It can be highly profitable, but only when:

• You build in a market with sustainable pricing and realistic competition
• Your financial model aligns facility size, yields, and costs with actual demand
• Your CapEx and OpEx are tightly controlled, and you hit the efficiency targets in your model

Poor site selection, over-building, weak SOPs, and lax cost control are the fastest ways to turn a promising facility into a break-even or loss-making operation. Your financial model should show clear EBITDA and cash-flow projections before you commit capital.

A Standard Operating Procedure (SOP) is a detailed, step-by-step document that explains exactly how to perform a task, such as:

• Taking cuttings
• Mixing nutrients
• Scouting for pests
• Harvesting and hanging plants
• Cleaning and sanitizing rooms

Good SOPs are:

• Clear and repeatable
• Tied to training and onboarding
• Version-controlled and audit-ready

They are the backbone of consistent quality and compliance.

While this hub focuses on cultivation facilities, many of the same planning principles apply to dispensaries:

A dispensary business plan should include:

• Market and competitive analysis
• Licensing and regulatory pathway
• Store concept, location strategy, and design
• Product sourcing (cultivation, wholesalers, brands)
• Staffing and operations plan
• Marketing and brand strategy
• Financial model with revenue, cost, and EBITDA projections

Even if your main focus is cultivation, your facility’s financial model should consider how your product moves downstream—whether to your own dispensary, partner retailers, or export markets.

At a high level, starting a grow operation looks like this:

• Validate the business case with a full financial model and business plan.
• Choose your license and jurisdiction, understanding local rules and taxes.
• Select a site with suitable zoning, utilities, and expansion room.
• Design the facility—layout, HVAC, fertigation, lighting, and workflows.
• Raise capital and secure permits based on your business plan and design package.
• Build, commission, and validate all systems.
• Develop and implement SOPs for all cultivation and post-harvest processes.
• Train your team, run pilot cycles, and optimize based on data.

This entire hub is structured to walk you through those steps in order.

Profitability depends heavily on your market, regulations, and execution, but broadly:

Cultivation

Cultivation can be very profitable when yields, quality, and costs are optimized—especially in newer markets or where you have brand differentiation and export opportunities.

Processing / extraction

Processing / extraction can be attractive where there is abundant biomass and strong demand for concentrates, vapes, and derivative products.

Retail / dispensaries

Retail / dispensaries can generate strong margins in limited-license markets.

Ancillary services

Ancillary services (consulting, software, equipment) often have lower regulatory risk and scalable margins.

The common thread: businesses with tight financial modeling, efficient operations, and strong compliance tend to outperform.