How to Enter the Cannabis Extraction Industry

Aside from cannabis cultivation and retail, cannabis extraction is emerging as one of the premier branches of the cannabis industry.

Cannabis extraction facilities are essential in making all kinds of cannabis products, with the most important being THC oil and CBD oil. From that point onward, the oils can be concentrated and put into other products.

With more and more countries legalizing marijuana, the interest in cannabis extraction is rising. Let’s take a look at everything you need to know to land firmly in the extraction business. Follow these guidelines and your business will have every chance to succeed.

Choose an extraction method

There are different extraction methods available, but the most popular are CO2 extraction and butane-based machinery. What’s the difference then? CO2 extraction is the safest and fastest method of extracting oil from cannabis, but it’s also the most expensive.

You require a lot more equipment to make the entire process work. Oil synthesized through CO2 extraction is generally the purest and healthiest in comparison to other methods.

Butane-based extraction has its advantages as well. Cannabis concentrates extracted using this method have more expressed terpenes and are more potent than other extracts.

What’s more, butane extraction also allows brands to sell a variety of different cannabis products. You can alter the taste and effects. However, butane-based machinery is very unsafe for use. Explosions can easily occur if you aren’t careful.

There is also the significant risk of there being residual solvents, with some of them being potentially toxic. Our advice would be to opt for CO2 extraction. It may require a bigger investment, but it’s safer for you, your employees and your product will possess a higher quality.

A detailed cannabis extraction plan

We know how annoying it is to plan a business project. It’s obvious that you’re eager to get started with cannabis extraction, but a business concept is essential. It provides your business with a clear basis that you can use to develop.

Organize a lot of meetings with other investors, associates or employees and put everything on paper. Don’t rely on memory because you’re going to need that information very soon.

Cover everything. Determine the size and look of your extraction lab. Research equipment manufacturers and ask around to get the best option. This is also important from a legal perspective. Many states require you to have a detailed business concept before you apply. Don’t forget about all the different processing rooms and packaging facilities.

Where to start with cannabis extraction?

Next thing on the list to take care of is the location. This part of the process requires the council of a lawyer who is specialized in the cannabis industry. Research different laws from state to state.

Cross-reference that with your business goals and plans to see which location would be the best for your cannabis extraction business. Even if some states have lax extraction laws, some municipalities might forbid such facilities.

Another factor in choosing the location is geography. You need constant access to raw materials and a location that is convenient enough for transporting, storing. NEVER commit to a real estate before you get all the permissions needed to start your business.

Be patient. Arrange a deal with the owner of the facility to add a clause to the contract that voids it if your licensing gets rejected or revoked. This decision might end up saving millions of dollars.

Be informed about all the licensing requirements

Before you embark on a journey to start your cannabis extraction business, read everything there is to know about licensing in the area you’ve chosen.

Requirements might vary from one municipality to another, so it’s important to be careful. Knowing everything in detail is a great way to leave a good impression on the application committee. Hire a lawyer that is knowledgeable about local cannabis extraction laws.

Keep in mind that legal cannabis is still a novelty to most city officials. They might not have a grasp of even the basic laws. It’s up to you to know your rights, the requirements and the limitations.

Finding the right employees

To find the right people for the job, you need to have a clear-cut business plan and ideas that will actually function.

You won’t be able to attract people who are truly experts in the industry if your business plan is not specific and if your project isn’t interesting enough. For starters, you need a group of engineers, an extraction equipment manufacturer, along with a designer and an architect.

Don’t forget that the extraction industry is still fairly new, meaning that truly specialized people are a rarity. Before you officially start, provide mandatory training to your staff so that you can ensure the workflow will be sufficient. Efficiency and compliance with the rules are of the utmost importance.

Covering the equipment

Don’t be tardy and order every bit of equipment before you even start constructing the lab. By doing this, you’re saving valuable time and ensuring that you will start as soon as possible. There are many cannabis extraction equipment vendors. What makes a good one?

Consider the price, the warranty and the overall reputation of the company. If a successful extraction lab is using a certain brand, there is a high chance that you can achieve the same with such equipment.

After you install everything, do a personal inspection first. When you’re done, you need to call a state-certified engineer that is well-versed in extraction labs. You need his approval to have your lab start working properly.

Due to a large number of applications for cannabis extraction facilities, getting an inspection might take a few months. Be patient and prepare the lab to be fit for the inspection.

Concluding thoughts

Entering the world of cannabis extraction is fascinating as the times are very favoring. Once you’re in, it’s about to be a wild ride. Save enough funds for a marketing budget and never stop promoting your products. Stay creative and inspired.

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