You need to be profitable at $500 a lb the next few years.
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yeah that doesnt sound right. the 5 k a month isnt bad
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your calculations are having the buildout paid off in one harvest right? You need 1.5 per light to hit a bonus? Its easy but most high yielding strains compromise on the dank factor. Makes more sense to pay off the debt and some of the buildout, Not all at once.
Iām not sure how they are trying to pay off their license/land purchase and buildout, but they told me they need 120k before they can bonus me. Iām assuming thatās to pay for some of the buildout and some of the purchase and cover their monthly business expenses.
They didnāt really have a business plan drawn out, they showed up with what their costs were gonna be for the harvest and overhead costs and said thatās the bottom line they need, 120k to break even. But as you say, those numbers are hopeful as I have heard the flower market is not as high as expected. This makes me more inclined to go with the other offer as it is āmore solidā and basically the same pay
Figure out the cost to get a trimmed pound out the door covering all expenses at 2 pounds per 20 square foot yield. If itās not really close to $500 now, this probably isnāt a very sustainable venture.
Ask for a business plan from the Arizona group. Canāt make a cultivation plan without a business plan.
When negotiating cultivation management work, remember that 2-4 years ago most of these entities got taken for a ride by some dumbass master grower that destroyed their crops and lost a bunch of money while getting paid 150k+ per year. Since I consult with various grows here I negotiate contracts pretty often, Iāve found that most owners are very leary to sign a contract that promises much in fixed compensation. If youāre comfortable in your skills, you can get to more fruitful contracts if you have compensation based on performance guarantees. On an indoor my typical contract pays me $0 if the yield is below 2 pounds per 20 square feet, every 60 days. Of course a contract like that violates labor law, so you need to start an LLC, but thatās better for taxes anyway.
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First question:
What is their current profit margin?
Anything else is irrelevant.
That is your compass
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If people thought like this nothing would ever happen lol Op take care of yourself, but only worry about what you can control period. If your goal is to grow something and give it your best work and actually and see how far it takes you! But dont have the mindset that leads to moping around mad about money and not giving it your all, I think the common story of the industry is āthey hired me and after I wrote all the SOPs and trained everyone they fired meā the part that is also common and left out of the story is that lots of these people have that 2nd mindset and even though they are great they are more concerned with themselves then the company and forget the company will always put itself first and if someone is underperforming they can be and should be replaced
Wish you the best of luck in either endeavour and of you want any consulting on what red flags you should be looking for in contract language HMU
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Truth I have seen this countless times. If you cant put the company first then you wont be in the company for long. Fearing your going to be taken advantage of and fearful someone is going to replace you is a sure way to lose a job quick.
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