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How to build an extraction operation

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Cannabis Extraction Business Planning

The extraction business is high in demand and the cannabis extraction business is by far one of the most profitable ones. Extractions are carried out on a daily basis in other markets and in your daily life. If you drink coffee, you may even have performed an extraction to create a fresh cup of coffee.

In the same way that coffee is extracted, plants such as marijuana can also be extracted to produce concentrates or extracts. The extraction process has to be controlled and the environment, we highly suggest the C1D1 Labs Extraction Booth, has to be set for everything to be safe and successful. The initial set up cost can be pricey but when done right, a cannabis extraction operation has the potential to bring in hundreds thousands, even millions of dollars in profits.

Modular Extraction Booths

Cannabis Extraction booths and distillate consulting

If you plan on starting a cannabis extraction company, you should be prepared for the complicated application process that you are likely to experience from state and local officials. Before you get started, here are our tips on how to build your cannabis extraction facility:

Plan and prepare for Cannabis Extraction

If you want to avoid falling flat on your face, you should take every step to ensure that you have researched everything there is to know about opening up an extraction operation. First and foremost, you should start by finding out the requirements of your state.

Understanding and fully comprehending seed to sale compliance is extremely vital for anyone that intends to work in the cannabis business. Some of the other components that you will need to plan and prepare for include:

  • Picking a municipality. Base this decision on allowed solvents, solvent limits, tax rates, price per square foot, etc.
  • Securing a location that will pass all the zoning laws so that it can be both approved by the state and your city.
  • Choosing certified extraction equipment
  • Purchasing a compliant C1D1 Extraction Room
  • Deciding on what extraction equipment you will need
  • Consulting with a cannabis consultant can help you make the most viable decisions for the success of your business.
  • Creating cannabis standard operating procedures that are efficient, safe, and compliant.

Pick the best extraction method

The extraction method that you select may not even be up to you as the state may already have rules in place. For instance, some states allow hydrocarbons while others restrict the use of volatile solvents. Generally, you will have to choose between solvent and non-solvent methods so you should know your options before you make the wrong decision.

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Cannabis permitting and licensing

Ocean Grown Agency, LLC knows cannabis permitting and licensing.

Extraction can be extremely dangerous and when safety parameters have not been put in place, it can result in disastrous consequences. To protect yourself and your employees, always put safety first. Please use certified equipment, a C1D1 Extraction Booth, and always follow NFPA 1 chapter 38. Additionally, you should minimize your loss (because something is bound to go wrong) by investing in insurance and by planning ahead.

If you have any other questions about permitting, licensing, or business planning for a cannabis extraction facility. Fill out the form below or reach out to us at 510-421-9021. We are business owners dedicated to sharing our knowledge.

 
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