Building A Cannabis Oil Extraction Business? Know Where To Start, Before You Start.
According to the Small Business Administration, there are more than 28 million small businesses in the United States, making up an astounding 99.7 percent of all business within the U.S. The perks of owning your own business are vast, and include flexibility for growth, working toward financial independence, investing in your passion, and better still, investing in yourself.
With extraction now constituting the fastest growing segment of the cannabis marketplace, savvy entrepreneurs are diving headfirst into this lucrative field. We know that the time to start an extraction business is now, but where should one start, before they start?
Not every small business is positioned for success, and only half of all small businesses survive beyond the 5-year mark. Consequently, before you take the plunge in starting the extraction business you’ve been dreaming of, it’s imperative that you first consider these who, what, where, why and how’s, to ensure that your business is poised to go the distance.
What Is Your Key Strategy?
Without the creation of a well-formulated business plan, your extraction endeavor will struggle from the start. Early identification of key details of your new venture, from where you will set up shop, to what type of licensing is required, will aid you in avoiding future pitfalls.
When creating a business plan, your entry point requirement involves the consideration and documentation of all logistical details of your future lab. This detail diagramming often requires the assistance of an experienced architect and engineer whom will support you in strategically mapping the best possible operational blueprint for your organization, highlighting key factors, including:
- Size of your lab
- Layout schema
- Extraction methods you plan to employ
- Mechanical and equipment needs
Where Will Your Business Live?
With your lab requirements solidified, you’ll be poised to avoid zoning and regulation issues, a common hazard for new extraction business owners. By knowing how much space and equipment you will need, and by conducting a thorough investigation into zoning regulations for your municipality, you will be afforded the ability to fully commit financially to a location or property. Do your research upfront to ensure that your lab will live in an allocated zone, free from regulation hurdles.
Once a secure and appropriately-zoned location has been finalized, and an engineer-certified lab has been mapped out, you’ll be ready to apply for a business license, and to start building out your team.
Who Will Make Up Your Team?
Assembling an ineffective team or developing an inadequate workflow can be extremely costly, both in time and money. Cannabis and hemp extraction is complex, requiring oversight and management from pre-to-post processing. When assembling a team for your extraction business, you will need to consider a diverse group of experts to assist you in realizing your business goals, including a project manager, a financial officer, an architect, multiple engineers, and a certified extraction equipment manufacturer.
To avoid costly delays, non-compliant builds, or miscalculated oversights from an inexperienced crew, a professional extraction services company should be considered. A turn-key, full solutions provider like Xtraction Services can take your business from initial lab planning stage to a fully operational extraction entity safely and efficiently, streamlining an otherwise arduous and lengthy process.
Additionally, testing, trials, and failures often accompany businesses who attempt to launch on their own, without the support of an industry partner. The expert team at Xtraction Services is not only adept at getting businesses off the ground quickly and efficiently, but their insights, expertise, and proven methodologies will allow you to skip the expensive trial and error period, and instead move immediately into fully operational mode.
Why Will Yours Be the End Product of Choice?
Knowing what you are looking for in terms of end product will aid you in selecting the most appropriate production materials and equipment for your business. These are not light decisions to make. Selecting industry-high materials and state-of-the-art extraction equipment will set you up for long-term success.
Conversely, by selecting lower quality materials and machinery, you will potentially face disastrous results via millions in lost revenue, as well as lost strategic industry advantages, when equipment downtimes occur, or when your end product fails to satisfy your target consumer.
With an expert extraction team and services partner in place, you will have the requisite assistance to target lead times, delivery, and installation periods for your equipment, ongoing, scheduled maintenance and care, and guidance in selecting materials that will drive business success.
How Will Your Business Triumph?
The extraction industry is new, complex, and specialized, and every advantage that you can attain for your business may be the difference in whether your organization folds, or surmounts the 5-year victory mark.
Engaging with an industry-leading team of experts, those who will facilitate mapping, installation, and regulatory and safety compliance verification of your lab and equipment, while simultaneously employing Standard Operating Procedures (SOPs ) crucial for quality assurance and uniformity of performance, is key to building a lab that is not only industry compliant, but one that will meet the unique needs of your business.
Small business owners within the extraction industry no longer need to face the pain points or burdens associated with extraction lab set up alone. By utilizing an expertly-led, end-to-end solutions partner such as Xtraction Services, and by considering the who, what, why, where, and how’s of your extraction business, you will not only be able to tackle the challenges of small business ownership accompanied and well-assisted, but will also be well-positioned in ensuring longstanding success for your new endeavor.
For more information on where to start before you start your extraction business, contact Xtraction Services today.