Importance of Calculating Setup CostsCommercial cannabis growers and investors are running a tight business. Inputs must be tracked closely to ensure the business stays profitable and sustainable. It’s tempting to start a buildout right away to minimize idle time and skip the important questions of how much does a grow room cost. However, taking the time to use a grow room cost calculator and then detail the budget and estimates for the buildout will ensure the project goes smoothly and that finances are in line with expectations. With construction, there is always some variation from the plan. A contingency allowance for unexpected expenses acts as a financial safety net. The amount of this allowance is dependent on the scope of the build out but usually it will not exceed 10% of overall costs.
Top 3 Costs in Building Out a New Cultivation Space
- Planning + Drawings: Invest in architectural drawings and work with engineers who will handle the county and city permits. This stage is the most important as it can greatly impact the timeline and scope of your project.
- Lighting: If you choose to invest in LEDs and vertical racks, the lighting equipment costs will be high upfront. The energy, electricity cost, and space efficiency will make up for it in the long run, but it’s one of the top upfront expenses for the buildout.
- Grow Equipment: Pipp Vertical Racks, plumbing, ACs, dehumidifiers, the list goes on. Preparing all the equipment, tools and supplies for a cultivation facility takes time and plenty of budget.