CANNABIS TESTING LABORATORY BUSINESS PLAN

[Micheal Alexander]

Cannabis testing laboratory business is by far the smallest segment of the industry when measured by number of companies. But the work labs perform is critical from a health and safety perspective, as these companies test for everything from pesticides to potency. Lab-tested cannabis is a requirement in nearly every state that regulates marijuana businesses, though no federal or industrywide standards exist. Cannabis Business

Startup costs are often higher for testing companies vs. other cannabis businesses, however operational costs much lower making it easier to turn a profit. A testing equipment will cost approximately $700,000 depending on productivity.

Additional costs include but aren’t limited to buildings, licensing, or the infrastructure, materials and wages for chemists and laboratory technicians that will be needed to operate that equipment. Commercial cannabis extraction

Cannabis Testing Techniques

For the past two years, a majority of testing lab survey participants have indicated high- pressure liquid chromatography is their primary testing method, and that holds true this year as well. While it is still the most prevalent technique, the portion of companies that utilize high-pressure liquid chromatography has fallen from 63% last year to 50% this year.