Calculating the ROI in Commercial Cannabis Production
Marijuana Businesses need to strike the balance between their philosophical ideals and bottom-line efficacy. For example, as much as hand trimming every single bud would result in the highest possible flower quality, hand trimming is a time consuming and costly endeavor (and easily the most hated aspect of marijuana cultivation). Return on Investment (ROI) is a vitally important calculation to keep in mind when making various decisions in a commercial cannabis cultivation operation. Sure, if you have endless money coming out your ears, then hand trimming keeps people employed and produces great results. But those were the old days. Machine trimmers are getting better and better, and grow operation owners now realize that a combination of hand and machine trimming is the best business decision.
Trimming methodology is just one of dozens of metrics that need regular ROI analysis, which is a standard mainstream business practice. Each and every purchasing decision should take into account the potential payoff. Many smart investments are more expensive at the time of purchase but more than pay for themselves in a reasonable period of time. An example of this would be certain lighting systems or environmental control systems.
Tracking these metrics as an ongoing business task is critical to long-term success.
Documentation - Business Plans, SOPs, Tracking Systems, R&D
Site Design - Floor plans, Room Subdivisions, Ease of Access and Use
Security - Internal and External Controls to Minimize Theft
HVAC - Air Quality, Monitoring, Clearance, Temperate and Humidity Control, Co2, Ozone, Fumigation, Fire Safety
Electricity & Gas - Power Usage & Energy Efficiency
Water - Input and Waste Management & Analysis
Equipment - Ensuring the Purchase of Energy-Saving High Performance Equipment & Supplies
Staffing Plans - Workflow Simplification & Error Minimization
Worker Safety, Satisfaction & Professional Development
Pest Management Plans - Quarantines, Visitor & Worker Restrictions, Protocols for Each Pest Type
Plant Material Disposal Plans, Hazardous Waste Management
Site Sanitation Plans
Nutrient Regimens - Standard Protocols, Lab Testing, Modification & Results Tracking
Grow Methods - Flowering, Cloning, Mother Plants, Veg Growth, Seed Production
Harvesting, Trimming, Curing, and Storage
Supply & Demand Production Management
Quality Control - Lab Testing Finished Materials and Standardizing Systems