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I was shocked that my many searches didn't bring up anything!
We all know which way the wind is blowing, it's pretty obvious by the size of the operations people are building and ...operating.
When things get beyond a certain size, you can't pay for it all by yourself, especially up front. What is the best way to set things up for investors?
In my case there are 3 parties involved: The Store (Legal Retail Entity), The Grower (The Talent/Me), and The Investors (The Money).
Who Pays for what?
Who covers power, who covers labor, who covers the trim bill?
What should a profit split look like?
What has been proposed to me is:
Money (note, NOT PROFIT) will be split 50% to the store, 25% to the grower (ME), 25% to the investors.
I don't feel I should pay labor, but I wanted to ask around first before I got too greedy. I am in Los Angeles, this will be my first operation in a commercial space, I have operated out of homes for the past 7ish years with a 50/50 split with partners. (They cover costs, I only provide my services, we split trim fees)
Thanks for the help farmers!
We all know which way the wind is blowing, it's pretty obvious by the size of the operations people are building and ...operating.
When things get beyond a certain size, you can't pay for it all by yourself, especially up front. What is the best way to set things up for investors?
In my case there are 3 parties involved: The Store (Legal Retail Entity), The Grower (The Talent/Me), and The Investors (The Money).
Who Pays for what?
Who covers power, who covers labor, who covers the trim bill?
What should a profit split look like?
What has been proposed to me is:
- The Store pays for Electricity, Nutes, Gas/CO2
- The Grower Pays for Labor (Basically they want a product at the end, no headache)
- The investors own the building and charge NO rent
Money (note, NOT PROFIT) will be split 50% to the store, 25% to the grower (ME), 25% to the investors.
I don't feel I should pay labor, but I wanted to ask around first before I got too greedy. I am in Los Angeles, this will be my first operation in a commercial space, I have operated out of homes for the past 7ish years with a 50/50 split with partners. (They cover costs, I only provide my services, we split trim fees)
Thanks for the help farmers!