.
- You will need to order equipment for the entire process.*
- You need connections to local government.
- You need engineering drawings of your location.*
- You need to connect with local regulators.
- You need a general contractor.
- You need to obtain bids and do the build out.*
- You need to source materials and execute supply agreements.*
- You will need to know how to produce and have extraction business systems put in place.*
- You will need to understand at this point why you are doing this and plan a vacation.
- You need to obtain and set up distribution channels.
- You will need to get final license and approval.
- You will need to install your equipment for the entire process.*
- You will need to commission all your extraction equipment.*
- You will need to train your employees.*
- You will need to put quality systems in place to prevent recalls.*
- You will need to put the money in the bank!
We can help with the items that are asterisked and so much more.
If you are thinking of starting a business or are in the middle of the process, give us a call at 651-600-0036 or submit a contact form below. We will help you just like we have helped many others navigate these waters.