Congratulations, Illinois, you just went legal on January 1, 2020. What does that mean? Well, that means that you can possess and grow your favorite plant to a certain extent without Johnny Law breathing down your neck. Does that mean you can go wild? No. There are some things you should know before you jump into creating your own legal business in this industry. There are several pitfalls that other owners of this same type of business have found as their states went legal. You should know them before you try this venture because knowing these things will help you get a leg up on the competition.
You should know that there are a lot of people who were going to enter the marketplace. It means that the cost of your product will be driven down for quite some time. It is a very fancy way of saying that either you are going to have to create a superior product or you will have to realize that this is not a get rich quick scheme. You are going to have to be in this for the long haul to make your money back. Of course, you are also going to have to follow your rules and regulations that your state sets out.
The major thing you should probably keep in mind is that your supplies, your labor, and anything else that you think you can write off are probably not going to be able to be written off. There’s a tax code 280E that prohibits marijuana businesses from deducting business expenses. If you are not aware of this tax code you can find yourself short at the end of the year when you are turning in your tax return. Most people rely on their deductions to help them cover their losses or, with luck, show a profit over the year. It could be used to, maybe, break even. However, the unfortunate truth is that most of your growing supplies and your labor is not going to be written off. If you keep that in mind before you start the business then you have a greater chance at succeeding because you will not be relying on any write-offs to help you at the end of the year. Just knowing this fact can help you stay in business when a lot of other businesses are blindsided and have to find a way to pay the government.
Mobile Grow Racks are the way to go
One of the things that might take a while to figure out is that you probably want to use mobile grow racks to make your product. A lot of people start with stationary versions of their growing apparatuses. However, it is very nice to be able to wheel your grow around. You can also spin it around which means you have more freedom to make adjustments, change things, or just check on the status of your plants. Of course, you could wait on this upgrade to your business. However, the sooner you get this the better off you will be because it will be much easier to make the changes you need as necessary. You will not have to struggle to move your grow if you need to at a later date. Obviously, if you have to carry your product upstairs then the mobile unit is probably not going to help you. But, if it just needs to move to the other side of the room then a mobile grow rack is the way to go. Secondarily, most of the mobile grow racks that you can find are meant to be vertical friendly. A final note before we move on to vertical growing is that you want to get a stable version of these racks. It might seem obvious but there are many places where you can go out and buy racks that are mobile. The problem with them is that they are going to feel flimsy and give you trouble. You do not want to lose work because your mobile rack was not stable enough to handle the weight and/or the work that you needed it to be able to support.
Plan for growth/vertical growing
Finally, you need a plan for vertical growing. Eventually, you will find that you are running out of space once you develop your own marketplace and your customer list. You will find that growing out is not the answer and what is the answer is the ability to grow above yourself. You are going to have to get involved in vertical farming. Vertical farming is the way to go because you do not need to grow out, which will take extra space. You just grow straight up. If you look above your head right now then you will probably notice, for most people, unless you are unusually tall, that there is a lot more room up there. You also get to take advantage of your mobile grow rack as you will be able to wheel around multiple carts easily and have a vertical farm on them as well. The sooner you plan for the fact that you were going to have to grow vertically the better off you will be in the future once your business grows to an appropriate level.
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